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

Determined female African-American entrepreneur scaling a mountain while wearing a large backpack. Represents the journey to starting and growing a business and needing to write a business plan to get there.

Noah Parsons

24 min. read

Updated February 2, 2024

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

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

  • The basics of 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

What’s your biggest business challenge right now?

  • 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: How to collaborate with AI on your 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 you need to cover in a business plan sometimes isn’t quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

If you’re looking for a free downloadable business plan template to get you started, 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.

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Content Author: Noah Parsons

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

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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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The 7 Best Business Plan Examples (2024)

So you want to start a business . Kudos! You’re doing big things.

One of the first steps to building a strong foundation for your new venture is to write a rock-solid business plan . When done right, your business plan can pave your path to success, all while helping you to smoothly cruise through any obstacles that may come up.

Plus, a good business plan can help you secure critical partnerships and funding that you might need in your early stages.

If you’re unsure how to write one, a great place to start is to learn from the pros. In this article, we’ll look at companies that built incredible business plans.

Take notes on the structure, format, and details. Hopefully you’ll leave with plenty of inspiration to write your own.

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7-part template for business plan examples

We’ll look at a business plan that is structured using a seven-part template. Here’s a quick review of those parts:

  • Executive summary: A quick overview of your business and the contents of your business plan.
  • Company description: More info about your company, its goals and mission, and why you started it in the first place.
  • Market analysis: Research about the market and industry your business will operate in, including a competitive analysis about the companies you’ll be up against.
  • Products and services: A detailed description of what you’ll be selling to your customers.
  • Marketing plan: A strategic outline of how you plan to market and promote your business before, during, and after your company launches into the market.
  • Logistics and operations plan: An explanation of the systems, processes, and tools that are needed to run your business in the background.
  • Financial plan: A map of your short-term (and even long-term) financial goals and the costs to run the business. If you’re looking for funding, here’s the place to discuss your request and needs.

7 business plan examples (section by section)

In this section, you’ll find hypothetical and real-world examples of each aspect of a business plan to show you how the whole thing comes together. 

  • Executive summary

Your executive summary offers a high-level overview of the rest of your business plan. You’ll want to include a brief description of your company, market research, competitor analysis, and financial information.  

In ThoughtCo’s sample business plan for a fictional company called Acme Management Technology, the executive summary is three paragraphs and occupies nearly half the page:

business plan executive summary

  • Company description

You might go more in-depth with your company description and include the following sections:

  • Nature of the business. Mention the general category of business you fall under. Are you a manufacturer, wholesaler, or retailer of your products?
  • Background information. Talk about your past experiences and skills, and how you’ve combined them to fill in the market. 
  • Business structure. This section outlines how you registered your company —as a corporation, sole proprietorship, LLC, or other business type.
  • Industry. Which business sector do you operate in? The answer might be technology, merchandising, or another industry.
  • Team. Whether you’re the sole full-time employee of your business or you have contractors to support your daily workflow, this is your chance to put them under the spotlight.

You can also repurpose your company description elsewhere, like on your About page, Instagram page, or other properties that ask for a boilerplate description of your business. Hair extensions brand Luxy Hair has a blurb on its About page that could easily be repurposed as a company description for its business plan. 

company description business plan

  • Market analysis

Market analysis comprises research on product supply and demand, your target market, the competitive landscape, and industry trends. You might do a SWOT analysis to learn where you stand and identify market gaps that you could exploit to establish your footing. Here’s an example of a SWOT analysis we did for a hypothetical ecommerce business: 

marketing swot example

You’ll also want to run a competitive analysis as part of the market analysis component for your business plan. This will show you who you’re up against and give you ideas on how to gain an edge over the competition. 

  • Products and services

This part of your business plan describes your product or service, how it will be priced, and the ways it will compete against similar offerings in the market. Don’t go into too much detail here —a few lines are enough to introduce your item to the reader.

original business plan

  • Marketing plan

Potential investors will want to know how you’ll get the word out about your business. As such, it’s essential to build a marketing plan that highlights the promotion and customer acquisition strategies you’re planning to adopt. 

Most marketing plans focus on the four Ps: product, price, place, and promotion. However, it’s easier when you break it down by the different marketing channels . Mention how you intend to promote your business using blogs, email, social media, and word-of-mouth marketing. 

Here’s an example of a hypothetical marketing plan for a real estate website:

marketing section template for business plan

Logistics and operations

This section of your business plan provides information about your production, facilities, production, equipment, shipping and fulfillment, and inventory.

Financial plan

The financial plan (a.k.a. financial statement) offers a breakdown of your sales, revenue, expenses, profit, and other financial metrics. You’ll want to include all the numbers and concrete data to project your current and projected financial state. For example, the financial statement for ecommerce brand Nature’s Candy includes forecasted revenue, expenses, and net profit in graphs.

financial plan example

It then goes deeper into the financials, citing:

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

You can use Shopify’s financial plan template to create your own income statement, cash-flow statement, and balance sheet. 

Types of business plan (and what to write for each)

A one-page business plan is a pared down version of a standard business plan that’s easy for potential investors and partners to understand. You’ll want to include all of the sections, but make sure they’re abbreviated and summarized.

  • Logistics and operations plan
  • Financials 

A startup business plan is meant to secure outside funding for a new business. Typically, there’s a big focus on the financials, as well as other sections that help determine the viability of your business idea —market analysis, for example. Shopify has a great business plan template for startups that include all the below points.

  • Market research: in depth
  • Financials: in depth

Internal 

Your internal business plan acts as the enforcer of your company’s vision. It reminds your team of the long-term objective and keeps them strategically aligned toward the same goal.

  • Market research

Feasibility 

A feasibility business plan is essentially a feasibility study that helps you evaluate whether your product or idea is worthy of a full business plan. 

Mix and match to make a killer business plan

The good news is: there’s no single right way to write a business plan. If you’re feeling unsure about how to craft yours, pull bits and pieces that you like from other examples, and leave out the parts that don’t apply or make sense for you.

The important thing is to clearly communicate your reason for starting the company, what’s needed to operate it, and how you plan to make it work in the long run.

When you can convince others that you have a killer game plan, you’ve nailed it.

Want to learn more?

  • Question: Are You a Business Owner or an Entrepreneur?
  • Bootstrapping a Business: 10 Tips to Help You Succeed
  • Entrepreneurial Mindset: 20 Ways to Think Like an Entrepreneur
  • 101+ Best Small Business Software Programs 

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How to make a business plan

Strategic planning in Miro

Table of Contents

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

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

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

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

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

What is a business plan?

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

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

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

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

Business plan vs. business model canvas

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

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

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

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

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

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

Why is a business plan important?

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

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

Helps to define the business goals and objectives

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

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

Guides decision-making

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

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

Attracts investors and secures funding

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

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

Identifies potential challenges and risks

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

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

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

Provides a basis for measuring success

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

Are we where we want to be at this point?

Did we achieve our goals?

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

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

How to make a business plan step by step

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

1. Create an executive summary

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

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

2. Write your company description

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

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

3. Conduct a market analysis

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

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

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

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

4. Describe your products and services

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

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

5. Design a marketing and sales strategy

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

Pricing strategy

Advertising and promotional tactics

Sales channels

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

6. Determine budget and financial projections

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

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

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

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

8. Make an action plan

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

Types of business plans

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

Startup business plan

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

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

Strategic business plan

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

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

Operational business plan

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

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

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

Growth-business plan

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

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

One-page business plan

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

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

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

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

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

Be practical

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

Be specific

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

Be thorough with your research

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

Get input from others

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

Review and revise regularly

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

Create a winning business plan to chart your path to success

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

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

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

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How to Write a Business Plan (Plus Examples & Templates)

  • 3 years ago

Have you ever wondered how to write a business plan step by step? Mike Andes, told us: 

This guide will help you write a business plan to impress investors.

Throughout this process, we’ll get information from Mike Andes, who started Augusta Lawn Care Services when he was 12 and turned it into a franchise with over 90 locations. He has gone on to help others learn how to write business plans and start businesses.  He knows a thing or two about writing  business plans!

We’ll start by discussing the definition of a business plan. Then we’ll discuss how to come up with the idea, how to do the market research, and then the important elements in the business plan format. Keep reading to start your journey!

What Is a Business Plan?

A business plan is simply a road map of what you are trying to achieve with your business and how you will go about achieving it. It should cover all elements of your business including: 

  • Finding customers
  • Plans for developing a team
  •  Competition
  • Legal structures
  • Key milestones you are pursuing

If you aren’t quite ready to create a business plan, consider starting by reading our business startup guide .

Get a Business Idea

Before you can write a business plan, you have to have a business idea. You may see a problem that needs to be solved and have an idea how to solve it, or you might start by evaluating your interests and skills. 

Mike told us, “The three things I suggest asking yourself when thinking about starting a business are:

  • What am I good at?
  • What would I enjoy doing?
  • What can I get paid for?”

If all three of these questions don’t lead to at least one common answer, it will probably be a much harder road to success. Either there is not much market for it, you won’t be good at it, or you won’t enjoy doing it. 

As Mike told us, “There’s enough stress starting and running a business that if you don’t like it or aren’t good at it, it’s hard to succeed.”

If you’d like to hear more about Mike’s approach to starting a business, check out our YouTube video

Conduct Market Analysis

Market analysis is focused on establishing if there is a target market for your products and services, how large the target market is, and identifying the demographics of people or businesses that would be interested in the product or service. The goal here is to establish how much money your business concept can make.

Product and Service Demand

A search engine is your best friend when trying to figure out if there is demand for your products and services. Personally, I love using presearch.org because it lets you directly search on a ton of different platforms including Google, Youtube, Twitter, and more. Check out the screenshot for the full list of search options.

With quick web searches, you can find out how many competitors you have, look through their reviews, and see if there are common complaints about the competitors. Bad reviews are a great place to find opportunities to offer better products or services. 

If there are no similar products or services, you may have stumbled upon something new, or there may just be no demand for it. To find out, go talk to your most honest friend about the idea and see what they think. If they tell you it’s dumb or stare at you vacantly, there’s probably no market for it.

You can also conduct a survey through social media to get public opinion on your idea. Using Facebook Business Manager , you could get a feel for who would be interested in your product or service.

 I ran a quick test of how many people between 18-65  you could reach in the U.S. during a week. It returned an estimated 700-2,000 for the total number of leads, which is enough to do a fairly accurate statistical analysis.

Identify Demographics of Target Market

Depending on what type of business you want to run, your target market will be different. The narrower the demographic, the fewer potential customers you’ll have. If you did a survey, you’ll be able to use that data to help define your target audience. Some considerations you’ll want to consider are:

  • Other Interests
  • Marital Status
  • Do they have kids?

Once you have this information, it can help you narrow down your options for location and help define your marketing further. One resource that Mike recommended using is the Census Bureau’s Quick Facts Map . He told us,  

“It helps you quickly evaluate what the best areas are for your business to be located.”

How to Write a Business Plan

Now that you’ve developed your idea a little and established there is a market for it, you can begin writing a business plan. Getting started is easier with the business plan template we created for you to download. I strongly recommend using it as it is updated to make it easier to create an action plan. 

Each of the following should be a section of your business plan:

  • Business Plan Cover Page
  • Table of Contents
  • Executive Summary
  • Company Description
  • Description of Products and Services

SWOT Analysis

  • Competitor Data
  • Competitive Analysis
  • Marketing Expenses Strategy 

Pricing Strategy

  • Distribution Channel Assessment
  • Operational Plan
  • Management and Organizational Strategy
  • Financial Statements and/or Financial Projections

We’ll look into each of these. Don’t forget to download our free business plan template (mentioned just above) so you can follow along as we go. 

How to Write a Business Plan Step 1. Create a Cover Page

The first thing investors will see is the cover page for your business plan. Make sure it looks professional. A great cover page shows that you think about first impressions.

A good business plan should have the following elements on a cover page:

  • Professionally designed logo
  • Company name
  • Mission or Vision Statement
  • Contact Info

Basically, think of a cover page for your business plan like a giant business card. It is meant to capture people’s attention but be quickly processed.

How to Write a Business Plan Step 2. Create a Table of Contents

Most people are busy enough that they don’t have a lot of time. Providing a table of contents makes it easy for them to find the pages of your plan that are meaningful to them.

A table of contents will be immediately after the cover page, but you can include it after the executive summary. Including the table of contents immediately after the executive summary will help investors know what section of your business plan they want to review more thoroughly.

Check out Canva’s article about creating a  table of contents . It has a ton of great information about creating easy access to each section of your business plan. Just remember that you’ll want to use different strategies for digital and hard copy business plans.

How to Write a Business Plan Step 3. Write an Executive Summary

An executive summary is where your business plan should catch the readers interest.  It doesn’t need to be long, but should be quick and easy to read.

Mike told us,

How long should an executive summary bein an informal business plan?

For casual use, an executive summary should be similar to an elevator pitch, no more than 150-160 words, just enough to get them interested and wanting more. Indeed has a great article on elevator pitches .  This can also be used for the content of emails to get readers’ attention.

It consists of three basic parts:

  • An introduction to you and your business.
  • What your business is about.
  • A call to action

Example of an informal executive summary 

One of the best elevator pitches I’ve used is:

So far that pitch has achieved a 100% success rate in getting partnerships for the business.

What should I include in an executive summary for investors?

Investors are going to need a more detailed executive summary if you want to secure financing or sell equity. The executive summary should be a brief overview of your entire business plan and include:

  • Introduction of yourself and company.
  • An origin story (Recognition of a problem and how you came to solution)
  • An introduction to your products or services.
  • Your unique value proposition. Make sure to include intellectual property.
  • Where you are in the business life cycle
  • Request and why you need it.

Successful business plan examples

The owner of Urbanity told us he spent 2 months writing a 75-page business plan and received a $250,000 loan from the bank when he was 23. Make your business plan as detailed as possible when looking for financing. We’ve provided a template to help you prepare the portions of a business plan that banks expect.

Here’s the interview with the owner of Urbanity:

When to write an executive summary?

Even though the summary is near the beginning of a business plan, you should write it after you complete the rest of a business plan. You can’t talk about revenue, profits, and expected expenditures if you haven’t done the market research and created a financial plan.

What mistakes do people make when writing an executive summary?

Business owners commonly go into too much detail about the following items in an executive summary:

  • Marketing and sales processes
  • Financial statements
  • Organizational structure
  • Market analysis

These are things that people will want to know later, but they don’t hook the reader. They won’t spark interest in your small business, but they’ll close the deal.

How to Write a Business Plan Step 4. Company Description

Every business plan should include a company description. A great business plan will include the following elements while describing the company:

  • Mission statement
  • Philosophy and vision
  • Company goals

Target market

  • Legal structure

Let’s take a look at what each section includes in a good business plan.

Mission Statement

A mission statement is a brief explanation of why you started the company and what the company’s main focus is. It should be no more than one or two sentences. Check out HubSpot’s article 27 Inspiring Mission Statement for a great read on informative and inspiring mission and vision statements. 

Company Philosophy and Vision

The company philosophy is what drives your company. You’ll normally hear them called core values.  These are the building blocks that make your company different. You want to communicate your values to customers, business owners, and investors as often as possible to build a company culture, but make sure to back them up.

What makes your company different?

Each company is different. Your new business should rise above the standard company lines of honesty, integrity, fun, innovation, and community when communicating your business values. The standard answers are corporate jargon and lack authenticity. 

Examples of core values

One of my clients decided to add a core values page to their website. As a tech company they emphasized the values:

  •  Prioritize communication.
  •  Never stop learning.
  •  Be transparent.
  •  Start small and grow incrementally.

These values communicate how the owner and the rest of the company operate. They also show a value proposition and competitive advantage because they specifically focus on delivering business value from the start. These values also genuinely show what the company is about and customers recognize the sincerity. Indeed has a great blog about how to identify your core values .

What is a vision statement?

A vision statement communicate the long lasting change a business pursues. The vision helps investors and customers understand what your company is trying to accomplish. The vision statement goes beyond a mission statement to provide something meaningful to the community, customer’s lives, or even the world.

Example vision statements

The Alzheimer’s Association is a great example of a vision statement:

A world without Alzheimer’s Disease and other dementia.

It clearly tells how they want to change the world. A world without Alzheimers might be unachievable, but that means they always have room for improvement.

Business Goals

You have to measure success against goals for a business plan to be meaningful. A business plan helps guide a company similar to how your GPS provides a road map to your favorite travel destination. A goal to make as much money as possible is not inspirational and sounds greedy.

Sure, business owners want to increase their profits and improve customer service, but they need to present an overview of what they consider success. The goals should help everyone prioritize their work.

How far in advance should a business plan?

Business planning should be done at least one year in advance, but many banks and investors prefer three to five year business plans. Longer plans show investors that the management team  understands the market and knows the business is operating in a constantly shifting market. In addition, a plan helps businesses to adjust to changes because they have already considered how to handle them.

Example of great business goals

My all time-favorite long-term company goals are included in Tesla’s Master Plan, Part Deux . These goals were written in 2016 and drive the company’s decisions through 2026. They are the reason that investors are so forgiving when Elon Musk continually fails to meet his quarterly and annual goals.

If the progress aligns with the business plan investors are likely to continue to believe in the company. Just make sure the goals are reasonable or you’ll be discredited (unless you’re Elon Musk).

You did target market research before creating a business plan. Now it’s time to add it to the plan so others understand what your ideal customer looks like. As a new business owner, you may not be considered an expert in your field yet, so document everything. Make sure the references you use are from respectable sources. 

Use information from the specific lender when you are applying for lending. Most lenders provide industry research reports and using their data can strengthen the position of your business plan.

A small business plan should include a section on the external environment. Understanding the industry is crucial because we don’t plan a business in a vacuum. Make sure to research the industry trends, competitors, and forecasts. I personally prefer IBIS World for my business research. Make sure to answer questions like:

  • What is the industry outlook long-term and short-term?
  • How will your business take advantage of projected industry changes and trends?
  • What might happen to your competitors and how will your business successfully compete?

Industry resources

Some helpful resources to help you establish more about your industry are:

  • Trade Associations
  • Federal Reserve
  • Bureau of Labor Statistics

Legal Structure

There are five basic types of legal structures that most people will utilize:

  • Sole proprietorships
  • Limited Liability Companies (LLC)

Partnerships

Corporations.

  • Franchises.

Each business structure has their pros and cons. An LLC is the most common legal structure due to its protection of personal assets and ease of setting up. Make sure to specify how ownership is divided and what roles each owner plays when you have more than one business owner.

You’ll have to decide which structure is best for you, but we’ve gathered information on each to make it easier.

Sole Proprietorship

A sole proprietorship is the easiest legal structure to set up but doesn’t protect the owner’s personal assets from legal issues. That means if something goes wrong, you could lose both your company and your home.

To start a sole proprietorship, fill out a special tax form called a  Schedule C . Sole proprietors can also join the American Independent Business Alliance .

Limited Liability Company (LLC)

An LLC is the most common business structure used in the United States because an LLC protects the owner’s personal assets. It’s similar to partnerships and corporations, but can be a single-member LLC in most states. An LLC requires a document called an operating agreement.

Each state has different requirements. Here’s a link to find your state’s requirements . Delaware and Nevada are common states to file an LLC because they are really business-friendly. Here’s a blog on the top 10 states to get an LLC.

Partnerships are typically for legal firms. If you choose to use a partnership choose a Limited Liability Partnership. Alternatively, you can just use an LLC.

Corporations are typically for massive organizations. Corporations have taxes on both corporate and income tax so unless you plan on selling stock, you are better off considering an LLC with S-Corp status . Investopedia has good information corporations here .

There are several opportunities to purchase successful franchises. TopFranchise.com has a list of companies in a variety of industries that offer franchise opportunities. This makes it where an entrepreneur can benefit from the reputation of an established business that has already worked out many of the kinks of starting from scratch.

How to Write a Business Plan Step 5. Products and Services

This section of the business plan should focus on what you sell, how you source it, and how you sell it. You should include:

  • Unique features that differentiate your business products from competitors
  • Intellectual property
  • Your supply chain
  • Cost and pricing structure 

Questions to answer about your products and services

Mike gave us a list  of the most important questions to answer about your product and services:

  • How will you be selling the product? (in person, ecommerce, wholesale, direct to consumer)?
  • How do you let them know they need a product?
  • How do you communicate the message?
  • How will you do transactions?
  • How much will you be selling it for?
  • How many do you think you’ll sell and why?

Make sure to use the worksheet on our business plan template .

How to Write a Business Plan Step 6. Sales and Marketing Plan

The marketing and sales plan is focused on the strategy to bring awareness to your company and guides how you will get the product to the consumer.  It should contain the following sections:

SWOT Analysis stands for strengths, weaknesses, opportunities, and threats. Not only do you want to identify them, but you also want to document how the business plans to deal with them.

Business owners need to do a thorough job documenting how their service or product stacks up against the competition.

If proper research isn’t done, investors will be able to tell that the owner hasn’t researched the competition and is less likely to believe that the team can protect its service from threats by the more well-established competition. This is one of the most common parts of a presentation that trips up business owners presenting on Shark Tank .

SWOT Examples

Examples of strengths and weaknesses could be things like the lack of cash flow, intellectual property ownership, high costs of suppliers, and customers’ expectations on shipping times.

Opportunities could be ways to capitalize on your strengths or improve your weaknesses, but may also be gaps in the industry. This includes:

  • Adding offerings that fit with your current small business
  • Increase sales to current customers
  • Reducing costs through bulk ordering
  • Finding ways to reduce inventory
  •  And other areas you can improve

Threats will normally come from outside of the company but could also be things like losing a key member of the team. Threats normally come from competition, regulations, taxes, and unforeseen events.

The management team should use the SWOT analysis to guide other areas of business planning, but it absolutely has to be done before a business owner starts marketing. 

Include Competitor Data in Your Business Plan

When you plan a business, taking into consideration the strengths and weaknesses of the competition is key to navigating the field. Providing an overview of your competition and where they are headed shows that you are invested in understanding the industry.

For smaller businesses, you’ll want to search both the company and the owners names to see what they are working on. For publicly held corporations, you can find their quarterly and annual reports on the SEC website .

What another business plans to do can impact your business. Make sure to include things that might make it attractive for bigger companies to outsource to a small business.

Marketing Strategy

The marketing and sales part of business plans should be focused on how you are going to make potential customers aware of your business and then sell to them.

If you haven’t already included it, Mike recommends:

“They’ll want to know about Demographics, ages, and wealth of your target market.”

Make sure to include the Total addressable market .  The term refers to the value if you captured 100% of the market.

Advertising Strategy

You’ll explain what formats of advertising you’ll be using. Some possibilities are:

  • Online: Facebook and Google are the big names to work with here.
  • Print : Print can be used to reach broad groups or targeted markets. Check out this for tips .
  • Radio : iHeartMedia is one of the best ways to advertise on the radio
  • Cable television : High priced, hard to measure ROI, but here’s an explanation of the process
  • Billboards: Attracting customers with billboards can be beneficial in high traffic areas.

You’ll want to define how you’ll be using each including frequency, duration, and cost. If you have the materials already created, including pictures or links to the marketing to show creative assets.

Mike told us “Most businesses are marketing digitally now due to Covid, but that’s not always the right answer.”

Make sure the marketing strategy will help team members or external marketing agencies stay within the brand guidelines .

This section of a business plan should be focused on pricing. There are a ton of pricing strategies that may work for different business plans. Which one will work for you depends on what kind of a business you run.

Some common pricing strategies are:

  • Value-based pricing – Commonly used with home buying and selling or other products that are status symbols.
  • Skimming pricing – Commonly seen in video game consoles, price starts off high to recoup expenses quickly, then reduces over time.
  • Competition-based pricing – Pricing based on competitors’ pricing is commonly seen at gas stations.
  • Freemium services –  Commonly used for software, where there is a free plan, then purchase options for more functionality.

HubSpot has a great calculator and blog on pricing strategies.

Beyond explaining what strategy your business plans to use, you should include references for how you came to this pricing strategy and how it will impact your cash flow.

Distribution Plan

This part of a business plan is focused on how the product or service is going to go through the supply chain. These may include multiple divisions or multiple companies. Make sure to include any parts of the workflow that are automated so investors can see where cost savings are expected and when.

Supply Chain Examples

For instance, lawn care companies  would need to cover aspects such as:

  • Suppliers for lawn care equipment and tools
  • Any chemicals or treatments needed
  • Repair parts for sprinkler systems
  • Vehicles to transport equipment and employees
  • Insurance to protect the company vehicles and people.

Examples of Supply Chains

These are fairly flat supply chains compared to something like a clothing designer where the clothes would go through multiple vendors. A clothing company might have the following supply chain:

  • Raw materials
  • Shipping of raw materials
  • Converting of raw materials to thread
  • Shipping thread to produce garments
  • Garment producer
  • Shipping to company
  • Company storage
  • Shipping to retail stores

There have been advances such as print on demand that eliminate many of these steps. If you are designing completely custom clothing, all of this would need to be planned to keep from having business disruptions.

The main thing to include in the business plan is the list of suppliers, the path the supply chain follows, the time from order to the customer’s home, and the costs associated with each step of the process.

According to BizPlanReview , a business plan without this information is likely to get rejected because they have failed to research the key elements necessary to make sales to the customer.

How to Write a Business Plan Step 7. Company Organization and Operational Plan

This part of the business plan is focused on how the business model will function while serving customers.  The business plan should provide an overview of  how the team will manage the following aspects:

Quality Control

  • Legal environment

Let’s look at each for some insight.

Production has already been discussed in previous sections so I won’t go into it much. When writing a business plan for investors, try to avoid repetition as it creates a more simple business plan.

If the organizational plan will be used by the team as an overview of how to perform the best services for the customer, then redundancy makes more sense as it communicates what is important to the business.

Quality control policies help to keep the team focused on how to verify that the company adheres to the business plan and meets or exceeds customer expectations.

Quality control can be anything from a standard that says “all labels on shirts can be no more than 1/16″ off center” to a defined checklist of steps that should be performed and filled out for every customer.

There are a variety of organizations that help define quality control including:

  • International Organization for Standardization – Quality standards for energy, technology, food, production environments, and cybersecurity
  • AICPA – Standard defined for accounting.
  • The Joint Commission – Healthcare
  • ASHRAE – HVAC best practices

You can find lists of the organizations that contribute most to the government regulation of industries on Open Secrets . Research what the leaders in your field are doing. Follow their example and implement it in your quality control plan.

For location, you should use information from the market research to establish where the location will be. Make sure to include the following in the location documentation.

  • The size of your location
  • The type of building (retail, industrial, commercial, etc.)
  • Zoning restrictions – Urban Wire has a good map on how zoning works in each state
  • Accessibility – Does it meet ADA requirements?
  • Costs including rent, maintenance, utilities, insurance and any buildout or remodeling costs
  • Utilities – b.e.f. has a good energy calculator .

Legal Environment

The legal requirement section is focused on defining how to meet the legal requirements for your industry. A good business plan should include all of the following:

  • Any licenses and/or permits that are needed and whether you’ve obtained them
  • Any trademarks, copyrights, or patents that you have or are in the process of applying for
  • The insurance coverage your business requires and how much it costs
  • Any environmental, health, or workplace regulations affecting your business
  • Any special regulations affecting your industry
  • Bonding requirements, if applicable

Your local SBA office can help you establish requirements in your area. I strongly recommend using them. They are a great resource.

Your business plan should include a plan for company organization and hiring. While you may be the only person with the company right now, down the road you’ll need more people. Make sure to consider and document the answers to the following questions:

  • What is the current leadership structure and what will it look like in the future?
  • What types of employees will you have? Are there any licensing or educational requirements?
  • How many employees will you need?
  • Will you ever hire freelancers or independent contractors?
  • What is each position’s job description?
  • What is the pay structure (hourly, salaried, base plus commission, etc.)?
  • How do you plan to find qualified employees and contractors?

One of the most crucial parts of a business plan is the organizational chart. This simply shows the positions the company will need, who is in charge of them and the relationship of each of them. It will look similar to this:

Our small business plan template has a much more in-depth organizational chart you can edit to include when you include the organizational chart in your business plan.

How to Write a Business Plan Step 8. Financial Statements 

No business plan is complete without financial statements or financial projections. The business plan format will be different based on whether you are writing a business plan to expand a business or a startup business plan. Let’s dig deeper into each.

Provide All Financial Income from an Existing Business

An existing business should use their past financial documents including the income statement, balance sheet, and cash flow statement to find trends to estimate the next 3-5 years.

You can create easy trendlines in excel to predict future revenue, profit and loss, cash flow, and other changes in year-over-year performance. This will show your expected performance assuming business continues as normal.

If you are seeking an investment, then the business is probably not going to continue as normal. Depending on the financial plan and the purpose of getting financing, adjustments may be needed to the following:

  • Higher Revenue if expanding business
  • Lower Cost of Goods Sold if purchasing inventory with bulk discounts
  • Adding interest if utilizing financing (not equity deal)
  • Changes in expenses
  • Addition of financing information to the cash flow statement
  • Changes in Earnings per Share on the balance sheet

Financial modeling is a challenging subject, but there are plenty of low-cost courses on the subject. If you need help planning your business financial documentation take some time to watch some of them.

Make it a point to document how you calculated all the changes to the income statement, balance sheet, and cash flow statement in your business plan so that key team members or investors can verify your research.

Financial Projections For A Startup Business Plan

Unlike an existing business, a startup doesn’t have previous success to model its future performance. In this scenario, you need to focus on how to make a business plan realistic through the use of industry research and averages.

Mike gave the following advice in his interview:

Financial Forecasting Mistakes

One of the things a lot of inexperienced people use is the argument, “If I get one percent of the market, it is worth $100 million.” If you use this, investors are likely to file the document under bad business plan examples.

Let’s use custom t-shirts as an example.

Credence Research estimated in 2018 there were 11,334,800,000 custom t-shirts sold for a total of $206.12 Billion, with a 6% compound annual growth rate.

With that data,  you can calculate that the industry will grow to $270 Billion in 2023 and that the average shirt sold creates $18.18 in revenue.

Combine that with an IBIS World estimate of 11,094 custom screen printers and that means even if you become an average seller, you’ll get .009% of the market.

Here’s a table for easier viewing of that information.

The point here is to make sure your business proposal examples make sense.

You’ll need to know industry averages such as cost of customer acquisition, revenue per customer, the average cost of goods sold, and admin costs to be able to create accurate estimates.

Our simple business plan templates walk you through most of these processes. If you follow them you’ll have a good idea of how to write a business proposal.

How to Write a Business Plan Step 9. Business Plan Example of Funding Requests

What is a business plan without a plan on how to obtain funding?

The Small Business Administration has an example for a pizza restaurant that theoretically needed nearly $20k to make it through their first month.

In our video, How to Start a $500K/Year T-Shirt Business (Pt. 1 ), Sanford Booth told us he needed about $200,000 to start his franchise and broke even after 4 months.

Freshbooks estimates it takes on average 2-3 years for a business to be profitable, which means the fictitious pizza company from the SBA could need up to $330k to make it through that time and still pay their bills for their home and pizza shop.

Not every business needs that much to start, but realistically it’s a good idea to assume that you need a fairly large cushion.

Ways to get funding for a small business

There are a variety of ways to cover this. the most common are:

  • Bootstrapping – Using your savings without external funding.
  • Taking out debt – loans, credit cards
  • Equity, Seed Funding – Ownership of a percentage of the company in exchange for current funds
  • Crowdsourcing – Promising a good for funding to create the product

Keep reading for more tips on how to write a business plan.

How funding will be used

When asking for business financing make sure to include:

  • How much to get started?
  • What is the minimum viable product and how soon can you make money?
  • How will the money be spent?

Mike emphasized two aspects that should be included in every plan, 

How to Write a Business Plan Resources

Here are some links to a business plan sample and business plan outline. 

  • Sample plan

It’s also helpful to follow some of the leading influencers in the business plan writing community. Here’s a list:

  • Wise Plans –  Shares a lot of information on starting businesses and is a business plan writing company.
  • Optimus Business Plans –  Another business plan writing company.
  • Venture Capital – A venture capital thread that can help give you ideas.

How to Write a Business Plan: What’s Next?

We hope this guide about how to write a simple business plan step by step has been helpful. We’ve covered:

  • The definition of a business plan
  • Coming up with a business idea
  • Performing market research
  • The critical components of a business plan
  • An example business plan

In addition, we provided you with a simple business plan template to assist you in the process of writing your startup business plan. The startup business plan template also includes a business model template that will be the key to your success.

Don’t forget to check out the rest of our business hub .

Have you written a business plan before? How did it impact your ability to achieve your goals?

Brandon Boushy

Brandon Boushy lives to improve people’s lives by helping them become successful entrepreneurs. His journey started nearly 30 years ago. He consistently excelled at everything he did, but preferred to make the rules rather than follow him. His exploration of self and knowledge has helped him to get an engineering degree, MBA, and countless certifications. When freelancing and rideshare came onto the scene, he recognized the opportunity to play by his own rules. Since 2017, he has helped businesses across all industries achieve more with his research, writing, and marketing strategies. Since 2021, he has been the Lead Writer for UpFlip where he has published over 170 articles on small business success.

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How to write a great business plan

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Looking to jump into the entrepreneurial world, but don’t know where to start? You’re in the right place.

You’ve probably already come to the conclusion that you can’t improvise when running a business. That’s why before you launch your company , you need to take the time to refine the scope of your business project.

Just having a good idea doesn’t guarantee having a successful business in the long-term. You also need to do some market research, build out your business offer and positioning, define your marketing strategy, and calculate your running costs and potential revenue.

This key preparatory phase comes together in the form of a very important document: a business plan .

A business plan is the end result of all the groundwork you’ll have done for your project. It recaps all the essential considerations and steps you need to take. It will also help prove your company’s financial viability to potential business partners and investors.

What does it need to contain, exactly? And what are some best practices for building out a convincing business plan?

Our guide tells you everything you need to know.

What is a business plan?

A business plan is a detailed document that outlines all the key aspects of your future company , notably:

  • the project itself;
  • the team associated with the project ;
  • the state of the market , target customers and their needs ;
  • the company goals and overall planned strategy ;
  • financing plans ;
  • a detailed financial forecast , generally over a period of three years.

Why is it important to create a business plan?

Creating a business plan for your entrepreneurial project is important for two main reasons:

On one hand, it helps get buy-in from potential business partners . That is its primary function. If you’re looking for financing for your project, you’ll inevitably be asked for your business plan. It’s also highly possible that you’ll be asked to present it to a number of external parties, like:

  • the State, or regional and local public funds;
  • future associates;
  • business angels (i.e. people looking to invest in startups or other innovative enterprises with high growth potential).

On the other hand, a business plan helps you refine the scope of your project. By thoroughly committing your plan to paper, you get real clarity by structuring your ideas and setting out a concrete strategy.

What’s in a business plan?

As important as it is, a business plan is not a legal instrument or act (like company statutes, for example). Therefore there is no specific formality to follow, nor are there mandatory legal mentions to add to your paperwork.

However, your business plan needs to be coherent and well-structured . It’s generally made up of 5 or 6 parts , each relating back to an overarching theme.

This document needs to be precise enough to show your plan is well thought out but succinct enough to keep your potential investors engaged. A business plan should really not be more than 30 pages long . It’s a fine balance.

Part one of the business plan: the executive summary (presentation pitch)

The executive summary is a summary of your project. This section is one to two pages long, maximum. It includes:

  • your business offer;
  • your target clients and market;
  • your values, the meaning of your project - the “why”;
  • your short- and medium-term goals for the business’ growth.

The reader should immediately be able to grasp the major takeaways of your business project. The rest of the document serves to elaborate on those points, one by one.

It’s important to note that the executive summary is probably the most important part of your business plan because it’s what is going to catch and keep the reader’s attention and get them to want to know more about your company . Be sure to give this section special attention because it’s what’s going to make a great first impression.

It may seem counter-intuitive, but you may want to write up your executive summary last. You’ll have fully fleshed out the primary concepts of your business plan and have a better vision of the key points to cover come drafting time.

Part two of the business plan: presenting your product or services

Now it’s time to present the product(s) or service(s) your business offers in full detail. In other words, what you’ll be selling.

Don’t just describe your product. Be sure to outline:

  • its usefulness , its benefits ;
  • the needs it addresses , the problems   it solves;
  • its edge over competitors’ products;
  • its positioning, its price.

Try to avoid using overly complex terms or other similar jargon. If your product is technical, you can use a table or an illustration to present it. You need to consider that not everyone that will be reviewing this document has a mind for your specific industry.

Part three of the business plan: presenting the team

This part of the business plan is very often overlooked. And it’s a shame because without humans, there is no company . It’s the team that effectively makes the project - a point that’s not lost on investors.

In this section you’re meant to take a moment to describe the members of your team, and more precisely:

  • their professional background;
  • their skills;
  • what motivates them;
  • their role and the degree to which they contribute to the project.

You can also indicate who the director of the company is, as well as the reasoning behind the choice.

It’s important to show how each team member plays their part in supporting the project . Show how well everyone collaborates with one another, and how deliberately everyone was chosen towards that end. Each team member brings unique value to the company through their expertise and skills.

Of course, we’re not just talking about the company associates. Depending on the type of project, you may also want to present:

  • your employees;
  • hired consultants (like a CPA, for example);
  • and generally speaking anyone who actively participates in the project.

Running a solo business? Don’t skip this section of your business plan. Take the time to illustrate your background, your professional experience, and what motivates you. In other words, show how you   are meant to be spearheading this project.

At this stage in your business plan it’s important to stay focused on the essential points and only bring up what is directly relevant to your project. Mind that you don’t overwhelm your reader with unnecessary information.

Part four of the business plan: presenting your business model

A business model  is meant to show exactly how your company is meant to make a profit . It answers the fundamental question: how are you going to sell your product?

In order to do that, your business model has to outline:

  • what you intend to sell;
  • your target market and audience;
  • how you mean to sell your product;
  • what your intended profit margin is.

Don’t confuse the business plan with the business model. As you can already see, they’re two very different concepts.

To answer these questions you need to highlight:

  • the key takeaways from your market research

Normally you’d conduct market research before you write out your business plan. Doing this allows you to suss out your target clientele and their needs, identify your competitors, and become aware of the potential risks and opportunities inherent to your particular industry. You’re able to share the results of this research in the form of concrete numbers you’ll have collected along the way.

At this stage in the business plan, it might be a good idea to shed some light on possible project constraints, i.e. any elements that could slow down or complicate the running of your business (seasonal slowdowns, for example). This will show your readers that you’ve considered every angle and that you’ve planned for just about every scenario. This helps head off any possible objections from your reader.

  • the planned marketing strategy

Alas, simply offering a good product isn’t enough to guarantee its success. This is where good marketing strategy comes in. Here you need to detail all the different means of communication you’re planning to set up to increase the visibility of your brand (advertisements, content marketing, influence marketing…).

This action plan will vary according to your business goals, your target customer as well as your industry.

Part five of the business plan: presenting the financial plan

Your business plan also needs to include a financial plan (or financing plan) for the next three coming years .

In other words, you need to be able to somewhat accurately estimate your running costs, your revenue and your break-even point .

The break-even point is the revenue you would need your business to make to start turning a profit.

This section needs to also deal with how you intend to finance your business. At the bare minimum you need to be able to answer the following questions:

  • What kind of financing can I get for my project (personal equity, investors)?
  • What are the first investments I need to make to get my business up and running (buying stock, machines, tools…)?
  • What is my overhead?

It goes without saying that you can’t just randomly come up with these numbers. They need to come from in-depth research.

Your plan should be made up of four main parts. Each of these parts needs to be presented as a financial table.

  •  A provisional profit and loss statement . This covers the incoming and outgoing cashflow over the next three fiscal years.
  •  A balance sheet forecast . This helps you ascertain the state of your business’ assets at the close of a given financial year.
  •  A financing plan . This helps you determine whether you have the necessary financing to launch your business.
  •  A cash flow plan . This estimates the flow of your finances over a shorter time period, usually 12 months.

Your reader needs to walk away from this section with all the information they need to determine the financial stability of your business project. Bonus: it helps you better anticipate your cashflow and manage your finances .

Part six of the business plan: presenting the legal aspects of the project

This section of your business plan involves laying out all your company’s legal details, in particular:

  • your legal status and the reason behind the choice;
  • how much share capital your company has, with a breakdown of each associate’s ownership interest;
  • how your company profits will be taxed.

4 tips for writing a convincing business plan

Best practice 1: keep it easy to read.

While there aren’t any hard and fast rules on how to write out your business plan, it’s still important to pay close attention to formatting.

Be sure to clearly structure  your files with each part clearly labeled so the reader can easily find their way around.

The writing ought to be neat and effortless to read . Better to avoid long-winded paragraphs and use shorter, more succinct phrasing to make it easier on the eyes. In the same way, you can use page formatting to break up the information into more “digestible” chunks with bullet points, bold and colors - not to mention it’s helpful for highlighting key information.

And lastly, including visuals in your business plan makes it more dynamic, and therefore more interesting. You can add diagrams, tables, graphs, and illustrations to clarify your ideas. It makes it that much easier to understand, which in turn makes it easier to understand your overall business project.

There are plenty of business plan templates online to help inspire you.

Best practice 2: know your audience

Over the course of your entrepreneurial project you’re very likely to present your business plan to a variety of interested parties. This is why, ideally, you should draft several versions of your business plan that vary according to the reader . Don’t worry, you don’t have to start from scratch: just shift the angle of your executive summary.

Here are some examples.

  • For a public investor like the State or a regional government body, it helps to emphasize your business’ favorable impact on the community.
  • As for a business angel, try to showcase how innovative your company is - it goes a long way.

Best practice 3: update your business plan regularly

Your business plan shouldn’t be a document that’s set in stone. On the contrary, it should evolve over time as your business develops and the market changes. Update it regularly. Never share a business plan that has obsolete numbers, lest you run the risk of making a bad first impression with investors (even if the rest of your file looks great).

Best practice 4: surround yourself with professionals

Unless you have an existing background in finance, building out a strong business plan isn’t an easy feat. Thankfully there are plenty of experts out there whose sole purpose is to help you succeed in this respect:

  • the company creation center at the Chamber of Commerce and Industry ( la chambre du commerce et de l’industrie or CCI) ;
  • incubators (for innovative businesses);
  • or even other entrepreneurs in your network .

It’s always wise to have someone outside your company look over your business plan before you “take it to market”. They’ll be able to give you constructive feedback so you’re sure your file is clear and concise for whoever should read it.

You should now have everything you need to write your business plan. The next step? Creating your company . With Qonto, you can deposit your share capital online and receive your digital deposit certificate within 72 hours.

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Prêt ? Partez.

original business plan

How to Check in on Your Original Business Plan

Any prospective franchisee or small business owner has to develop a business plan for their new entrepreneurial vision. But what may be less obvious is the need to periodically check in with the original plan for the purpose of reviewing your goals for success. You might be surprised by the sheer number of people who put in backbreaking work to create a workable business plan, utilize it to drive the funding required, then put it on a shelf, allowing dust to gather.

What good is that?

It’s easy to get completely consumed by the details of running a day-to-day business operation, especially when you first start out. Everything is new, everything is exciting, your staff has begun to settle in and customers are coming through the door. This is what you want, that excitement of owning and operating a franchise of your own. You might think you’d turn to your original business plan only in times of crisis. What am I doing wrong? Why are my projections off? But in both cases of success or challenges, there is value in updating your plan based on what you’re seeing in the trenches.

Compelling Reasons to Review Your Original Plan

1. Get Inspired – First, it can be invigorating to check in with your original business plan. It should get you fired up about what drew you to the business proposition in the first place. Reviewing your plans, objectives, and projections should take you back to that ambitious feeling you had at the outset of your entrepreneurial journey. Don’t be surprised if going over your numbers reinvigorates your desire to succeed and even surpass your original outlook.

2. Evaluate Your Progress – Second, you can use the business plan review as an exercise in evaluating your key performance indicators as a measure of your success at periodic times. Some of the questions you may want to revisit include:

  • Am I meeting my customer’s needs as outlined in my original thoughts? How could I improve their experience?
  • How is my math? Do my projected numbers line up with my actual income? If not, why not?
  • What type of fundamental adjustments can I make to refresh the plan, aligning it with what I’m seeing?
  • Are any external factors hindering my growth or progress that I didn’t initially take into consideration?

Answering these and other questions can go a long way towards ensuring a consistent review of your hard-working efforts.

Another avenue in this review process is the introduction of a business coach or mentor to help give you an unbiased opinion of how well your original business plan is matching up with your current operation. It doesn’t necessarily have to be someone you hire out of the Yellow Pages, but rather a friend or relative who also is a business owner. It would most likely turn out to be a meaningful exchange for you and a flattering request for them. The entrepreneurial journey doesn’t need to be a solo exercise.

Checking in periodically with your business plan and making sure that your ducks are in a row is a useful exercise. You’ve no doubt heard the phrase, “stick to the plan.” Well, it’s true. Your personal business plan is your road map to success and we could all benefit from a glance or two every now and then.

Need Help Reviewing Your Business Plan?

Let’s chat! There’s a local FranNet consultant who knows your market inside and out – knows the personality of the market – knows the competitive landscape. FranNet has a great track record of assisting individuals on their path to entrepreneurship, and one of our franchise experts would love to provide you with guidance free of charge. Sound like something you might be interested in?  Get started here  and find your local consultant right now!

Jul 20, 2017

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Need a Business Plan Template? Here Is Apple's 1981 Plan for the Mac. If you want to write a business plan, Apple's plans for the Macintosh can help.

By Matthew McCreary • Jun 11, 2018

Business plans are often composed of four parts. There is typically an executive summary, a marketing plan, a management team description and a breakdown of company finances. When Apple's Joanna Hoffman created the preliminary business plan for the original Macintosh in 1981 (available in full here ), she added one more part: open issues.

If you're looking for a business plan template you can use to outline your product or service, you probably can't find a better business to emulate than Apple. Here is a breakdown of what Apple covered in its 29-page document.

Related: How to Create a Marketing Plan

1. Apple Product Overview

The point of an executive summary is to succinctly describe a large amount of material without making people read too much. The quicker you can get others to understand your offering's value, the better off you'll be. Hoffman summarizes the Mac's unique value with just four charts and two paragraphs.

The Mac's premise was simple -- most companies sold computers in four price brackets:

  • $500 or less
  • $501 to $1,500
  • $1,500 to $3,000
  • $3,000 to $5,000 (or more)

However, the first two brackets were reserved for handheld or low-performing devices. With the Macintosh, Apple planned to create a computer in the second bracket while still maintaining high-quality hardware and software.

original business plan

Here's what Hoffman wrote in the Mac's executive summary: "I currently know of no products being developed by competition for Band 2 (unfortunately this doesn't mean there arn't [sic] any!). One would expect serious business customers will move up to Band 4 and the job of Macintosh and VLC is to migrate the remaining Band 3 customers to Band 2, leaving Band 3 manufacturers out in the cold!!"

In other words, Hoffman was unaware of any high-functioning computers being sold in the second price bracket -- from $500 to $1,500 -- where Apple planned to position its Macintosh. Most brands sold computers instead for somewhere between $1,500 and $3,000, which Apple considered the third bracket. Its plan was to create an accessible, affordable computer for less than $1,500 (the Mac) and an ultra-powerful option for more than $3,000 (the LISA).

That way, users had their choice of computers and Apple avoided direct competition with other computers in the same price range.

Related: How to Write a Business Plan

2. Macintosh Markets and Software Ranking

Hoffman opened the second section of the Mac's business plan with a simple, but important, statement: "The advantage of a product line is that each individual product does not have to do everything."

The Macintosh did not need to have identical capabilities to its other offerings, like the powerful-but-expensive LISA, because those who preferred more functionality could simply buy the LISA instead.

original business plan

That's why Apple played up the Mac's differences in its marketing plans. In mock posters, Apple labeled the Mac as "LISA's little brother."

You can see how Apple chose to emphasize Mac's differences from LISA in the famous 1984 Super Bowl commercial, three years after Apple created its preliminary business plan. In an interview with Bloomberg , Lee Clow (one of the creatives on the ad) explains how the ad was meant to show that computers were finally accessible to everyone, and not just for Big Brother or the elite.

In its business plan, Apple also broke down how the lower cost and accessibility could affect three marketplaces:

  • For the office: "Every day, more managers rely on computers to help perform their functions effectively and efficiently. MAC makes it possible for any manager to experience the automated office with minimum investment of time and money. MAC will be a rewarding first computer experience."
  • For education: "As Word Processors are replacing typewriters in the real world, students need to learn word processing, not just typing. MAC will help the students of the '80s learn the tools of the '80s and prepare Computer Literate students for colleges and employment."
  • For the home: "The family Macintosh facilitates management of personal finances and records, makes it possible to take advantage of convenient services such as home banking and home shopping. MAC also provides Entertainment and Education for every member of the family."

Look at the language in these statements -- you see words like "any" and "every." You see that Apple means to help "the students of the '80s" -- not some students or most , but all of them. In each case, Apple positioned the Mac to be available to more people than ever before.

Related: Outline of a Sample Business Plan

3. Macintosh Organization, Staffing and Budget

original business plan

Some companies choose to separate the Staffing and Budget sections, but Apple chose to combine them in its Mac business plan. In large part, this is because Apple's staffing decisions affected its budget so heavily.

In July of 1981, when Hoffman wrote and Steve Jobs approved the preliminary Mac business plan, there were 28 employees working on the project. By December, the company estimated there would be 63. As a result, a large portion of the Macintosh operating expenses were tied up in paychecks.

In this section of its business plan, Apple also broke down the cost of making a Macintosh ($397), how much it would cost to distribute the products, and the potential operating profit.

original business plan

Apple broke down the operating profit for a variety of different price points, from offering the Macintosh for $995 all the way up to its projected price point of $1495. That way, it could understand how much it should sell the Macs for in order to make the maximum profit and stay in the black.

Related: Sample Business Plans

4. Open Issues

Apple's preliminary business plan hadn't solved every potential problem the Macintosh would face. However, in its final section, the company did lay out the major challenges ahead. They were:

  • "Europe has not been given much consideration yet."
  • "We are designing our packaging to accept a door-less disk drive only. ... Should we be taking this risk?"
  • "Who will manufacture Macintosh?"
  • "Is our schedule realistic?"
  • "How do we get PCS to feel a 'part' of the Macintosh?"

Note the fourth issue in particular. Apple wondered whether its 1982 release date was overly optimistic. Given that the Macintosh was actually released two years later, in 1984, clearly there was cause for concern. But, Apple's business plan allowed for the company to foresee that and react accordingly.

Related: Use These 5 Steps to Create a Marketing Plan

The Apple Macintosh business plan template

Apple's early business plan helped organize its efforts for the Macintosh, and the Macintosh has helped revolutionize the computer industry.

That isn't to say everything went exactly according to plan. The first part of the Macintosh business plan was an overview of the product, or an executive summary. It explained how the Macintosh would be more affordable than any of its competitors. In the second part of the business plan, which explained the company's marketing plans, you can see how Apple planned to market the Macintosh as a computer for the people. This idea was then clearly executed in its 1984 Super Bowl ad.

However, due to the marketing costs, Apple ended up selling the Macintosh for $2,495 -- well over its intended price. The third section of the business plan broke down the company's organization, staffing plans and budget, placing Jobs at the top of the Macintosh's organization chart. However, just a year after the first Macintosh was released, Jobs resigned from Apple and started NeXT.

Those were massive setbacks, but life happens. Apple and Joanna Hoffman knew that when they put together the business plan, and that's why the fourth and final section asked questions that Macintosh needed to address before its launch.

When you're writing your own business plan, you don't have to do everything Apple did. You probably shouldn't, in fact. But, you can use this plan as a template to organize your thoughts. You can even use it as inspiration to admit you don't know everything. Clearly, not even Apple knew the future.

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Honest Advice on Business Planning

November 5, 2018 //  by  Rhonda Abrams

Excerpted from  Entrepreneurship: A Real-World Approach, 2nd Ed ,  now available

Challenge :  Identify the opportunities and challenges when launching a new business

Solution :   Develop a business plan to help navigate the new company on the sometimes bumpy road to success

Two thirsty guys walk into a supermarket. No, that’s not the beginning of a joke. It was the beginning of Honest Tea, a groundbreaking maker of bottled, low-sugar organic tea. What began on a kitchen counter with a guy mixing up some drink concoctions today is a company selling bottled beverages in approximately 100,000 stores across the U.S.

Like many great start-up stories, Honest Tea began when the founders faced a problem. Seth Goldman was an active, health-oriented guy who couldn’t find bottled beverages that met his needs. He wanted something healthy and refreshing. He preferred something organic. Most of all, he didn’t want all the sugar that was in super-sweet storebought beverages, like soft drinks.

Goldman shared his problem with Barry Nalebuff, his former professor at the Yale School of Management, who was also tired of super-sweet storebought beverages. During an interview on NPR , Nalebuff said, “What we realized is that there was a whole group of people like Seth and myself who were being left out of the market.”( 1)

So, in 1998, Goldman and Nalebuff decided to create a nonalcoholic beverage business—making and selling low-sugar alternative drinks for people like them, using real ingredients. They had evidently hit on an unmet need because soon after Goldman created a prototype of his organic, low-sugar tea, the duo had their first order: for 15,000 bottles.

Yikes. Sometimes good news is too good. They quickly had to figure out not only how to make organic, low-sugar bottled tea in large quantities (discovering problems like the tea becoming cloudy in the bottle), but they also had to think through the issues of starting a rapidly growing business.

What did they do? Goldman got serious. He deleted the solitaire program from his computer—so he wouldn’t get distracted—and started developing a business plan for their fledgling company. You can see and download their original business plan on their website at. www.honesttea.com/about-us/our-story

The original Honest Tea business plan covers everything—the product, the target market, marketing and distribution, management, financials and investment opportunity (not shown online), and more. The concrete details show that Goldman and Nalebuff did their homework and asked themselves some tough questions.

They paid a lot of attention to their target market, and in researching their plan, Goldman and Nalebuff found that the market for soda alternatives—ready-to-drink tea and bottled water—was undergoing explosive growth. They also profiled their target customer: 60 percent female, with a median age of 42, college educated, active, middle-class, and living in an urban area. Details like these help a company create its core marketing message, narrow down which retail stores to pursue, and determine the size of the opportunity—something investors want to know.

Somewhat unusual at that time, Honest Tea’s original business plan also included a “Statement and aspirations for social responsibility.” By working with its suppliers, the young company vowed to improve the environmental and labor conditions of the tea estates from which it sourced its ingredients. After two decades in business, the company’s teas are now all Fair Trade Certified, helping to ensure that workers on tea gardens receive a fair share of profits and have decent workplace standards. And, by buying huge quantities of organic ingredients—nearly 7 million pounds in 2014—the company believes they’ve helped change an industry while improving the environment.

How big did the opportunity turn out to be? In 2015, sales reached arecord $178 million. One of their customers was President Barack Obama, who stocked Honest Tea as his favorite drink while in the White House.

In 2008, Coca-Cola invested a 40 percent stake in the company, and bought it three years later, with Goldman at the helm as CEO. Today, Honest Tea is run as an independent unit of the bottling giant yet benefits from Coca-Cola’s distribution power.

As with any business, there were bumps along that road to success. But bumps are easier to deal with when you have a business plan to guide you through them.

Could the company that Goldman and Nalebuff launched with humble beginnings like these have reached such impressive success without having developed a business plan? To be honest, it’s doubtful. Yes, it takes a good idea, a great team, timing, and more, to launch a successful business. But without a roadmap, how do you know where you’re going?

These two men already knew a lot about business, of course. Nalebuff was a Yale Management professor, after all, and Golden had earned a Yale MBA and had worked in finance. For less-seasoned entrepreneurs, business planning becomes even more   important. Yet the process doesn’t have to be a daunting one. The planning helps an entrepreneur work through the many facets of their business and create a roadmap to their goals—and to success.

1. How does business planning help an entrepreneur when starting a business?

2. When do you think business planning is most crucial? Do you think it’s necessary only when starting a business?

3. What sections of a business plan do you think are the most important? Why?

4. What risks or rewards (if any) did Honest Tea face by including social responsibility in its business plan?

1. “ Honest Tea Founders Tell Their Story of Not-Too-Sweet Success .” NPR.org .   Aug 30, 2013.

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70 Small Business Ideas for Anyone Who Wants to Run Their Own Business

Meg Prater (she/her)

Published: July 31, 2023

A good business idea may seem hard to come by, but with some planning and preparation, you can easily launch a small business to supplement your income — or become your own full-time boss.

Small business ideas symbolically showing the spirit of a small business

Maybe you already have an idea of the business you’d like to start. But while you might feel ready for a new venture and passionate about your idea, you might be looking for some direction.

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To help get you started, here's a list of small business ideas separated into a few sections:

Best Small Business Ideas

Best businesses to start with little money, home business ideas, easy businesses to start, how to start a small business at home.

The first step to becoming a successful entrepreneur is finding a business idea that works for you. In this article, you’ll find dozens of small business ideas you can start from home and scale up as your clientele grows. Let’s get started.

original business plan

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Fill out this form to build your business plan today., what makes a good small business idea.

Not all small business ideas are made equal: Some require more effort and funding than others, while some can be launched with few resources — or resources you already have. As a potential small business owner, you’ll want to save as much money as possible on training, rent, supplies, and other necessities.

Let’s go over what makes a good business idea:

  • Requires little to no training . A good small business idea will ideally leverage your existing field of expertise and require little to no training. That will not only shorten your time-to-launch, but also lessen your expenses, since training courses can cost a significant amount of money. Plus, you’ll be more confident offering services that you feel prepared to deliver.
  • Requires low setup costs. Your business should be cheap to start. Maybe you only need to purchase a website domain or buy a desk for your garage.
  • Requires little hands-on inventory or supply management . A great business idea needs few supplies and little inventory management. If you want to sell physical goods, you can either try drop-shipping and manually make goods in small batches.
  • Is based online . The best small business ideas are based online and can be carried out from your personal computer. This will automatically lower your commuting costs and give you greater flexibility over your personal and work life.
  • Can sustainably be managed by few people . As a small business owner, you won’t have the funds to hire other people to help you run your business — at least not at first. A good business idea should give you the ability to run your business on your own.

Airbnb Co-founder, Brian Chesky, said, "If we tried to think of a good idea, we wouldn’t have been able to think of a good idea. You just have to find the solution for a problem in your own life."

If you’re like Brian and you’ve already thought about a solution for a problem you encounter in your life — or you’re on the path to doing so — then starting a small business may be in your future. It may also be for you if you dream of clocking out of your nine-to-five job for the last time and becoming your own boss.

Below, we include the absolute best ideas for you to start your small business — with resources and examples to help you get started.

1. Handyman

small business idea example: handyman

Image Source

Are you always fixing things around the house? Often on-call when friends need small projects completed? Create a website , conduct a competitive analysis to determine what your time and expertise are worth, and turn to the friends you’ve helped before for referrals.

A handyman business is a good idea if you’ve already built a robust set of skills to help others fix up their homes. Consider specializing in what you feel well-prepared to do — for instance, if you know your way underneath a sink and water system, then you might provide sink fixing services to start, then expand your offerings once you earn more skills.

No certifications are needed to become a handyman, and there are no special education requirements. You might need, however, a license if you’re planning to undertake jobs worth more than a certain dollar amount. Some states might not require this license.

To start your handyman business, we recommend the following resources:

  • Handyman License Requirements by State
  • The Most Requested Handyman Services
  • Association of Certified Handyman Professionals

2. Woodworker

Similarly, if you have a passion for crafting beautiful furniture or other home goods out of wood, that could be a small business niche for you. Get started by listing a few of your pieces on sites like Etsy . Once you build a following, consider starting a website, accepting custom orders, or expanding to refinishing work and upholstery.

A woodworker small business is ideal if you already have a passion for woodworking, as well as the tools to begin fulfilling orders as they begin to come in. Since delivering a well-made product is key to keeping your customers happy, you don’t want to be “training” as you create a custom shelf or a custom storage box. It’s recommended to have at least one year of experience as a woodworking apprentice.

To start a woodworking business, there are no special education requirements, but there are a wide range of woodworking training certifications online, so we suggest starting with a certification. The Woodwork Institute , YesTomorrow , and The School of Fine Woodworking are potential places to start.

3. Online Dating Consultant

Dating consultants usually charge for their time. They help people create successful online dating profiles, source possible matches from outside the typical online channels, and offer a level of personalization that a site like Tinder can’t. Think you’ve got a knack for the match? This might be the business for you.

Online dating consultants need to have strong communication and interpersonal skills, as well as heightened levels of empathy. The good news is that there are no special education or licensure requirements, though we recommend getting a certification such as IAP College’s relationship coach certification or Hart Academy’s online dating coach certificate .

To start an online dating consultant business, you’ll need a website that shares all about you and offers free dating resources your customers might benefit from. Once they download a resource, you can loop them in for a free consultation.

4. Sewing and Alteration Specialist

small business idea example: sewing and alterations

People will always need clothing hemmed and buttons mended — and you could be the person to do it. If you love sewing and have a sewing machine at home, start by offering simple services like those mentioned above and expand your repertoire to dressmaking and design as you build a customer base and demand.

You don’t need a special license or degree to begin a sewing and alterations business, but it’s essential to build your skills so you can take on more complicated projects. High-value clients will want to customize complicated items of clothing such as suits, pants, gowns, and dresses. That’s where you’ll see the highest potential for profits.

Altering these items require special skills, however. A few courses you might consider include:

  • International Open Academy's Tailoring Course for Beginners
  • Jackson Sewing Academy’s Basic Alterations Course
  • American Bespoke Tailoring Academy’s Programs

You’ll also need to shop for sewing supplies of all colors to accommodate your clients.

5. Freelance Developer

From building websites for other small businesses to providing technical support for certain projects, quality web development is in high demand right now. As a web developer, you'll naturally have a technical skill set. Distill your knowledge and expertise so customers who don't have your experience are able to understand what it is you'll be helping them achieve.

To help with this, test your messaging on friends and family who don’t have a firm understanding of the work you do. If they’re able to summarize what you do, your messaging is likely effective among people outside of your industry. You can start finding your first freelance contracts by visiting different freelance websites .

Unlike a few other options in this list, a freelance developer does need some training to launch a successful business and start taking on projects, but if you’re a beginner, don’t worry. There are plenty of boot camps to get you up to speed with either full-stack or front-end web development. Some of these boot camps are even offered through accredited tech schools.

Some boot camps you might consider include:

  • Coding Dojo
  • Fullstack Academy
  • Georgia Institute of Technology Coding Boot Camp

These vary in price, so be sure to do extensive research to find one that fits you and your budget.

6. Personal Trainer

Offer in-home consultations, personalized nutrition and exercise regimens, and community boot camps to get the word out. Don’t forget to populate an Instagram feed with inspirational quotes, free exercise videos, and yummy snack ideas as well — it’s a common way for fitness gurus to build their brands in our digital world.

If you choose to go this route, it’s OK to start small at first, then scale up. For instance, MOURfit is a personal training business in Indianapolis that started in a shared gym, then grew to a private gym that offers group fitness, personal training, and nutrition services.

To start a personal training business, you’ll need a certification. If you already earned a degree in an unrelated discipline, we recommend starting with the NASM-CPT certification , which is nationally accredited and only requires a high school diploma or GED. You can also get a Bachelor’s degree in physical and exercise science — here’s one example from Emory & Henry College .

7. Freelance Graphic Designer

Set your own hours, choose your projects, and build a portfolio and business you’re proud of. From website design to blog graphics and more, many companies seek out experienced graphic designers for support on a variety of projects.

The good news? There are no special education requirements for becoming a freelance graphic designer, though we recommend seeking a credential (like SAIC’s graphic design certificate or RISD’s graphic design certificate ) or an Associate’s degree in design so you can confidently present your portfolio and complete your first few projects.

If you’re just starting out with graphic design, try these tips and tricks that are ideal for beginners. If you’re more experienced but need to build your portfolio to attract clients, these prompts will get your creativity flowing in no time. We also recommend reviewing other people’s work on portfolio websites to get a feel for what is “trendy” and receive feedback as you grow your small business.

Free Download: How to Hire and Work with Freelancers

8. Life/ Career Coach

If you have experience navigating career, personal, and social transitions successfully, put it to good use as a life or career coach. Many of us are looking for guidance in our careers — and finding someone with the time to mentor us can be tough.

Life/career coaches don’t come cheap, but they are able to offer clients the intense and hands-on training and advice they need to make serious moves in their personal and professional lives. After all, everyone needs some uplifting advice from time to time.

To start your life/career coaching business with confidence, you can look for a certification program (like the Life Coach School’s or Diane Hudson’s ), then apply your skills as you acquire new clients.

small business idea example: Career Coach Nariah Broadus

A resume writing business is economical, has few overhead costs, and has few educational requirements. We still recommend having an Associate’s or Bachelor’s degree and a few resume samples on hand. If you still feel that you need to brush up on your resume writing skills, you can take a course like Coursera’s or LinkedIn Learning’s .

Once you’ve gotten resume writing down, you can expand your business to include cover letter writing, and even offer career coaching services in conjunction with these services.

10. Freelance Writer

If you have writing skills , there’s someone out there willing to pay you for them. Write blog posts, magazine articles, and website copy galore — just make sure you have a body of work built up to share with potential clients. Even if you create a few sample pieces to have on hand, they’ll help exhibit your work and attract new business.

To become a freelance writer, it’s essential to choose a specialty. For instance, you might choose to only write for publications in the healthcare industry (maybe because you were previously a healthcare worker), or focus on lifestyle publications. Whatever the case, specializing will help you find your niche market and gain confidence as a new freelancer writer.

There are no educational requirements to freelance writing, but you do need strong writing skills. It also helps to enjoy writing. While a certification may beneficial, getting practice and writing every day is more important. Try these writing prompts to start.

11. Landscaper

Mowing, tree-trimming, and seasonal decor are all neighborhood needs. If you have or can acquire the equipment, a landscaping business can be a lucrative affair. It’s also a great choice if you enjoy doing it for your own home and have a good eye for landscape design.

The good news is that you can start small. For instance, you could offer your neighbors seasonal planting services and start with a few perennial plants, or simply offer mulching services.

To grow your landscaping business, you should consider taking some formal training. The following organizations offer courses:

  • New York Botanical Gardens

After completing a course and getting enough experience, you can apply for a certificate from a landscaping organization. While a certificate isn’t necessary to work in the field, it can build your credentials and help you make industry connections to take your landscaping business to the next level. The Association of Professional Landscape Designers offers one potential certificate you could pursue.

Some states require licensure, especially if you’ll be using pesticides and fertilizers. Be sure to review the requirements for your state.

Learn some of the basics now with this video on landscape design from Lowe’s:

12. Videographer

Video production requires you to have invested in the equipment up front, which can be quite expensive. But that’s also what makes your services so valuable. Make sure you have a reel of your work to share or create a website with several selections of your work available for interested viewers.

There are no educational or licensure requirements for starting a video production business. As with writing and other creative arts, though, it pays to specialize. Real estate videos differ radically from wedding videos, and wedding videos differ radically from in-studio interviews and testimonials. By specializing, you target a highly specific customer who’ll benefit the most from your services, and you can also skill-up more effectively in one shooting style.

While you can find general classes on videography, you should consider taking a class in the type of videography you’d like to do. For instance, you could take The Complete Wedding Videography Course , if that’s the route you’d like to take.

Hot tip: If you’re interested in specializing in video marketing, check out The Ultimate Guide to Video Marketing and download our starter pack below.

→ Access Now: Video Marketing Starter Pack [Free Kit]

13. Photographer

Start by conducting photo shoots for your family and friends. As you build a body of work, ask for referrals and reviews. Photography businesses often grow by word of mouth, so create a Facebook page where you can tag recent clients. Photos where you tag those clients will show up in their friends’ newsfeeds, where they can view your work. You can also ask them to leave reviews on your Facebook business page.

Like with a video production small business, you’ll want to specialize. Will you do product shoots or portraits? How about wedding or fashion photo shoots? Once you specialize, you’ll be able to create a body of work that most accurately represents your strengths.

There are no educational or licensure requirements for starting a small photography business, but we recommend investing in a few photography courses, especially if you haven’t used your camera in a while. Some courses you might start with include:

  • Cornell’s Digital Photography Certificate Program
  • New York Institute of Photography’s Course

From there, seek courses that help you build skills in your chosen specialty.

If you’re not sure where to start with freelance photography, take a look at Erica Clayton’s journey into the business below. Her advice? Give yourself a firm deadline to turn a profit.

14. Bed and Breakfast Owner

small business idea example: bed and breakfast

This is another business venture that will require you to research the correct licensure from your state, but it will be well worth it to see your dreams come true. Consider what guests will be traveling to your area and create special packages and themed stays that coincide with their interests in your locale.

To start a bed and breakfast business, you’ll need a physical business location and a small staff for maintenance, customer service, and upkeep. For that reason, we recommend it if you have startup funds to start your business. (Don’t have any? Here’s how to start crowdfunding to launch your new business .)

A successful bed and breakfast business will also need an SEO-optimized website with a hotel booking system. If you create your website on the WordPress platform, you can easily create a B&B website using a hotel booking plugin — so there’s no need to code the booking form from scratch.

With Airbnb and hotels stealing market share, the competition is tough in the bed and breakfast space, so we recommend providing a unique angle to the stay. As mentioned, the stays can be themed — maybe your B&B is a vintage home with all original furniture, or maybe you offer traditional fare from your homeland.

15. Clothing Boutique Owner

If you dream of building your own fashion empire, why not start with a local boutique? Build buzz with impressive clothing styles, inspiring social media accounts, and heavy community involvement. While you can open a physical store, you can easily start online — and if that proves profitable, you can open up a local shop.

There are a few ways you can start a clothing boutique. First, you can make the clothes yourself if you already have experience in fashion design or know how to sew, knit, and curate colors and patterns.

Alternatively, you can design certain aspects of the clothing — such as a graphic or a logo — then send it to be printed on-demand at a local print shop when orders come in.

Lastly, you can dropship the items from a warehouse you’ve partnered with. This method is less reliable because there’s less quality assurance for each item, especially if you never visit the warehouses yourself. Regardless of the method you choose, starting a clothing boutique is highly doable, and you don’t need to have a fashion degree (though it certainly helps).

Take some inspiration from Sleep Ova , a luxury loungewear boutique based in Los Angeles, CA.

small business idea example: sleep ova

16. Specialty Food Store Owner

small business idea example: specialty food store

Gourmet foods, cheeses, sake, wine — you name a food, there’s a specialty food store out there for it. Put your passion for exotic olive oils to good use and open a store like American Provisions where you offer the kind of expertise and selection your audience couldn’t dream of getting from their local grocer.

To start your specialty food store, you’ll want to curate and source the items from makers that you love and trust. Ask around your community to find local makers of the food you want to sell, and the makers will likely be open to a partnership, especially if they get a cut of the profits.

When it’s time to sell, you’ll want to find a physical location, but if that investment is too high, you can start by setting up stalls at food festivals and local markets. Or you can go the ecommerce route and sell the products through your website, taking care to carefully pack perishable items.

17. Food Truck Owner

Always dreamt of owning a restaurant but not quite ready to take the plunge? Test out your concepts with a food truck. It’s a great way to become familiar with food and restaurant licensing in your state, see what people like and don’t like, and build a ravenous following before ever opening or investing in a brick-and-mortar location.

Food trucks will require a larger investment, but thankfully, you can rent the truck itself — the Food Truck Group and Roaming Hunger are two potential leasers you could look at. The cost will be high, so we recommend renting one in preparation for an event such as a food festival or concert. There, you’ll get to test out the popularity of your cuisine and see if the food truck business is right for you.

Taco Nganas , a taco truck in Memphis, TN, started with one food truck and expanded to three, building a loyal customer base along the way.

18. Car-detailing Specialist

small business idea example: car detailing

The devil is in the details, and you can be too. Car-detailing services that travel to the client are convenient for busy people who can’t find the time to run through the car wash. With this business, your clients only have to pay and the service will be done for them before they know it. Just make sure you have the flexibility, transportation, and equipment to take your business on the road.

There are no educational requirements for car detailing, but you should still take a course such as Auto Finesse’s detailing training to learn core concepts and brush up on your skills.

To get your car detailing business off the ground, you’ll need an SEO-optimized website and a way for customers to book online with you. Before you take that step, however, consider listing your services on websites like Angi , Thumbtack , and even Nextdoor.com so you can get your first local clients.

Don’t have a lot of money to start your business? Check out the ideas below.

1. Translator

Speak a foreign language? Start a translation service. Consider specializing in a specific genre of translation, like medical or financial translation, as you might be able to fill a niche need in your community.

small business ideas: translator

To become a translator, you should have a rock-solid grasp of two languages — ideally, you’ll be near native level for both. You don’t need special credentials to become a translator, but a certification (such as from the American Translators Association ) will legitimize your business and help you get clients.

Prior to gaining a certification, you can also pursue an online certificate, which will teach you the basics of translation. Some providers include:

  • University of Massachusetts Amherst
  • The University of Arizona
  • University of Georgia

2. Garden Designer

Many people have the willingness to do the dirty work in their backyards, but few have the know-how to complete the first part of this process — designing and planning the backyard space. Draw up the designs for your clients’ outdoor spaces and let them do the actual digging.

But you can also offer installation services, or hire your own contractors to fulfill the design.

small business ideas: garden designer

To become a garden designer, you should seek at least one credential so you’re well-versed in the basics and prevent damage to a client’s landscape. The American Academy of Garden Design offers courses and certificates that start at $450. A cheaper option is New Skills Academy’s Garden Design Certification ($120).

Remember, the goal is to start a business for cheap, and a certification can have a high ROI after you book your first few clients for garden design.

3. Travel Planner

The time of the travel agent might be passing, but people are still looking for those with a knack for more nontraditional travel coordination. If you always plan the perfect vacations complete with beautiful hotels, the ideal location, and a bevy of delicious restaurants lined up for every evening, consider advertising your services as a more modern approach to travel planning.

You don’t have to only plan trips for individuals, either. If you’re experienced enough, you can even start a group travel company, like Art N Soul Escapes .

You can become a travel planner by first volunteering to plan a few trips for your family and friends. Try it and see if you like it. Once you feel like you’ve gotten a good taste, attend a travel planner program and get certified. Some options include:

  • The Travel Institute Training & Certification Program
  • Penn Foster Travel and Tourism Specialist Diploma

You can also seek employment at a travel agency first, then strike out on your own once you’ve learned the basics.

4. Home Inspector

A home inspector examines a house’s drywall, electrical wiring, energy efficiency, and structural integrity to find potential issues on behalf of a home buyer. Home inspectors work in the field. They visit homes in person and provide a written inspection report. Alternatively, some home inspectors offer virtual inspections, which may be a good fit if you’d prefer to work from home.

small business ideas: home inspector

Working as a home inspector requires certification and a great deal of expertise, but it can offer a flexible work schedule and stable income. Confirm the licensing requirements in your state before getting started with this type of small business. You’ll want to make sure you’re providing the best service to your clients by having all of your credentials in order.

To become a home inspector, you should invest in a certification program, such as:

  • International Association of Certified Home Inspectors
  • ATI Home Inspector Academy

Be sure to check local authorities and universities for a course.

5. Personal Chef

We all love to eat, but few of us have the time or energy to cook healthy, delicious meals. Advertise your services to local families and businesses alike. To save on start-up costs, consider scheduling certain groups of clients together — say, vegetarians — so you can cook larger quantities of the same dish.

You can also begin by selling food in batches at local farmer’s markets or via a food truck. Once you’ve generated some awareness, you can begin taking on clients. Alternatively, you can start a delivery meal prep service by cooking 5-7 days’ worth of meals for clients.

small business idea example: personal chef

Chef Paul’s mouth-watering dishes are available to clients across the country. His clientele niche consists of athletes, corporate businesses, and local gyms.

6. Property Manager

Many people maintain properties they don’t live in — often based in different cities or states. As a property manager, you can help a property owner ensure their home is well taken care of, handle small fixes as they arise, and serve as a liaison to renters. It’s helpful if you have a background in real estate.

This option is a great fit if you have stupendous organizational, administrative, and customer service skills. As a property manager, you’ll be handling everything from screening potential tenants to collecting rent.

To become a property manager, you must first complete coursework in your desired state. We recommend working at an existing property management company to get your foot in the door. Once you’ve learned the basics, you can then start your own property management business.

7. Massage Therapist

Soothe aching muscles and promote peace for your clients as a massage therapist. As a massage therapist, you’ll offer targeted, personalized care that’s an edge above in-shop or mall massage services. To start this small business, you should invest in customer service courses, as well as a massage therapy certification.

small business idea example: massage therapist

Be sure to look into training and certification courses in your city and state, and to invest in a portable bed to take on client visits.

8. Interior Designer

Similar to landscape design — there are many people who have the ability to buy the furniture and home decor they need to fill their rooms, but few who know where to start. It might take some time to build a portfolio, but documenting your projects and sharing them online can build a fanbase beyond your wildest dreams.

To start an interior design business, we first recommend trying your hand at decorating your friends’ homes and working with their vision and specifications. One big aspect of interior design is providing fantastic customer service and knowing how to fulfill a client’s design vision while employing your interior design expertise.

You can then take an interior design course to round out your knowledge, such as the one offered by The New York Institute of Art and Design .

Need inspiration? Check out Sandra Cavallo’s interior design Instagram account.

small business idea example: interior designer

9. Nonprofit Owner

If you dream of devoting your life to a cause you believe in, it might be time to start a nonprofit. You’ll need to incorporate your business and file for 501(c)(3) tax-exempt status — and then you’ll be required to meet ongoing standards of compliance, but the payoff is making a meaningful impact on a cause you believe in.

The best thing is that you can begin a nonprofit easily from your home, even before filing for 501(c)(3) status. First, create a non-profit website (ideally with a .org top-level-domain). Define your mission and goals, and figure out how you’ll execute your non-profit activities. For instance, if you’re raising money to buy books for local schools, who will deliver them? Which retailer will you use? Start small, then expand.

Thereafter, apply for exempt status so that you’re not taxed like a regular business. The profit margins may be smaller, but the job is endlessly rewarding.

Whether you’re a math whiz, piano master, or Shakespeare aficionado, there’s someone out there who needs a little help in your area of expertise and is willing to pay for it. Advertise your services through local schools, community colleges, community centers, and even social media to get the word out and build a customer base.

To start a tutoring business, you should first gain experience educating others by either volunteering or even teaching friends and family. But you can begin straight away by listing your services locally and online and launching a tutoring website.

Be sure to define your niche. Will you be tutoring students in their homes? Or opening a local tutoring location? Which subject will you teach? Create handouts, use textbooks, and know which online resources will be best for your tutee’s learning style.

11. Consultant

If you have significant experience in or knowledge of a specific subject, consider becoming a consultant. Perhaps you’re an expert at hiring practices, have a knack for SEO , or have led multiple sales teams to six-figure success. Identify your expertise and market yourself as a consultant and charge the going rate.

Download Now: Free Consultant's Success Kit

Some consulting industries are more competitive than others, so be sure to complete your research prior to starting a small consulting business. One way to find out how competitive a consulting niche is by doing keyword search . If your target niche is highly searched or already is dominated by big companies, you may have a harder time breaking in. You can use keyword research tools to uncover keyword volume and local demand.

12. Event Planner

An event planning business is an excellent choice if you have great organizational and interpersonal skills, and it’s relatively cheap to start. You might choose to specialize in a specific type of event — like weddings or company meetings — or set yourself up as an event planner of all trades.

The good news is that event planners are always in demand. It’s not a job that can be easily automated, so this small business idea is set to thrive regardless of the digital landscape. To start, you’ll want to look for a platform that will easily allow you to advertise your availability, such as event planner directories like Eventective and WeddingWire .

If you’re highly organized, are detail-oriented, and have experience planning large events, it might be time for others to benefit from your skills.

13. Personal Assistant

Personal assistants help business owners and executives take care of administrative tasks. To launch a freelance personal assistant business, you should leverage networking opportunities on LinkedIn and attend small business events at local chambers of commerce. Most local business owners might not even know they need a personal assistant until you market your services to them.

If you’re an organized, highly-detailed person, the life of a personal assistant might be for you. Don’t want to be tied to one office or person all day, every day? Consider becoming a virtual assistant, which allows you a more flexible work environment.

To become an assistant, choose a niche — will you be helping women business owners specifically? Do you have a specific field of expertise, like bookkeeping? A website can also go a long way, and be sure to print business cards for you to hand out during networking events.

14. Consignment Shop Owner

If you have an eye for style but don’t want to invest in the inventory of a brand-new boutique, consider starting a consignment shop. It will allow you to curate a collection of clothing that matches your goals and aesthetic, without the overhead of a boutique selling entirely new garments.

The beauty of a small consignment business is that you can now start one online. You can sign up on a platform such as Poshmark , Depop , and even Etsy , then easily start selling your own used fashion from home.

Once you’ve defined your niche — such as vintage clothing, unique locally made art, or colorful shoes — you can begin sourcing new products from your local stores and thrift shops.

15. Caterer

If the personal chef gig is too restrictive for your schedule, consider catering instead. Pick your projects, work on fewer but larger events, and hone in on your time management skills.

Becoming a caterer is a natural step for those who are used to cooking for large events — for instance, you may have already catered your friend’s wedding, or brought a 20-person meal to a potluck (that counts, too!).

It’s essential that you have enough temperature-regulated storage for the meals prior to each event, and that you arrange for reliable, temperature-controlled transportation to and from your home kitchen. Alternatively, you can lower your costs by inviting customers to pick up their order at your home.

16. Gym Owner

Kickboxing gyms, yoga studios, CrossFit, oh my! Turn your passion for fitness into a community for others by creating your own gym — start one from the ground up, become an affiliate, or open a franchise location.

Available franchise opportunities include Anytime Fitness, Orangetheory Fitness, Pure Barre, Planet Fitness, Crunch Fitness, and more. Be prepared to take out a loan to finance your franchise — most agreements start with fees upward of $20,000. But the payoff can be tremendous due to brand recognition. You’ll have no trouble recruiting new members as long as you use local marketing strategies .

Alternatively, you can create a local studio, but ideally, it should be for a specific activity instead of general fitness. Yoga, pilates, bootcamp-style gyms, and martial arts perform well as independent fitness studios.

17. Boutique Agency Owner

What’s your specialty? Whether it’s marketing, social media, or PR, it might be time to start your own agency. Many other small businesses need this type of help but don’t have the resources or volume to necessitate a full-time position.

To start an agency, you would ideally have worked in your specialty for a number of years. You should also be prepared to interface directly with clients, fulfill their requirements, and temper their expectations (if they want results in an unreasonably short amount of time).

Consider building a small team and learn from other entrepreneurs who’ve successfully started their own agencies, like Duane Brown of Take Some Risk .

18. Coffee Shop Owner

Turn your caffeine addiction into something a little more lucrative. Opening a franchise or buying an existing shop are lower-risk entry points to the coffee game, but they usually require a little more cash upfront. Starting a shop from scratch requires more planning and work — but it also maximizes your earning potential in the future.

A coffee shop is an excellent fit if you already have a full-time remote job and wish to supplement your income with a small business. You can manage the coffee shop as you work at one of the tables, but be sure to have the budget to hire an experienced barista who can pick up the slack.

If you would like to open a coffee shop and run it full-time on your own, you’ll need to undertake barista training, understand worldwide coffee sources, and have excellent customer service skills.

19. Moving Company

A truck, moving equipment, manpower, and the correct permits and insurance are the building blocks of starting your own moving company . Before you buy your first fleet of trucks, however, start small with a moving van and keep your costs low.

Still sound like too much of an initial investment? Consider offering packing services only, which have a much lower financial barrier to entry. You can partner with moving companies and offer to do their packing, or have them refer clients to you.

You could even take a niche approach to the industry as Astro International has by offering international moving services.

small business idea example: moving company

20. Home Staging

If you have a flair for interior design, a staging service might serve as your creative outlet and professional calling. You can build a portfolio with little initial investment by staging homes using the owner’s existing furnishings and decor. Most stagers eventually build up an inventory of furniture as they become more established and network with area realtors.

To get your first home staging clients, you should first rely exclusively on networking. Find your local realtors’ association and attend their events with business cards handy. Once you’ve gotten your first clients and built your portfolio, you can begin posting your designs on your home staging website.

small business ideas: home staging

If you don’t yet have enough experience, be sure to pursue an interior design course before opening this small business.

These home business ideas give you a few more business options that are either based at home or online.

Frontend, backend, and every type of code in between, this skill requires no in-person interaction with your clients. But one skill you’ll want to carry over from the in-person world for this type of business is active listening. It can be easy to zone out while building a product, but developing a connection with the client is just as important as developing the code for their website.

If you keep the client top of mind when you can’t be around physically, you can ensure that you’re meeting their development needs with your coding work.

Download Now: 25 Free HTML & CSS Hacks

2. Vending Machine Owner

Since 2015, the growth rate for vending machine businesses has increased 1.4%. Even as social distancing restrictions are still in place, this business can still be lucrative if you choose the right locations. High-traffic is key — places like hospitals, schools, and community centers are smart places to start placing your machines to generate enough revenue to cover cost and turn a profit.

small business idea example: vending machine owner

3. Social Media Manager

Do you have a knack for social media? As a social media manager, you can use your skills to manage the social media accounts for companies and even individual people. Influencer marketing has become more common and many influencers rely on marketing agencies or employees to help them run their social channels.

→ Free Download: Social Media Calendar Template [Access Now]

4. Data Entry Clerk

Many businesses seek data entry clerks to help them enter information into their computer systems and spreadsheets. If you have strong computer and typing skills, this might be the business for you.

5. Audio or Video Editor

As of March 2021, there are 1.75 million podcasts available to listeners. For this reason, brands are turning to audio and visual content to connect with consumers. The catch is that many don't have the time to invest in the production of this content, or they don't have the skills to do it. Audio and video editors are in demand when it comes to producing quality content for hungry audiences.

6. Voiceover Artist

Speaking of podcasts and videos, many content creators recognize the value and level of professionalism that great voice talent can bring to a project. There are gigs out there for podcast intros/outros, narration for explainer videos, or even voice work for audiobooks. Learn how to get started with no experience from Kat Theo below:

7. Dog Walker, Groomer, or Trainer

Licensing and insurance will be the two most important factors in opening a dog walking, grooming, or training business, but your canine colleagues will surely make up for the initial red tape. To test the waters before jumping in, consider walking dogs through companies like Rover. Ready to run your own show? Consider a franchise like Dogtopia .

8. Candy Seller

If you grew up in a close-knit, southern neighborhood, you're probably familiar with the " Candy Lady ". This home business can be started by anyone who's trustworthy in the community. Aside from selling the most popular snacks, a candy seller can provide the neighborhood with fresh fruit and produce that may be harder to find if you live in a food desert.

Online Business Ideas

If you want a business idea that you can run entirely online, check out the ones below. These ideas are ideal for those looking for a passive income stream. In other words, you shouldn’t need to do too much manual work to launch these businesses from your home or preferred business location.

1. Become an online reseller.

To become an online reseller, all you need is some business savvy and some funds to invest in product stock from manufacturers — or, of course,the willingness to sell your own used items. Generally, this is a low-touch but high-performance way of creating a passive income online business.

Online resellers usually use a platform, such as Facebook Marketplace or Amazon Sellers, to sell either their own or manufacturers’ stock. The benefit of using Facebook Marketplace is that you can begin today with your own Facebook account, and simply list items that you already own.

Interested buyers typically drive directly to your home for pick-up — but if you’re not interested in human interaction, you can leave it outside and have the buyer pay via an online platform.

online business ideas: amazon seller

Amazon Sellers requires a little more up-front investment, but the yield is usually higher and you can turn your Amazon reselling business into a more passive income stream. Amazon allows you to buy stock from various manufacturers, which they then keep in their warehouses. When an Amazon user buys from you, Amazon will fulfill that order and then give you a substantial cut.

2. Try affiliate marketing.

An affiliate marketing business is a great fit if you already own a website or a blog you wish to monetize. We’ve already shared how blogging is a great business to start — if you’ve already bought a domain name and begun writing content, then using it to start your affiliate marketing business is a great option.

Affiliate marketers create blog posts and content that contain affiliate links. When a user clicks on that link, a cookie is added to their browser that tracks their activity for a specified period of time. If they make a purchase at the affiliate website, then you get a commission — usually recurring, if you’re selling subscription products.

There are countless affiliate marketing programs for you to start your online business. These programs come with many benefits, such as pre-made advertisements and lazy copy for you to use.

To create a viable affiliate marketing online business, you should choose the right blog niche , such as technology, household decor and organization, or fitness, and then find affiliate marketing programs that offer products your readership would be genuinely interested in.

3. Become a content creator or influencer.

Instagrammers, YouTubers, podcasters, and TikTokkers with more than ten thousand followers can eventually turn their accounts into a small online business that generates passive income.

As a content creator or influencer on social media, you can not only earn money from sponsored partnerships, but you can monetize your audience in other ways, such as creating Subscriptions on Instagram , allowing companies to advertise on your YouTube channel, or creating a paid-only newsletter.

online business ideas: content creator

Becoming an influencer or content creator takes hard work, but it can be a fun way to create a small online business, assuming you’re posting content that you enjoy creating. First, you should choose a niche, such as thrifted fashion, work-from-home hacks, or even industry tips. Then, you should learn how to become a social media influencer and digital creator , then create a social media content calendar .

Most importantly, have fun with this online business idea as you give it a try. The good news is that it has little overhead — all you need is a willingness to spend time on social media content creation.

4. Open a dropshipping store.

We’ve mentioned dropshipping a few times already, but this is such a great online business idea that it’s absolutely worth mentioning again. Dropshipping businesses don’t manufacture what they sell, or even buy stock from manufacturers in advance. Instead, wholesalers fulfill the order directly after a buyer places an order through your website.

Opening an ecommerce store can be forbidding for those who don’t want to deal with inventory management or supply chain logistics . Dropshipping is the best alternative.

The only thing you need is the willingness to invest in an ecommerce website builder and the ability to manage relationships with local or international manufacturers. From there, you need to only publish your site and advertise your brand via ecommerce marketing .

Learn how to start a dropshipping business here , with examples.

5. Sell print-on-demand products.

Print-on-demand (POD) is another way to start a dropshipping business, except it’s a little more frictionless because most POD services allow you to create a storefront right on their website, instead of you needing to look for a separate ecommerce site builder.

With a POD online business, you design unique artwork. The print-on-demand provider will allow you to place that design on t-shirts, hats, tote bags, phone cases, and more. You do not keep any inventory; instead, the POD provider will print it only after a buyer makes an order, then ships it directly to them.

online business ideas: print on demand shop

The only thing you need to start this small online business is a penchant for design and the budget to pay for a print-on-demand subscription (although most providers are free, and they simply take a cut of the sale). Get acquainted with design principles and color theory , and you can get started with this business in no time.

6. Become an independent author.

Think becoming an author is only for those who are extremely lucky? Think again. Whether you write historical epics or self-help guides, chances are that there’s a market to read your work, and you can now easily publish it online .

We recommend editing and proofreading your book, or hiring someone to do it, before self-publishing it. Then, it’s as simple as signing up on a self-publishing platform such as Kindle Direct Publishing or Barnes & Noble Press , uploading your file and cover, and pushing it live. You’ll enjoy benefits such as large royalties (up to 70%) and the ability to unpublish the book at any time, in case you find a typo or another change you’d like to make.

To get this online business idea off to a strong start, invest in an author website , spend some time doing social media marketing , and learn the basics of book marketing .

7. Sell downloadable digital products.

Downloadable journals, templates, art prints, designs… Some people would simply prefer to print these at home, instead of paying for the full price of the paper and the design. Downloadable digital products can be a profitable small business idea for those who are already design-savvy or who are willing to learn how to use an online design tool .

online business ideas: digital products

But if you’re not too crafty, you don’t need to create full-on journals or beautiful art prints, either; you can create templates for marketplaces such as Canva’s . There, people are able to customize a base design to their specifications, so you don’t have to worry too much about creating something specially beautiful — it’s more about functionality and customizability.

If you plan to create digital products that buyers can print at home, think about printing specifications, such as recommended paper size, paper weight, PPI (pixels per inch; a higher PPI results in better print quality), and so on. It’s essential to create a positive customer experience, even if users are ultimately responsible for what the final result looks like.

8. Publish a subscription-based newsletter.

We’ve already discussed becoming an independent author, but if long-form writing, such as novels, seems out of reach, you can always go for something much shorter and simpler: Newsletters. And the best part about paid newsletters is that you typically don’t need to have a separate website and blog; instead, you can sign up on a platform and begin publishing right away.

A website can, of course, benefit you, but the core of your revenue will come from the newsletter itself.

online business ideas: paid newsletter

With newsletter monetization platforms such as Substack or even Patreon , you can publish shorter content that features your opinion, experience, and expertise. We recommend pairing this small business idea with a robust social media marketing strategy , where your followers can learn more about you and be swayed to subscribe to a gated newsletter.

Choose a niche you’re passionate about, and this online business idea can feel less like work and more like a profitable hobby.

9. Create an online course.

If you want to monetize your expertise a little further for your online business, then creating an online course is the best choice.

To create a course, you’ll need to sign up on an online course platform such as WordPress or Teachable , sketch out a curriculum, film your lectures, and create worksheets and guides. You can be as hands-on or as hands-off as you’d like, but to make this online business as passive as possible, you’d ideally record all your lectures at once and allow users to access them by paying a premium fee.

If you’d like to try your hand at it first, you can try publishing a course on a platform such as Udemy and see if it feels viable to you. To become an online course teacher, you don’t need a specific level of education, but you should have a strong grasp on the material you’re teaching and a strong set of customer service skills to handle inquiries or course refunds.

10. Transcript videos, shows, and podcasts.

A freelance transcription business is an excellent idea for those who speak only one language and are passionate about improving communication. Transcribers listen to speech, write it out — usually verbatim — and deliver it to the original publisher in an organized document.

This small online business is a good fit for those who are looking for a part-time side business. You should be able to type quickly and have a good listening ear. Indeed has listed the top transcription companies where you can get your foot in the door.

Once you understand how the industry works, you can consider opening your own small transcription business and offering services on freelancer marketplaces such as Fiverr or Upwork .

Whether you’re looking to start your venture today or you simply don’t want to jump through the normal hoops of launching a small business, the below ideas are extremely easy to start — so easy, all you’ll need to do is sign up on a website or tell your friends about your services.

1. Vacation Host

Have you ever used a home-sharing service instead of a hotel? You could make a living by hosting visitors in your own home or renting out a room. Consider becoming a host with companies like Airbnb .

To become a vacation host, you don’t need any special skills except friendliness, courteousness, and agility (in case of guest emergencies or language barriers). A customer service course will prepare you to welcome guests and give them a pleasant stay.

You’ll need to invest in supplies and toiletries, such as new bedding and one-time soaps and toothbrushes, but the overhead is relatively small, and you can stop at any time.

2. Pet Sitter

Do you have a passion for pets? Consider becoming a pet sitter. While the pet's owners are away on vacation, either host their pet at your home or make visits to their home. Join a pet sitting service like Wag to get started.

small business idea example: pet sitter

If you start a pet sitting business, be sure to have some experience with dogs, cats, and other household pets. You should also choose a niche based on timing. For instance, do you prefer long-term arrangements? You can market yourself as an excellent vacation pet sitter. Do you only do single afternoons, or only on weekends? You can pull in clients by telling them you’ll take care of their pets during their dates or weekend trips.

3. Daycare Owner

Childcare continues to be in high demand. While nannies and nanny shares are popular right now, a good daycare is hard to find. Fill a need in your neighborhood by opening your own. And, as always, make sure you’re complying with your city and state’s zoning, licensure, insurance, and inspection requirements.

Home daycares are especially a good fit if you’re an experienced parent and have all supplies ready at home. But be warned that you’ll also need to buy more supplies to accommodate the additional children you’ll need to take care of.

We recommend getting a soft start with this business by advertising it first to your friends, families, and close neighbors. That way, you can better gauge whether it’s a good fit for you and whether you want to make the full investment.

If there’s a topic you have a heavy interest in, then there’s an audience out there with a heavy interest in it too. A blog can be used to build an online community whose engagement can be monetized. Affiliate marketing , sponsored content , and co-marketing are some ways to make money once your blog develops a following.

→ Download Now: 6 Free Blog Post Templates

Blogging is one of the most accessible small businesses to start, and there are countless niches to choose from. That said, because there are many blogs online, you’ll need to learn blog SEO and keyword research to ensure your audience finds you. That way, you actually make money out of your blogging efforts.

The great news is that a small blogging business has a ridiculously low overhead. All you need is a custom domain and your time for writing blog posts.

5. Home-Baked Goods Seller

Warehouse-made, store-bought chocolate chip cookies will never compare to a batch made with love in someone’s home. Simple desserts can be easily baked and packaged to sell at local events or around your neighborhood. Use custom labels and watch the word spread about your goods!

You can begin a baked goods business easily by opening a Facebook and Instagram profile. Facebook and Instagram are both excellent platforms to market your goods, show pictures of your previous baked products, and even showcase happy clients.

Build a loyal following slowly, and save on costs by asking clients to drive to your home to pick up their order. Choosing a niche can be helpful here, or baking in a specific style that can’t be found at grocery store bakeries. The overhead can be especially low if you already have most essential baking supplies.

6. Ecommerce Store Owner

Do you create, collect, or curate anything special? Consider starting an ecommerce store and turning your hobby into a full-time job. Whether you need somewhere to sell all that pottery you’ve been making, or an excuse to search for the sports memorabilia you love tracking down, an ecommerce store can make it financially viable for you to pursue your passion.

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Starting an ecommerce store is simple and easy. You can set up a shop using an ecommerce website builder , all of which start at a minimal monthly subscription (some even start at free). Be sure to take good photos of your products and write descriptive product pages .

If you don’t have inventory, you can always own an ecommerce store by using dropshipping . Instead of creating and shipping your products yourself, you’ll instead partner with a dropshipping website and have them mail out the orders directly to your client.

7. House Cleaner

With a low barrier to entry, house cleaning can be a great way to start doing what you love — soon. Consider advertising to homes in your neighborhood and get more bang for your buck by earning a few small businesses as clients as well. They’ll usually bring in a higher paycheck for a similar amount of work.

To become a house cleaner, you should be prepared to invest in cleaning supplies and accessories, or be willing to use your own. If you plan to serve small businesses, you should buy industrial janitorial supplies so you can get work done more effectively.

Need some inspiration? This small business cleaning service grew virtually overnight on Instagram after their content went viral during the pandemic.

small business idea example: go clean co

8. Packing Services Facilitator

Moving is always a pain, and many people hire the entire packing process out. As a packing services facilitator, you’ll be going to people’s homes and packing up their smaller items into organized boxes. To start this business, you must be comfortable with face-to-face contact and with manual labor.

small business ideas: packing services facilitator

You can begin this business by advertising in your own neighborhood. Once you’re ready to expand, consider partnering with a local moving service that will refer new clients to you. That way, you’ll have a steady stream of clients, and you won’t have to invest in a moving truck (the moving service will take care of that for you).

Business Ideas for Students

1. etsy shop owner.

Creating novelties by hand is a fun and unique way to start a small business, and you can easily sell them via Etsy . Whether you make jewelry, knitted comfort items, or even custom wigs , there’s probably a market for your products and an Etsy buyer who’s ready to purchase.

small business ideas: etsy shop owner

This idea is excellent if you’re already an expert in the craft you aim to sell. That way, you don’t need to pursue additional education or certification courses. Once you set up your Etsy store, which is free, tap into your audience with creative marketing on social media and optimize your website using keywords that describe the products you make.

2. Tour Guide

Love the local history of your city or state? Consider becoming a tour guide. Sure, you’ll need to conduct plenty of research to be able to do the job well, but that’s half the fun. Set yourself apart by offering tours that speak to a specific niche of your community’s history.

You can start a tour guide business easily. First, decide what your specialty will be. Some tour guides, like the ones at Freedom Trail in Boston , offer historical walking tours of their town’s most haunted spots while others curate guided foodie tours for guests to get a true taste of the city.

small business idea example: tour guide

Maybe you love the outdoors and are an experienced backpacker — you can then offer hiking tours. To begin, use a platform such as TripAdvisor or Airbnb, where you can sign up as a tour guide provider. Remember to launch a website, and to file for sole proprietorship status .

3. Online Class Instructor

Tutoring is often done in person and with one client at a time. Remotely teaching an online class offers more flexibility because you can teach multiple students from home. English is a common subject for online classes because of how many people want to learn it. But anything that you have a mastery over could be translated to a virtual class.

4. Small-Batch Goods Seller

Using organic, all-natural ingredients is more expensive, but worth it. There are many products you can learn how to make at home without any preservatives, chemicals, or toxins. Candles, soaps, shampoos, and moisturizers are some examples of goods you can create and tailor with custom scents. Try starting out making soap with this complete beginner’s guide to soapmaking:

5. Makeup Artist

Many people prefer to have a professional do their makeup because they may lack the proper products or just the skills. It may be for a special occasion, photoshoot, or video shoot, or another event. Being able to do a variety of different looks will make your business more attractive to more customers.

To run a successful makeup artist business, you’ll need to be social media savvy . Instagram in particular is an excellent platform to advertise your services and get new clients.

You should also consider honing in on a specific niche. For instance, you might do wedding makeup exclusively.

6. Professional Organizer

A lot of people struggle with clutter or disorganization in their homes and offices. It can be a large undertaking to create organized systems and habits. Grab a lot of storage bins and a label maker and get started!

To become an organizer, you’ll first need to have the chops: Is your own home organized? Do you enjoy making order out of chaos? Then, launch a website to market your services locally. Be sure to create local listings to ensure people find your business, including listings on Angi, Houzz, and Thumbtack.

Meg Golightly, founder at Gosimplified , has made this small business idea into a successful career.

Is your head buzzing with small business ideas yet? After all that brainstorming, you’ll need a practical plan to get started with your new small business.

  • Identify your small business idea.
  • Start as a side business or hobby.
  • Decide on your software.
  • Create a business plan.
  • Decide whether you'll be an LLC or sole proprietorship.
  • Create a business bank account.
  • Determine if your business idea works well from home.
  • Set up an office.
  • Get to work!

1. Identify your small business idea.

Whether you choose an option from the list above or have another idea up your sleeve, it’s important to have the experience, training, or skills necessary to be successful. Want to run a daycare but have never even visited a successful daycare center? Spend time conducting research to learn whether this is really the right fit for your experience, interests, and target audience.

2. Start as a side business or hobby.

Can you get your business off the ground as something you do in the evenings or on the weekends (a.k.a. a side job)? This allows you to make some mistakes, test the market, and understand whether your idea has legs before you quit your nine-to-five job and lose your primary income.

3. Decide on your software.

You’ve got a lot of things on your plate when first starting up. But one step that’s critical (and often forgotten by first-time entrepreneurs) is deciding on the software that can help you be more efficient as your business grows.

Every business is different — but almost all companies can use software to help with analytics, project management , accounting, bookkeeping, email marketing, and other basic day-to-day tasks.

One of the most important software tools every small business should utilize is a free all-in-one CRM platform to keep track of important customer information in one central database. It will help align your team and make sure you stay organized as your business grows.

4. Create a business plan.

No business plan? No business. Particularly if your small business idea requires investors, you'll need to draft up a business plan to provide an overview of your market positioning, your financial projections, and your unique competitive advantages. You can download HubSpot's free business plan templates for free to get started.

One-Page Business Plan Template

Download Free Business Plan Templates

Your business plan should include the following elements:

  • Executive summary — A high-level overview of your company and market placement.
  • Business model — Outline what your business does, who your business serves, and how your business is structured. You should include a description of what products and services you offer, and how they meet the needs of your customers.
  • Market condition — A summary of pertinent competitor information. Determine the strengths and weaknesses of your closest competitors.
  • Products and services — Use this section to describe your products and services in detail, and outline what differentiates your product from others in the market.
  • Operations and management — Outline your business’ organizational structure, key roles, and responsibilities.
  • Marketing and sales strategy — This section should describe how you will market and sell your product. Include information on your ideal customer, how you plan to position your offering, and your sales strategy.
  • Financial plan — Create a detailed outline of your business financials. Include your start-up costs, your initial financial productions, and how you anticipate generating funding.
  • Appendix — Once the above pieces are complete, end the document with an appendix summarizing your business plan.

Every business is different — but almost all companies can use software to help with analytics, project management, accounting, bookkeeping, email marketing, and other basic day-to-day tasks.

5. Decide whether you’ll be an LLC or sole proprietorship.

Two common legal structures for small businesses are limited liability corporations (LLCs) and sole proprietorships.

An LLC is a more complex business structure than a sole proprietorship and can include individuals, corporations, and other LLCs as members. Additionally, LLCs are not subject to a separate level of tax and offer the business owner liability protection and tax advantages. LLCs are formed on a state-by-state basis.

Sole proprietorships are businesses owned and operated by one person and are not identified as a separate entity from the owner by the government. While a sole proprietorship is the simplest business structure, sole proprietors are personally liable for their business.

Besides an LLC or sole proprietorship, there are a few other options for you to consider.

Sean Flannigan, Sendle's Content Manager, says, "While many small businesses might be best served by choosing an LLC or sole proprietorship, there are a few other options."

"Partnerships are great for businesses operated by several individuals. It hews most closely to a sole proprietorship in that the individuals take on the business liability and pay taxes on a personal level."

He adds, "To completely avoid personal liability, small businesses might choose to incorporate as a corporation, S corporation, or B Corp. S corporations avoid corporate taxation whereas B Corps must meet a threshold for public benefit and accountability."

Additionally, Flannigan says, "There are tons of great reasons to become a B Corp beyond just doing good business. All that said, many small businesses that aren't aimed at super-fast growth choose to go with an LLC to keep things simple while shielding owners from too much liability."

Learn more about choosing the right structure for your business from the Small Business Administration.

6. Create a business bank account.

Once you have a legally formed business and have been issued an Employer Identification Number (EIN), open a bank account specifically for your business. Having a business bank account is essential for keeping your personal and business finances separate which can help you gain an accurate picture of your business’s cash flow and financial health.

Additionally, keeping your personal and business finances separate makes bookkeeping and tax preparation easier.

Many banks offer business checking and savings accounts. Business checking accounts typically do not have a limit on the number of transactions that can take place, and issue a debit card that can be used for making business purchases. However, these checking accounts do not accrue interest.

Business savings accounts typically earn interest over time but have a limited number of transactions that can occur each month. When you’re just starting out, look for a business bank account that does not have a minimum balance requirement so you are not penalized for having low funds as you work to build your business.

7. Determine if your business idea works well from home.

Ask yourself whether your business idea will work well from home. Some businesses simply aren’t suited to be based from home. If you want to run a dog boarding center but live in an apartment without a backyard, you might want to consider a dog walking business instead.

8. Set up an office.

If your business idea is well-suited for being run from home, it’s still important you have a designated workspace. While a home office might not be possible, consider setting aside a corner in your living room or putting a desk in your bedroom for a space that inspires you and creates the conditions for success.

Need a more professional space? If you conduct client-facing work requiring you to be on video calls, no one wants to see your rumpled sheets in the background. Check out local coworking spaces for memberships that earn you access to conference rooms, desk space, and more.

9. Get to work!

You’ve put in the hard work and I’ve got good news — it’s only going to get harder. But most entrepreneurs will agree that the payoff of being your own boss, making your own hours, and working on projects that you’re passionate about will pay dividends for the rest of your life.

Starting a Small Business: FAQ

What are the types of small businesses.

The types of small business structures are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.

Which business type is best?

The best business type is a limited liability company (LLC). Operating as an LLC means that your personal assets are separate from your business assets. If your business goes bankrupt, your personal holdings won’t be affected. That said, it’s also one of the costlier types, requiring a fee paid to the state.

The easiest business type to start is a sole proprietorship. The main downside is that there’s no differentiation between you and your business.

How do I create a business idea?

To create a business idea, determine your skill set, work preferences, startup budget, and available resources. It’s important to strike the right balance between what you can feasibly offer and what you can feasibly afford in the short and long term.

We recommend starting with your skill set so that you can easily determine the niche in which you can effectively compete. For instance, if you have ample experience as a writer, you might consider starting a freelance writing business. But if you know you’d prefer to work with clients face-to-face, you might choose to start a ghostwriting business instead. That’s why it’s so important to take your work preferences into account, as well.

After that, take a look at your budget and determine the type of business you can start based on the resources at your disposal. For instance, you might not be able to afford a physical office or location, so a location-based business will likely not be a good fit. In that case, starting an online business is your best option.

What are some of the most successful small businesses?

Every small business has the potential to be successful and profitable, provided it’s backed by a strong product-market fit and a robust business plan . These two elements are essential. Maybe post-natal services are one of the most successful small businesses to launch, but if you live in an area with declining population or a large elderly population, then that small business idea won’t yield a high return on investment.

Think carefully about the market where you’re launching your business, and you’ll be more than likely to see lasting success.

What are the top growing small businesses?

top growing small businesses as reported by the bureau of labor statistics

The top growing industries are healthcare support, technology, personal care, food preparation, and community and social service. As such, launching a small business in any of these fields is bound to yield a high return on investment, but remember to take your target market into account.

Here are some small business ideas for each of those industries:

Healthcare Support

  • In-home care assistant
  • In-home elderly care provider
  • Psychological care provider
  • Pre-natal and post-natal support specialist
  • Freelance programmer or web developer
  • Freelance IT support specialist
  • Freelance cybersecurity expert

Personal Care

  • Hair stylist
  • Nail technician

Food Preparation

  • Personal chef
  • Food truck owner
  • Food delivery

Community and Social Services

  • Non-profit owner
  • Education specialist

Brainstorm Your Next Small Business Venture

Selecting a small business idea to work on is a personal decision. Money is important, but you’ll need more motivation than that to keep going. Bounce ideas off your friends and family until you reach the perfect idea that works for your schedule, fulfills your life’s passion, and makes financial sense. Don’t be afraid to ask for help throughout this process — and remember to have a little fun while you’re putting in the work.

Editor's note: This post was originally published in August 2020 and has been updated for comprehensiveness.

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These borrowers are likely to be eligible for Biden's new student loan forgiveness plan

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  • The Biden administration has been working on a new student loan aid package that could come as soon as this year.

While Biden first attempted to cancel student debt through an executive order, he has now turned to the rulemaking process.

  • Here's who may qualify.

Since the Biden administration's first student loan forgiveness plan was rejected at the Supreme Court , it has been working on creating a new, legally viable relief package.

That debt cancellation could come as soon as this year . The alternative plan, which has become known as  Biden's "Plan B ," could forgive the student debt for as many as 10 million people, according to  one estimate .

The U.S. Department of Education and the negotiators tasked with determining who will be eligible for the president's revised aid have identified five groups of borrowers.

1. Those who owe more than they borrowed

Borrowers with outstanding federal student loan balances that exceed what they originally borrowed may be among those who qualify for the cancellation.

A person's student debt can balloon for a number of reasons, said Nadine Chabrier , a senior policy and litigation counsel at the Center for Responsible Lending.

"Unfortunately, it is very common," Chabrier said.

More from Personal Finance: The best money advice I heard this year as a CNBC reporter Op-ed: Money dates are great — but not on Valentine's Day Black Americans face 'disproportionately steep hurdles' to homeownership

Student loan servicers, the companies the Education Department contract with to service its debt, have a record of steering consumers into forbearances and deferments, she said. These options for  struggling borrowers  can keep loans on hold for many years, but interest often continues to accrue. 

Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers, denied that the companies benefit by veering from the government's orders.

"We are incentivized to meet the requirements that the government sets, which includes giving borrowers the benefits that the law provides," Buchanan said. "We are audited, and get business or lose it based on meeting those standards."

Advocates have also said the interest rates on federal student loans are too high, especially for borrowers from the 1980s , who have rates exceeding 8%. Current fixed rates today can be nearly as high .

2. Borrowers in repayment for 20 years or more

Those who have been carrying their student debt for decades may also benefit.

With many of the Education Department's repayment plans requiring 20 years or more of payments, such stories are common. Millions of Americans older than 60 are still paying off their student loans , research finds.

"There is both financial harm and psychological harm of being in debt for decades, especially when it feels like there is no hope that it will ever be repaid," said Persis Yu , deputy executive director at the Student Borrower Protection Center.

3. Attendees of schools of questionable quality

In its revised relief package, the Biden administration notes it is looking to include student loan borrowers who attended career-training programs "that created unreasonable debt loads or provided insufficient earnings for graduates," as well as borrowers who attended institutions with high student loan default rates.

4. People eligible for forgiveness who haven't applied

The Education Department already has several programs that lead to student loan forgiveness, and as part of its new aid package, it is looking to identify those who may be eligible but just haven't applied.

For example, the Public Service Loan Forgiveness program, signed into law by then-President George W. Bush in 2007, allows certain not-for-profit and government employees to have their federal student loans canceled after 10 years of on-time payments. In 2013, the Consumer Financial Protection Bureau estimated that one-quarter of American workers  may be eligible .

However, the technical and often confusing requirements of the plan have acted as a barrier, experts say.

How Wall Street trades student loans

Student loan servicers also earn a fee per borrower per month, which advocates say discourages transparency around loan forgiveness opportunities.

"Instead of providing borrowers with access to the affordable pathway out of debt, decades of mismanagement and abuse have left these borrowers trapped in debt like hamsters on a hamster wheel with no way out," Yu said.

5. Borrowers experiencing financial hardship

The Biden administration has also said it wants to forgive the debt of those experiencing financial hardship.

So far, it has proposed a set of factors that could identify struggling borrowers, such as those with student loan balances and required payments that are unreasonable relative to their household income, and people with high child care and health-care expenses.

It also said that financial hardship could be based on other debt obligations, disability or age, among other factors. Don't miss these stories from CNBC PRO:

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AT&T Says Service Is Restored After Widespread Cellular Outage

White House officials said the incident was under investigation, but it did not appear to be a cyberattack. Verizon and T-Mobile said their networks were operating normally.

The AT&T logo.

By Jenny Gross and David McCabe

Jenny Gross reported from London and David McCabe reported from Washington.

AT&T said on Thursday that it had fully restored service to its wireless network after a widespread outage temporarily cut off connections for users across the United States for many hours, the cause of which was still under investigation.

The outage, which affected people in cities including Atlanta, Los Angeles and New York, was first reported around 3:30 a.m. Eastern time, according to Downdetector.com , which tracks user reports of telecommunication and internet disruptions. At its peak, the site listed around 70,000 reports of disrupted service for the wireless carrier.

Multiple government agencies said they were looking into the incident, although the Biden administration told reporters that AT&T said there was no reason to think it was a cyberattack.

AT&T did not disclose the scope of the outage, nor the reason for it. When the outage first began on Thursday morning, the company listed the cause as “maintenance activity.”

Jim Greer, an AT&T spokesman, apologized in a statement confirming service was restored and said the company was “taking steps to ensure our customers do not experience this again in the future.”

The outage underscored the importance of connectivity to daily life as individuals and businesses were cut off from communications and the ability to use mobile apps. AT&T advised consumers they could make calls over Wi-Fi and sought to respond to angry customers online. Many phones showed an “SOS” symbol on their screen, signaling they could only make emergency calls, while local governments offered alternate ways to reach 911.

Reports of outages on Downdetector began to fall midmorning, and at one point AT&T’s website showed that outages were limited to users in California , though users in other states were still reporting issues. Cricket, which is owned by AT&T, also reported that its users were experiencing wireless service interruptions and said it was working to restore service.

Reports also surfaced early Thursday that FirstNet, the network AT&T maintains for emergency services personnel, had experienced outages, but AT&T said around 10:30 a.m. that the network was fully operational.

Verizon experienced 3,000 reports of outages at one point on Thursday and T-Mobile about half that. Both companies said in statements that their networks were operating normally.

“Some customers experienced issues this morning when calling or texting with customers served by another carrier,” Verizon said. “We are continuing to monitor the situation.”

In an email, T-Mobile said that it did not experience an outage. “Downdetector is likely reflecting challenges our customers were having attempting to connect to users on other networks.”

Officials in Washington said they were working to understand the cause of the outage. A spokesman for the Federal Communications Commission said its inquiry was being handled by its Public Safety and Homeland Security Bureau, which was in touch with AT&T as well as other providers.

John Kirby, a National Security Council spokesman, said on a call with reporters on Thursday that the Biden administration was told “that AT&T has no reason to think this was a cybersecurity incident,” although he added that they would not be certain until an investigation had been completed.

Mr. Kirby said that, in addition to the F.C.C., the Department of Homeland Security and the F.B.I. were collaborating with technology companies to investigate the outage.

The F.B.I. said in a statement it was in touch with AT&T and would respond accordingly if any malicious activity was found.

Throughout the day, cities urged residents to find alternate ways of reaching emergency or municipal services, like landlines or phones connected to Wi-Fi. The City of Upper Arlington, Ohio , said the fire department might not be notified of fire alarms because of the outage. It urged that any fire alarm be followed up with a 911 call.

The San Francisco Fire Department said on social media that it was aware of an issue affecting AT&T users who were trying to call 911. “We are actively engaged and monitoring this,” the fire department said. “If you are an AT&T customer and cannot get through to 911, then please try calling from a landline.”

The Massachusetts State Police said on social media on Thursday morning that 911 call centers across the state had been flooded with calls from people checking to see if the emergency service worked from their phones. “Please do not do this,” the police said. “If you can successfully place a non-emergency call to another number via your cell service then your 911 service will also work.”

Even in less extreme circumstances, the outage complicated the many elements of life that have come to rely on a reliable connection to the internet.

Staff at the First Watch restaurant in Dania Beach, Fla., had to turn away breakfast customers for a time while the outage prevented them from processing payments.

Debra Maddow, who lives in southwest Houston, said that she first noticed something was off after 7 a.m., when she went to check traffic and Google Maps was offline. Later, she visited a Starbucks to make an urgent call through its free Wi-Fi, she said.

“I’m really frustrated that they’re not telling us anything,” Ms. Maddow said in a phone interview over Wi-Fi. She said she tried to call AT&T for an update, but after a long time on hold, the call was dropped.

Victor Mather , John Keefe , Zolan Kanno-Youngs and Adam Goldman contributed reporting.

Jenny Gross is a reporter for The Times in London covering breaking news and other topics. More about Jenny Gross

David McCabe covers tech policy. He joined The Times from Axios in 2019. More about David McCabe

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Burned-out South Korean trainee doctors walked off their jobs over a plan to boost med school enrolment

  • South Korean trainee doctors are striking over a plan to increase med school student quotas.
  • They say the country's doctor shortage is due to low wages and poor working conditions in some specialties and areas.
  • The walkout is stoking fears of huge disruptions to the country's strained healthcare system.

Insider Today

Over 1,600 trainee doctors in South Korea walked off their jobs on Tuesday over a government plan to increase med school enrolment quotas, according to media reports.

Separately, over 6,400 trainee doctors — including those on strike — across 100 hospitals have tendered their resignation as of Monday, according to South Korea's Yonhap news agency. They comprise nearly half of all 13,000 trainee doctors in South Korea.

The crisis has stoked fears of huge disruptions to the country's already strained healthcare system.

There are 2.6 doctors to 1,000 people in South Korea — well below the average of 3.7 to 1,000 people for countries in the Organisation for Economic Co-operation and Development.

The South Korean government plans to raise the medical school quota from 3,000 to 5,000 a year to ease the manpower crunch, particularly in rural areas and some specialties like emergency medicine, per Yonhap.

The public supports the move, according to a Gallup poll conducted in February.

However, doctors say the issue isn't a labor shortage but a manpower crunch in some specialties and locations due to low wages and poor working conditions.

Trainee doctors in South Korea regularly work shifts that stretch over 24 hours, according to a survey from a major medical trade union. Many also worked over 80 hours a week.

Doctors also say an increase in medical school enrolment could compromise the quality of education and services, per Yonhap.

Meanwhile, critics said the doctors are protecting their interests as increased professional competition could impact their salaries and social status.

Authorities are calling on doctors to return to work.

"We are deeply disappointed in the situation where trainee doctors are refusing to work," said Park Min-soo, South Korea's second vice health minister on Tuesday, per Yonhap. "We earnestly ask the doctors to withdraw their decision to resign en masse and walk off their jobs."

It's not the first time doctors in South Korea have walked off the jobs against a planned expansion of enrolment in the country's medical school quota.

In 2020, young physicians participated in a strike to protest the move, per the Associated Press . The South Korean government bowed to the pressure and shelved the plan.

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Watch: 'Superdads' are challenging gender roles in South Korea

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A Rolls-Royce BR700 next generation jet engine at its plant in Dahlewitz near Berlin

Rolls-Royce profits more than double amid cost cuts and global tensions

Aerospace and defence firm says it is ‘well under way’ with cost savings plan, as it cuts up to 2,500 jobs

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The British aerospace and defence company Rolls-Royce has more than doubled annual profits, as it cut costs and reported record-breaking orders amid mounting military tension around the world.

Shares in the company increased by almost 8% after it exceeded expectations for its turnaround programme under its chief executive, Tufan Erginbilgic, who had described the company as a “ burning platform ” when he took over last year.

The company said it was “well under way” with plans to increase profitability by making savings, including plans to cut up to 2,500 jobs by the end of next year.

Analysts also attributed improved performance in its defence business to the increasingly unsettled political backdrop, a day after the arms maker BAE Systems posted higher profits amid the Ukraine and Israel-Gaza wars.

Rolls-Royce reported profits of £1.6bn for 2023, compared with £652m in 2022.

Alongside cost savings, the aerospace engineering specialist reported better than expected revenues, which increased by 22% to £16.5bn as sales rose in its main transport, combat and submarine markets.Rolls-Royce said engine flying hours – an important performance measure for the group – recovered to 88% of the levels in 2019 before the Covid-19 pandemic and were up 36% year on year.

It added that large engine orders were the highest they had been since 2007 and forecast that large engine flying hours would bounce back to – or even surpass – pre-pandemic levels in 2024.

The company said its defence order book had reached a record £9.2bn by the end of the year, bolstered by contract awards for the Aukus submarine defence agreement between Australia, the UK and the US.

Sales also rose in its combat division, thanks to increased production of its new F130 engines for the US air force’s fleet of B-52 bombers, coupled with its work on the global combat air programme.

GCAP is a cooperation between the UK, Italy and Japan to build a next-generation stealth fighter, which will be known as the Tempest in the UK and is slated to replace the Royal Air Force’s Eurofighter Typhoon from 2035.

Russ Mould, the investment director at the stockbroker AJ Bell, said Rolls-Royce was benefiting from an improved outlook as countries prioritised military spending “thanks to heightened global tensions”.

He said this, coupled with cost cuts under Erginbilgic, justified Rolls-Royce’s prediction that underlying earnings would rise to between £1.7bn and £2bn in the year ahead.

The company said it had already achieved about £150m of its £400m to £500m cost savings target announced in October, when it revealed that between 2,000 to 2,500 roles would go as part of the plans.

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Speaking to the Guardian, Erginbilgic said the company was no longer the “burning platform” he described it as upon taking the job.

“We had a competitive gap. We are closing the competitive gap. We weren’t generating cash or profit. We have record cash. We have a lot more to do but given our transformation actions, we’ve made very good progress,” he said.

Erginbilgic gave an example of how the company had improved cash generation under his leadership, saying that Rolls-Royce had previously written off a £100m debt to an unnamed airline affected by Covid but now expected to recoup the sum.

He has set targets for the company to reach by 2027, including operating profits of between £2.5bn and £2.8bn. He said the company may now meet these targets ahead of schedule and also hoped to restore the dividend, after bringing down debt levels “in the near term”. Shareholders last received a payout in 2019.

However, Rolls-Royce cautioned that supply chain challenges would continue for up to another two years. It also flagged pressures from geopolitical uncertainty and inflation.

Rolls-Royce, which employed 42,000 people before the latest round of job cuts, said in October it planned to remove “duplication” and deliver cost efficiencies through the latest stage in its transformation plan.

The plans include creating a new procurement division to reduce costs by leveraging the group’s scale, with aims to slash those costs by £1bn. It also said some back-office operations, such as human resources and finance, would be brought closer together.

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