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Step-by-Step Guide to Writing a Simple Business Plan

By Joe Weller | October 11, 2021

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A business plan is the cornerstone of any successful company, regardless of size or industry. This step-by-step guide provides information on writing a business plan for organizations at any stage, complete with free templates and expert advice. 

Included on this page, you’ll find a step-by-step guide to writing a business plan and a chart to identify which type of business plan you should write . Plus, find information on how a business plan can help grow a business and expert tips on writing one .

What Is a Business Plan?

A business plan is a document that communicates a company’s goals and ambitions, along with the timeline, finances, and methods needed to achieve them. Additionally, it may include a mission statement and details about the specific products or services offered.

A business plan can highlight varying time periods, depending on the stage of your company and its goals. That said, a typical business plan will include the following benchmarks:

• Product goals and deadlines for each month
• Monthly financials for the first two years
• Profit and loss statements for the first three to five years
• Balance sheet projections for the first three to five years

Startups, entrepreneurs, and small businesses all create business plans to use as a guide as their new company progresses. Larger organizations may also create (and update) a business plan to keep high-level goals, financials, and timelines in check.

While you certainly need to have a formalized outline of your business’s goals and finances, creating a business plan can also help you determine a company’s viability, its profitability (including when it will first turn a profit), and how much money you will need from investors. In turn, a business plan has functional value as well: Not only does outlining goals help keep you accountable on a timeline, it can also attract investors in and of itself and, therefore, act as an effective strategy for growth.

For more information, visit our comprehensive guide to writing a strategic plan or download free strategic plan templates . This page focuses on for-profit business plans, but you can read our article with nonprofit business plan templates .

Business Plan Steps

The specific information in your business plan will vary, depending on the needs and goals of your venture, but a typical plan includes the following ordered elements:

• Executive summary
• Description of business
• Market analysis
• Competitive analysis
• Description of organizational management
• Description of product or services
• Marketing plan
• Sales strategy
• Funding details (or request for funding)
• Financial projections

If your plan is particularly long or complicated, consider adding a table of contents or an appendix for reference. For an in-depth description of each step listed above, read “ How to Write a Business Plan Step by Step ” below.

Broadly speaking, your audience includes anyone with a vested interest in your organization. They can include potential and existing investors, as well as customers, internal team members, suppliers, and vendors.

Do I Need a Simple or Detailed Plan?

Your business’s stage and intended audience dictates the level of detail your plan needs. Corporations require a thorough business plan — up to 100 pages. Small businesses or startups should have a concise plan focusing on financials and strategy.

How to Choose the Right Plan for Your Business

In order to identify which type of business plan you need to create, ask: “What do we want the plan to do?” Identify function first, and form will follow.

Use the chart below as a guide for what type of business plan to create:

Is the Order of Your Business Plan Important?

There is no set order for a business plan, with the exception of the executive summary, which should always come first. Beyond that, simply ensure that you organize the plan in a way that makes sense and flows naturally.

The Difference Between Traditional and Lean Business Plans

A traditional business plan follows the standard structure — because these plans encourage detail, they tend to require more work upfront and can run dozens of pages. A Lean business plan is less common and focuses on summarizing critical points for each section. These plans take much less work and typically run one page in length.

In general, you should use a traditional model for a legacy company, a large company, or any business that does not adhere to Lean (or another Agile method ). Use Lean if you expect the company to pivot quickly or if you already employ a Lean strategy with other business operations. Additionally, a Lean business plan can suffice if the document is for internal use only. Stick to a traditional version for investors, as they may be more sensitive to sudden changes or a high degree of built-in flexibility in the plan.

How to Write a Business Plan Step by Step

Writing a strong business plan requires research and attention to detail for each section. Below, you’ll find a 10-step guide to researching and defining each element in the plan.

Step 1: Executive Summary

The executive summary will always be the first section of your business plan. The goal is to answer the following questions:

• What is the vision and mission of the company?
• What are the company’s short- and long-term goals?

See our  roundup of executive summary examples and templates for samples. Read our executive summary guide to learn more about writing one.

Step 2: Description of Business

The goal of this section is to define the realm, scope, and intent of your venture. To do so, answer the following questions as clearly and concisely as possible:

• What business are we in?
• What does our business do?

Step 3: Market Analysis

In this section, provide evidence that you have surveyed and understand the current marketplace, and that your product or service satisfies a niche in the market. To do so, answer these questions:

• Who is our customer? 
• What does that customer value?

Step 4: Competitive Analysis

In many cases, a business plan proposes not a brand-new (or even market-disrupting) venture, but a more competitive version — whether via features, pricing, integrations, etc. — than what is currently available. In this section, answer the following questions to show that your product or service stands to outpace competitors:

• Who is the competition? 
• What do they do best? 
• What is our unique value proposition?

Step 5: Description of Organizational Management

In this section, write an overview of the team members and other key personnel who are integral to success. List roles and responsibilities, and if possible, note the hierarchy or team structure.

Step 6: Description of Products or Services

In this section, clearly define your product or service, as well as all the effort and resources that go into producing it. The strength of your product largely defines the success of your business, so it’s imperative that you take time to test and refine the product before launching into marketing, sales, or funding details.

Questions to answer in this section are as follows:

• What is the product or service?
• How do we produce it, and what resources are necessary for production?

Step 7: Marketing Plan

In this section, define the marketing strategy for your product or service. This doesn’t need to be as fleshed out as a full marketing plan , but it should answer basic questions, such as the following:

• Who is the target market (if different from existing customer base)?
• What channels will you use to reach your target market?
• What resources does your marketing strategy require, and do you have access to them?
• If possible, do you have a rough estimate of timeline and budget?
• How will you measure success?

Step 8: Sales Plan

Write an overview of the sales strategy, including the priorities of each cycle, steps to achieve these goals, and metrics for success. For the purposes of a business plan, this section does not need to be a comprehensive, in-depth sales plan , but can simply outline the high-level objectives and strategies of your sales efforts. 

Start by answering the following questions:

• What is the sales strategy?
• What are the tools and tactics you will use to achieve your goals?
• What are the potential obstacles, and how will you overcome them?
• What is the timeline for sales and turning a profit?
• What are the metrics of success?

Step 9: Funding Details (or Request for Funding)

This section is one of the most critical parts of your business plan, particularly if you are sharing it with investors. You do not need to provide a full financial plan, but you should be able to answer the following questions:

• How much capital do you currently have? How much capital do you need?
• How will you grow the team (onboarding, team structure, training and development)?
• What are your physical needs and constraints (space, equipment, etc.)?

Step 10: Financial Projections

Apart from the fundraising analysis, investors like to see thought-out financial projections for the future. As discussed earlier, depending on the scope and stage of your business, this could be anywhere from one to five years. 

While these projections won’t be exact — and will need to be somewhat flexible — you should be able to gauge the following:

• How and when will the company first generate a profit?
• How will the company maintain profit thereafter?

Business Plan Template

Download Business Plan Template

Microsoft Excel | Smartsheet

This basic business plan template has space for all the traditional elements: an executive summary, product or service details, target audience, marketing and sales strategies, etc. In the finances sections, input your baseline numbers, and the template will automatically calculate projections for sales forecasting, financial statements, and more.

For templates tailored to more specific needs, visit this business plan template roundup or download a fill-in-the-blank business plan template to make things easy. 

If you are looking for a particular template by file type, visit our pages dedicated exclusively to Microsoft Excel , Microsoft Word , and Adobe PDF business plan templates.

How to Write a Simple Business Plan

A simple business plan is a streamlined, lightweight version of the large, traditional model. As opposed to a one-page business plan , which communicates high-level information for quick overviews (such as a stakeholder presentation), a simple business plan can exceed one page.

Below are the steps for creating a generic simple business plan, which are reflected in the template below .

• Write the Executive Summary This section is the same as in the traditional business plan — simply offer an overview of what’s in the business plan, the prospect or core offering, and the short- and long-term goals of the company. 
• Add a Company Overview Document the larger company mission and vision. 
• Provide the Problem and Solution In straightforward terms, define the problem you are attempting to solve with your product or service and how your company will attempt to do it. Think of this section as the gap in the market you are attempting to close.
• Identify the Target Market Who is your company (and its products or services) attempting to reach? If possible, briefly define your buyer personas .
• Write About the Competition In this section, demonstrate your knowledge of the market by listing the current competitors and outlining your competitive advantage.
• Describe Your Product or Service Offerings Get down to brass tacks and define your product or service. What exactly are you selling?
• Outline Your Marketing Tactics Without getting into too much detail, describe your planned marketing initiatives.
• Add a Timeline and the Metrics You Will Use to Measure Success Offer a rough timeline, including milestones and key performance indicators (KPIs) that you will use to measure your progress.
• Include Your Financial Forecasts Write an overview of your financial plan that demonstrates you have done your research and adequate modeling. You can also list key assumptions that go into this forecasting. 
• Identify Your Financing Needs This section is where you will make your funding request. Based on everything in the business plan, list your proposed sources of funding, as well as how you will use it.

Simple Business Plan Template

Download Simple Business Plan Template

Microsoft Excel |  Microsoft Word | Adobe PDF  | Smartsheet

Use this simple business plan template to outline each aspect of your organization, including information about financing and opportunities to seek out further funding. This template is completely customizable to fit the needs of any business, whether it’s a startup or large company.

Read our article offering free simple business plan templates or free 30-60-90-day business plan templates to find more tailored options. You can also explore our collection of one page business templates . 

How to Write a Business Plan for a Lean Startup

A Lean startup business plan is a more Agile approach to a traditional version. The plan focuses more on activities, processes, and relationships (and maintains flexibility in all aspects), rather than on concrete deliverables and timelines.

While there is some overlap between a traditional and a Lean business plan, you can write a Lean plan by following the steps below:

• Add Your Value Proposition Take a streamlined approach to describing your product or service. What is the unique value your startup aims to deliver to customers? Make sure the team is aligned on the core offering and that you can state it in clear, simple language.
• List Your Key Partners List any other businesses you will work with to realize your vision, including external vendors, suppliers, and partners. This section demonstrates that you have thoughtfully considered the resources you can provide internally, identified areas for external assistance, and conducted research to find alternatives.
• Note the Key Activities Describe the key activities of your business, including sourcing, production, marketing, distribution channels, and customer relationships.
• Include Your Key Resources List the critical resources — including personnel, equipment, space, and intellectual property — that will enable you to deliver your unique value.
• Identify Your Customer Relationships and Channels In this section, document how you will reach and build relationships with customers. Provide a high-level map of the customer experience from start to finish, including the spaces in which you will interact with the customer (online, retail, etc.). 
• Detail Your Marketing Channels Describe the marketing methods and communication platforms you will use to identify and nurture your relationships with customers. These could be email, advertising, social media, etc.
• Explain the Cost Structure This section is especially necessary in the early stages of a business. Will you prioritize maximizing value or keeping costs low? List the foundational startup costs and how you will move toward profit over time.
• Share Your Revenue Streams Over time, how will the company make money? Include both the direct product or service purchase, as well as secondary sources of revenue, such as subscriptions, selling advertising space, fundraising, etc.

Lean Business Plan Template for Startups

Download Lean Business Plan Template for Startups

Microsoft Word | Adobe PDF

Startup leaders can use this Lean business plan template to relay the most critical information from a traditional plan. You’ll find all the sections listed above, including spaces for industry and product overviews, cost structure and sources of revenue, and key metrics, and a timeline. The template is completely customizable, so you can edit it to suit the objectives of your Lean startups.

See our wide variety of  startup business plan templates for more options.

How to Write a Business Plan for a Loan

A business plan for a loan, often called a loan proposal , includes many of the same aspects of a traditional business plan, as well as additional financial documents, such as a credit history, a loan request, and a loan repayment plan.

In addition, you may be asked to include personal and business financial statements, a form of collateral, and equity investment information.

Download free financial templates to support your business plan.

Tips for Writing a Business Plan

Outside of including all the key details in your business plan, you have several options to elevate the document for the highest chance of winning funding and other resources. Follow these tips from experts:.

• Keep It Simple: Avner Brodsky , the Co-Founder and CEO of Lezgo Limited, an online marketing company, uses the acronym KISS (keep it short and simple) as a variation on this idea. “The business plan is not a college thesis,” he says. “Just focus on providing the essential information.”
• Do Adequate Research: Michael Dean, the Co-Founder of Pool Research , encourages business leaders to “invest time in research, both internal and external (market, finance, legal etc.). Avoid being overly ambitious or presumptive. Instead, keep everything objective, balanced, and accurate.” Your plan needs to stand on its own, and you must have the data to back up any claims or forecasting you make. As Brodsky explains, “Your business needs to be grounded on the realities of the market in your chosen location. Get the most recent data from authoritative sources so that the figures are vetted by experts and are reliable.”
• Set Clear Goals: Make sure your plan includes clear, time-based goals. “Short-term goals are key to momentum growth and are especially important to identify for new businesses,” advises Dean.
• Know (and Address) Your Weaknesses: “This awareness sets you up to overcome your weak points much quicker than waiting for them to arise,” shares Dean. Brodsky recommends performing a full SWOT analysis to identify your weaknesses, too. “Your business will fare better with self-knowledge, which will help you better define the mission of your business, as well as the strategies you will choose to achieve your objectives,” he adds.
• Seek Peer or Mentor Review: “Ask for feedback on your drafts and for areas to improve,” advises Brodsky. “When your mind is filled with dreams for your business, sometimes it is an outsider who can tell you what you’re missing and will save your business from being a product of whimsy.”

Outside of these more practical tips, the language you use is also important and may make or break your business plan.

Shaun Heng, VP of Operations at Coin Market Cap , gives the following advice on the writing, “Your business plan is your sales pitch to an investor. And as with any sales pitch, you need to strike the right tone and hit a few emotional chords. This is a little tricky in a business plan, because you also need to be formal and matter-of-fact. But you can still impress by weaving in descriptive language and saying things in a more elegant way.

“A great way to do this is by expanding your vocabulary, avoiding word repetition, and using business language. Instead of saying that something ‘will bring in as many customers as possible,’ try saying ‘will garner the largest possible market segment.’ Elevate your writing with precise descriptive words and you'll impress even the busiest investor.”

Additionally, Dean recommends that you “stay consistent and concise by keeping your tone and style steady throughout, and your language clear and precise. Include only what is 100 percent necessary.”

Resources for Writing a Business Plan

While a template provides a great outline of what to include in a business plan, a live document or more robust program can provide additional functionality, visibility, and real-time updates. The U.S. Small Business Association also curates resources for writing a business plan.

Additionally, you can use business plan software to house data, attach documentation, and share information with stakeholders. Popular options include LivePlan, Enloop, BizPlanner, PlanGuru, and iPlanner.

How a Business Plan Helps to Grow Your Business

A business plan — both the exercise of creating one and the document — can grow your business by helping you to refine your product, target audience, sales plan, identify opportunities, secure funding, and build new partnerships. 

Outside of these immediate returns, writing a business plan is a useful exercise in that it forces you to research the market, which prompts you to forge your unique value proposition and identify ways to beat the competition. Doing so will also help you build (and keep you accountable to) attainable financial and product milestones. And down the line, it will serve as a welcome guide as hurdles inevitably arise.

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Business plans might seem like an old-school stiff-collared practice, but they deserve a place in the startup realm, too. It’s probably not going to be the frame-worthy document you hang in the office—yet, it may one day be deserving of the privilege.

Whether you’re looking to win the heart of an angel investor or convince a bank to lend you money, you’ll need a business plan. And not just any ol’ notes and scribble on the back of a pizza box or napkin—you’ll need a professional, standardized report.

Bah. Sounds like homework, right?

Yes. Yes, it does.

However, just like bookkeeping, loan applications, and 404 redirects, business plans are an essential step in cementing your business foundation.

Don’t worry. We’ll show you how to write a business plan without boring you to tears. We’ve jam-packed this article with all the business plan examples, templates, and tips you need to take your non-existent proposal from concept to completion.

Table of Contents

What Is a Business Plan?

Tips to Make Your Small Business Plan Ironclad

How to Write a Business Plan in 6 Steps

Startup Business Plan Template

Business Plan Examples

Work on Making Your Business Plan

How to Write a Business Plan FAQs

What is a business plan why do you desperately need one.

A business plan is a roadmap that outlines:

• Who your business is, what it does, and who it serves
• Where your business is now
• Where you want it to go
• How you’re going to make it happen
• What might stop you from taking your business from Point A to Point B
• How you’ll overcome the predicted obstacles

While it’s not required when starting a business, having a business plan is helpful for a few reasons:

• Secure a Bank Loan: Before approving you for a business loan, banks will want to see that your business is legitimate and can repay the loan. They want to know how you’re going to use the loan and how you’ll make monthly payments on your debt. Lenders want to see a sound business strategy that doesn’t end in loan default.
• Win Over Investors: Like lenders, investors want to know they’re going to make a return on their investment. They need to see your business plan to have the confidence to hand you money.
• Stay Focused: It’s easy to get lost chasing the next big thing. Your business plan keeps you on track and focused on the big picture. Your business plan can prevent you from wasting time and resources on something that isn’t aligned with your business goals.

Beyond the reasoning, let’s look at what the data says:

• Simply writing a business plan can boost your average annual growth by 30%
• Entrepreneurs who create a formal business plan are 16% more likely to succeed than those who don’t
• A study looking at 65 fast-growth companies found that 71% had small business plans
• The process and output of creating a business plan have shown to improve business performance

Convinced yet? If those numbers and reasons don’t have you scrambling for pen and paper, who knows what will.

Don’t Skip: Business Startup Costs Checklist

Before we get into the nitty-gritty steps of how to write a business plan, let’s look at some high-level tips to get you started in the right direction:

Be Professional and Legit

You might be tempted to get cutesy or revolutionary with your business plan—resist the urge. While you should let your brand and creativity shine with everything you produce, business plans fall more into the realm of professional documents.

Think of your business plan the same way as your terms and conditions, employee contracts, or financial statements. You want your plan to be as uniform as possible so investors, lenders, partners, and prospective employees can find the information they need to make important decisions.

If you want to create a fun summary business plan for internal consumption, then, by all means, go right ahead. However, for the purpose of writing this external-facing document, keep it legit.

Know Your Audience

Your official business plan document is for lenders, investors, partners, and big-time prospective employees. Keep these names and faces in your mind as you draft your plan.

Think about what they might be interested in seeing, what questions they’ll ask, and what might convince (or scare) them. Cut the jargon and tailor your language so these individuals can understand.

Remember, these are busy people. They’re likely looking at hundreds of applicants and startup investments every month. Keep your business plan succinct and to the point. Include the most pertinent information and omit the sections that won’t impact their decision-making.

Invest Time Researching

You might not have answers to all the sections you should include in your business plan. Don’t skip over these!

Your audience will want:

• Detailed information about your customers
• Numbers and solid math to back up your financial claims and estimates
• Deep insights about your competitors and potential threats
• Data to support market opportunities and strategy

Your answers can’t be hypothetical or opinionated. You need research to back up your claims. If you don’t have that data yet, then invest time and money in collecting it. That information isn’t just critical for your business plan—it’s essential for owning, operating, and growing your company.

Stay Realistic

Your business may be ambitious, but reign in the enthusiasm just a teeny-tiny bit. The last thing you want to do is have an angel investor call BS and say “I’m out” before even giving you a chance.

The folks looking at your business and evaluating your plan have been around the block—they know a thing or two about fact and fiction. Your plan should be a blueprint for success. It should be the step-by-step roadmap for how you’re going from Point A to Point B.

How to Write a Business Plan—6 Essential Elements

Not every business plan looks the same, but most share a few common elements. Here’s what they typically include:

• Executive Summary
• Business Overview
• Products and Services
• Market Analysis
• Competitive Analysis
• Financial Strategy

Below, we’ll break down each of these sections in more detail.

1. Executive Summary

While your executive summary is the first page of your business plan, it’s the section you’ll write last. That’s because it summarizes your entire business plan into a succinct one-pager.

Begin with an executive summary that introduces the reader to your business and gives them an overview of what’s inside the business plan.

Your executive summary highlights key points of your plan. Consider this your elevator pitch. You want to put all your juiciest strengths and opportunities strategically in this section.

2. Business Overview

In this section, you can dive deeper into the elements of your business, including answering:

• What’s your business structure? Sole proprietorship, LLC, corporation, etc.
• Where is it located?
• Who owns the business? Does it have employees?
• What problem does it solve, and how?
• What’s your mission statement? Your mission statement briefly describes why you are in business. To write a proper mission statement, brainstorm your business’s core values and who you serve.

Don’t overlook your mission statement. This powerful sentence or paragraph could be the inspiration that drives an investor to take an interest in your business. Here are a few examples of powerful mission statements that just might give you the goosebumps:

• Patagonia: Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
• Tesla: To accelerate the world’s transition to sustainable energy.
• InvisionApp : Question Assumptions. Think Deeply. Iterate as a Lifestyle. Details, Details. Design is Everywhere. Integrity.
• TED : Spread ideas.
• Warby Parker : To offer designer eyewear at a revolutionary price while leading the way for socially conscious businesses.

3. Products and Services

As the owner, you know your business and the industry inside and out. However, whoever’s reading your document might not. You’re going to need to break down your products and services in minute detail.

For example, if you own a SaaS business, you’re going to need to explain how this business model works and what you’re selling.

You’ll need to include:

• What services you sell: Describe the services you provide and how these will help your target audience.
• What products you sell: Describe your products (and types if applicable) and how they will solve a need for your target and provide value.
• How much you charge: If you’re selling services, will you charge hourly, per project, retainer, or a mixture of all of these? If you’re selling products, what are the price ranges?

4. Market Analysis

Your market analysis essentially explains how your products and services address customer concerns and pain points. This section will include research and data on the state and direction of your industry and target market.

This research should reveal lucrative opportunities and how your business is uniquely positioned to seize the advantage. You’ll also want to touch on your marketing strategy and how it will (or does) work for your audience.

Include a detailed analysis of your target customers. This describes the people you serve and sell your product to. Be careful not to go too broad here—you don’t want to fall into the common entrepreneurial trap of trying to sell to everyone and thereby not differentiating yourself enough to survive the competition.

The market analysis section will include your unique value proposition. Your unique value proposition (UVP) is the thing that makes you stand out from your competitors. This is your key to success.

If you don’t have a UVP, you don’t have a way to take on competitors who are already in this space. Here’s an example of an ecommerce internet business plan outlining their competitive edge:

FireStarters’ competitive advantage is offering product lines that make a statement but won’t leave you broke. The major brands are expensive and not distinctive enough to satisfy the changing taste of our target customers. FireStarters offers products that are just ahead of the curve and so affordable that our customers will return to the website often to check out what’s new.

5. Competitive Analysis

Your competitive analysis examines the strengths and weaknesses of competing businesses in your market or industry. This will include direct and indirect competitors. It can also include threats and opportunities, like economic concerns or legal restraints.

The best way to sum up this section is with a classic SWOT analysis. This will explain your company’s position in relation to your competitors.

6. Financial Strategy

Your financial strategy will sum up your revenue, expenses, profit (or loss), and financial plan for the future. It’ll explain how you make money, where your cash flow goes, and how you’ll become profitable or stay profitable.

This is one of the most important sections for lenders and investors. Have you ever watched Shark Tank? They always ask about the company’s financial situation. How has it performed in the past? What’s the ongoing outlook moving forward? How does the business plan to make it happen?

Answer all of these questions in your financial strategy so that your audience doesn’t have to ask. Go ahead and include forecasts and graphs in your plan, too:

• Balance sheet: This includes your assets, liabilities, and equity.
• Profit & Loss (P&L) statement: This details your income and expenses over a given period.
• Cash flow statement: Similar to the P&L, this one will show all cash flowing into and out of the business each month.

It takes cash to change the world—lenders and investors get it. If you’re short on funding, explain how much money you’ll need and how you’ll use the capital. Where are you looking for financing? Are you looking to take out a business loan, or would you rather trade equity for capital instead?

Read More: 16 Financial Concepts Every Entrepreneur Needs to Know

Startup Business Plan Template (Copy/Paste Outline)

Ready to write your own business plan? Copy/paste the startup business plan template below and fill in the blanks.

Executive Summary Remember, do this last. Summarize who you are and your business plan in one page.

Business Overview Describe your business. What’s it do? Who owns it? How’s it structured? What’s the mission statement?

Products and Services Detail the products and services you offer. How do they work? What do you charge?

Market Analysis Write about the state of the market and opportunities. Use date. Describe your customers. Include your UVP.

Competitive Analysis Outline the competitors in your market and industry. Include threats and opportunities. Add a SWOT analysis of your business.

Financial Strategy Sum up your revenue, expenses, profit (or loss), and financial plan for the future. If you’re applying for a loan, include how you’ll use the funding to progress the business.

5 Frame-Worthy Business Plan Examples

Want to explore other templates and examples? We got you covered. Check out these 5 business plan examples you can use as inspiration when writing your plan:

• SBA Wooden Grain Toy Company
• SBA We Can Do It Consulting
• OrcaSmart Business Plan Sample
• Plum Business Plan Template
• PandaDoc Free Business Plan Templates

Get to Work on Making Your Business Plan

If you find you’re getting stuck on perfecting your document, opt for a simple one-page business plan —and then get to work. You can always polish up your official plan later as you learn more about your business and the industry.

Remember, business plans are not a requirement for starting a business—they’re only truly essential if a bank or investor is asking for it.

Ask others to review your business plan. Get feedback from other startups and successful business owners. They’ll likely be able to see holes in your planning or undetected opportunities—just make sure these individuals aren’t your competitors (or potential competitors).

Your business plan isn’t a one-and-done report—it’s a living, breathing document. You’ll make changes to it as you grow and evolve. When the market or your customers change, your plan will need to change to adapt.

That means when you’re finished with this exercise, it’s not time to print your plan out and stuff it in a file cabinet somewhere. No, it should sit on your desk as a day-to-day reference. Use it (and update it) as you make decisions about your product, customers, and financial plan.

Review your business plan frequently, update it routinely, and follow the path you’ve developed to the future you’re building.

Keep Learning: New Product Development Process in 8 Easy Steps

What financial information should be included in a business plan?

Be as detailed as you can without assuming too much. For example, include your expected revenue, expenses, profit, and growth for the future.

What are some common mistakes to avoid when writing a business plan?

The most common mistake is turning your business plan into a textbook. A business plan is an internal guide and an external pitching tool. Cut the fat and only include the most relevant information to start and run your business.

Who should review my business plan before I submit it?

Co-founders, investors, or a board of advisors. Otherwise, reach out to a trusted mentor, your local chamber of commerce, or someone you know that runs a business.

Ready to Write Your Business Plan?

Don’t let creating a business plan hold you back from starting your business. Writing documents might not be your thing—that doesn’t mean your business is a bad idea.

Let us help you get started.

Join our free training to learn how to start an online side hustle in 30 days or less. We’ll provide you with a proven roadmap for how to find, validate, and pursue a profitable business idea (even if you have zero entrepreneurial experience).

Stuck on the ideas part? No problem. When you attend the masterclass, we’ll send you a free ebook with 100 of the hottest side hustle trends right now. It’s chock full of brilliant business ideas to get you up and running in the right direction.

About Jesse Sumrak

Jesse Sumrak is a writing zealot focused on creating killer content. He’s spent almost a decade writing about startup, marketing, and entrepreneurship topics, having built and sold his own post-apocalyptic fitness bootstrapped business. A writer by day and a peak bagger by night (and early early morning), you can usually find Jesse preparing for the apocalypse on a precipitous peak somewhere in the Rocky Mountains of Colorado.

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What is a business plan?

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

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

ZenBusiness

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

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

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

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

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

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

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

Your business’s registered name.

Address of your business location .

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

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

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

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

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

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

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

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

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

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

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

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

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

Licenses and permits.

Equipment leases.

Bank statements.

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

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

How much do you need?

with Fundera by NerdWallet

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

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

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

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

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

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

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How to create a business plan: examples & free template.

This is the ultimate guide to creating a comprehensive and effective plan to start a business . In today’s dynamic business landscape, having a well-crafted business plan is an important first step to securing funding, attracting partners, and navigating the challenges of entrepreneurship.

This guide has been designed to help you create a winning plan that stands out in the ever-evolving marketplace. U sing real-world examples and a free downloadable template, it will walk you through each step of the process.

Whether you’re a seasoned entrepreneur or launching your very first startup, the guide will give you the insights, tools, and confidence you need to create a solid foundation for your business.

Table of Contents

How to Write a Business Plan

Embarking on the journey of creating a successful business requires a solid foundation, and a well-crafted business plan is the cornerstone. Here is the process of writing a comprehensive business plan and the main parts of a winning business plan . From setting objectives to conducting market research, this guide will have everything you need.

Executive Summary

The Executive Summary serves as the gateway to your business plan, offering a snapshot of your venture’s core aspects. This section should captivate and inform, succinctly summarizing the essence of your plan.

It’s crucial to include a clear mission statement, a brief description of your primary products or services, an overview of your target market, and key financial projections or achievements.

Think of it as an elevator pitch in written form: it should be compelling enough to engage potential investors or stakeholders and provide them with a clear understanding of what your business is about, its goals, and why it’s a promising investment.

Example: EcoTech is a technology company specializing in eco-friendly and sustainable products designed to reduce energy consumption and minimize waste. Our mission is to create innovative solutions that contribute to a cleaner, greener environment.

Our target market includes environmentally conscious consumers and businesses seeking to reduce their carbon footprint. We project a 200% increase in revenue within the first three years of operation.

Overview and Business Objectives

In the Overview and Business Objectives section, outline your business’s core goals and the strategic approaches you plan to use to achieve them. This section should set forth clear, specific objectives that are attainable and time-bound, providing a roadmap for your business’s growth and success.

It’s important to detail how these objectives align with your company’s overall mission and vision. Discuss the milestones you aim to achieve and the timeframe you’ve set for these accomplishments.

This part of the plan demonstrates to investors and stakeholders your vision for growth and the practical steps you’ll take to get there.

Example: EcoTech’s primary objective is to become a market leader in sustainable technology products within the next five years. Our key objectives include:

• Introducing three new products within the first two years of operation.
• Achieving annual revenue growth of 30%.
• Expanding our customer base to over 10,000 clients by the end of the third year.

Company Description

The Company Description section is your opportunity to delve into the details of your business. Provide a comprehensive overview that includes your company’s history, its mission statement, and its vision for the future.

Highlight your unique selling proposition (USP) – what makes your business stand out in the market. Explain the problems your company solves and how it benefits your customers.

Include information about the company’s founders, their expertise, and why they are suited to lead the business to success. This section should paint a vivid picture of your business, its values, and its place in the industry.

Example: EcoTech is committed to developing cutting-edge sustainable technology products that benefit both the environment and our customers. Our unique combination of innovative solutions and eco-friendly design sets us apart from the competition. We envision a future where technology and sustainability go hand in hand, leading to a greener planet.

Define Your Target Market

Defining Your Target Market is critical for tailoring your business strategy effectively. This section should describe your ideal customer base in detail, including demographic information (such as age, gender, income level, and location) and psychographic data (like interests, values, and lifestyle).

Elucidate on the specific needs or pain points of your target audience and how your product or service addresses these. This information will help you know your target market and develop targeted marketing strategies.

Example: Our target market comprises environmentally conscious consumers and businesses looking for innovative solutions to reduce their carbon footprint. Our ideal customers are those who prioritize sustainability and are willing to invest in eco-friendly products.

Market Analysis

The Market Analysis section requires thorough research and a keen understanding of the industry. It involves examining the current trends within your industry, understanding the needs and preferences of your customers, and analyzing the strengths and weaknesses of your competitors.

This analysis will enable you to spot market opportunities and anticipate potential challenges. Include data and statistics to back up your claims, and use graphs or charts to illustrate market trends.

This section should demonstrate that you have a deep understanding of the market in which you operate and that your business is well-positioned to capitalize on its opportunities.

Example: The market for eco-friendly technology products has experienced significant growth in recent years, with an estimated annual growth rate of 10%. As consumers become increasingly aware of environmental issues, the demand for sustainable solutions continues to rise.

Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.

SWOT Analysis

A SWOT analysis in your business plan offers a comprehensive examination of your company’s internal and external factors. By assessing Strengths, you showcase what your business does best and where your capabilities lie.

Weaknesses involve an honest introspection of areas where your business may be lacking or could improve. Opportunities can be external factors that your business could capitalize on, such as market gaps or emerging trends.

Threats include external challenges your business may face, like competition or market changes. This analysis is crucial for strategic planning, as it helps in recognizing and leveraging your strengths, addressing weaknesses, seizing opportunities, and preparing for potential threats.

Including a SWOT analysis demonstrates to stakeholders that you have a balanced and realistic understanding of your business in its operational context.

• Innovative and eco-friendly product offerings.
• Strong commitment to sustainability and environmental responsibility.
• Skilled and experienced team with expertise in technology and sustainability.

Weaknesses:

• Limited brand recognition compared to established competitors.
• Reliance on third-party manufacturers for product development.

Opportunities:

• Growing consumer interest in sustainable products.
• Partnerships with environmentally-focused organizations and influencers.
• Expansion into international markets.
• Intense competition from established technology companies.
• Regulatory changes could impact the sustainable technology market.

Competitive Analysis

In this section, you’ll analyze your competitors in-depth, examining their products, services, market positioning, and pricing strategies. Understanding your competition allows you to identify gaps in the market and tailor your offerings to outperform them.

By conducting a thorough competitive analysis, you can gain insights into your competitors’ strengths and weaknesses, enabling you to develop strategies to differentiate your business and gain a competitive advantage in the marketplace.

Example: Key competitors include:

GreenTech: A well-known brand offering eco-friendly technology products, but with a narrower focus on energy-saving devices.

EarthSolutions: A direct competitor specializing in sustainable technology, but with a limited product range and higher prices.

By offering a diverse product portfolio, competitive pricing, and continuous innovation, we believe we can capture a significant share of the growing sustainable technology market.

Organization and Management Team

Provide an overview of your company’s organizational structure, including key roles and responsibilities. Introduce your management team, highlighting their expertise and experience to demonstrate that your team is capable of executing the business plan successfully.

Showcasing your team’s background, skills, and accomplishments instills confidence in investors and other stakeholders, proving that your business has the leadership and talent necessary to achieve its objectives and manage growth effectively.

Example: EcoTech’s organizational structure comprises the following key roles: CEO, CTO, CFO, Sales Director, Marketing Director, and R&D Manager. Our management team has extensive experience in technology, sustainability, and business development, ensuring that we are well-equipped to execute our business plan successfully.

Products and Services Offered

Describe the products or services your business offers, focusing on their unique features and benefits. Explain how your offerings solve customer pain points and why they will choose your products or services over the competition.

This section should emphasize the value you provide to customers, demonstrating that your business has a deep understanding of customer needs and is well-positioned to deliver innovative solutions that address those needs and set your company apart from competitors.

Example: EcoTech offers a range of eco-friendly technology products, including energy-efficient lighting solutions, solar chargers, and smart home devices that optimize energy usage. Our products are designed to help customers reduce energy consumption, minimize waste, and contribute to a cleaner environment.

Marketing and Sales Strategy

In this section, articulate your comprehensive strategy for reaching your target market and driving sales. Detail the specific marketing channels you plan to use, such as social media, email marketing, SEO, or traditional advertising.

Describe the nature of your advertising campaigns and promotional activities, explaining how they will capture the attention of your target audience and convey the value of your products or services. Outline your sales strategy, including your sales process, team structure, and sales targets.

Discuss how these marketing and sales efforts will work together to attract and retain customers, generate leads, and ultimately contribute to achieving your business’s revenue goals.

This section is critical to convey to investors and stakeholders that you have a well-thought-out approach to market your business effectively and drive sales growth.

Example: Our marketing strategy includes digital advertising, content marketing, social media promotion, and influencer partnerships. We will also attend trade shows and conferences to showcase our products and connect with potential clients. Our sales strategy involves both direct sales and partnerships with retail stores, as well as online sales through our website and e-commerce platforms.

Logistics and Operations Plan

The Logistics and Operations Plan is a critical component that outlines the inner workings of your business. It encompasses the management of your supply chain, detailing how you acquire raw materials and manage vendor relationships.

Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.

Quality control measures are essential to maintain product standards and customer satisfaction. This plan assures investors and stakeholders of your operational competency and readiness to meet business demands.

Highlighting your commitment to operational efficiency and customer satisfaction underlines your business’s capability to maintain smooth, effective operations even as it scales.

Example: EcoTech partners with reliable third-party manufacturers to produce our eco-friendly technology products. Our operations involve maintaining strong relationships with suppliers, ensuring quality control, and managing inventory.

We also prioritize efficient distribution through various channels, including online platforms and retail partners, to deliver products to our customers in a timely manner.

Financial Projections Plan

In the Financial Projections Plan, lay out a clear and realistic financial future for your business. This should include detailed projections for revenue, costs, and profitability over the next three to five years.

Ground these projections in solid assumptions based on your market analysis, industry benchmarks, and realistic growth scenarios. Break down revenue streams and include an analysis of the cost of goods sold, operating expenses, and potential investments.

This section should also discuss your break-even analysis, cash flow projections, and any assumptions about external funding requirements.

By presenting a thorough and data-backed financial forecast, you instill confidence in potential investors and lenders, showcasing your business’s potential for profitability and financial stability.

This forward-looking financial plan is crucial for demonstrating that you have a firm grasp of the financial nuances of your business and are prepared to manage its financial health effectively.

Example: Over the next three years, we expect to see significant growth in revenue, driven by new product launches and market expansion. Our financial projections include:

• Year 1: $1.5 million in revenue, with a net profit of $200,000.
• Year 2: $3 million in revenue, with a net profit of $500,000.
• Year 3: $4.5 million in revenue, with a net profit of $1 million.

These projections are based on realistic market analysis, growth rates, and product pricing.

Income Statement

The income statement , also known as the profit and loss statement, provides a summary of your company’s revenues and expenses over a specified period. It helps you track your business’s financial performance and identify trends, ensuring you stay on track to achieve your financial goals.

Regularly reviewing and analyzing your income statement allows you to monitor the health of your business, evaluate the effectiveness of your strategies, and make data-driven decisions to optimize profitability and growth.

Example: The income statement for EcoTech’s first year of operation is as follows:

• Revenue: $1,500,000
• Cost of Goods Sold: $800,000
• Gross Profit: $700,000
• Operating Expenses: $450,000
• Net Income: $250,000

This statement highlights our company’s profitability and overall financial health during the first year of operation.

Cash Flow Statement

A cash flow statement is a crucial part of a financial business plan that shows the inflows and outflows of cash within your business. It helps you monitor your company’s liquidity, ensuring you have enough cash on hand to cover operating expenses, pay debts, and invest in growth opportunities.

By including a cash flow statement in your business plan, you demonstrate your ability to manage your company’s finances effectively.

Example:  The cash flow statement for EcoTech’s first year of operation is as follows:

Operating Activities:

• Depreciation: $10,000
• Changes in Working Capital: -$50,000
• Net Cash from Operating Activities: $210,000

Investing Activities:

•  Capital Expenditures: -$100,000
• Net Cash from Investing Activities: -$100,000

Financing Activities:

• Proceeds from Loans: $150,000
• Loan Repayments: -$50,000
• Net Cash from Financing Activities: $100,000
• Net Increase in Cash: $210,000

This statement demonstrates EcoTech’s ability to generate positive cash flow from operations, maintain sufficient liquidity, and invest in growth opportunities.

Tips on Writing a Business Plan

1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively.

2. Conduct thorough research: Before writing your business plan, gather as much information as possible about your industry, competitors, and target market. Use reliable sources and industry reports to inform your analysis and make data-driven decisions.

3. Set realistic goals: Your business plan should outline achievable objectives that are specific, measurable, attainable, relevant, and time-bound (SMART). Setting realistic goals demonstrates your understanding of the market and increases the likelihood of success.

4. Focus on your unique selling proposition (USP): Clearly articulate what sets your business apart from the competition. Emphasize your USP throughout your business plan to showcase your company’s value and potential for success.

5. Be flexible and adaptable: A business plan is a living document that should evolve as your business grows and changes. Be prepared to update and revise your plan as you gather new information and learn from your experiences.

6. Use visuals to enhance understanding: Include charts, graphs, and other visuals to help convey complex data and ideas. Visuals can make your business plan more engaging and easier to digest, especially for those who prefer visual learning.

7. Seek feedback from trusted sources: Share your business plan with mentors, industry experts, or colleagues and ask for their feedback. Their insights can help you identify areas for improvement and strengthen your plan before presenting it to potential investors or partners.

FREE Business Plan Template

To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.

The template is divided into the following sections:

• Mission statement
• Business Overview
• Key products or services
• Target market
• Financial highlights
• Company goals
• Strategies to achieve goals
• Measurable, time-bound objectives
• Company History
• Mission and vision
• Unique selling proposition
• Demographics
• Psychographics
• Pain points
• Industry trends
• Customer needs
• Competitor strengths and weaknesses
• Opportunities
• Competitor products and services
• Market positioning
• Pricing strategies
• Organizational structure
• Key roles and responsibilities
• Management team backgrounds
• Product or service features
• Competitive advantages
• Marketing channels
• Advertising campaigns
• Promotional activities
• Sales strategies
• Supply chain management
• Inventory control
• Production processes
• Quality control measures
• Projected revenue
• Assumptions
• Cash inflows
• Cash outflows
• Net cash flow

What is a Business Plan?

A business plan is a strategic document that outlines an organization’s goals, objectives, and the steps required to achieve them. It serves as a roadmap as you start a business , guiding the company’s direction and growth while identifying potential obstacles and opportunities.

Typically, a business plan covers areas such as market analysis, financial projections, marketing strategies, and organizational structure. It not only helps in securing funding from investors and lenders but also provides clarity and focus to the management team.

A well-crafted business plan is a very important part of your business startup checklist because it fosters informed decision-making and long-term success.

Why You Should Write a Business Plan

Understanding the importance of a business plan in today’s competitive environment is crucial for entrepreneurs and business owners. Here are five compelling reasons to write a business plan:

• Attract Investors and Secure Funding : A well-written business plan demonstrates your venture’s potential and profitability, making it easier to attract investors and secure the necessary funding for growth and development. It provides a detailed overview of your business model, target market, financial projections, and growth strategies, instilling confidence in potential investors and lenders that your company is a worthy investment.
• Clarify Business Objectives and Strategies : Crafting a business plan forces you to think critically about your goals and the strategies you’ll employ to achieve them, providing a clear roadmap for success. This process helps you refine your vision and prioritize the most critical objectives, ensuring that your efforts are focused on achieving the desired results.
• Identify Potential Risks and Opportunities : Analyzing the market, competition, and industry trends within your business plan helps identify potential risks and uncover untapped opportunities for growth and expansion. This insight enables you to develop proactive strategies to mitigate risks and capitalize on opportunities, positioning your business for long-term success.
• Improve Decision-Making : A business plan serves as a reference point so you can make informed decisions that align with your company’s overall objectives and long-term vision. By consistently referring to your plan and adjusting it as needed, you can ensure that your business remains on track and adapts to changes in the market, industry, or internal operations.
• Foster Team Alignment and Communication : A shared business plan helps ensure that all team members are on the same page, promoting clear communication, collaboration, and a unified approach to achieving the company’s goals. By involving your team in the planning process and regularly reviewing the plan together, you can foster a sense of ownership, commitment, and accountability that drives success.

What are the Different Types of Business Plans?

In today’s fast-paced business world, having a well-structured roadmap is more important than ever. A traditional business plan provides a comprehensive overview of your company’s goals and strategies, helping you make informed decisions and achieve long-term success. There are various types of business plans, each designed to suit different needs and purposes. Let’s explore the main types:

• Startup Business Plan: Tailored for new ventures, a startup business plan outlines the company’s mission, objectives, target market, competition, marketing strategies, and financial projections. It helps entrepreneurs clarify their vision, secure funding from investors, and create a roadmap for their business’s future. Additionally, this plan identifies potential challenges and opportunities, which are crucial for making informed decisions and adapting to changing market conditions.
• Internal Business Plan: This type of plan is intended for internal use, focusing on strategies, milestones, deadlines, and resource allocation. It serves as a management tool for guiding the company’s growth, evaluating its progress, and ensuring that all departments are aligned with the overall vision. The internal business plan also helps identify areas of improvement, fosters collaboration among team members, and provides a reference point for measuring performance.
• Strategic Business Plan: A strategic business plan outlines long-term goals and the steps to achieve them, providing a clear roadmap for the company’s direction. It typically includes a SWOT analysis, market research, and competitive analysis. This plan allows businesses to align their resources with their objectives, anticipate changes in the market, and develop contingency plans. By focusing on the big picture, a strategic business plan fosters long-term success and stability.
• Feasibility Business Plan: This plan is designed to assess the viability of a business idea, examining factors such as market demand, competition, and financial projections. It is often used to decide whether or not to pursue a particular venture. By conducting a thorough feasibility analysis, entrepreneurs can avoid investing time and resources into an unviable business concept. This plan also helps refine the business idea, identify potential obstacles, and determine the necessary resources for success.
• Growth Business Plan: Also known as an expansion plan, a growth business plan focuses on strategies for scaling up an existing business. It includes market analysis, new product or service offerings, and financial projections to support expansion plans. This type of plan is essential for businesses looking to enter new markets, increase their customer base, or launch new products or services. By outlining clear growth strategies, the plan helps ensure that expansion efforts are well-coordinated and sustainable.
• Operational Business Plan: This type of plan outlines the company’s day-to-day operations, detailing the processes, procedures, and organizational structure. It is an essential tool for managing resources, streamlining workflows, and ensuring smooth operations. The operational business plan also helps identify inefficiencies, implement best practices, and establish a strong foundation for future growth. By providing a clear understanding of daily operations, this plan enables businesses to optimize their resources and enhance productivity.
• Lean Business Plan: A lean business plan is a simplified, agile version of a traditional plan, focusing on key elements such as value proposition, customer segments, revenue streams, and cost structure. It is perfect for startups looking for a flexible, adaptable planning approach. The lean business plan allows for rapid iteration and continuous improvement, enabling businesses to pivot and adapt to changing market conditions. This streamlined approach is particularly beneficial for businesses in fast-paced or uncertain industries.
• One-Page Business Plan: As the name suggests, a one-page business plan is a concise summary of your company’s key objectives, strategies, and milestones. It serves as a quick reference guide and is ideal for pitching to potential investors or partners. This plan helps keep teams focused on essential goals and priorities, fosters clear communication, and provides a snapshot of the company’s progress. While not as comprehensive as other plans, a one-page business plan is an effective tool for maintaining clarity and direction.
• Nonprofit Business Plan: Specifically designed for nonprofit organizations, this plan outlines the mission, goals, target audience, fundraising strategies, and budget allocation. It helps secure grants and donations while ensuring the organization stays on track with its objectives. The nonprofit business plan also helps attract volunteers, board members, and community support. By demonstrating the organization’s impact and plans for the future, this plan is essential for maintaining transparency, accountability, and long-term sustainability within the nonprofit sector.
• Franchise Business Plan: For entrepreneurs seeking to open a franchise, this type of plan focuses on the franchisor’s requirements, as well as the franchisee’s goals, strategies, and financial projections. It is crucial for securing a franchise agreement and ensuring the business’s success within the franchise system. This plan outlines the franchisee’s commitment to brand standards, marketing efforts, and operational procedures, while also addressing local market conditions and opportunities. By creating a solid franchise business plan, entrepreneurs can demonstrate their ability to effectively manage and grow their franchise, increasing the likelihood of a successful partnership with the franchisor.

Using Business Plan Software

Creating a comprehensive business plan can be intimidating, but business plan software can streamline the process and help you produce a professional document. These tools offer a number of benefits, including guided step-by-step instructions, financial projections, and industry-specific templates. Here are the top 5 business plan software options available to help you craft a great business plan.

1. LivePlan

LivePlan is a popular choice for its user-friendly interface and comprehensive features. It offers over 500 sample plans, financial forecasting tools, and the ability to track your progress against key performance indicators. With LivePlan, you can create visually appealing, professional business plans that will impress investors and stakeholders.

2. Upmetrics

Upmetrics provides a simple and intuitive platform for creating a well-structured business plan. It features customizable templates, financial forecasting tools, and collaboration capabilities, allowing you to work with team members and advisors. Upmetrics also offers a library of resources to guide you through the business planning process.

Bizplan is designed to simplify the business planning process with a drag-and-drop builder and modular sections. It offers financial forecasting tools, progress tracking, and a visually appealing interface. With Bizplan, you can create a business plan that is both easy to understand and visually engaging.

Enloop is a robust business plan software that automatically generates a tailored plan based on your inputs. It provides industry-specific templates, financial forecasting, and a unique performance score that updates as you make changes to your plan. Enloop also offers a free version, making it accessible for businesses on a budget.

5. Tarkenton GoSmallBiz

Developed by NFL Hall of Famer Fran Tarkenton, GoSmallBiz is tailored for small businesses and startups. It features a guided business plan builder, customizable templates, and financial projection tools. GoSmallBiz also offers additional resources, such as CRM tools and legal document templates, to support your business beyond the planning stage.

Business Plan FAQs

What is a good business plan.

A good business plan is a well-researched, clear, and concise document that outlines a company’s goals, strategies, target market, competitive advantages, and financial projections. It should be adaptable to change and provide a roadmap for achieving success.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are to guide the company’s strategy, attract investment, and evaluate performance against objectives. Here’s a closer look at each of these:

• It outlines the company’s purpose and core values to ensure that all activities align with its mission and vision.
• It provides an in-depth analysis of the market, including trends, customer needs, and competition, helping the company tailor its products and services to meet market demands.
• It defines the company’s marketing and sales strategies, guiding how the company will attract and retain customers.
• It describes the company’s organizational structure and management team, outlining roles and responsibilities to ensure effective operation and leadership.
• It sets measurable, time-bound objectives, allowing the company to plan its activities effectively and make strategic decisions to achieve these goals.
• It provides a comprehensive overview of the company and its business model, demonstrating its uniqueness and potential for success.
• It presents the company’s financial projections, showing its potential for profitability and return on investment.
• It demonstrates the company’s understanding of the market, including its target customers and competition, convincing investors that the company is capable of gaining a significant market share.
• It showcases the management team’s expertise and experience, instilling confidence in investors that the team is capable of executing the business plan successfully.
• It establishes clear, measurable objectives that serve as performance benchmarks.
• It provides a basis for regular performance reviews, allowing the company to monitor its progress and identify areas for improvement.
• It enables the company to assess the effectiveness of its strategies and make adjustments as needed to achieve its objectives.
• It helps the company identify potential risks and challenges, enabling it to develop contingency plans and manage risks effectively.
• It provides a mechanism for evaluating the company’s financial performance, including revenue, expenses, profitability, and cash flow.

Can I write a business plan by myself?

Yes, you can write a business plan by yourself, but it can be helpful to consult with mentors, colleagues, or industry experts to gather feedback and insights. There are also many creative business plan templates and business plan examples available online, including those above.

We also have examples for specific industries, including a using food truck business plan , salon business plan , farm business plan , daycare business plan , and restaurant business plan .

Is it possible to create a one-page business plan?

Yes, a one-page business plan is a condensed version that highlights the most essential elements, including the company’s mission, target market, unique selling proposition, and financial goals.

How long should a business plan be?

A typical business plan ranges from 20 to 50 pages, but the length may vary depending on the complexity and needs of the business.

What is a business plan outline?

A business plan outline is a structured framework that organizes the content of a business plan into sections, such as the executive summary, company description, market analysis, and financial projections.

What are the 5 most common business plan mistakes?

The five most common business plan mistakes include inadequate research, unrealistic financial projections, lack of focus on the unique selling proposition, poor organization and structure, and failure to update the plan as circumstances change.

What questions should be asked in a business plan?

A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?

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

A business plan focuses on the overall vision, goals, and tactics of a company, while a strategic plan outlines the specific strategies, action steps, and performance measures necessary to achieve the company’s objectives.

How is business planning for a nonprofit different?

Nonprofit business planning focuses on the organization’s mission, social impact, and resource management, rather than profit generation. The financial section typically includes funding sources, expenses, and projected budgets for programs and operations.

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, how often should a business plan be updated, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

A business plan is a document that details a company's goals and how it intends to achieve them. Business plans can be of benefit to both startups and well-established companies. For startups, a business plan can be essential for winning over potential lenders and investors. Established businesses can find one useful for staying on track and not losing sight of their goals. This article explains what an effective business plan needs to include and how to write one.

Key Takeaways

• A business plan is a document describing a company's business activities and how it plans to achieve its goals.
• Startup companies use business plans to get off the ground and attract outside investors.
• For established companies, a business plan can help keep the executive team focused on and working toward the company's short- and long-term objectives.
• There is no single format that a business plan must follow, but there are certain key elements that most companies will want to include.

Investopedia / Ryan Oakley

Any new business should have a business plan in place prior to beginning operations. In fact, banks and venture capital firms often want to see a business plan before they'll consider making a loan or providing capital to new businesses.

Even if a business isn't looking to raise additional money, a business plan can help it focus on its goals. A 2017 Harvard Business Review article reported that, "Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical nonplanning entrepreneurs."

Ideally, a business plan should be reviewed and updated periodically to reflect any goals that have been achieved or that may have changed. An established business that has decided to move in a new direction might create an entirely new business plan for itself.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. These include being able to think through ideas before investing too much money in them and highlighting any potential obstacles to success. A company might also share its business plan with trusted outsiders to get their objective feedback. In addition, a business plan can help keep a company's executive team on the same page about strategic action items and priorities.

Business plans, even among competitors in the same industry, are rarely identical. However, they often have some of the same basic elements, as we describe below.

While it's a good idea to provide as much detail as necessary, it's also important that a business plan be concise enough to hold a reader's attention to the end.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, it's best to fit the basic information into a 15- to 25-page document. Other crucial elements that take up a lot of space—such as applications for patents—can be referenced in the main document and attached as appendices.

These are some of the most common elements in many business plans:

• Executive summary: This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services: Here, the company should describe the products and services it offers or plans to introduce. That might include details on pricing, product lifespan, and unique benefits to the consumer. Other factors that could go into this section include production and manufacturing processes, any relevant patents the company may have, as well as proprietary technology . Information about research and development (R&D) can also be included here.
• Market analysis: A company needs to have a good handle on the current state of its industry and the existing competition. This section should explain where the company fits in, what types of customers it plans to target, and how easy or difficult it may be to take market share from incumbents.
• Marketing strategy: This section can describe how the company plans to attract and keep customers, including any anticipated advertising and marketing campaigns. It should also describe the distribution channel or channels it will use to get its products or services to consumers.
• Financial plans and projections: Established businesses can include financial statements, balance sheets, and other relevant financial information. New businesses can provide financial targets and estimates for the first few years. Your plan might also include any funding requests you're making.

The best business plans aren't generic ones created from easily accessed templates. A company should aim to entice readers with a plan that demonstrates its uniqueness and potential for success.

2 Types of Business Plans

Business plans can take many forms, but they are sometimes divided into two basic categories: traditional and lean startup. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These plans tend to be much longer than lean startup plans and contain considerably more detail. As a result they require more work on the part of the business, but they can also be more persuasive (and reassuring) to potential investors.
• Lean startup business plans : These use an abbreviated structure that highlights key elements. These business plans are short—as short as one page—and provide only the most basic detail. If a company wants to use this kind of plan, it should be prepared to provide more detail if an investor or a lender requests it.

Why Do Business Plans Fail?

A business plan is not a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections to begin with. Markets and the overall economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All of this calls for building some flexibility into your plan, so you can pivot to a new course if needed.

How frequently a business plan needs to be revised will depend on the nature of the business. A well-established business might want to review its plan once a year and make changes if necessary. A new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is an option when a company prefers to give a quick explanation of its business. For example, a brand-new company may feel that it doesn't have a lot of information to provide yet.

Sections can include: a value proposition ; the company's major activities and advantages; resources such as staff, intellectual property, and capital; a list of partnerships; customer segments; and revenue sources.

A business plan can be useful to companies of all kinds. But as a company grows and the world around it changes, so too should its business plan. So don't think of your business plan as carved in granite but as a living document designed to evolve with your business.

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

U.S. Small Business Administration. " Write Your Business Plan ."

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

May 24, 2021

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?

80% of businesses fail... Learn how not to.

Learn from business failures and successes in 5 min or less. The stories, frameworks, and tactics that will make you a 10x better founder.

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How to Start a $2M/Year Remote Cleaning Business

Have you ever wondered how to start a cleaning company? Cleaning businesses are some of the easiest businesses to start, but some people would prefer to just manage the business, not do the actual cleaning. Here, we explain how to start a remote house cleaning business without needing to do any cleaning yourself.

We talked to Neel Parekh, who started MaidThis in 2013. He built his remote cleaning concept into a company that makes over $166K per month and offers franchises to help small business owners do the same. The best part? He did this while traveling for 5+ years and to over 50 countries.

We’ll share his story about how to start a remote cleaning company, plus tons of great marketing tips and systems advice.

[su_note note_color="#dbeafc"]

You’ll learn everything you need to know about starting a remote service business, including:

What is a remote cleaning business?

What businesses can be remote, how to start a remote cleaning business, remote businesses faq.

• Start your own remote business [/su_note]

Get ready to learn how to start a remote cleaning business.

A remote cleaning business is a cleaning company where the owner performs marketing, human resources, and administrative functions of the business from anywhere in the world while outsourcing or hiring local workers to perform the cleaning for customers.

Effectively, you’ll start a cleaning business without cleaning.

Three criteria have to be met for any business to be run remotely:

• The staff have to go to a service location. For example, gyms won’t work, but cleaning companies do.
• The small business should have low overhead. You can’t hold a lot of supplies or inventory.
• Management tasks need to be done remotely.

Neel told us:

[su_quote] This makes service businesses ideal for remote jobs.[/su_quote]

Check out our interview with Neel to learn about remote business success stories.

He has a special offer for UpFlip members to get $6,000 in credit when they start a MaidThis franchise .

Keep reading to get great remote business ideas.

Remote business ideas

Remote businesses normally fall into two categories:

• Online businesses
• Local service businesses

Best online business ideas

A successful online business can be created using online business ideas like an:

• Online store: Sell online using dropshipping or Fulfillment by Amazon to make money from people who are online shopping.
• Podcast: Talk about subjects that interest you and earn a living from ads and sponsorships with this online business idea. Learn more about podcasting .
• YouTube creator: Learn how to start an online business by creating YouTube videos .
• Online tutoring business: Start your own online tutoring business or use a tutoring and test prep platform like TutorMe , Skooli , or Wyzant .
• Freelancing: Most freelancers work remotely using platforms like Fiverr and Upwork.
• Online courses: Course creation is a great option for remote businesses because you create the course and can consult from anywhere in the world.

In addition to a remote cleaning business, you might consider other popular remote businesses like eCommerce, human resources, and accounting.

Check out our blog about online businesses for more remote business ideas.

Local service businesses can be remote businesses

You can use Neel’s strategies for service businesses like:

• Cleaning : Neel chose a cleaning business because it is the easiest of the service businesses to apply his techniques. There’s a large pool of qualified employees and lots of places that need cleaning. Plus, everyone has the supplies they need.
• Locksmith: Most of the parts in locks are interchangeable, which means these same strategies could be applied to create a remote locksmith business.
• Painting : A small business painting homes and businesses could be run remotely. You might need AI that pulls up the design documents and calculates the total square feet that need painting, but it can also be calculated using other means.
• Pressure washing : The challenge with pressure washing may be the equipment. You would probably want your remote business to focus on providing referrals to other businesses to remove this challenge.
• HVAC : Heating, ventilation, and air conditioning companies can provide services like preventive maintenance, fan repairs, and filter changes without needing a lot of inventory. You’ll probably want a referral partner for larger fixes, though.

Learn about other service business ideas .

Starting remote businesses is all about creating systems that make it easier for you to run your own business from anywhere in the world. The process of starting a remote cleaning business will include:

• Perform market research.
• Write a business plan.
• Create a website and CRM.
• Set up a payment processor.
• Create your business structure.
• Get remote cleaning business insurance.
• Create cleaning contracts.
• Find cleaners.
• Market your remote business.

[su_quote]I didn’t have a mentor, so I was scared to quit my day job when I hit my freedom number. I cushioned my bank account and wish I had just dove in faster.[/su_quote]

Keep reading for more information about creating a remote business model.

Perform market research

There are plenty of people who have business ideas but never turn them into a profitable business. Your chances of success are much higher if you research what other businesses in the industry do and where there are gaps in the industry.

A remote cleaning business might want to use social media and Google to find locations that have higher population-to-cleaning business ratios.

In our research about the best small-town businesses , we found that locations with more than 416 people per cleaning business tend to be the best places to open a cleaning company.

You also want to understand what marketing strategy, pricing, and services competitors offer. Learn more about market research .

Write a business plan

Every successful business idea needs a business plan. Given we’re talking about a business model that can be run from anywhere in the world, you need to focus on systems.

You’ll want to include the answers to questions like:

What is the cost of starting a remote cleaning business?

Neel told us a remote cleaning business has low startup costs.

[su_quote]I probably spent under $1,000. You just need internet connection, a WordPress website, and a computer. You can grow from there.[/su_quote]

Pro Tip: If you want to grow faster, consider joining a system where a lot of the work is already done for you, like MaidThis Franchise .

What systems do I need for a fully remote business?

You’ll need some systems to run a successful remote business including a(n):

• 24/7 remote call service or VoIP provider (Neel uses DialPad)
• SMS + email automation system (at UpFlip we use MailChimp )
• Online booking system like Launch27 or Booking Koala
• Human resources for your remote business

[su_quote]Basically anything you don’t want to do, or don’t know how to, outsource it.[/su_quote]

You might need translation services if your internet business idea involves providing services in a foreign country or contracting or hiring cleaners whose first language is different than yours.

The best thing about a MaidThis franchise is that they provide aspiring entrepreneurs with everything they need to run a fully remote business.

Create a website and CRM

You’ll need a website and customer relationship management system to operate any remote business. Neel told us:

[su_quote]Just get a $100 WordPress template and then build from there when you first start.[/su_quote]

At a minimum, your remote cleaning business website will need to include:

• Booking page
• Services page (include pricing)
• About us page
• Locations page

Check out the MaidThis website for more information on how they approach each of these.

Website building resources

Some useful resources for building a remote cleaning business website include:

• GoDaddy: Get website hosting, domain names, and email marketing automation through GoDaddy .
• NameCheap: Get domains, email accounts, WordPress hosting, and other services from NameCheap .
• Build a website: Learn how to build a website .
• Creating a brand: Get tips on building a brand .

Your customer relationship management system is a database and interface that helps you easily manage everything going on with your company. Each CRM works slightly differently, but you’ll need a CRM that either includes or connects to your:

• Online booking system
• Call support system
• SMS and email marketing systems
• Payroll and accounting system
• Dispatch system
• Invoicing and payment processing

Many systems include easy integrations with commonly used providers.

CRM resources

• GBG Marketing: Neel and his franchise use a CRM created by GBG Marketing that automates follow-ups and puts booking on autopilot.
• Housecall Pro: Simplify your workflows and grow your business with the easiest-to-use CRM. Get a 14-day trial from Housecall Pro.
• monday.com: One of the most commonly used CRM and project management tools is monday.com . Check out our monday.com review .
• Jobber: This CRM focuses on making service businesses easier to run. It’s fairly intuitive to use. Check out Jobber .
• ClickUp : We use ClickUp at UpFlip. It’s a great system that lets you monitor and control your workflows at a reasonable cost.
• HubSpot: HubSpot is one of the most amazing programs I have ever seen, but the coolest features are complex. Compare HubSpot’s pricing options . I’d suggest starting with the Starter CRM.

Any of these should provide the functionality you need, but each works differently, so check out the demos to decide which you like best.

Set up a payment processor

You’ll need a payment processor to charge your cleaning customers and pay cleaners. Most businesses use Stripe because it is easy to use and integrations are normally built into other software.

Payment processors normally charge a fee based on the value of the transaction PLUS a per-transaction fee. In addition, they may also charge a monthly fee.

You might also consider options like:

• Stax by Fattmerchant

View the table below for a quick overview of the differences between each.

As you can see, there are some details that make it harder to compare payment processors than some other systems, but in most scenarios, Helcim will save you money.

If the vast majority of your payments are in-person Visa payments and your transactions amount to almost exactly $250K or $500K per year, you may be able to save even more with Stax tiered plans.

Pro Tip: One money-saving trick is to make sure that your online business uses technologies to qualify for lower “card-present” fees.

Make your online cleaning business legal

You’ll need to create a business structure, get any business licenses you need, and get a business bank account to run a remote business idea legally. Let’s look at how to accomplish each of these.

Choose a business structure

Small business ideas can make up to $600 before you need to start reporting the income on your taxes. Most business owners start a Limited Liability Company (LLC) and file taxes as an S-Corp.

First, you’ll need to check the USPTO and the Secretary of State website in the location you want to register to make sure the name for your remote business is available. If the name is available, apply for an Employer Identification Number (EIN) and save it somewhere safe.

Then apply for an LLC on your Secretary of State website. We walk you through an example of what the application looks like in this blog .

Next you’ll need to fill out Form 8832 and Form 2553 with the IRS to opt into the S-Corp tax structure, which provides benefits to LLCs like:

• Potentially reduced taxes
• No double taxation
• Wages paid to owners
• Dividends paid with profits

There are plenty of other business structures for online business ideas, but this is one of the best.

Get business licenses and permits for your remote business

You will probably need business licenses in the location(s) where you operate your remote business. This could include tax permits, local business licenses, and other requirements.

Make sure to check with your local authorities or a business law attorney to ensure you comply with all local laws. Each location is different, so you may need someone who has familiarity with multiple locations or specializes in helping unique online businesses.

Don’t forget a business bank account

You’ll need a business bank account to make your remote business easier to manage. In addition, a business bank account protects the limited liability status of a company because it keeps personal and business finances separate.

There are many available business bank accounts, and which one you choose will depend on your small business needs and structure. At the time of writing, I recommend Live Oak Bank because it

• Uses IntraFi Cash Service to provide FDIC insurance up to $10 million
• Was the 2022 leader in SBA loans
• Offers 4.0% interest on its savings accounts

Learn more about opening a business bank account .

Get remote cleaning business insurance

You’ll need small business insurance coverage in case anything goes wrong on the job. You’ll want to consider getting a Business Owners Policy (BOP) that covers:

• General Liability Insurance: Covers liability claims and lawsuits
• Commercial Property Insurance: Protects buildings, inventory, and equipment
• Additional Riders: Covers other business scenarios like shutdowns, errors and omissions (E&O), workers’ compensation, and commercial automobile insurance

Check out Simply Business to get quotes from 16 of America’s best business insurance companies.

Create cleaning contracts

You’ll need to have some contracts prepared before you hire cleaners to work for your remote cleaning business. You’ll need an employment agreement that covers:

• The relationship between your company and the cleaner
• Noncompete terms

Payment structure

• Property damages

Let’s look at each of these in more detail to help you understand how to manage employee or contractor relationships.

Company and cleaner relationship

You’ll want to define whether the cleaners you hire are employees or subcontractors. Many remote businesses will consider all people who work with them as subcontractors, but you have to be careful.

Cristobal Mondragon classified all his employees as independent contractors and that resulted in a hefty fine.

Ultimately, your remote house cleaning business is a digital marketing business that provides cleaners. That means the maids and housekeepers count as independent contractors, but the IRS suggests requesting a ruling for positions you routinely need to fill to verify if the workers are actually employees or subcontractors.

Try out our cleaning business course Want to get all the templates, workflows, and systems that Chris uses to make $5,800 per day? Check out our  free cleaning business course !

Noncompete term

A remote cleaning business start-up will probably want noncompete clauses when they hire employees or subcontractors. Remote working may need terms like:

“The subcontractor/employee agrees that all clients are clients of [Company Name]. Performing any work for the clients except through [Company Name] is a violation of the services agreement and will result in the termination of the contract and pursuit of loss income at the rate of $[Amount].”

The paragraph above is just an example. Consult with an attorney or human resource specialist to get a noncompete agreement that is legal in each location where your business operates.

You’ll want to specify how you will pay your cleaning people. Many business owners find that pay-for-performance is the best business model to align unique online business ideas with the employees’ interests. This payment model may mean paying them:

• A percentage of each job
• Incentives for performing certain tasks

[su_quote]I pay my cleaners $25 for each person who provides a review after they cleaned their house. This encourages them to ask for reviews and helps us build faster business growth.[/su_quote]

Property damage

Your virtual business should add terms that protect against items broken or otherwise damaged by your employees. These terms may require subcontractors to carry small business insurance or specify that employees may be responsible for the cost of the replacement up to a certain amount.

Make sure to get legal advice to establish what is legal in the locations you serve.

In addition, you’ll need cleaning contracts for your clients. Many residential home cleaners do not use contracts, but Airbnb cleaners may.

Find cleaners

Neel explained how he finds remote employees:

[su_quote] I’m looking for three main things when hiring people:

• Good reliability
• Good communication
• Good attitude[/su_quote]

He went on to explain that Facebook Marketplace and Craigslist are great places to find employees without spending a lot on hiring. Once you have eligible candidates, Neel told us:

[su_quote]We use an automated five-step recruiting process. That includes:

• Initial screening call that asks questions like do they have business insurance and licenses.
• Then we conduct a second Zoom call to see if they show up and how they interact.
• Send them on a test job.
• Officially onboard.
• Monitor what they do.[/su_quote]

One of the benefits of buying a MaidThis franchise is you get to skip a lot of the mistakes most people experience as they learn how to build a remote cleaning business.

In addition to all the other support and resources, you’ll get access to MaidThis’s detailed standard operating procedures, which are over 1,000 pages long. Find out why in the video below.

Conduct background checks

In-person businesses like cleaning companies rely on customer service from remote teams. You’ll want to make sure every in-person worker has a clean background. That means you’ll need to conduct a background check.

You can consider companies like

• Crtain: Crtain is used by Tesla, Shopify, and Deloitte to get up to 80% faster criminal background checks.
• Checkr: One of the biggest background check companies but sometimes the checks take too long. Issues normally arise when people have criminal backgrounds or have lived in multiple jurisdictions in the last seven years.

UpFlip Cautionary Tale

I have a lot of experience with Checkr background checks because they were run on me for multiple employers. I used to move approximately once per year to go experience new places.

My background checks would ALWAYS take at least a week because they had to check seven jurisdictions. Meanwhile, my significant other’s background checks almost always come back instantaneously.

The other scenario that commonly holds up background checks is criminal charges that don’t necessarily convert easily from one state to another. For instance, Nevada gross misdemeanors are often considered felonies because other states don’t have gross misdemeanors, and they are only available as plea bargains in Nevada.

If you need someone fast, ask screening questions like:

• How many locations have you lived in the last seven years?
• Have you ever been charged with a felony?

These two questions will let you know if screening the applicant will take longer than normal.

Fill out HR paperwork

You’ll need to provide new hire paperwork before managing remote employees in the U.S.

• W-4 Form: This document lets you know how much to deduct for taxes. States that have income tax will also require a state form.
• I-9 Form: This is a proof of identity form that is required to work in the U.S.
• Offer of Employment: This document details exactly what you are offering the new hire.
• Employment Contract: This document details the terms of the employment and goes into more detail than the original offer.
• Emergency Contact Info: You’ll need this document to contact the next of kin if your employee is injured, gets sick, or dies on the job.
• Employee Handbook: Let the employee know what is expected of them, including values, policies, dress codes or uniforms, and other behavior. You need a page for them to sign to document receipt of and agreement with the handbook.
• Payroll and Benefits: Documents like a direct deposit form and any other benefit forms the company offers.

Remote work in other countries may have different requirements. When working remotely, always consult with someone familiar with the laws in the country where the remote team works. Learn more about hiring .

Hiring resources

Some resources that you can use for hiring include:

• Trello: Neel uses Trello to manage the onboarding of remote employees.
• QuickBooks Payroll: Handle your payroll and accounting with QuickBooks .

Market your cleaning business

A remote cleaning business will need to use a combination of digital marketing and “boots-on-the-ground” marketing.

Neel loves talking about marketing. He gave us input on how much you should spend to get unique online business ideas to start making money.

How much is the marketing budget for a startup?

To most effectively start a great online business idea, you’ll want to spend 15 to 20% of your desired revenue on a combination of digital and print marketing. Neel told us:

[su_quote]We spend about 5% of revenue on marketing. When you first start, I recommend 15 to 20% of your spending on marketing because once you get a client, it’s pretty easy to keep them.[/su_quote]

As your marketing strategy helps you reach your desired revenue, you can reduce your marketing to maintain revenue and increase profits.

How to offer remote cleaning services

The best business ideas can fall flat if you don’t market them right and find the right clients. You’ll want to use digital marketing skills like:

• Social media
• Search engine optimization

Neel explained how to start a remote house cleaning company and get ahead of the competition fast.

[su_quote]If you answer the call, we close 60% of requests, but if we don’t answer, we only close 16%. So we use a call agency and an automated text messaging system to follow up if we miss the call.[/su_quote]

MaidThis also uses an online booking system to provide potential clients another booking option.

In addition, any time they clean a home, they’ll send postcards to the five houses on either side of it. Neel told us:

[su_quote]If someone in a neighborhood is our client, their neighbors are probably our target audience.[/su_quote]

Neel explained what to include in your calls:

[su_quote]When someone calls, we ask them something like, ‘Do you want weekly, bi-weekly, or monthly cleanings?’ Note we don’t offer them a one-time cleaning.[/su_quote]

Neel also uses automated marketing tools and funnels to help book customers more regularly.

[su_quote] When a client hasn’t requested their home cleaned recently, they’ll send an automated text message. They even have a one-click brownie-sending service (yes, he sends baked goods) to help encourage return customers.[/su_quote]

How to get reviews

Customer reviews are crucial to work remotely. You’ll want to provide great customer service. Then you want to encourage the cleaner to ask for a review because in-person meetings tend to create a better relationship than remote interactions. Neel told us:

[su_quote]Make sure your cleaners ask for reviews because the customer is more likely to review when they ask. We give the cleaners a $25 bonus for every review they get.[/su_quote]

Neel went on to explain:

[su_quote]After each cleaning, we’ll request an automated review that takes about 10 seconds for the customer to review us.[/su_quote]

You can also minimize bad reviews in the business world. Neel shared his secret:

[su_quote]When you get a bad review, call them and offer to send someone over for a complimentary recleaning.[/su_quote]

Useful marketing tools

There are some useful marketing tools that small business owners use to market their companies:

• Canva: Simplify graphic design with Canva . Get access to thousands of templates for website and social media for as low as $4.99 per month.
• SurferSEO: Write blog content faster and rank higher on search engines with SurferSEO .
• MailChimp: Email and SMS marketing automation is one of the keys to success that many small business owners mention. Get started with Mailchimp .

Next we’ll discuss some of the frequently asked questions about remote businesses.

Still considering whether a remote cleaning business is for you? We’ll answer some of the commonly asked questions about companies that work remotely including:

What companies are fully remote?

What is a remote-first company, benefits of remote work for companies, reasons not to allow work from home.

There are plenty of companies that are fully remote, but some of the best small business ideas that you can operate from your own home (or anywhere in the world, like Neel does) include:

• Consulting services: You can be your own boss and advise people on your area of expertise as a business consultant.
• Social media management: Manage other companies’ social media accounts using online communication tools to manage multiple platforms at once.
• Online courses: Online courses can make millions and can approach 90% profits without the need for a physical office.
• Affiliate marketing business: Working as an affiliate marketer is another opportunity to create pieces of content once and let them make you money forever.
• eCommerce business: An eCommerce site that sells print-on-demand products can be a fully remote business.
• Web development: Creating websites or app development is another great remote business.
• Graphic design: Designing digital and print materials for companies doesn’t require being in their physical offices. Just grab a computer and get started.
• Virtual event planning: Start your own business as an event planner. You’ll be working remotely most of the time. When you plan virtual events, it’s 100% remote work.
• Virtual assistant business: A virtual assistant helps business professionals with work that is time-consuming and has to be done but doesn’t create much business value. You can be a virtual assistant with 100% remote work from your own home.

“Remote-first” companies prioritize remote work over in-person jobs. These companies are often similar to fully remote businesses, but they still maintain an office for when people need to get together to achieve their organizational goals.

Whether you run online store ideas or want to start a remote business sanitizing company, there are benefits to remote work for many business owners, companies, and remote employees , including:

• Global talent pool
• Lower costs
• Happier employees
• Freedom to work when and where you want
• Potential efficiency gains
• Lower turnover
• Healthier workforce
• Green initiative compliance

There are also many reasons why you might not want to run a remote business.

There are numerous reasons why companies might not want to allow remote work, including:

• Potential efficiency loss
• Harder to schedule meetings
• Buildings and office furniture are being paid for but not utilized
• Inability to monitor employee behavior
• Difficult to share knowledge
• Harder to build corporate culture
• Lack of control
• Collaboration may suffer
• May cause employee isolation issues
• Difficult to hire efficiently
• Some people work better in person
• Cyber security issues

Where can I learn more about Neel and MaidThis?

You can learn more about Neel and MaidThis on the following sites:

• Neel’s Podcast: The Remote Local
• MaidThis Franchise: Apply to Be a Franchisee

Start your own remote business

We’ve explained how to start a remote cleaning company, shared other online business ideas that can be run remotely, and provided advice from a highly successful business owner about how to start a cleaning business without cleaning.

Now it’s up to you. Will you put in the time and energy it takes to create the systems you need to build a business you can run from anywhere in the world?

How to Find a Mentor in 7 Steps (2024)

What is a Mentor?

• Teacher: Good mentors help the other person develop the skills to be successful in their career.
• Sponsor : A mentor helps the younger person find their way in the social environment.
• Advisor: Great mentors will act as a sounding board to help young people look at different perspectives and offer advice.
• Agent: Success is often about the number of people who buy into your narrative. A mentor will have already acquired more people in their professional network and will advocate for a mentee, assuming the idea or role is a good fit.
• Role Model : A mentor should be someone you aspire to be like.
• Coach: Mentors should help motivate and inspire you to be the best you can be. Sometimes we all need a good motivational speech or dose of harsh reality. It should help with your professional growth and build the relationship stronger.
• Confidante: A great mentor will be someone who knows when to let you vent and when to offer a few tips. The pressures of building a career path, your own company, and your personal life can be a challenge at times. They’ll be there when they can, but they are busy too.

There are Different Potential Mentor Relationship Types

• Career Mentor
• Life Mentor
• Professional Mentor
• Business Mentor

Career Mentor (Typically Early in Career)

Life mentor (personal mentor).

• My parents, for teaching me I can truly accomplish anything if I put my mind to it.
• My grandpa, for teaching me I can say anything as long as I say it with a smile.
• My high school chemistry teacher (the only person I knew believed in me when I was struggling as a teenager).
• Dennis Rodman, (from afar) shows how you don’t have to fit a particular mold to create an amazing career path.
• My manager at Pizza Hut, for showing me that leadership skills are not dictated by position but based on a combination of professional skills and your ability to find mutually beneficial solutions.

Professional Mentor (Paid to Advise)

Business Mentor (Often Called a Business Coach or Consultant)

What to look for in a mentor.

• They are in a good spot in their career.
• They give constructive criticism in a way that you find palatable.
• You have common ground upon which you can connect.
• They have an existing network that is larger than yours. This may be a personal network, in a specific industry, or across a variety of industries depending on what you are hoping to learn.
• They have the time, desire, and energy to teach you new skills.
• You enjoy having a casual conversation with them.
• They need a personal assistant, employee, or intern.

How to Find a Prospective Mentor

• Identify your goals. 
• Reach out to potential mentors via email, letter, social media, or phone call (if you know them).
• Ask for an initial conversation to help you get to know the potential mentors.
• Schedule an in-person meeting or virtual coffee. 
• Discuss the industry, things you have in common, and goals.
• Ask the more experienced person to provide a mentorship once you’re sure they are the right mentor.
• Interact with them to ask for advice, keep them up to date with your career growth, and get feedback.
• Identify your goals and who inspires you.
• Google them.
• Follow them on social media.
• Buy, and more importantly, read their book(s).
• Interact with their posts by asking relevant questions. 
• For a job, look for one that would include directly reporting to the mentor you seek. Apply for it, and be prepared for the meeting. You have lots of knowledge. Use it. Be ready to show how you are a good candidate for the job.
• Industry meetups tend to have keynote speakers and they announce who they are in advance. Most keynote speakers share their expertise, make it a point to connect with the crowd afterward and share their email addresses. 
• Follow up. Thank them for their time. Ask them questions you didn’t get to ask them in the meeting. Hopefully, they give you some guidance and request another meeting.
• Work on building the skills and achieving success using their advice.
• Reach out again when you achieve a goal using the advice you got from them.
• If you worked with them, it probably impacted both your careers and they might already be aware they are developing a mentorship.
• Either way, ask them if you can meet for lunch as a way to thank your mentor for their help

How to Find a Mentor for Adults

• Facebook Business Groups
• LinkedIn Groups
• Business Mentoring Sites and Apps
• Career Development Centers
• Charity Work
• Local Business Gatherings
• Co-working Office Places
• Think Tanks and Incubators

How to Find a Mentor Near Me

• Limit Online Searches to Your Location

How to Find a Business Mentor

How to find a real estate mentor.

• Go to continuous education courses.
• Identify successful brokers in your town, and offer them a good deal to work under them and learn their ways.
• Go to networking events and open houses to meet other real estate professionals.

How to Find a Mentor on LinkedIn 

Use a “find a mentor app” or “find a mentor website”, where can i find a mentor for free, how to find a mentor on reddit.

• Follow members that seem knowledgeable.
• Ask questions. 
• Develop relationships and watch them grow into mentorships organically.

How to Find a Mentor for a Teenager

• Teachers, professors, and other educators
• Boys and Girls Club
• Guest presenters at colleges
• Youth activity leaders

Developing the Mentorship

• Seek all the information you can about them. 
• Find a way to meet when they are a keynote speaker or apply for a job that reports to them.
• Follow up, thank them for their time, and ask questions.
• When you achieve a goal using the advice you got from them, reach out again.
• Thank them for the advice they gave you and share the impact it had.
• Offer to assist them or take them to lunch.

Mentoring Relationships Have Several Benefits for the Mentor Too!

• Helping others that are struggling
• Building a legacy
• Filling time in retirement
• Building a team to help achieve more than they can achieve on their own

Go Forth and Become Titans of Industry

Monday.com Review: Pros & Cons, Ratings & More

What is Monday.com?

• Monday Sales CRM : A customer relationship management tool used for contact management and tracking the sales process.
• Monday Marketer : Used for tracking marketing campaigns and content generation.
• Monday Projects: Used for planning, project management, and monitoring projects.
• Monday Dev : Used for planning a roadmap, tracking development and bugs using either kanban or scrum methodologies.
• WorkForms: Create surveys to gather information, use them as embeddable content or shareable links.
• Canvas: A whiteboard that multiple people can work on at once.

All the features on Monday.com

• Dashboards : Use dashboards to understand important data at light speed with graphs, calendar views, timelines, and work progress.
• Automation : You’ll use these to improve workflows, notifications, and emails. There are more than 200 automations ready to use, plus custom workflows with the Enterprise plan.
• Kanban : Used in software development to manage the creation of new features. Provides an easy setup with a customizable user interface. 
• Digital Asset Management: Helps you manage file storage for easy access and reviews. Monday integrates with Adobe products . Canva integrates with Monday through Zapier or Make (formerly Integromat).
• Software Integration : Seamlessly integrate with hundreds of apps. You can even embed apps directly into Monday.com. Check out the full list of apps.  
• Gantt Charts : Use this view to measure the team's progress, improve scheduling, and remove bottlenecks in your processes.
• WorkDocs : Help keep the whole team on the same page with Monday WorkDocs. You can create reports and checklists without sending the documents back and forth by adding multiple users to the document. This is great for progress reports or updating business plans.

Monday.com Reviews

Reviews of monday.com on trustpilot.

• Monday Mobile Apps Review
• Monday Desktop App Review
• Monday CRM Review
• Monday Marketer Review
• Project Management Tool Review
• Monday.com Support Team Review
• Number of Reviews
• Overall Rating
• Percentage Rated 1 to 5 Stars
• Quickness of Response to Negative Reviews
• Reviews by Keywords

Monday App on iOS and Android

Monday.com Desktop App

• You can set it to open on startup. This feature is highly beneficial for people who spend their whole day on Monday.com.
• A desktop app prevents distractions. When you have tabs open in a browser, it’s easy to get distracted. The desktop app doesn’t have many of the common distractions embedded.

Monday.com CRM

Monday Marketer

How to use monday.com for project management software.

Monday.com Support

How much is monday.com.

Free Forever Plan 

• You are just starting a new business. 
• You don’t have employees.
• You want to familiarize yourself with Monday.com.
• You want to implement a better system but need more than the two-week free trial period to do so.

• Max 2 users
• 500 MB storage 
• Under 1,000 items
• No automations or integrations
• Up to 40 users without contacting support
• Unlimited users if you contact support
• Unlimited Items 
• 5 GB of storage (decent for small companies that aren’t in the creative industry)
• Unlimited admins with the basic plan

• 5 GB storage will never work for artistic companies.
• Users do not have automations or integrations.

Standard Plan

• 20 GB of storage
• Zoom Integration
• 250 automation actions per month
• 250 integration actions per month
• 5 Boards per dashboard
• Timeline View
• Calendar View
• 6 months of activity logs

• Email integrations will quickly consume monthly integration and automation limits for any business that uses them.
• 20 GB storage is still fairly small, but at least you can integrate a Google Drive or Dropbox to increase the storage space if that’s your only limitation.
• Small teams (Less than 10 people) that want to automate a lot of their work.
• A project manager that wants to share project progress with subcontractors, but who doesn’t have a large support team.
• Teams that don’t need lots of file storage space.
• Time tracking
• Formula Column
• 25,000 integration actions per month
• 25,000 automation actions per month
• 10 boards per dashboard
• Unlimited guest access
• 2 New Views
• Private Boards and Docs
• Google Authentication
• Board level admins (Perfect for Separating sales teams, marketing teams, and your service teams workloads).
• 1 Year activity report.

• Any business with more than 40 employees. You know they want you to talk to the customer reps if you have more than 40 employees because they think you need the coolest features.
• Any business that has to abide by HIPAA regulations
• Any business that needs advanced support functionality and administration
• If automations and integrations exceed the maximum for the professional plan

Enterprise Plan

• Everything in the other paid plans
• Your own personal success manager
• 5 years activity report, which is great for audits
• Advanced IT Administrator Controls
• HIPAA compliance
• Advanced Reporting
• Uptime Service Agreement

• Familiarizing yourself with the Monday.com knowledge base
• Maximizing the utilities offered in the Pro plan
• Having a team of 41 or more people.

FAQs About Monday.com

How much does monday.com cost.

• Number of people
• Number of automation actions 
• Number of integration actions

What is Monday.com used for?

What can integrate with monday.com, monday.com competitors.

• Asana : More free team members, but higher prices for paid plans and lower TrustPilot reviews .
• Clickup : Better support and more features at lower tiers, but lower TrustPilot reviews .
• Nifty : On G2 reviews claim that Nifty is easier to set up and has better support, but it costs three times as much and has no ratings on TrustPilot.

Monday.com pros and cons?

nice work https://binarychemist.com/

My Name is PRETTY NGOMANE. A south African female. Aspiring to do farming. And finding a home away from home for the differently abled persons in their daily needs.

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24 of My Favorite Sample Business Plans & Examples For Your Inspiration

Published: February 06, 2024

I believe that reading sample business plans is essential when writing your own.

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As you explore business plan examples from real companies and brands, it’s easier for you to learn how to write a good one.

But what does a good business plan look like? And how do you write one that’s both viable and convincing. I’ll walk you through the ideal business plan format along with some examples to help you get started.

Table of Contents

Business Plan Format

Business plan types, sample business plan templates, top business plan examples.

Ask any successful sports coach how they win so many games, and they’ll tell you they have a unique plan for every single game. To me, the same logic applies to business.

If you want to build a thriving company that can pull ahead of the competition, you need to prepare for battle before breaking into a market.

Business plans guide you along the rocky journey of growing a company. And if your business plan is compelling enough, it can also convince investors to give you funding.

With so much at stake, I’m sure you’re wondering where to begin.

Free Business Plan Template

The essential document for starting a business -- custom built for your needs.

• Outline your idea.
• Pitch to investors.
• Secure funding.
• Get to work!

You're all set!

Click this link to access this resource at any time.

Fill out the form to get your free template.

First, you’ll want to nail down your formatting. Most business plans include the following sections.

1. Executive Summary

I’d say the executive summary is the most important section of the entire business plan. 

Why? Essentially, it's the overview or introduction, written in a way to grab readers' attention and guide them through the rest of the business plan. This is important, because a business plan can be dozens or hundreds of pages long.

There are two main elements I’d recommend including in your executive summary:

Company Description

This is the perfect space to highlight your company’s mission statement and goals, a brief overview of your history and leadership, and your top accomplishments as a business.

Tell potential investors who you are and why what you do matters. Naturally, they’re going to want to know who they’re getting into business with up front, and this is a great opportunity to showcase your impact.

Need some extra help firming up those business goals? Check out HubSpot Academy’s free course to help you set goals that matter — I’d highly recommend it

Products and Services

To piggyback off of the company description, be sure to incorporate an overview of your offerings. This doesn’t have to be extensive — just another chance to introduce your industry and overall purpose as a business.

In addition to the items above, I recommend including some information about your financial projections and competitive advantage here too.:

Keep in mind you'll cover many of these topics in more detail later on in the business plan. So, keep the executive summary clear and brief, and only include the most important takeaways.

Executive Summary Business Plan Examples

This example was created with HubSpot’s business plan template:

This executive summary is so good to me because it tells potential investors a short story while still covering all of the most important details.

Image Source

Tips for Writing Your Executive Summary

• Start with a strong introduction of your company, showcase your mission and impact, and outline the products and services you provide.
• Clearly define a problem, and explain how your product solves that problem, and show why the market needs your business.
• Be sure to highlight your value proposition, market opportunity, and growth potential.
• Keep it concise and support ideas with data.
• Customize your summary to your audience. For example, emphasize finances and return on investment for venture capitalists.

Check out our tips for writing an effective executive summary for more guidance.

2. Market Opportunity

This is where you'll detail the opportunity in the market.

The main question I’d ask myself here is this: Where is the gap in the current industry, and how will my product fill that gap?

More specifically, here’s what I’d include in this section:

• The size of the market
• Current or potential market share
• Trends in the industry and consumer behavior
• Where the gap is
• What caused the gap
• How you intend to fill it

To get a thorough understanding of the market opportunity, you'll want to conduct a TAM, SAM, and SOM analysis and perform market research on your industry.

You may also benefit from creating a SWOT analysis to get some of the insights for this section.

Market Opportunity Business Plan Example

I like this example because it uses critical data to underline the size of the potential market and what part of that market this service hopes to capture.

Tips for Writing Your Market Opportunity Section

• Focus on demand and potential for growth.
• Use market research, surveys, and industry trend data to support your market forecast and projections.
• Add a review of regulation shifts, tech advances, and consumer behavior changes.
• Refer to reliable sources.
• Showcase how your business can make the most of this opportunity.

3. Competitive Landscape

Since we’re already speaking of market share, you'll also need to create a section that shares details on who the top competitors are.

After all, your customers likely have more than one brand to choose from, and you'll want to understand exactly why they might choose one over another.

My favorite part of performing a competitive analysis is that it can help you uncover:

• Industry trends that other brands may not be utilizing
• Strengths in your competition that may be obstacles to handle
• Weaknesses in your competition that may help you develop selling points
• The unique proposition you bring to the market that may resonate with customers

Competitive Landscape Business Plan Example

I like how the competitive landscape section of this business plan below shows a clear outline of who the top competitors are.

It also highlights specific industry knowledge and the importance of location, which shows useful experience in this specific industry. 

This can help build trust in your ability to execute your business plan.

Tips for Writing Your Competitive Landscape

• Complete in-depth research, then emphasize your most important findings.
• Compare your unique selling proposition (USP) to your direct and indirect competitors.
• Show a clear and realistic plan for product and brand differentiation.
• Look for specific advantages and barriers in the competitive landscape. Then, highlight how that information could impact your business.
• Outline growth opportunities from a competitive perspective.
• Add customer feedback and insights to support your competitive analysis.

4. Target Audience

Use this section to describe who your customer segments are in detail. What is the demographic and psychographic information of your audience?

If your immediate answer is "everyone," you'll need to dig deeper. Here are some questions I’d ask myself here:

• What demographics will most likely need/buy your product or service?
• What are the psychographics of this audience? (Desires, triggering events, etc.)
• Why are your offerings valuable to them?

I’d also recommend building a buyer persona to get in the mindset of your ideal customers and be clear on why you're targeting them.

Target Audience Business Plan Example

I like the example below because it uses in-depth research to draw conclusions about audience priorities. It also analyzes how to create the right content for this audience.

Tips for Writing Your Target Audience Section

• Include details on the size and growth potential of your target audience.
• Figure out and refine the pain points for your target audience , then show why your product is a useful solution.
• Describe your targeted customer acquisition strategy in detail.
• Share anticipated challenges your business may face in acquiring customers and how you plan to address them.
• Add case studies, testimonials, and other data to support your target audience ideas.
• Remember to consider niche audiences and segments of your target audience in your business plan.

5. Marketing Strategy

Here, you'll discuss how you'll acquire new customers with your marketing strategy. I’d suggest including information:

• Your brand positioning vision and how you'll cultivate it
• The goal targets you aim to achieve
• The metrics you'll use to measure success
• The channels and distribution tactics you'll use

I think it’s helpful to have a marketing plan built out in advance to make this part of your business plan easier.

Marketing Strategy Business Plan Example

This business plan example includes the marketing strategy for the town of Gawler.

In my opinion, it really works because it offers a comprehensive picture of how they plan to use digital marketing to promote the community.

Tips for Writing Your Marketing Strategy

• Include a section about how you believe your brand vision will appeal to customers.
• Add the budget and resources you'll need to put your plan in place.
• Outline strategies for specific marketing segments.
• Connect strategies to earlier sections like target audience and competitive analysis.
• Review how your marketing strategy will scale with the growth of your business.
• Cover a range of channels and tactics to highlight your ability to adapt your plan in the face of change.

6. Key Features and Benefits

At some point in your business plan, you'll need to review the key features and benefits of your products and/or services.

Laying these out can give readers an idea of how you're positioning yourself in the market and the messaging you're likely to use. It can even help them gain better insight into your business model.

Key Features and Benefits Business Plan Example

In my opinion, the example below does a great job outlining products and services for this business, along with why these qualities will attract the audience.

Tips for Writing Your Key Features and Benefits

• Emphasize why and how your product or service offers value to customers.
• Use metrics and testimonials to support the ideas in this section.
• Talk about how your products and services have the potential to scale.
• Think about including a product roadmap.
• Focus on customer needs, and how the features and benefits you are sharing meet those needs.
• Offer proof of concept for your ideas, like case studies or pilot program feedback.
• Proofread this section carefully, and remove any jargon or complex language.

7. Pricing and Revenue

This is where you'll discuss your cost structure and various revenue streams. Your pricing strategy must be solid enough to turn a profit while staying competitive in the industry. 

For this reason, here’s what I’d might outline in this section:

• The specific pricing breakdowns per product or service
• Why your pricing is higher or lower than your competition's
• (If higher) Why customers would be willing to pay more
• (If lower) How you're able to offer your products or services at a lower cost
• When you expect to break even, what margins do you expect, etc?

Pricing and Revenue Business Plan Example

I like how this business plan example begins with an overview of the business revenue model, then shows proposed pricing for key products.

Tips for Writing Your Pricing and Revenue Section

• Get specific about your pricing strategy. Specifically, how you connect that strategy to customer needs and product value.
• If you are asking a premium price, share unique features or innovations that justify that price point.
• Show how you plan to communicate pricing to customers.
• Create an overview of every revenue stream for your business and how each stream adds to your business model as a whole.
• Share plans to develop new revenue streams in the future.
• Show how and whether pricing will vary by customer segment and how pricing aligns with marketing strategies.
• Restate your value proposition and explain how it aligns with your revenue model.

8. Financials

To me, this section is particularly informative for investors and leadership teams to figure out funding strategies, investment opportunities, and more.

 According to Forbes , you'll want to include three main things:

• Profit/Loss Statement - This answers the question of whether your business is currently profitable.
• Cash Flow Statement - This details exactly how much cash is incoming and outgoing to give insight into how much cash a business has on hand.
• Balance Sheet - This outlines assets, liabilities, and equity, which gives insight into how much a business is worth.

While some business plans might include more or less information, these are the key details I’d include in this section.

Financials Business Plan Example

This balance sheet is a great example of level of detail you’ll need to include in the financials section of your business plan.

Tips for Writing Your Financials Section

• Growth potential is important in this section too. Using your data, create a forecast of financial performance in the next three to five years.
• Include any data that supports your projections to assure investors of the credibility of your proposal.
• Add a break-even analysis to show that your business plan is financially practical. This information can also help you pivot quickly as your business grows.
• Consider adding a section that reviews potential risks and how sensitive your plan is to changes in the market.
• Triple-check all financial information in your plan for accuracy.
• Show how any proposed funding needs align with your plans for growth.

As you create your business plan, keep in mind that each of these sections will be formatted differently. Some may be in paragraph format, while others could be charts or graphs.

The formats above apply to most types of business plans. That said, the format and structure of your plan will vary by your goals for that plan. 

So, I’ve added a quick review of different business plan types. For a more detailed overview, check out this post .

1. Startups

Startup business plans are for proposing new business ideas.

If you’re planning to start a small business, preparing a business plan is crucial. The plan should include all the major factors of your business.

You can check out this guide for more detailed business plan inspiration .

2. Feasibility Studies

Feasibility business plans focus on that business's product or service. Feasibility plans are sometimes added to startup business plans. They can also be a new business plan for an already thriving organization.

3. Internal Use

You can use internal business plans to share goals, strategies, or performance updates with stakeholders. In my opinion, internal business plans are useful for alignment and building support for ambitious goals.

4. Strategic Initiatives

Another business plan that's often for sharing internally is a strategic business plan. This plan covers long-term business objectives that might not have been included in the startup business plan.

5. Business Acquisition or Repositioning

When a business is moving forward with an acquisition or repositioning, it may need extra structure and support. These types of business plans expand on a company's acquisition or repositioning strategy.

Growth sometimes just happens as a business continues operations. But more often, a business needs to create a structure with specific targets to meet set goals for expansion. This business plan type can help a business focus on short-term growth goals and align resources with those goals.

Now that you know what's included and how to format a business plan, let's review some of my favorite templates.

1. HubSpot's One-Page Business Plan

Download a free, editable one-page business plan template..

The business plan linked above was created here at HubSpot and is perfect for businesses of any size — no matter how many strategies we still have to develop.

Fields such as Company Description, Required Funding, and Implementation Timeline give this one-page business plan a framework for how to build your brand and what tasks to keep track of as you grow.

Then, as the business matures, you can expand on your original business plan with a new iteration of the above document.

Why I Like It

This one-page business plan is a fantastic choice for the new business owner who doesn’t have the time or resources to draft a full-blown business plan. It includes all the essential sections in an accessible, bullet-point-friendly format. That way, you can get the broad strokes down before honing in on the details.

2. HubSpot's Downloadable Business Plan Template

We also created a business plan template for entrepreneurs.

The template is designed as a guide and checklist for starting your own business. You’ll learn what to include in each section of your business plan and how to do it.

There’s also a list for you to check off when you finish each section of your business plan.

Strong game plans help coaches win games and help businesses rocket to the top of their industries. So if you dedicate the time and effort required to write a workable and convincing business plan, you’ll boost your chances of success and even dominance in your market.

This business plan kit is essential for the budding entrepreneur who needs a more extensive document to share with investors and other stakeholders.

It not only includes sections for your executive summary, product line, market analysis, marketing plan, and sales plan, but it also offers hands-on guidance for filling out those sections.

3. LiveFlow’s Financial Planning Template with built-in automation

This free template from LiveFlow aims to make it easy for businesses to create a financial plan and track their progress on a monthly basis.

The P&L Budget versus Actual format allows users to track their revenue, cost of sales, operating expenses, operating profit margin, net profit, and more.

The summary dashboard aggregates all of the data put into the financial plan sheet and will automatically update when changes are made.

Instead of wasting hours manually importing your data to your spreadsheet, LiveFlow can also help you to automatically connect your accounting and banking data directly to your spreadsheet, so your numbers are always up-to-date.

With the dashboard, you can view your runway, cash balance, burn rate, gross margins, and other metrics. Having a simple way to track everything in one place will make it easier to complete the financials section of your business plan.

This is a fantastic template to track performance and alignment internally and to create a dependable process for documenting financial information across the business. It’s highly versatile and beginner-friendly.

It’s especially useful if you don’t have an accountant on the team. (I always recommend you do, but for new businesses, having one might not be possible.)

4. ThoughtCo’s Sample Business Plan

One of the more financially oriented sample business plans in this list, BPlan’s free business plan template dedicates many of its pages to your business’s financial plan and financial statements.

After filling this business plan out, your company will truly understand its financial health and the steps you need to take to maintain or improve it.

I absolutely love this business plan template because of its ease-of-use and hands-on instructions (in addition to its finance-centric components). If you feel overwhelmed by the thought of writing an entire business plan, consider using this template to help you with the process.

6. Harvard Business Review’s "How to Write a Winning Business Plan"

Most sample business plans teach you what to include in your business plan, but this Harvard Business Review article will take your business plan to the next level — it teaches you the why and how behind writing a business plan.

With the guidance of Stanley Rich and Richard Gumpert, co-authors of " Business Plans That Win: Lessons From the MIT Enterprise Forum ", you'll learn how to write a convincing business plan that emphasizes the market demand for your product or service.

You’ll also learn the financial benefits investors can reap from putting money into your venture rather than trying to sell them on how great your product or service is.

This business plan guide focuses less on the individual parts of a business plan, and more on the overarching goal of writing one. For that reason, it’s one of my favorites to supplement any template you choose to use. Harvard Business Review’s guide is instrumental for both new and seasoned business owners.

7. HubSpot’s Complete Guide to Starting a Business

If you’re an entrepreneur, you know writing a business plan is one of the most challenging first steps to starting a business.

Fortunately, with HubSpot's comprehensive guide to starting a business, you'll learn how to map out all the details by understanding what to include in your business plan and why it’s important to include them. The guide also fleshes out an entire sample business plan for you.

If you need further guidance on starting a business, HubSpot's guide can teach you how to make your business legal, choose and register your business name, and fund your business. It will also give small business tax information and includes marketing, sales, and service tips.

This comprehensive guide will walk you through the process of starting a business, in addition to writing your business plan, with a high level of exactitude and detail. So if you’re in the midst of starting your business, this is an excellent guide for you.

It also offers other resources you might need, such as market analysis templates.

8. Panda Doc’s Free Business Plan Template

PandaDoc’s free business plan template is one of the more detailed and fleshed-out sample business plans on this list. It describes what you should include in each section, so you don't have to come up with everything from scratch.

Once you fill it out, you’ll fully understand your business’ nitty-gritty details and how all of its moving parts should work together to contribute to its success.

This template has two things I love: comprehensiveness and in-depth instructions. Plus, it’s synced with PandaDoc’s e-signature software so that you and other stakeholders can sign it with ease. For that reason, I especially love it for those starting a business with a partner or with a board of directors.

9. Small Business Administration Free Business Plan Template

The Small Business Administration (SBA) offers several free business plan templates that can be used to inspire your own plan.

Before you get started, you can decide what type of business plan you need — a traditional or lean start-up plan.

Then, you can review the format for both of those plans and view examples of what they might look like.

We love both of the SBA’s templates because of their versatility. You can choose between two options and use the existing content in the templates to flesh out your own plan. Plus, if needed, you can get a free business counselor to help you along the way.

I’ve compiled some completed business plan samples to help you get an idea of how to customize a plan for your business.

I chose different types of business plan ideas to expand your imagination. Some are extensive, while others are fairly simple.

Let’s take a look.

1. LiveFlow

One of the major business expenses is marketing. How you handle your marketing reflects your company’s revenue.

I included this business plan to show you how you can ensure your marketing team is aligned with your overall business plan to get results. The plan also shows you how to track even the smallest metrics of your campaigns, like ROI and payback periods instead of just focusing on big metrics like gross and revenue.

Fintech startup, LiveFlow, allows users to sync real-time data from its accounting services, payment platforms, and banks into custom reports. This eliminates the task of pulling reports together manually, saving teams time and helping automate workflows.

"Using this framework over a traditional marketing plan will help you set a profitable marketing strategy taking things like CAC, LTV, Payback period, and P&L into consideration," explains LiveFlow co-founder, Lasse Kalkar .

When it came to including marketing strategy in its business plan, LiveFlow created a separate marketing profit and loss statement (P&L) to track how well the company was doing with its marketing initiatives.

This is a great approach, allowing businesses to focus on where their marketing dollars are making the most impact. Having this information handy will enable you to build out your business plan’s marketing section with confidence. LiveFlow has shared the template here . You can test it for yourself.

2. Lula Body

Sometimes all you need is a solid mission statement and core values to guide you on how to go about everything. You do this by creating a business plan revolving around how to fulfill your statement best.

For example, Patagonia is an eco-friendly company, so their plan discusses how to make the best environmentally friendly products without causing harm.

A good mission statement  should not only resonate with consumers but should also serve as a core value compass for employees as well.

Patagonia has one of the most compelling mission statements I’ve seen:

"Together, let’s prioritise purpose over profit and protect this wondrous planet, our only home."

It reels you in from the start, and the environmentally friendly theme continues throughout the rest of the statement.

This mission goes on to explain that they are out to "Build the best product, cause no unnecessary harm, and use business to protect nature."

Their mission statement is compelling and detailed, with each section outlining how they will accomplish their goal.

4. Vesta Home Automation

This executive summary for a smart home device startup is part of a business plan created by students at Mount Royal University .

While it lacks some of the sleek visuals of the templates above, its executive summary does a great job of demonstrating how invested they are in the business.

Right away, they mention they’ve invested $200,000 into the company already, which shows investors they have skin in the game and aren’t just looking for someone else to foot the bill.

This is the kind of business plan you need when applying for business funds. It clearly illustrates the expected future of the company and how the business has been coming along over the years.

5. NALB Creative Center

This fictional business plan for an art supply store includes everything one might need in a business plan: an executive summary, a company summary, a list of services, a market analysis summary, and more.

One of its most notable sections is its market analysis summary, which includes an overview of the population growth in the business’ target geographical area, as well as a breakdown of the types of potential customers they expect to welcome at the store. 

This sort of granular insight is essential for understanding and communicating your business’s growth potential. Plus, it lays a strong foundation for creating relevant and useful buyer personas .

It’s essential to keep this information up-to-date as your market and target buyer changes. For that reason, you should carry out market research as often as possible to ensure that you’re targeting the correct audience and sharing accurate information with your investors.

Due to its comprehensiveness, it’s an excellent example to follow if you’re opening a brick-and-mortar store and need to get external funding to start your business .

6. Curriculum Companion Suites (CSS)

If you’re looking for a SaaS business plan example, look no further than this business plan for a fictional educational software company called Curriculum Companion Suites. 

Like the business plan for the NALB Creative Center, it includes plenty of information for prospective investors and other key stakeholders in the business.

One of the most notable features of this business plan is the executive summary, which includes an overview of the product, market, and mission.

The first two are essential for software companies because the product offering is so often at the forefront of the company’s strategy. Without that information being immediately available to investors and executives, then you risk writing an unfocused business plan.

It’s essential to front-load your company’s mission if it explains your "Why?" and this example does just that. In other words, why do you do what you do, and why should stakeholders care? This is an important section to include if you feel that your mission will drive interest in the business and its offerings.

7. Culina Sample Business Plan

Culina's sample business plan is an excellent example of how to lay out your business plan so that it flows naturally, engages readers, and provides the critical information investors and stakeholders need. 

You can use this template as a guide while you're gathering important information for your own business plan. You'll have a better understanding of the data and research you need to do since Culina’s plan outlines these details so flawlessly for inspiration.

8. Plum Sample Business Plan

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15 Ways to Use and Get Incredible Value From a Business Plan

14 min. read

Updated October 27, 2023

What is a business plan used for? That fully depends on your business stage and specific business needs. 

If you’re just starting, you’ll use a business plan to deal with uncertainty and navigate early doubts and questions. If you’re seeking funding then you’ll be using your business plan to explain your value to potential investors and lenders. 

When  created correctly , a detailed plan can help you successfully start, manage, and grow your business. Of course, this is just a simple introduction to the purpose of a business plan. Let’s explore and explain the uses of a business plan for each business stage.

• How to use a business plan when starting your business

When starting a new business, your business plan is meant to help you explore, define, and connect. You’re evaluating the type of business you’ll be running, who your target market will be, and defining how sections of your business will operate. Here are the key methods for using a business plan to successfully start your business.

1. Evaluate and develop your business idea

Is  your business idea  valid? Should you even pursue it? Will it sell enough to cover costs and expenses? Who else is doing something like this?  

Your business plan will help you answer these critical questions. It guides you through the process of making the right educated guesses for every area of your business. This includes initial financial planning and outlining expected sales, costs of goods sold, expenses, and cash flow. You’ll also set up your strategy, tactics, major milestones, and success metrics.

Evaluating your idea by developing a plan ensures that you’re prepared and minimizing risk. You don’t need to have everything perfectly developed. However, you should know enough to determine if your idea is valuable and sustainable. Shouldn’t you be able to write these down for yourself before you take the risk? 

You want to keep things short and simple. Start with a lean business plan, which is a collection of bullet-point lists and projections. Use it for yourself and your team members only, not to show to outsiders. 

At the end of the day, your goal is to be able to deal with the big questions. Is this really a good idea? Will it work? Can you feasibly do it?  

2. Inform your branding and mission

Writing a business plan  doesn’t just help evaluate your business idea. It also ensures that you’re outlining core business operations that allow people to recognize, like, and trust your company. This is encompassed by your branding, value proposition, and company mission.

Branding is all about how your business looks and feels. Your mission statement then helps define what your brand stands for. Then your value proposition officially defines how your products and services effectively serve your potential customers.

Trying to please everybody is usually a shortcut to failure. Creating these upfront streamlines your focus toward the right people. Through effective market research, you create an informed brand position that is designed to reach and resonate with a specific audience. 

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3. Identify professional gaps

Just like you can’t serve everyone, you also can’t be an expert on everything involved in running a successful business. Maybe you have industry expertise, solid management skills, or a specialized skillset. However, there may be other areas such as accounting, customer service, or marketing that you are completely unprepared to take on.

Creating a business plan allows you to explore operational areas that you are unfamiliar with and assess what skill gaps you need to fill. Even without experience, you’ll attempt to outline the functions of your marketing plan, financial forecasts, sales channels, etc. As part of this exercise, you can also mention specific roles or areas of operation that you need to outsource or fill.

This will directly tie the onboarding of professionals to your milestones and startup strategy. This will help you determine the right time to bring on more people. It will also prove to investors that you are thinking ahead and already understand your weaknesses. 

4. Connect with mentors

Your business plan can be a great introduction to working with mentors, counselors, and business development organizations. The best example is in the U.S. Where more than 1,000 Small Business Development Centers offer workshops, counseling, and mentorship for small business owners and entrepreneurs. They really appreciate business owners having a business plan as part of the relationship.

Aside from these formal relationships with mentors, there are informal relationships that can evolve into mentorship over time. It may be another business owner, someone you’re pitching to, an employee, or someone you randomly connect with at a networking event. 

This is where your business plan can be a great tool for explaining a business to somebody who might be able to help with it. Just keep a  lean and streamlined version of your plan , or even just your executive summary, ready to share.  

5. Connect and partner with suppliers

Business owners use forecasts and financial statements to manage their sourcing, suppliers, contractors, and inventory. You’ll anticipate sales and expenses ahead of time, review actual results, and revise accordingly. 

Regularly scrutinizing your projected sales and costs can better inform your purchasing decisions and optimize inventory. Too much inventory can be a drain on cash. Too little can hurt production and sales. 

Understanding the state of your financials will also make it much easier to approach suppliers and vendors. You’ll be prepared to discuss growth plans, negotiate product or service pricing, and changes to inventory. Your business plan can even be a key part of proposing a strategic alliance with a supplier.

The importance of a business plan in this instance is making sure you’re fully prepared to have these conversations. You’re not scrambling when you suddenly start bleeding cash or take on an excess of inventory. Instead, you’re using your plan to look ahead and prepare. 

• How to use a business plan to pursue funding

An inevitable step for most existing businesses is the  pursuit of funding . It can occur early in the lifespan of a business to help get it off the ground. It may also take years until it becomes necessary for a business to achieve an escalated level of growth. Here are the specific ways that you can use your business plan to successfully gain funding and present it to potential investors.  

6. Solidify your funding needs

In years of angel investment, I’ve seen many attempts to raise investment run aground over entrepreneurs and owners not knowing how much money they need. Investors always want to know how much money you need and what it will be spent on. Bankers expect you to apply for loans for some specific amount. 

Before you seek out a loan or make a pitch, you’ll need to understand how much funding you require. You can use your business plan to estimate that total. It will also demonstrate why you need that money, what you’ll do with it, and how it will help the business. 

That process starts with your educated guesses about sales, costs, expenses, and cash flow. If your projections indicate that you can get by without other people’s money, then heave a sigh of relief because you don’t need investment or loans. If the projects show a deficit, then that deficit is likely how much money you need in funding. 

7. Support for loan applications 

Your business plan is your best-supporting documentation when submitting a loan application. Most commercial bank loans and especially Small Business Administration-backed loan applications require a business plan as part of the process. Your business plan should include your essential financials including sales, costs, expenses, and cash flow statements. Again, it should also show why you need funding, how you’ll spend it, and how you’ll pay it back. 

These days it doesn’t always take a long formal business plan document. Often a lean business plan is enough to support a loan. That will include those essential numbers, plus short summaries of strategy, tactics, major milestones, and metrics. 

8. Guide your pitch to investors

I’ve seen founders fail a pitch because they couldn’t answer common questions that come up. Questions such as:

• What are you projecting for marketing expenses? 
• How much is your gross margin?
• What’s the headcount assumption?

This can be a death sentence for your chance at funding. Investors can immediately tell if you don’t have a plan to back up your pitch. 

Another important myth to dispel is that investors don’t read business plans. The truth is that investors will often reject a proposal based on just a summary, without having read the whole plan. But when they like the proposal, the summary, and the  pitch , they need the full business plan to guide due diligence. 

In 12 years with an angel investment group, I’ve never seen an investment made without investors reading a business plan in detail. In short, you need to have your business plan prepared. It will enhance your pitch and make it far easier to move on to the next step to gain funding.

9. Manage funding once received

Having a business plan doesn’t just help you gain funding, it also helps you  effectively manage it . You’ll have this outlined in an initial use of funds report and actively engage with investors through the ongoing business planning process. This doesn’t mean that you’ll be forced to stick to the strategy you set out with, and are instead able to optimize how to leverage your funding. 

Track results including essential numbers and execution. Review those results regularly and revise as necessary. Use that process to provide updates as needed for your bankers or investors. That way you aren’t scrambling to pull together your financial statements and strategy when asked for them.

• How to use a business plan to manage and grow your business

The best and most common ongoing use of your business plan is to steer, manage, and grow your business. The business plan is for you to use to better run your business. Think of business planning for your business as a system that mimics navigation in your car. 

The long-term goals are the destination. The strategy, tactics, execution, and essential budgets are the route. Tracking and reviewing real-time information are the choices you make when driving. They help you determine if you should adjust you’re route or stay on course. 

Recognizing this primary use of the business plan also helps you focus on what you need and don’t need for your business plan. You can opt to work with a one-page business plan  instead of a big formal business planning document. Here are the key ways you can use your business plan for effective business management and growth.

10. Establish a strategy and the tactics needed to execute it

Use your business plan  to clarify your strategy , determine the tactics necessary to support it, and track your execution. No need to write elaborate text explanations. You can deal with just bullet points that summarize and remind you of the main aspects of your plan. 

Think of this as a tool for maintaining focus. Most business owners and entrepreneurs want to do everything they can to please every customer. I certainly always did with my business. 

But what we learn in the real world is that there is the principle of displacement in small businesses. What we do rules out what we can’t do. 

11. Monitor and measure business performance

This ties directly into establishing your strategy and tactics but deserves its own focus. Your business plan is not only useful for defining milestones, key performance indicators, and success metrics. It’s also an invaluable tool for tracking and measuring this data on an ongoing basis. 

Having these metrics sit directly within your plan ensures that you’re always linking tactile performance back to your broader strategy. It makes  performance reviews and revisions  much easier to complete. And should you need funding at a later stage, it makes it much easier to prepare your plan for a professional pitch.

12. Explore potential scenarios

A what-if analysis, more often called a scenario analysis, allows you to explore what might happen to your business in different scenarios. 

What if we open another location? What if we change pricing? What if we add another employee? What happens if we don’t reach our sales goals?

You can use your business plan as a tool for scenario analysis. Save your current plan as the most likely scenario. Then leverage your forecasts to develop at least a worst-case and best-case financial scenario. From here, you can outline specific strategies within your plan to take advantage of opportunities and prepare for crisis events. 

13. Plan revisions in response to a crisis

Speaking of a crisis, you can easily use your plan to develop an emergency response strategy. For example, when COVID changed everything almost overnight, business owners with well-established business plans were able to adapt far more quickly. Using their plan like a performance dashboard puts strategy, tactics, metrics, milestones, and essential projections all in one place. 

This enabled these owners to look quickly at educated guesses on revenue decline and then adjust spending to compensate. They had a view of milestones due, and performance against metrics, and were able to adjust timing, scheduling, and priorities to deal with the crisis. 

14. Determine the right time for growth initiatives

Similar to crisis planning, you can also use your business plan to better  prepare your business to take on growth initiatives . Rather than blindly guessing if you’re needing to invest further to achieve growth, you can instead coordinate around swings in revenue, costs, expenses, and priorities. 

For example, there may be an optimal time to launch a new website, a second location, or even an additional product. Any of these initiatives bring with them an opportunity for substantial gains, as well as an incredible risk if not executed properly. In any of these circumstances, you can use your plan to better understand how introducing a website, location, product, or anything else will affect your business.

What timeframe do you need to gain traction? What’s the necessary ROI that makes it a success? Do you have enough cash to invest in it right now?

You can answer all of these questions, and take full advantage of growth opportunities with your business plan.

15. Update your plan based on actual results

Using your business plan to track your strategy, tactics, and execution is the first step. The next step is to engage in regular plan reviews to maintain an accurate view of your actual results. 

The point of reviewing your plan and tracking results is so that you can steer your business with course corrections as required.  Plan vs. actual business plan analysis  is perfect for this. 

When a business plan review turns up results different than expected, you will always have the dilemma of whether to change the plan or the execution. When results are better than expected, then you have to decide whether you change the plan to take advantage of what’s working. And when you have bad news, you have to decide whether the disappointment means changing the plan or just improving execution.  

In any case, using your plan in this way means you spend more time reviewing and less time pulling together data. 

• Additional ways to use your business plan

Outside of this list, there are some special and less common use cases for your business plan. If you’re planning to sell your business, a business plan can help inform buyers beforehand. A business plan can also inform parties involved in a divorce or estate execution. It can also be useful for developing a continuity plan when a business is being passed on to a relative or employee. 

Lastly, a business plan is key for determining the valuation of a business for purposes including sale, legal settlements, and taxation. All of these use cases tend to deal with helping streamline legal aspects of selling, transitioning, or valuing a business. Similar to how having a business plan prepped helps you prepare to pursue funding, it can also eliminate the need to do any additional work in these scenarios.

How do you ensure that you actually use your plan? Leverage growth planning 

Business planning is the best way to get what you want from your business. It coordinates strategy, tactics, business activities, and teamwork, and pushes results to the forefront. More than likely, you’ll find  even more specific use cases  for your own business beyond the fifteen listed here.

There are many types of business plans out there, and you don’t always need a formal business plan document. If your full intention is to leverage your plan as an internal management tool, then you should start with a one-page plan.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

Table of Contents

• How do you ensure that you actually use your plan? Leverage growth planning 

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Blog Business 15+ Business Plan Examples to Win Your Next Round of Funding

15+ Business Plan Examples to Win Your Next Round of Funding

Written by: Jennifer Gaskin Jun 09, 2021

“If you fail to plan, you are planning to fail,” according to words of wisdom dubiously attributed to Benjamin Franklin. While there’s no solid evidence that Franklin actually coined this phrase, the sentiment rings true for any business.

Not having a solid plan makes it unlikely you’ll achieve the goals you seek, whether the goals are getting your to-do list done or launching a successful organization.

In the early stages of a company, that means developing things like pitch decks, business plans, one-sheeters and more. With Venngage’s Business Plan Builder , you can easily organize your business plan into a visually appealing format that can help you win over investors, lenders or partners.

Learn more about  how to create a business plan  so you can hit the ground running after reading through this list for inspirational examples of business plans.

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Simple business plan example, startup business plan example, small business plan example, nonprofit business plan example, strategic business plan example, market analysis business plan example, sales business plan example, organization and management business plan example, marketing and sales strategy business plan example, apple business plan example, airbnb business plan example, sequoia capital business plan example.

While your business plan should be supported by thorough and exhaustive research into your market and competitors, the resulting document does not have to be overwhelming for the reader. In fact, if you can boil your business plan down to a few key pages, all the better.

CREATE THIS PLAN TEMPLATE

The simple, bold visual aesthetic of this  business plan template  pairs well with the straightforward approach to the content and various elements of the business plan itself.

Use Venngage’s My Brand Kit  to automatically add your brand colors and fonts to your business plan with just a few clicks.

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An essential startup business plan should include a clear and compelling value proposition, market analysis, competitive analysis, target audience identification, financial projections, and a well-defined marketing and operational strategy.

For a typical startup, the need to appear disruptive in the industry is important. After all, if you’re not offering anything truly new, why would an investor turn their attention toward your organization. That means establishing a problem and the ways in which you solve it right away.

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Whether it’s a full-scale business plan or, in this case, a pitch deck, the ideal way for a startup to make a splash with its plans is to be bold. This successful business plan example is memorable and aspirational.

In the Venngage editor, you can upload images of your business. Add these images to your plans and reports to make them uniquely your own.

All businesses start out small at first, but that doesn’t mean their communications have to be small. One of the best ways to get investors, lenders and talent on board is to show that you’ve done your due diligence.

In this small business plan example, the content is spread over many pages, which is useful in making lengthy, in-depth research feel less like a chore than packing everyone on as few pages as possible.

Organizations that set out to solve problems rather than earning profits also benefit from creating compelling business plans that stir an emotional response in potential donors, benefactors, potential staff members or even media.

CREATE THIS REPORT TEMPLATE

Simplicity is the goal for nonprofits when it comes to business plans, particularly in their early days. Explain the crisis at hand and exactly how your organization will make a difference, which will help donors visualize how their money will be used to help.

Business plans are also helpful for companies that have been around for a while. Whether they’re considering new products to launch or looking for new opportunities, companies can approach business plans from the strategy side of the equation as well.

Strategic business plans or strategy infographics should be highly focused on a single area or problem to be solved rather than taking a holistic approach to the entire business. Expanding scope too much can make a strategy seem too difficult to implement.

Easily share your business plan with Venngage’s multiple download options, including PNG, PNG HD, and as an interactive PDF.

One-page business plan example

For organizations with a simple business model, often a one-page business plan is all that’s needed. This is possible in any industry, but the most common are traditional ones like retail, where few complex concepts need to be explained.

This one-page strategic business plan example could be easily replicated for an organization that offers goods or services across multiple channels or one with three core business areas. It’s a good business plan example for companies whose plans can be easily boiled down to a few bullet points per area.

Especially when entering a saturated market, understanding the landscape and players is crucial to understanding how your organization can fit it—and stand out. That’s why centering your business plan around a market analysis is often a good idea.

In this example, the majority of the content and about half the pages are focused on the market analysis, including competitors, trends, pricing, demographics and more. This successful business plan example ensures the artwork and style used perfectly matches the company’s aesthetic, which further reinforces its position in the market.

You can find more memorable business plan templates to customize in the Venngage editor. Browse Venngage’s  business plan templates  to find plans that work for you and start editing.

Company description business plan example

Depending on the market, focusing on your company story and what makes you different can drive your narrative home with potential investors. By focusing your business plan on a company description, you center yourself and your organization in the minds of your audience.

This abbreviated plan is a good business plan example. It uses most of the content to tell the organization’s story. In addition to background about the company, potential investors or clients can see how this design firm’s process is different from their rivals.

With Venngage Business , you can collaborate with team members in real-time to create a business plan that will be effective when presenting to investors.

Five-year business plan example

For most startups or young companies, showing potential investors or partners exactly how and when the company will become profitable is a key aspect of presenting a business plan. Whether it’s woven into a larger presentation or stands alone, you should be sure to include your five-year business plan so investors know you’re looking far beyond the present.

CREATE THIS PROPOSAL TEMPLATE

With Venngage’s Business Plan Builder , you can customize a schedule like this to quickly illustrate for investors or partners what your revenue targets are for the first three to five years your company is in operation.

The lifeblood of any company is the sales team. These are the energetic folks who bring in new business, develop leads and turn prospects into customers. Focusing your energy on creating a sales business plan would prove to investors that you understand what will make your company money.

In this example sales business plan, several facets of ideal buyers are detailed. These include a perfect customer profile that helps to convey to your audience that customer relationships will be at the heart of your operation.

You can include business infographics in your plan to visualize your goals. And with Venngage’s gallery of images and icons, you can customize the template to better reflect your business ethos.

Company mergers and shakeups are also major reasons for organizations to require strong business planning. Creating new departments, deciding which staff to retain and charting a course forward can be even more complex than starting a business from scratch.

This organization and management business plan focuses on how the company can optimize operations through a few key organizational projects.

Executive summary for business plan example

Executive summaries give your business plan a strong human touch, and they set the tone for what’s to follow. That could mean having your executive leadership team write a personal note or singling out some huge achievements of which you’re particularly proud in a business plan infographic .

In this executive summary for a business plan, a brief note is accompanied by a few notable achievements that signal the organization and leadership team’s authority in the industry.

Marketing and sales are two sides of the same coin, and clever companies know how they play off each other. That’s why centering your business plan around your marketing and sales strategy can pay dividends when it comes time to find investors and potential partners.

This marketing and sales business plan example is the picture of a sleek, modern aesthetic, which is appropriate across many industries and will speak volumes to numbers-obsesses sales and marketing leaders.

Do business plans really help? Well, here’s some math for you; in 1981, Apple had just gone public and was in the midst of marketing an absolute flop , the Apple III computer.  The company’s market cap, or total estimated market value,  could hit $3 trillion this year.

Did this Apple business plan make the difference? No, it’s not possible to attribute the success of Apple entirely to this business plan from July 1981, but this ancient artifact goes to show that even the most groundbreaking companies need to take an honest stock of their situation.

Apple’s 1981 business plan example pdf covers everything from the market landscape for computing to the products that founder Steve Jobs expects to roll out over the next few years, and the advanced analysis contained in the document shows how strategic Jobs and other Apple executives were in those early days.

Inviting strangers to stay in your house for the weekend seemed like a crazy concept before Airbnb became one of the world’s biggest companies. Like all disruptive startups, Airbnb had to create a robust, active system from nothing.

As this Airbnb business plan pitch deck example shows, for companies that are introducing entirely new concepts, it’s helpful not to get too into the weeds. Explain the problem simply and boil down the essence of your solution into a few words; in this case, “A web platform where users can rent out their space” perfectly sums up this popular company.

Sequoia Capital is one of the most successful venture capital firms in the world, backing startups that now have a combined stock market value of more than $1 trillion, according to a Forbes analysis .

For young companies and startups that want to play in the big leagues, tailoring your pitch to something that would appeal to a company like Sequoia Capital is a good idea. That’s why the company has a standard business plan format it recommends .

Using Sequoia Capital’s business plan example means being simple and clear with your content, like the above deck. Note how no slide contains much copy, and even when all slides appear on the screen at once, the text is legible.

In summary: Use Venngage to design business plans that will impress investors

Not every business plan, pitch deck or one-sheeter will net you billions in investment dollars, but every entrepreneur should be adept at crafting impressive, authoritative and informative business plans.

Whether you use one of the inspirational templates shared here or you want to go old school and mimic Apple’s 1981 business plan, using Venngage’s Business Plan Builder helps you bring your company’s vision to life.

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12 Key Elements of a Business Plan (Top Components Explained)

Starting and running a successful business requires proper planning and execution of effective business tactics and strategies .

You need to prepare many essential business documents when starting a business for maximum success; the business plan is one such document.

When creating a business, you want to achieve business objectives and financial goals like productivity, profitability, and business growth. You need an effective business plan to help you get to your desired business destination.

Even if you are already running a business, the proper understanding and review of the key elements of a business plan help you navigate potential crises and obstacles.

This article will teach you why the business document is at the core of any successful business and its key elements you can not avoid.

Let’s get started.

Why Are Business Plans Important?

Business plans are practical steps or guidelines that usually outline what companies need to do to reach their goals. They are essential documents for any business wanting to grow and thrive in a highly-competitive business environment .

1. Proves Your Business Viability

A business plan gives companies an idea of how viable they are and what actions they need to take to grow and reach their financial targets. With a well-written and clearly defined business plan, your business is better positioned to meet its goals.

2. Guides You Throughout the Business Cycle

A business plan is not just important at the start of a business. As a business owner, you must draw up a business plan to remain relevant throughout the business cycle .

During the starting phase of your business, a business plan helps bring your ideas into reality. A solid business plan can secure funding from lenders and investors.

After successfully setting up your business, the next phase is management. Your business plan still has a role to play in this phase, as it assists in communicating your business vision to employees and external partners.

Essentially, your business plan needs to be flexible enough to adapt to changes in the needs of your business.

3. Helps You Make Better Business Decisions

As a business owner, you are involved in an endless decision-making cycle. Your business plan helps you find answers to your most crucial business decisions.

A robust business plan helps you settle your major business components before you launch your product, such as your marketing and sales strategy and competitive advantage.

4. Eliminates Big Mistakes

Many small businesses fail within their first five years for several reasons: lack of financing, stiff competition, low market need, inadequate teams, and inefficient pricing strategy.

Creating an effective plan helps you eliminate these big mistakes that lead to businesses' decline. Every business plan element is crucial for helping you avoid potential mistakes before they happen.

5. Secures Financing and Attracts Top Talents

Having an effective plan increases your chances of securing business loans. One of the essential requirements many lenders ask for to grant your loan request is your business plan.

A business plan helps investors feel confident that your business can attract a significant return on investments ( ROI ).

You can attract and retain top-quality talents with a clear business plan. It inspires your employees and keeps them aligned to achieve your strategic business goals.

Key Elements of Business Plan

Starting and running a successful business requires well-laid actions and supporting documents that better position a company to achieve its business goals and maximize success.

A business plan is a written document with relevant information detailing business objectives and how it intends to achieve its goals.

With an effective business plan, investors, lenders, and potential partners understand your organizational structure and goals, usually around profitability, productivity, and growth.

Every successful business plan is made up of key components that help solidify the efficacy of the business plan in delivering on what it was created to do.

Here are some of the components of an effective business plan.

1. Executive Summary

One of the key elements of a business plan is the executive summary. Write the executive summary as part of the concluding topics in the business plan. Creating an executive summary with all the facts and information available is easier.

In the overall business plan document, the executive summary should be at the forefront of the business plan. It helps set the tone for readers on what to expect from the business plan.

A well-written executive summary includes all vital information about the organization's operations, making it easy for a reader to understand.

The key points that need to be acted upon are highlighted in the executive summary. They should be well spelled out to make decisions easy for the management team.

A good and compelling executive summary points out a company's mission statement and a brief description of its products and services.

An executive summary summarizes a business's expected value proposition to distinct customer segments. It highlights the other key elements to be discussed during the rest of the business plan.

Including your prior experiences as an entrepreneur is a good idea in drawing up an executive summary for your business. A brief but detailed explanation of why you decided to start the business in the first place is essential.

Adding your company's mission statement in your executive summary cannot be overemphasized. It creates a culture that defines how employees and all individuals associated with your company abide when carrying out its related processes and operations.

Your executive summary should be brief and detailed to catch readers' attention and encourage them to learn more about your company.

Components of an Executive Summary

Here are some of the information that makes up an executive summary:

• The name and location of your company
• Products and services offered by your company
• Mission and vision statements
• Success factors of your business plan

2. Business Description

Your business description needs to be exciting and captivating as it is the formal introduction a reader gets about your company.

What your company aims to provide, its products and services, goals and objectives, target audience , and potential customers it plans to serve need to be highlighted in your business description.

A company description helps point out notable qualities that make your company stand out from other businesses in the industry. It details its unique strengths and the competitive advantages that give it an edge to succeed over its direct and indirect competitors.

Spell out how your business aims to deliver on the particular needs and wants of identified customers in your company description, as well as the particular industry and target market of the particular focus of the company.

Include trends and significant competitors within your particular industry in your company description. Your business description should contain what sets your company apart from other businesses and provides it with the needed competitive advantage.

In essence, if there is any area in your business plan where you need to brag about your business, your company description provides that unique opportunity as readers look to get a high-level overview.

Components of a Business Description

Your business description needs to contain these categories of information.

• Business location
• The legal structure of your business
• Summary of your business’s short and long-term goals

3. Market Analysis

The market analysis section should be solely based on analytical research as it details trends particular to the market you want to penetrate.

Graphs, spreadsheets, and histograms are handy data and statistical tools you need to utilize in your market analysis. They make it easy to understand the relationship between your current ideas and the future goals you have for the business.

All details about the target customers you plan to sell products or services should be in the market analysis section. It helps readers with a helpful overview of the market.

In your market analysis, you provide the needed data and statistics about industry and market share, the identified strengths in your company description, and compare them against other businesses in the same industry.

The market analysis section aims to define your target audience and estimate how your product or service would fare with these identified audiences.

Market analysis helps visualize a target market by researching and identifying the primary target audience of your company and detailing steps and plans based on your audience location.

Obtaining this information through market research is essential as it helps shape how your business achieves its short-term and long-term goals.

Market Analysis Factors

Here are some of the factors to be included in your market analysis.

• The geographical location of your target market
• Needs of your target market and how your products and services can meet those needs
• Demographics of your target audience

Components of the Market Analysis Section

Here is some of the information to be included in your market analysis.

• Industry description and statistics
• Demographics and profile of target customers
• Marketing data for your products and services
• Detailed evaluation of your competitors

4. Marketing Plan

A marketing plan defines how your business aims to reach its target customers, generate sales leads, and, ultimately, make sales.

Promotion is at the center of any successful marketing plan. It is a series of steps to pitch a product or service to a larger audience to generate engagement. Note that the marketing strategy for a business should not be stagnant and must evolve depending on its outcome.

Include the budgetary requirement for successfully implementing your marketing plan in this section to make it easy for readers to measure your marketing plan's impact in terms of numbers.

The information to include in your marketing plan includes marketing and promotion strategies, pricing plans and strategies , and sales proposals. You need to include how you intend to get customers to return and make repeat purchases in your business plan.

5. Sales Strategy

Sales strategy defines how you intend to get your product or service to your target customers and works hand in hand with your business marketing strategy.

Your sales strategy approach should not be complex. Break it down into simple and understandable steps to promote your product or service to target customers.

Apart from the steps to promote your product or service, define the budget you need to implement your sales strategies and the number of sales reps needed to help the business assist in direct sales.

Your sales strategy should be specific on what you need and how you intend to deliver on your sales targets, where numbers are reflected to make it easier for readers to understand and relate better.

6. Competitive Analysis

Providing transparent and honest information, even with direct and indirect competitors, defines a good business plan. Provide the reader with a clear picture of your rank against major competitors.

Identifying your competitors' weaknesses and strengths is useful in drawing up a market analysis. It is one information investors look out for when assessing business plans.

The competitive analysis section clearly defines the notable differences between your company and your competitors as measured against their strengths and weaknesses.

This section should define the following:

• Your competitors' identified advantages in the market
• How do you plan to set up your company to challenge your competitors’ advantage and gain grounds from them?
• The standout qualities that distinguish you from other companies
• Potential bottlenecks you have identified that have plagued competitors in the same industry and how you intend to overcome these bottlenecks

In your business plan, you need to prove your industry knowledge to anyone who reads your business plan. The competitive analysis section is designed for that purpose.

7. Management and Organization

Management and organization are key components of a business plan. They define its structure and how it is positioned to run.

Whether you intend to run a sole proprietorship, general or limited partnership, or corporation, the legal structure of your business needs to be clearly defined in your business plan.

Use an organizational chart that illustrates the hierarchy of operations of your company and spells out separate departments and their roles and functions in this business plan section.

The management and organization section includes profiles of advisors, board of directors, and executive team members and their roles and responsibilities in guaranteeing the company's success.

Apparent factors that influence your company's corporate culture, such as human resources requirements and legal structure, should be well defined in the management and organization section.

Defining the business's chain of command if you are not a sole proprietor is necessary. It leaves room for little or no confusion about who is in charge or responsible during business operations.

This section provides relevant information on how the management team intends to help employees maximize their strengths and address their identified weaknesses to help all quarters improve for the business's success.

8. Products and Services

This business plan section describes what a company has to offer regarding products and services to the maximum benefit and satisfaction of its target market.

Boldly spell out pending patents or copyright products and intellectual property in this section alongside costs, expected sales revenue, research and development, and competitors' advantage as an overview.

At this stage of your business plan, the reader needs to know what your business plans to produce and sell and the benefits these products offer in meeting customers' needs.

The supply network of your business product, production costs, and how you intend to sell the products are crucial components of the products and services section.

Investors are always keen on this information to help them reach a balanced assessment of if investing in your business is risky or offer benefits to them.

You need to create a link in this section on how your products or services are designed to meet the market's needs and how you intend to keep those customers and carve out a market share for your company.

Repeat purchases are the backing that a successful business relies on and measure how much customers are into what your company is offering.

This section is more like an expansion of the executive summary section. You need to analyze each product or service under the business.

9. Operating Plan

An operations plan describes how you plan to carry out your business operations and processes.

The operating plan for your business should include:

• Information about how your company plans to carry out its operations.
• The base location from which your company intends to operate.
• The number of employees to be utilized and other information about your company's operations.
• Key business processes.

This section should highlight how your organization is set up to run. You can also introduce your company's management team in this section, alongside their skills, roles, and responsibilities in the company.

The best way to introduce the company team is by drawing up an organizational chart that effectively maps out an organization's rank and chain of command.

What should be spelled out to readers when they come across this business plan section is how the business plans to operate day-in and day-out successfully.

10. Financial Projections and Assumptions

Bringing your great business ideas into reality is why business plans are important. They help create a sustainable and viable business.

The financial section of your business plan offers significant value. A business uses a financial plan to solve all its financial concerns, which usually involves startup costs, labor expenses, financial projections, and funding and investor pitches.

All key assumptions about the business finances need to be listed alongside the business financial projection, and changes to be made on the assumptions side until it balances with the projection for the business.

The financial plan should also include how the business plans to generate income and the capital expenditure budgets that tend to eat into the budget to arrive at an accurate cash flow projection for the business.

Base your financial goals and expectations on extensive market research backed with relevant financial statements for the relevant period.

Examples of financial statements you can include in the financial projections and assumptions section of your business plan include:

• Projected income statements
• Cash flow statements
• Balance sheets
• Income statements

Revealing the financial goals and potentials of the business is what the financial projection and assumption section of your business plan is all about. It needs to be purely based on facts that can be measurable and attainable.

11. Request For Funding

The request for funding section focuses on the amount of money needed to set up your business and underlying plans for raising the money required. This section includes plans for utilizing the funds for your business's operational and manufacturing processes.

When seeking funding, a reasonable timeline is required alongside it. If the need arises for additional funding to complete other business-related projects, you are not left scampering and desperate for funds.

If you do not have the funds to start up your business, then you should devote a whole section of your business plan to explaining the amount of money you need and how you plan to utilize every penny of the funds. You need to explain it in detail for a future funding request.

When an investor picks up your business plan to analyze it, with all your plans for the funds well spelled out, they are motivated to invest as they have gotten a backing guarantee from your funding request section.

Include timelines and plans for how you intend to repay the loans received in your funding request section. This addition keeps investors assured that they could recoup their investment in the business.

12. Exhibits and Appendices

Exhibits and appendices comprise the final section of your business plan and contain all supporting documents for other sections of the business plan.

Some of the documents that comprise the exhibits and appendices section includes:

• Legal documents
• Licenses and permits
• Credit histories
• Customer lists

The choice of what additional document to include in your business plan to support your statements depends mainly on the intended audience of your business plan. Hence, it is better to play it safe and not leave anything out when drawing up the appendix and exhibit section.

Supporting documentation is particularly helpful when you need funding or support for your business. This section provides investors with a clearer understanding of the research that backs the claims made in your business plan.

There are key points to include in the appendix and exhibits section of your business plan.

• The management team and other stakeholders resume
• Marketing research
• Permits and relevant legal documents
• Financial documents

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Martin luenendonk.

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

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

10 Best Value Proposition Examples (and How to Create a Good One)

Consumerism in 2022 and beyond is serious business.

Shoppers are inundated with options, which means competition among businesses can get pretty fierce.

According to research, you only have 15 seconds to wow a new website visitor before they potentially lose interest and leave.

That’s why your value proposition is so important – if you can’t prove your worth fast, you’ll unfortunately be left in the dust.

But what is a value proposition , and how do you go about ensuring that you’re nailing yours?

That’s just what we’ll do in this article.

I’ll define the term and walk you through 10 awesome brand value proposition examples. Then, I’ll give you some pointers on how to create a value proposition for your own business.

Let’s do this.

Start selling online now with Shopify

What Is Value Proposition?

In a nutshell, your value proposition is a succinct explanation or illustration of why a customer should do business with you.

Your value proposition should cover three elements:

• The promise of what you’ll deliver to your customers
• The benefits that your customers will reap
• Why they should choose you over your competition

There’s no “correct” approach to creating a value proposition.

But there’s a big rule to follow: your business value proposition should be among the first things website visitors see when they interact with your business.

This means that you should aim to put this information above the scroll on the homepage of your website, which is the area that visitors see first when the page loads, before they scroll down the rest of the page.

And those messages should be reinforced throughout many – if not all – of the touchpoints in your customer’s journey with your brand.

If you have one, your value proposition should also include your unique selling proposition , or the thing that sets you apart from all of your competitors.

To give you a better idea of the many ways to express a strong value proposition, let’s look at some awesome examples.

10 Best Value Proposition Examples

Shopify’s customer value proposition essentially says that it can do everything you need it to, all on a single platform.

This speaks to some of the fundamental needs and concerns of someone who’s starting a new business : it can all get real overwhelming, real fast.

But Shopify soothes that anxiety and comforts visitors in knowing that they have a helping hand.

The company’s website says that the platform supports customers “from first sale to full scale,” and features everything you could need to start, sell, market, and manage your business.

To back it all up, those four items have their own page in the website’s main navigation, allowing users to directly explore how Shopify can help with each of those facets of starting, running, and growing a business.

2. Luxy Hair

Luxy Hair does a solid job of “selling” its clip-in hair extensions below the scroll on their homepage.

The product value proposition starts with an “As seen and featured in” section that lists out all the big names that have promoted the brand, like Teen Vogue, The Huffington Post, BuzzFeed, and Glamour.

This technique is called social proof , and it’s a slam-dunk approach for generating trust fast.

The site goes on to give five strong points that explain the product, its benefits, and how it solves the common pain points that many people face when looking for the right hair extensions.

It also shows great “before and after” photos for a visual display of real results.

3. charity: water

The non-profit organization charity: water is dedicated to providing communities around the world with clean drinking water.

The company’s leaders state that they believe they can end the water crisis during our lifetime. Above the scroll of the website, you see a headline that says that 100% of your donations will go to the cause.

This is an example of using their company value proposition to cut straight to the heart of controversy in the non-profit sector. A lot of organizations use donations to cover their operational costs, which can upset some donors when they discover that only a portion of their donation went to the cause.

4.  Crossrope

Crossrope is a unique jump rope with a very clear product value proposition. They flat-out say that they’ve perfected the jump rope with “meticulous engineering” and “hours of testing.”

It’s clear that the makers behind the Crossrope have put a lot of work into it, and they clearly explain the elements of their design that make these workout tools unique and high-quality.

Right below the fold on the homepage, you’ll see four points that support why it’s the perfect jump rope: they’re weighted, durable, interchangeable, and they have high-performance handles.

The company also has clever names for the two types of Crossrope: the “Get Lean” set and “Get Strong” set. These differentiate the two types while clearly stating the benefit for the customer.

5. Evernote

Everyone is busy. Evernote’s homepage showcases right off the bat how it can help save you time and boost your efficiency on a daily basis.

It immediately speaks to the key desires of their customers, which include things like effortless organization, taking notes anywhere, sharing them with anyone, and finding all of their information faster.

Anyone with their notes scattered around various physical notebooks, emails, and Word docs can attest that this is an inconvenient problem, which makes Evernote’s promises all the more appealing.

Plus, the call to action (CTA) button brings you straight to a free signup, which is extremely useful for proving value in the face of competitors.

6. ClassPass

Above the scroll on the company’s homepage, ClassPass swiftly gives you the key benefits of their business model:

• There’s no need to commit to a single gym or type of workout
• You can choose any gym or workout directly through the ClassPass app

This tool fulfills a specific niche in the health and fitness industry, which is that some people find it inconvenient to limit their fitness options to a single location or type of gym or studio.

Sometimes you just wanna take a Krav Maga class on Monday and a Bikram yoga class on Wednesday. And no one’s judging you for that.

As you scroll down the homepage, you find more juicy benefits and unique selling points like the ability to save on drop-in rates and the ability to stream classes from home for free.

7. hardgraft

Hardgraft has a beautiful website that showcases everything that it promises it’s about: “luxury lifestyle accessories with down to Earth aesthetics.”

The headline also notes that the company is “driven by instinct,” which suggests that the products are a natural extension of the lifestyle they cater to.

It instills confidence in the reader by saying something like, “Relax, we’re experts. We’ve got this.”

This is a good example of a brand value proposition that’s short, but extra sweet – too many words here would probaby lessen the luxurious image they’re after.

8. Crazy Egg

Crazy Egg is a website optimization platform that offers heatmaps and A/B testing .

Above the scroll on the homepage, the website says that you can instantly make your website better.

I don’t know about you, but that strikes me as a pretty enticing offer.

Of course, you’ll need to be sure that you’re putting your money where your mouth is when you make a bold claim like this – which is what Crazy Egg goes on to do.

The next line says that over 300,000 customers use the platform, and how they make their websites better (improving what’s working, fixing what isn’t, and testing new ideas).

This follows right into the ability to get a 30-day free trial to see for yourself.

9. Manitobah Mukluks

Manitobah Mukluks has a more purpose-driven story and brand value proposition than many other ecommerce stores .

On the homepage of the website, you’ll learn that the company is Indigenous-owned, with products that are handmade by Indigenous artists who receive 100% of the proceeds.

The company states its vision above the scroll, which is to build a vibrant brand that impacts Indigenous communities.

Throughout the website, the team at Manitobah Mukluks does a great job of weaving the stories of their ancestors throughout the brand’s products.

It’s building a more intimate relationship with visitors, and appealing to those who want to feel more connected and contributing to the brands they choose to do business with.

10. Mailchimp

If you’ve never heard about Mailchimp, it’s a popular all-in-one marketing platform that had a humble start as an email marketing platform.

After it exploded, it expanded into a full-service marketing company.

Above the scroll of the homepage, Mailchimp shows its key customer value proposition of helping businesses scale and grow.

As you scroll down the homepage, you see four key benefits that the platform offers for growing businesses, with the option to click each one for more information.

The company goes a great job of addressing the needs of a growing company while clearly showing how it can help fulfill those needs.

Now that you’ve seen some juicy value proposition examples, let’s go over a few tips for writing a value proposition for your own brand.

Tips on How to Write a Value Proposition

Clarify the purpose and vision of your company.

If you want to create an effective value proposition, you need to identify who you are and why you’ve set up a company in the first place. The easiest way to do this is by documenting your:                                                                                            

• Mission statement, which explains why your business exists
• Vision, which includes the current and future objectives of your business
• Core values, which are the key principles that guide and direct your company and its culture

This simple measure will help you define your value proposition with better clarity, which is crucial to creating a more powerful identity for your business.

Research your audience

Your value proposition isn’t written to appeal to you. It’s written to appeal to the audience you want to do business with. It is, therefore, crucial to understand who your buyers are and what motivates them. This can be done with the help of interviews.  

You can interview your existing or prospective customers about:

• What companies they like
• What they look for in an industry-specific product or service
• What type of language resonates with them

This research will help guide the language and voice you’ll use to communicate with your audience .

Conduct a competitive analysis

Your interviews with existing or prospective customers may reveal other companies they’ve worked with before discovering your business. Analyze those businesses and figure out whether they’re in competition with your firm.

If the analysis reveals any potential competition, consider using your value proposition to communicate how and why you’re different from other similar businesses.

Examples of differentiators include higher quality, better service, and cheaper or faster shipping.

Jot down the benefits of using your solution

Consider what challenges or pain points your customers have and how you are addressing those problems. Think about both the practical and psychological benefits your solution provides.

For example, if you’re a property management firm, you aren’t just buying and selling real estate on behalf of your customers. Hopefully, you also offer specific advice that makes them feel their money is safe and well-invested.

Reiterating exactly how you can make people’s lives better and more fulfilling will help you guide your value proposition clearly. 

Whether you’re on track to becoming a million-dollar company or you’re the proud owner of a startup, taking these measures will help you put together a compelling value proposition every time around.    

A Strong Value Proposition for a Strong Business

In the wide world of business – especially ecommerce – you only have a sliver of time to prove that you’re worth a customer’s attention, let alone worth their hard-earned money.

When it’s clearly defined and clearly communicated, a customer value proposition can be the make-or-break between winning a customer over and falling into obscurity.

What makes you so great? Why are you the better choice over all the others? Customers need to know these answers ASAP, and a strong value proposition is one of the best ways to do so.

Whether you’re just starting a new business or looking to improve and strengthen your existing business, take some time to think critically about the value that you provide your customers and how you deliver that value.

Do you have any favorite value proposition examples that we didn’t discuss? Let us know in the comments below.

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Home Blog Business Value Chain Analysis: A Guide for Presenters

Value Chain Analysis: A Guide for Presenters

Successful businesses add value every time they sell something. Adding value means customers get what they want and are happy with their purchase, and the business owners earn revenue. Companies that give their customers more value make more profit than those that do not.

Therefore, understanding a business’s value chain is important for finding out how much value is added. This article highlights what a value chain is and why it matters. It will further guide you with a case study on how you can analyze yours to help your business keep more of the value it creates from sales.

Table of Contents

What is a Value Chain?

Elements of the value chain, advantages of value chain analysis in business, what is the difference between supply chain and value chain, how to create a value chain analysis, recommended ppt templates for value chain analysis presentations, final words.

Value chain refers to all the business processes that make a product or provide a service. This chain includes everything from coming up with ideas to selling the final product. Michael Porter introduced it to help the company break down its tasks into activities and focus on where it can be better than its competition [1] . These activities either make the product worth more to customers or cost less to produce.

Porter’s value chain is not just about what a company does. It is also about the other companies it works with, like suppliers and distributors. You can imagine it as a series of steps. Each step adds something meaningful to the final product or service.

Analyzing the value chain is like focusing closely on each stage to identify opportunities for improvement.  By looking closely at each part of the process, businesses can find ways to make things more efficient [2] . This saves money and helps become more competitive in the market.

Activities of the value chain are divided into two categories.

Primary Activities

Inbound logistics.

It involves all the activities related to logistics. We are all aware that logistics in a business is all about receiving, storing, and distributing inputs required for the production process [4] . We will perform tasks such as sourcing raw materials, handling inventory, and managing suppliers.

These activities directly convert inputs into finished products or services. This stage includes the manufacturing, assembly, packaging, and testing processes.

Outbound Logistics

Once the products or services are ready, outbound logistics focuses on efficiently getting them to the customers. This includes order fulfillment, warehousing, transportation, and delivery.

Marketing and Sales

This section covers all activities related to promoting and selling products or services to customers. It includes market research, advertising, sales strategies, pricing, and distribution channels.

After-sales service is crucial for maintaining customer satisfaction and loyalty. This includes installation, repair, maintenance, customer support, and warranties.

Secondary Activities

Procurement.

It is sourcing and purchasing raw materials, equipment, and other resources required for production. Effective procurement practices can help to improve the quality, cost-effectiveness, and reliability of the inputs.

Technology Development

Innovation and technological advancements also improve efficiency and competitiveness. This includes research and development (R&D), technology acquisition, and innovation processes.

Human Resource Management

People are the driving force behind every business. Human resource management encompasses recruitment, training, performance management, and employee relations to ensure a skilled and motivated workforce.

Infrastructure

Infrastructure refers to the organizational support systems and facilities required to support the value-adding activities. This includes IT systems, communication networks, facilities management, and other administrative functions.

Value Chain Analysis helps businesses make intelligent decisions and improve their actions [5] . For example, companies can use it to find where they’re wasting time or money and fix those areas. It also allows businesses to understand their unique value from competitors in the same industry. Plus, it’s beneficial for ensuring everything runs smoothly in their supply chain, so they always have what they need and when needed.

The supply chain and the value chain are related but have different jobs. The value chain mainly focuses on the activities within a single company. It adds value at each stage of a product’s journey, from creation to customer satisfaction. This includes production, marketing, and customer support [3] . On the other hand, the supply chain has a broader scope. It involves acquiring materials from suppliers, manufacturing goods, and delivering them to customers. It coordinates with various partners to ensure smooth operations and minimize costs [3] . At the same time, the value chain focuses on value creation. Thus, the supply chain is more about efficiently moving goods and minimizing production and transportation costs.

NB: This case study simplifies the Value Chain Analysis process for easier concept understanding. Due to the depth required for this kind of study, value chain analysis is performed at large-scale organizations as a tool.

Step 1: Identify Value Chain Activities

First, you separate the business operations into primary and support activities. Primary activities directly relate to creating and delivering a product or service. Conversely, support activities assist and enhance the efficiency and effectiveness of primary activities.

Café Delight maps out all its activities, from sourcing ingredients to delivering the final cup of coffee. Its focus on high-quality ingredients and exceptional customer service are critical to its brand identity.

Primary Activities for Café Delight include

Inbound Logistics : Procuring coffee beans, milk, and bakery items.

Operations : Brewing coffee and preparing food.

Outbound Logistics : Serving customers in-store or delivering orders.

Marketing & Sales : Promotional campaigns and loyalty programs.

Service : Customer service and after-sales feedback handling.

Support Activities might involve

Procurement : Sourcing high-quality ingredients.

Technology Development : Implementing order management systems.

Human Resource Management : Training baristas and staff.

Infrastructure : Managing cafes and administrative tasks.

Step 2: Determine Activities’ Values and Costs

Here, you evaluate each identified activity to understand its cost structure and the value it adds to the final product or service. This involves assessing how each activity contributes to customer satisfaction and competitive advantage and pinpointing where costs are incurred.

In this crucial step, the focus shifts to analyzing the utility or value of each activity within Café Delight’s operations. It is identifying areas where costs can be reduced to enhance profitability. Let’s break down this step further.

Value Analysis

• Café Delight’s team conducts a thorough examination of its operations. It focuses on functions that directly impact customer satisfaction and operational efficiency. For instance, they identify that the primary function of serving quality coffee promptly to customers significantly enhances satisfaction.
• Café Delight offers a variety of specialty coffee blends sourced from exotic locations, priced at $4.50 per cup. Customers highly value the unique flavors and quality of the coffee.
• Secondary functions, such as the ambiance and customer service, are also evaluated for their contribution to customer experience and loyalty.
• Additionally, the café provides a cozy and inviting ambiance, with comfortable seating areas and aesthetically pleasing décor. This ambiance enhances the overall customer experience and encourages repeat visits.

Cost Analysis

• The team also examines the costs associated with each function, including procurement, labor, and operational expenses. For example, they find that high-quality coffee beans and skilled baristas contribute to higher procurement and labor costs.
• Additionally, they identify areas where costs could be reduced without compromising quality, such as optimizing inventory management or streamlining operational processes.
• Procuring high-quality coffee beans from international suppliers incurs significant costs for Café Delight, averaging $25 per pound. However, the café justifies this expense by offering premium coffee blends with higher prices and customer loyalty.
• Skilled baristas are essential to maintaining the café’s reputation for exceptional coffee. With an average hourly wage of $18 per barista and a team of 10 working 40-hour weeks, labor costs constitute a substantial portion of the expenses of Café Delight.

By conducting a thorough value and cost analysis, Café Delight also identifies areas for cost optimization without compromising its commitment to quality and customer satisfaction. For instance:

• The café explores alternative suppliers or bulk purchasing options to negotiate better prices for high-quality ingredients, such as coffee beans and bakery items.
• It implements efficient labor scheduling practices and training programs to maximize productivity and minimize labor costs while maintaining service excellence.

Step 3: Identify Competitive Advantage Opportunities

Here, it analyzes the information from the first two steps to uncover opportunities for gaining a competitive advantage. This could be through cost leadership (making activities more efficient to reduce costs) or differentiation (making products or services unique to enhance value).

For Café Delight, potential competitive advantages could include:

Product Innovation and Differentiation

Café Delight can make its menu more interesting by adding new coffee blends. They can even create unique blends for different times of the year. They will introduce exclusive limited-edition blends or seasonal flavors. This keeps customers excited and coming back for more.

Operational Excellence and Efficiency

While maintaining a commitment to quality, Café Delight can improve its operations to streamline processes, reduce costs, and enhance overall efficiency. It will implement technology solutions, such as inventory management software and automated brewing systems, to enhance workflow and minimize waste, which will help it save money and time.

Customer-Centric Service Excellence

Café Delight sets itself apart by providing top-notch customer experiences. This helps build customer loyalty and generates positive word-of-mouth recommendations. Prioritizing employee training programs that offer individualized and attentive service is crucial. They can significantly impact their staff by preparing to predict customer preferences, handle problems effectively, and establish meaningful connections.

Brand Storytelling and Community Engagement

Café Delight can tell customers where their coffee comes from and why it’s unique. They will engage in storytelling through social media, blog content, and in-store experiences, highlighting the journey from bean to cup and the impact of supporting local farmers. This makes customers feel good about coming to Café Delight.

If you are short on time and need to make a quick presentation, we recommend you use a value chain analysis template . Using PowerPoint templates from SlideModel or similar platforms can significantly enhance the clarity and impact of your presentation. Choosing a template that visually aligns with the depth and complexity of your analysis is very important. At the same time, creating a presentation from scratch can be time-consuming as well. Therefore, SlideModel Templates provide a structured starting point. These templates allow you to focus on customizing content rather than designing slides from the start.

1. Value Chain Analysis PowerPoint Template

You can present a value chain analysis sample in either an all-in-one format or slide-by-slide using this creative value chain PPT template. The diagram is featured in full format on the first slide, whereas the second slide attends to the primary activities and the third to the secondary activities. Get creative and customize this best PPT template for professional-looking presentation slides.

Use This Template

2. Competitive Analysis Slide Deck for PowerPoint & Google Slides

A slide deck intended for any kind of competitor analysis we need to create. Featuring 21 slides, we can perform an industry analysis, discover competitors, perform a competitor segmentation study, analyze competitor’s review data, create a SWOT analysis and more.

3. Key Diagram in 5 Steps

This key-inspired diagram slide makes it easy to express 5-step processes. It highlights each phase in a 5-step process, building the idea of the key components of any kind of process.

4. Value Chain Diagram Slide Deck for PowerPoint & Google Slides

Optimize operations management and any kind of logistics presentation by using our value chain model slide deck. 3 different diagram layouts in light and dark themes. Check them out!

5. Cost Reduction Plan PPT Template

As we’ve seen in our case study, this Cost Reduction PPT template helps us illustrate the different tactics driven out from the value chain analysis and cost analysis. Make your presentations more effective by summarizing your cost reduction plan with this versatile PPT template in light and dark themes.

6. Gradient Value Chain Framework Primary Activities

You can edit this 5 Steps Gradient PowerPoint Model and describe the 5 main activities of the Value Chain Framework. If your presentation requires to introduce the audience to the model, before getting deeper into the findings, it is recommended to explain the structure before, and set the context of the value chain analysis. Using impacting diagrams will help the audience engage, and remember the concepts you will use later.

7. Comparison Slide Value Chain Analysis Pros & Cons

For larger-format presentations, users can introduce the pros & cons of a value chain analysis with this colorful PPT template. Just add the information in the placeholder text areas and articulate your speech to discuss each one of the points.

Value chain analysis is crucial for businesses to improve efficiency, maximize value, and gain an edge over competitors. By carefully examining primary and support activities, along with costs and values, organizations can identify areas for improvement and innovation. This helps streamline operations, make products and services stand out, and focus on customer needs. Overall, value chain analysis empowers businesses to boost performance, foster innovation, and achieve sustainable growth in a competitive market.

[1] The Value Chain – Institute for Strategy and Competitiveness. Harvard Business School. https://www.isc.hbs.edu/strategy/business-strategy/Pages/the-value-chain.aspx

[2] What is a value chain analysis? 3 steps: HBS Online (2020) Business Insights Blog . https://online.hbs.edu/blog/post/what-is-value-chain-analysis

[3] https://ecampusontario.pressbooks.pub/globalvaluechain/chapter/1-4-learning-objective-3/

[4] https://www.researchgate.net/figure/Value-Chain-Analysis-A-Primary-Activities-Inbound-Logistics-the-company-receives_fig2_341070011

[5] https://www.aicpa-cima.com/resources/article/value-chain-analysis

[6] What Is A Value Chain Analysis? 3 Steps https://online.hbs.edu/blog/post/what-is-value-chain-analysis

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Best Cloud Storage Services: Personal & Business Storage Providers in 2024

Cloudwards.net may earn a small commission from some purchases made through our site. However, any earnings do not affect how we review services. Learn more about our editorial integrity and research process .

Choosing the best cloud storage provider is difficult. This guide shows the 10 top cloud storage services for cost, safety and collaboration features, covering personal cloud storage and business file storage solutions.

Last Updated: 03 Apr'24 2024-04-03T08:37:49+00:00

All our content is written fully by humans; we do not publish AI writing. Learn more here.

• Sync.com — Top cloud storage pick for sharing, versioning, large files, iPhone and more
• pCloud — Best online storage pick for Windows, Mac, Linux and music  
• Icedrive — Top cloud drive with excellent speeds
• MEGA — Very secure service with the most free cloud storage (20GB)
• IDrive — Best cloud storage-online backup hybrid
• OneDrive — Best cloud storage service for Office integration
• Google Drive — Top pick for integrated apps and students
• Koofr — Top pick for multiple cloud accounts
• Dropbox — Best pick for cloud collaboration
• Box — Great pick for business cloud storage

• Excellent security
• Competitive pricing
• Unlimited file sizes
• User interface needs work
• Slower sync speeds

Welcome to our updated 2024 guide to the best cloud storage services. Cloudwards.net has been conducting cloud storage reviews for several years now, and in that time much has changed.

Competition between big corporate players like Dropbox, Google Drive and OneDrive, and the emergence of privacy-oriented providers like Sync.com, pCloud and MEGA, has been a boon for consumers. To save you some time we have a list of what we think are the top players for your money.

Find the best cloud storage provider for your needs:

• 1000 GB / 1TB
• 2000 GB / 2TB
• 3000 GB / 3TB or more
• Basic encryption is fine
• Zero-knowledge encryption
• Sync Folder
• File Link Sharing
• Folder Sharing
• Subscription
• one-time payment

Updated to remove IDrive’s discontinued free plan and add its new 30-day free trial.

Updated to reflect news about MEGA’s encryption.

Updated to reflect an increase in IDrive’s free plan to 10GB of storage.

Cloudwards.net updated the top 10 cloud storage services rankings, including IDrive in the list, removing iCloud and adjusting other providers.

We added new information about Sync.com’s integration with Microsoft Office.

Updated with new video ranking.

Updated to reflect changes in Icedrive’s pricing plans and storage offers

The Best Cloud Storage Comparison

How we chose the best cloud storage.

When we review a service, we run tests for around a week, testing all of its features to see if they work as advertised. We analyze the service’s security, including encryption protocols and secure storage methods. Finally, we run technical tests to see how they perform in terms of speed, RAM and CPU usage.

Security and privacy are Cloudwards’ priority when it comes to cloud storage, so we give zero-knowledge services a much greater score than those that don’t offer it. Our experts take great care to parse through the complex legal implications of the services privacy policies and the privacy laws of countries where they keep their servers.

Cloud Storage Courses

Check out our cloud storage courses and grab a limited-time offer. Registration available now!

We take a number of other factors into consideration as well, but we’ll go into more detail on that after the list. If you’re particularly interested in cloud storage speeds, we have custom data that shows a performance comparison of the top providers below . Our analysis of 12 top cloud services showed that around half of them perform better than you’d expect.

If you are still figuring out how to best pick the right service for you, we have a handy video guide, below.

The Top 10 Cloud Storage Providers for 2024

Without further ado, here are the 10 best cloud storage service providers on the market right now.

1. Sync.com – Best Secure Cloud Storage

More Details About Sync.com:

• Pricing: 5GB free, 2TB for $96 per year ($8 per month)
• Number of devices: 5 on Individual Plans
• Website: Sync.com
• Excellent value
• Secure cloud storage
• Easy to use
• Slower than some rivals

Sync.com is our choice for the best cloud service, hitting the top spot in many of our cloud storage lists. It’s one of the most secure cloud services out there, and it keeps improving its service and adding new features as the service matures and grows. Sync also won our cloud storage pricing comparison .

Security & Collaboration in One Package

To start with, Sync.com comes with zero-knowledge encryption as standard. This means that if there was a security breach or the authorities demanded access to your account, the intruder would only see scrambled data because you’re the only one holding the encryption key.

To add to this, Sync.com offers advanced sharing controls, including passwords, download limits and expiry dates for sharing links. Plus, Sync.com allows you to create and edit Microsoft Office documents (including Word, Excel and PowerPoint documents) in a privacy-friendly collaboration environment, without breaking zero-knowledge encryption.

Sync.com Pricing & Free Storage

Pricing is where Sync.com truly shines. Sync.com comes with 5GB free storage , which isn’t much, but it’s enough to try the service out. However, its paid plans are some of the cheapest around. For just $8 per month (paid annually), you get 2TB of storage space.

For comparison, the same amount of file storage from Dropbox is $9.99 a month. In fact, there is no provider in our top 10 that offers 2TB of storage for a lower price.

The only flaw we can find with Sync.com is that it’s slow. In fact, it was one of the worst performers in our fastest cloud storage list , so if you’re impatient, Sync.com might not be for you.

However, all in all, Sync.com is a great online storage provider at a price you’ll be hard-pressed to beat. It also has a good number of features, as well as support for Windows 10 and Mac users. If you want to learn more, take a look at our Sync.com review .

• Price per user
• Unlimited GB

2. pCloud – Best Multi-Platform Cloud Storage

More Details About pCloud:

• Pricing: 10GB free, 2TB for $95.88 per year ($7.99 per month)
• Number of devices: Unlimited
• Website: pCloud.com
• Choice of encryption levels
• Clever virtual drive
• EU servers available
• Zero-knowledge encryption isn’t free
• No document integration

You’ll often see us praise pCloud in our cloud storage reviews, and it’s not hard to see why. It has a number of unique features wrapped in a sleek and secure package. Plus, it offers great pricing, putting it alongside Sync.com .

Top-Shelf Media & Sharing Capabilities

pCloud is a great option for media lovers . That’s thanks to features offered in the embedded pCloud music player, which automatically crates playlists by artist, album or folder. Its video player is also fairly advanced, even letting you change playback speed and convert video files to other formats.

If you’re running out of media storage space on your device, pCloud’s virtual drive will come in handy. pCloud can mount a virtual drive on your device (similar to Local Disk (C:)) which uses your cloud storage instead of your hard drive’s storage.

If you’re a creator that loves to post on social media, pCloud lets you back up images that you previously uploaded to your socials as part of its backup feature. This feature also lets you back up your entire device to the cloud, or even move all your files from another cloud service to pCloud.

What Is pCloud Crypto?

pCloud doesn’t offer zero-knowledge encryption out of the box, which is a downside. You’d have to pay $3.99 per month for this protection — called pCloud Crypto — although it is included for free with business plans. However, pCloud Crypto is a little different from the kind of encryption you’ll see other providers offer.

With pCloud Crypto, you get a specific folder to store your files that you want to be protected with zero-knowledge encryption. Anything outside of pCloud Crypto can still be read by pCloud’s servers, allowing you to preview files or play content from within the app.

pCloud and Sync.com fight hard to be the top-value services in this list, so take a look at our Sync.com vs pCloud head-to-head article. Also consider that pCloud lets you can save money by signing up for a pCloud Lifetime account , giving you online storage that remains yours — forever. 

• Price per user (minimum 3)
• Encryption for pCloud Drive

3. Icedrive – Fastest Online Cloud Storage

More Details About Icedrive:

• Pricing: 10GB free, 1TB for $71.88 per year ( $5.99 per month)
• Website: Icedrive.net
• Secure Twofish algorithm
• Preview encrypted files
• Zero knowledge isn’t free
• Limited choice of plans

Icedrive is a new entry on our list, and it’s a provider you may not have heard of before. That’s not surprising, given it has only been in operation since 2019. It’s been making waves, though, with highly competitive pricing and some interesting features that set it apart from some of its more established rivals.

Novel Encryption Methods & Zero-Knowledge Security

One of the biggest differences from the other providers on our list is that Icedrive doesn’t use the industry-standard AES 256-bit encryption. Instead, it uses an algorithm called Twofish.

Twofish was one of the final contenders for the Advanced Encryption Standard contest at the turn of the century. Some consider Twofish to be more secure (if sometimes slower) than the eventual winner, Rijndael (now known simply as AES). Icedrive points out that the current standard is backed by the NSA — make of that what you will, but don’t let it scare you just yet.

Paid accounts include zero-knowledge encryption as standard, so files should be safe from prying eyes. Unlike most other zero-knowledge providers, Icedrive lets you preview certain files by streaming them in encrypted form to your computer, where they are then decrypted on the fly. 

Icedrive also offers two-factor authentication (2FA) and it has a no-nonsense privacy policy that rules out most problematic behaviors. As a UK-based company, Icedrive is governed by stringent GDPR regulations.

Icedrive Online Storage Pricing & Lifetime Plans

One of the biggest selling points of Icedrive is the price, though. If you pay annually, 1TB of storage costs just $5.99 . If you need more space, the next tier up gives you 3TB of cloud file storage for $10.99 per month (for accounts paid annually). That’s quite a big jump, which might be costly for some users, but you can also opt for a lifetime subscription.

That may or may not be a risk, though, especially given how new of a provider Icedrive is. Still, if you’re looking for a highly secure provider and need less than 1TB of storage space, then Icedrive is a great option. Check out our Icedrive review for more details.

• Bandwidth limit: 50GB
• Bandwidth limit: 250GB
• Bandwidth limit: 2TB
• Bandwidth limit: 8TB
• Additional 128GB storage for users who purchased the Lifetime Plan
• Additional 512GB storage for users who purchased the Lifetime Plan

4. MEGA – Best Free Cloud Storage

More Details About MEGA:

• Pricing: 20GB free, 2TB for $122 per year (around $10 per month)
• Website: MEGA.io
• No U.S. servers
• Great free storage
• Time-limited rewards
• Ownership concerns

If you’re worried about privacy with other free cloud storage providers, like Google (our number seven pick), you can go for a provider at the other end of the privacy spectrum: MEGA. Although MEGA’s colorful founder Kim Dotcom has had run-ins with the law, he’s no longer part of the company. MEGA’s focus is security, so zero-knowledge encryption is the absolute standard, with nobody but you having access to your files. 

A Truly Secure Cloud Storage Service

In terms of privacy, MEGA has servers in Canada, New Zealand and Europe — it’s one of the best cloud storage for Europe . They’re all locations that have reasonable privacy laws that, as you might have noticed, is exactly why no data is held on American servers. 

Because MEGA uses zero-knowledge encryption, it can’t read any of the files that you store, but it does keep some of your metadata (like IP logins) to monitor access. However, we’d be remiss if we didn’t mention the recent report that found serious problems with MEGA’s encryption process. Still, we feel confident recommending it as an overall secure and private service.

There is also some controversy about how much of MEGA’s stock is owned by people under the influence of the Chinese government, which could be a concern for some users. You can read more about this in our MEGA review .

Best Cloud Storage: Free 20GB

MEGA is a good option for users who want a free storage cloud account. In 2021, it increased its free file storage space from 15GB to 20GB. Plus, you can extend your free space by completing various tasks — like installing the desktop and mobile apps — but that extra space expires after a year.

Although its paid plans aren’t the cheapest cloud storage options out there, at the end of the day, the base 20GB still blows its free cloud storage rivals away, earning it the fifth spot on our list. The good news is that, even if you don’t pay for a MEGA subscription, free accounts get full access to the privacy and protection that MEGA’s encrypted cloud storage provides.

If lifetime plans is what you’re looking for, pCloud, Internxt and Icedrive has got your back.

• File transfer: 2TB (Monthly plan) 24TB (yearly plan)
• File transfer: (monthly plan) 96TB (yearly plan)
• File transfer: 16TB (monthly plan) 192TB (yearly plan)

5. IDrive – Best Value Cloud Storage

More Details About IDrive:

• Pricing: 10GB free, 5TB for $6.22 per month (two-year plan)
• Provider website: idrive.com
• Both backup & cloud storage
• Packed with features
• No monthly plan

IDrive is a unique option, offering a hybrid solution for both cloud storage and online backup — it’s actually our number one pick for online backup, a fact that it owes mostly to its incredibly affordable prices and incredible wealth of features. 

Hybrid Cloud Storage & Backup With IDrive

Besides all the backup features like disk-imaging and courier recovery that we won’t spend too much time on here — check out our IDrive review for that — it also boasts proper file sync and share features that earns it a spot on this list.

You can designate any folder on your device as a sync folder, and you can move them wherever you want. There’s also selective sync, which can save you a lot of time and bandwidth if there are certain large files you want to exclude. In comparison, the file-sharing is a bit bare-bones, though you can set access privileges on the share-links that you create. 

Although IDrive works great as traditional cloud storage, online backup is its bread and butter. That means that unlike other entries on this list, IDrive is an excellent solution for backing up your entire device automatically, since you won’t have to manually move things you want to protect into a sync folder. 

Affordable Cloud Storage Pricing Plans

One of the best aspects of IDrive is just how much storage you get for such a cheap price. IDrive’s personal plans are incredibly generous considering how much storage you get.

For example, the two cheapest plans offer 5TB and 10TB of storage — which is a lot — for just $6.22 per month (two-year plan) and $6.22 per month on the two-year plan respectively. 

The only downside here is that you have to sign up for a full year, but if you’re a first-time user, you can get an even bigger discount by using our IDrive promo code . It also has a free 30-day trial, so you can test it first.

• No credit card required.
• One user, multiple computers. Plans starting from 5TB up to 100TB. Big discount for first-time signup.
• 5 computers, 5 users. Starting at 5TB up to 500TB. Big discount for first-time signup.
• Unlimited users, multiple computers and servers. NAS devices. 250GB storage. Starting at 250GB up to 50TB. Large discount for first-time signup.

6. OneDrive – Best Personal Cloud Storage

More Details About OneDrive:

• Pricing: 5GB free, 1TB for $6.99 per month
• Website: microsoft.com/microsoft-365/onedrive
• Excellent collaboration tools
• Great integrated apps
• A large variety of features
• Generous free storage
• No zero-knowledge encryption
• Limited file versioning

There are big names in cloud computing, and then there’s Microsoft. There isn’t a market in computing that Microsoft hasn’t tried to dominate, and it’s not surprising that it has an online storage offering in its OneDrive service, which offers seamless integration with other Microsoft services, such as Office. It’s even integrated into Windows itself.

Collaborate Easily With Microsoft Office & OneDrive

Office integration is the biggest selling point for OneDrive users — or rather, the collaboration benefits that come from a combined Office and OneDrive service. A Microsoft 365 Personal subscription (previously Office 365) includes 1TB of OneDrive storage, but it also comes with full desktop versions of Office apps, with Word, Excel, Outlook, and PowerPoint thrown in. 

These Office apps make collaborating on documents simple. You can share any of your documents stored in the cloud, and multiple users can work on them together in real time. Any changes are instantly visible to all other co-authors and automatically saved to the cloud.

You never have to worry about losing that 90-page thesis to a hard drive failure ever again. With a Microsoft Personal subscription, you can install Office on up to five different devices, allowing you to share the service across an entire family or household. You can learn more about these collaboration options in our OneDrive review .

The collaboration features come at a cost, though. OneDrive doesn’t have zero-knowledge encryption, so your information is visible to Microsoft and anyone else who gains access to its servers, legally or not. Of course, we can’t ignore the fact that as a U.S. company, Microsoft servers are based stateside, so your data is subject to intrusive laws, such as the Freedom Act.

OneDrive Family & Business Plans

You can take things a step further with a Microsoft Family 365 subscription, which gives users 1TB of storage for up to six people at just $8.33 a month (paid annually). This can save you a small fortune on storage and productivity apps for the family, making it a good value option.

OneDrive also has some excellent business options that  make it our favorite value product in our list of the top enterprise file sync and share providers (where a business online storage provider like Egnyte reigns). With Office and Windows integration, as well as pretty good pricing, OneDrive is certainly a provider we can recommend with confidence.

• For one person
• Comes with Office 365 Personal
• Comes with Office 365 Home

7. Google Drive – Best File Cloud Storage

More Details About Google Drive:

• Pricing: 15GB free, 2TB for $99.99 per year ($8.33 per year)
• Website: google.com/drive
• Privacy concerns

If you want a similar experience to OneDrive, you may want to try Google Drive. Like Microsoft’s service, Google offers storage that integrates well with its own suite of office applications, which serve to replace the Microsoft Office experience in full — and do so pretty well, too.

An Endless List of App Integrations

You can collaborate in real time using Google Docs, leave comments and roll-back changes, thanks to Google’s built-in versioning features. Only OneDrive and Dropbox can really rival Google Drive for collaboration, and you can check out our Dropbox vs Google Drive vs OneDrive article to see how they compare.

There’s an entire marketplace of other Google Drive apps, so you can integrate other productivity apps, grammar checkers and more. You can also use Google Drive with other apps, including Google Calendar and Google Keep, a simple note-taking app. You can quickly compare how it matches from other basic platforms like Simplenote .

Google Drive Free Storage & Pricing

These kinds of integrations make Google Drive our top choice as the best online cloud provider for integrated apps, but it shines in other areas, too. If you have a Gmail account, you’re already using Google Drive, with 15GB of free storage thrown in, although its pricing is reasonable if you require more.

Google Drive is the best cloud storage for students and free users, for good reasons. Unlike some of the other providers we’ll mention, free users gain almost all of the same features that come with paid subscriptions. Powerful collaboration options in a free product help Google Drive to come out to be one of the best in this list.

If you’re curious about Google Drive pricing, then you can add 100GB of extra storage for a very reasonable $2 a month. There are some downsides, though. As you can read in our Google Drive review , there’s no zero-knowledge encryption, which is particularly concerning given that Google is not renowned for having the greatest policies when it comes to your personal data .

The price you pay for accessing the collaboration tools and app integrations is that Google will scan the contents of anything you upload to Google Drive; it has full access to read, catalogue and use that data. You’ll need to decide for yourself whether you’re willing to give up some privacy to benefit from the useful tools that Google offers.

• *The plan is "hidden." To find the 200GB plan, you need to be subscribed to one of the other plans, upgrade or downgrade to the 200GB through your account's settings.

8. Koofr  – Top Online Provider for Multiple Cloud Accounts

More Details About Koofr:

• Pricing: 10GB free, 1TB for $10.85 per month
• Website: Koofr.eu
• Links to other cloud accounts
• Virtual drive
• Integrates with Microsoft Office 365
• More expensive than some

It’s by no means a household name, but Koofr offers some features that set it apart from the other providers on our list. As a downside, Koofr isn’t the cheapest, as our Koofr review will explain. It has some very cheap plans that offer 100GB of storage or less, as well as a free 10GB plan.

Manage Multiple Cloud Storage Services

One of the most useful is the ability to link it to other cloud storage services. Currently, you can connect accounts from Dropbox, OneDrive and Google Drive, allowing you to mix and match your services in one place. Still, with other big platforms available, this is only a minor blip in a pretty unique offering from Koofr.

Once you’ve connected your accounts, you can access all your remote files at once, letting you move and copy files between each of your linked accounts, as well as search for files across all platforms. Any files stored in your other cloud accounts won’t count against your Koofr storage quota.

Great Privacy, Lacking Security

Unfortunately, this level of access between services does mean that Koofr lacks the kind of zero-knowledge encryption that privacy-focused providers offer. Still, Koofr’s servers are based in Germany, so your data falls under much stronger EU privacy laws. Koofr does offer 2FA to help keep your data safe in the event that your password is hacked, though.

Koofr integrates with Microsoft Office 365, though this feature has a few limitations. Free accounts can create an Office document but only paid accounts can edit it. Plus, Koofr doesn’t let you set editing permissions for files (only for folders), so you can’t really collaborate with other people on documents.

You’ll pay around $10.85 per month for 1TB of storage (prices are in euros, so conversion rates will fluctuate). This is costly, compared to Sync.com or pCloud, which offer double the storage for a similar cost. If you don’t need a huge amount of space but want to have all your cloud accounts in one place, then it’s worth taking a look at Koofr.

• *Prices in Euro

9. Dropbox – Best Cloud Data Storage

More Details About Dropbox:

• Pricing: 2GB free, 2TB for $203.88 per year ($16.99 per month)
• Number of devices: 3 to unlimited
• Website: Dropbox.com
• Collaboration with both Office & Google
• Not the cheapest

Dropbox may not have been the first cloud storage service, but it was the first to really bring the idea into the mainstream. More than a decade after its launch, it’s still going strong, with only Google Drive having a larger market share. Dropbox also has the name recognition that providers like Sync.com can only dream of at present.

One of the Best Cloud Storage Services for Collaboration

One of the reasons why Dropbox is still so popular is the excellent collaboration it offers, which is why Dropbox Business is one of our top recommendations in our cloud storage for collaboration shortlist. 

You can launch and collaborate on both Microsoft and Google documents with Dropbox, making it a good solution for users who need to use both services. Both formats work seamlessly, allowing you to co-author documents in real time, which are then automatically saved to the cloud.

The excellent collaboration tools come at a cost in two ways. First off, this integration is only possible because Dropbox’s servers can access your files, due to the lack of zero-knowledge encryption. Dropbox has had security breaches in the past, which we discuss in our Dropbox review . This could be a red flag for some users, and for good reason.

Dropbox is also more expensive than some of the other providers in this list, with 2TB of storage costing $9.99 per month if you pay annually. If you’re looking for information on Dropbox’s business storage plans that are paid per user, you can find out more in our Dropbox Business review .

Save Hard Drive Space With Dropbox Smart Sync

To help users save up on space, Dropbox introduced “smart sync”, which allows you to set all of your files and folders to be either stored locally or online-only. The online-only files still show up in your Dropbox folder, but they don’t take up any space. 

For many users looking for the best cloud storage with sync, Dropbox continues to be a good choice. Its pricing and a lack of encryption could put you off, as could historical data breaches, but features like “smart sync” show that Dropbox continues to innovate, and it still remains one of the greatest services for users who are looking to collaborate on documents.

• 1 user Signature requests and eSignature templates
• 3 users minimum

10. Box – Best Online Cloud Storage for Businesses

More Details About Box:

• Pricing: 10GB for free, 100GB for $14 per month or $120 per year
• Website: box.com
• Strong collaboration options
• Google Workspace and Microsoft Office integrations
• Great security
• Primarily business focused
• Private key management costs extra

Although Box is a cloud storage provider that focuses on businesses, it still offers two plans for personal users — one free and one paid. Due to its nature as a business-focused storage option, Box comes packed to the brim with advanced features. Everything from strong collaboration options to two-factor authentication, note-taking and project management is present, which makes for a solid list of features.

The one thing that is missing out of the box (we’ll show ourselves out) is private key management — the main requirement for zero-knowledge privacy. This is a feature that you have to pay extra for with Box, and the company won’t even tell you the price unless you contact them directly.

Collaboration With Box

The clear standout feature of Box is the long list of collaboration options it offers to users. The two most important integrations for this are obviously there, namely Google Workspace and Microsoft Office, but Box goes far beyond these two popular options. 

Instead of forcing you into the apps themselves, Box lets you edit and collaborate on documents directly from its own software, and this even extends to the mobile version. If you ever find yourself needing to edit a text or spreadsheet while on the move, Box is one of the few cloud storage options that let you do this directly from your mobile device.

Pricing That’s Hard to Swallow

By far the biggest drawback to Box is its frankly absurd price. As mentioned, there are only two plans available for personal users. The first is free and gives you access to 10GB of storage and most of Box’s features. However, the paid plan is a terrible value for money if all you want is storage. A mere 100GB will cost you $14 per month or $120 per year, which is outrageously expensive.

If you’re more concerned with collaboration and security than you are with price and storage space, then Box is an excellent cloud storage solution. If that’s not the case, you’re better off with any of the options presented above. For a deeper dive into the service’s pros and cons, check out our Box Review .

• Single user
• Price per user, minimum of three users
• Users: No limit

How Does Cloud Storage Work?

Cloud storage is a way of storing your files and folders on online servers, allowing you to access them from any location and on any device with an internet connection. Your data is stored on servers that belong to your cloud storage provider, which usually offers a web interface, desktop app or mobile app to access your information.

These servers might be located in your own country or on the other side of the world. Most services use a sync folder on your desktop, allowing you to store files easily. Any files you put into this folder are also uploaded to the cloud servers, which will automatically update if you make any changes.

Why We Use Cloud Storage

People use cloud storage for many different reasons, starting with storage. While services like Dropbox and Sync.com might not be great for disaster recovery, they work very well for short-term storage of files that you access often.

In fact, that’s exactly what Drew Houston had in mind when he dreamed up the “sync” folder model commonly used by cloud storage services today back in 2007. He was traveling from New York to Boston on a Chinatown bus and realized that he left his USB drive behind . He decided he wanted a means of storing and accessing files online in a way that required little effort on his part.

Sync folders facilitate device synchronization, which we call “sync” for short. Any file you drag and drop into a sync folder gets automatically sent to the cloud, then sent to any other devices with a sync client installed. That way, you never have to worry about messing with removable storage. Changes to files also get synced across devices, which is what makes cloud storage ideal for getting work done, even remotely.  

Syncing Mobile Apps

Cloud storage tools also generally have mobile apps for Android and iOS that let you access files stored in the cloud. Many let you manually and automatically upload files, as well. That makes them convenient for safeguarding photos taken with your smartphone camera and saving memory at the same time.

Take a look at our roundup of the best cloud storage for Android , or our guide on the best cloud managers for Android if you have multiple cloud storage accounts.

A handful of cloud storage tools don’t sync devices. We can’t think of any tool, though, that doesn’t let you share files. File sharing can be used for both collaboration and socializing.

Most cloud storage tools let you invite specific users to access files based on their email address and generate links to files that can be more broadly used. Many cloud storage tools also let you share folder access, even granting others edit and upload permissions.  

Some cloud storage solutions also integrate with productivity tools like Office Online, Google Docs, Trello, DocuHub and DocuSign. Unfortunately for home users, such integrations are more common with EFSS tools, which are basically cloud storage services for teams and businesses.

Cloud Storage vs Online Backup

Before you start shopping for cloud storage in earnest, it helps to have a good understanding of what “cloud storage” actually means. That way you don’t end up with software that doesn’t really meet your expectations.

The first hurdle to overcome is knowing the difference between cloud storage and online backup. It’s easy to see why one might confuse these terms: both cloud storage and online backup are used to safeguard files in remote data centers. Both let you access the files stored in these data centers from different devices. Online backup is even sometimes confusingly called “cloud backup.”

The difference between the two is that the ultimate goal of online backup is disaster recovery, while cloud storage is generally best suited to quick file access and collaboration. We generally like to think of cloud storage as a productivity tool here at Cloudwards.net, although many people use such solutions for things like streaming music, watching videos and sharing photos, too.

Online backup safeguards hard drives better than cloud storage thanks to backup schedulers, better data recovery options and a few other things that you can read up on in our guide to best online backup.

Aside from storage, there are two features generally common to cloud storage: file sharing and file syncing. On top of that, a handful of cloud storage tools have integrated apps like word processors and task managers that help facilitate productivity.

It’s important to note that there are a handful of cloud solutions that blur the lines between storage and backup. IDrive and SpiderOak ONE are two of the best.

Is Cloud Storage Safe?

Most cloud storage services encrypt your data when it’s being sent to their servers and many store your data in encrypted form. However, no system is completely secure, and cloud storage servers can be hacked.

For instance, Dropbox suffered a major breach in 2012, when 68 million passwords were leaked. Government authorities may also request to access your data for legal reasons. You can help to keep your data more secure by using a service with zero-knowledge encryption, which means that the only person who can decrypt your data is you.

We also recommend setting up two-factor authentication with cloud storage services. This requires you to use an additional code when you log in, which is either sent to your phone as an SMS message or generated by an authenticator app. Even if someone has your password, 2FA means they can’t log in to your account without access to your phone, too.

Cloud Storage Speed Tests

Speed is one of the most important aspects of any cloud storage service. Although the time differences for a gigabyte or two may not be all too large, the time spent uploading or downloading terabytes can add up substantially. The upside of faster cloud storage is clear: using a faster service means you can access your files more quickly across your devices. 

If you know where to look, you can find the fastest cloud storage services , too. Our recent analysis of 12 top cloud storage services showed that around half of them only take 25 percent longer to upload and 27 percent longer to download than expected. This is using raw megabytes per second as a baseline, ignoring all other network conditions. 

Note : Testing was performed in Macedonia using 5.9 Mbps upload and 32 Mbps download speeds.

Of the lot, pCloud and IceDrive were the fastest across upload and download, with SugarSync following closely behind. Google Drive and Sync.com trailed the pack with the slowest speeds. For Google Drive, that’s bad news. Sync.com, on the other hand, offers full end-to-end encryption, so the speed loss makes sense. 

Final Thoughts: Best Cloud Storage

This list has our current top 10, but there are other good-quality providers that didn’t make the list. SecureSafe, SugarSync, Jumpshare and others all have their strengths, so be sure to take a look at our full list of cloud storage reviews to learn more about some of the other options out there, with new providers being added as they appear.

We also have determined the best cloud storage options for large files , and have created an online data storage price list , to make sure you’re getting the best value with today’s best cloud storage deals.

Sync.com and pCloud are great, privacy-focused options for most users, but if you’re more interested in document collaboration, you can’t go wrong with bigger players like Dropbox, Google Drive or OneDrive. However, MEGA offers more free storage, plus excellent security.

While, if you need online backup options in addition to cloud storage, IDrive is the way to go. It’s also the best online back-up for archiving, in case you need to archive data you rarely use to maximize storage space.

Do you use any of the products on our list? Do you think there are some glaring omissions, or do you think we’ve been unfair (or too fair) with any of the providers we’ve mentioned? Leave your own personal cloud storage reviews in the comments below and, as always, thanks for reading.

FAQ: Best Cloud Storage Providers

Sync.com is our favorite cloud storage for personal use , with good pricing plans, strong encryption and innovative features. Other good options are available, though, such as pCloud, Tresorit, MEGA and Google Drive, to name but a few.

For businesses, you can’t go wrong with a Sync.com , pCloud or Tresorit subscription, as our best business cloud storage list shows. If you’re unsure, key features to look out for are zero-knowledge encryption, server locations and document collaboration features.

pCloud is our top choice for free storage, although MEGA and Google Drive both offer a little more space. The beauty of free cloud storage providers is that you can try out a number of providers to find the perfect fit, with a provider like Koofr allowing you to combine multiple free storage providers together.

Our top choice for the best free online storage for photos is pCloud. It offers secure and cheap storage, will automatically upload photos from your phone and computer, and supports photo editing and social media backup.

A number of the best cloud storage providers offer packages with unlimited storage, but the best unlimited cloud storage provider is Sync.com for Teams. Be aware that most providers offering unlimited storage usually have a set limit, and if you go above the cap, you’ll need to request additional storage. Learn more from our guide on the best unlimited cloud storage providers .

Google Drive tops our list as the best cloud storage service for Android, but our number-one choice for iPhone users is Sync.com. However, most providers offer pretty good smartphone apps.

This is a really helpful article. If you could add a list that shows only Cloud Servers that have Zero Knowledge it would be very helpful for Medical and Legal businesses where client file confidentiality is required by law. That way those businesses can concentrate their search on cloud services that are eligible for their type of business.

Could you guys take a look at TeraCLOUD? It would be interesting to see your input on a Japanese company looking to expand its user base globally.

And once again we have a writer that doesn’t understand the difference between cloud syncing and cloud storage. Massive difference.

No shit! Time for some competence….

Excuse me. Here in Thailand, I could not access to bitcasa. So could someone from any other country could access bitcasa? If have, I will try to connect a VPN to that country. Thank you.(Sorry if one/some of my grammar and typing is/are wrong.)

Don’t buy Pcloud lifetime plan. It’s is waste of money.

From my experience, Pcloud is reducing speed if we purchasing lifetime plan. When i tried to upload files with yearly plan, we can upload properly. But when you purchased a lifetime plan uploading speed below 250kbps only even if you have 1GBPS/5G internet plan.

Some Youtubers mentioned that they are able to upload 5gb files within 10minutes. I think they are pcloud staff otherwise they are uploading files from pcloud data center itself.

Those are yours alright! . We at least need to get these people stealing images to start blogging! They probably just did a image search and grabbed them. They look good though!

New(ish) to tech and Cloud storage. I’ve contacted One Drive and ICloud to be told they both do the same thing, the same way. My problem is this, I want to store video files in the cloud so I don’t have to keep them in C drive. One drive and ICloud tech support to me this is not possible. How do I overcome this dilemma? When I stored my video data to an external hard drive eventually both drives crashed, I lost everything.

I don’t mind downloading to C drive then uploading to the cloud. However I don’t want to be hostage to always having to keep everything on C drive to use the cloud. Is there a cloud solution for me?

The pricing for Sync.com is outdated. They don’t offer a 200GB plan anymore. Lowest plan for individual users is 2TB at $8/mo.

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