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7 Business Plan Examples to Inspire Your Own (2024)
Need support creating your business plan? Check out these business plan examples for inspiration.
Any aspiring entrepreneur researching how to start a business will likely be advised to write a business plan. But few resources provide business plan examples to really guide you through writing one of your own.
Here are some real-world and illustrative business plan examples to help you craft your business plan .
7 business plan examples: section by section
The business plan examples in this article follow this template:
- Executive summary. An introductory overview of your business.
- Company description. A more in-depth and detailed description of your business and why it exists.
- Market analysis. Research-based information about the industry and your target market.
- Products and services. What you plan to offer in exchange for money.
- Marketing plan. The promotional strategy to introduce your business to the world and drive sales.
- Logistics and operations plan. Everything that happens in the background to make your business function properly.
- Financial plan. A breakdown of your numbers to show what you need to get started as well as to prove viability of profitability.
- Executive summary
Your executive summary is a page that gives a high-level overview of the rest of your business plan. It’s easiest to save this section for last.
In this free business plan template , the executive summary is four paragraphs and takes a little over half a page:
- Company description
You might repurpose your company description elsewhere, like on your About page, social media profile pages, or other properties that require a boilerplate description of your small business.
Soap brand ORRIS has a blurb on its About page that could easily be repurposed for the company description section of its business plan.
You can also go more in-depth with your company overview and include the following sections, like in the example for Paw Print Post:
- Business structure. This section outlines how you registered your business —as an LLC , sole proprietorship, corporation, or other business type . “Paw Print Post will operate as a sole proprietorship run by the owner, Jane Matthews.”
- Nature of the business. “Paw Print Post sells unique, one-of-a-kind digitally printed cards that are customized with a pet’s unique paw prints.”
- Industry. “Paw Print Post operates primarily in the pet industry and sells goods that could also be categorized as part of the greeting card industry.”
- Background information. “Jane Matthews, the founder of Paw Print Post, has a long history in the pet industry and working with animals, and was recently trained as a graphic designer. She’s combining those two loves to capture a niche in the market: unique greeting cards customized with a pet’s paw prints, without needing to resort to the traditional (and messy) options of casting your pet’s prints in plaster or using pet-safe ink to have them stamp their ‘signature.’”
- Business objectives. “Jane will have Paw Print Post ready to launch at the Big Important Pet Expo in Toronto to get the word out among industry players and consumers alike. After two years in business, Jane aims to drive $150,000 in annual revenue from the sale of Paw Print Post’s signature greeting cards and have expanded into two new product categories.”
- Team. “Jane Matthews is the sole full-time employee of Paw Print Post but hires contractors as needed to support her workflow and fill gaps in her skill set. Notably, Paw Print Post has a standing contract for five hours a week of virtual assistant support with Virtual Assistants Pro.”
Your mission statement may also make an appearance here. Passionfruit shares its mission statement on its company website, and it would also work well in its example business plan.
- Market analysis
The market analysis consists of research about supply and demand, your target demographics, industry trends, and the competitive landscape. You might run a SWOT analysis and include that in your business plan.
Here’s an example SWOT analysis for an online tailored-shirt business:
You’ll also want to do a competitive analysis as part of the market research component of your business plan. This will tell you who you’re up against and give you ideas on how to differentiate your brand. A broad competitive analysis might include:
- Target customers
- Unique value add or what sets their products apart
- Sales pitch
- Price points for products
- Shipping policy
- Products and services
This section of your business plan describes your offerings—which products and services do you sell to your customers? Here’s an example for Paw Print Post:
- Marketing plan
It’s always a good idea to develop a marketing plan before you launch your business. Your marketing plan shows how you’ll get the word out about your business, and it’s an essential component of your business plan as well.
The Paw Print Post focuses on four Ps: price, product, promotion, and place. However, you can take a different approach with your marketing plan. Maybe you can pull from your existing marketing strategy , or maybe you break it down by the different marketing channels. Whatever approach you take, your marketing plan should describe how you intend to promote your business and offerings to potential customers.
- Logistics and operations plan
The Paw Print Post example considered suppliers, production, facilities, equipment, shipping and fulfillment, and inventory.
Financial plan
The financial plan provides a breakdown of sales, revenue, profit, expenses, and other relevant financial metrics related to funding and profiting from your business.
Ecommerce brand Nature’s Candy’s financial plan breaks down predicted revenue, expenses, and net profit in graphs.
It then dives deeper into the financials to include:
- Funding needs
- Projected profit-and-loss statement
- Projected balance sheet
- Projected cash-flow statement
You can use this financial plan spreadsheet to build your own financial statements, including income statement, balance sheet, and cash-flow statement.
Types of business plans, and what to include for each
A one-page business plan is meant to be high level and easy to understand at a glance. You’ll want to include all of the sections, but make sure they’re truncated and summarized:
- Executive summary: truncated
- Market analysis: summarized
- Products and services: summarized
- Marketing plan: summarized
- Logistics and operations plan: summarized
- Financials: summarized
A startup business plan is for a new business. Typically, these plans are developed and shared to secure outside funding . As such, there’s a bigger focus on the financials, as well as on other sections that determine viability of your business idea—market research, for example.
- Market analysis: in-depth
- Financials: in-depth
Your internal business plan is meant to keep your team on the same page and aligned toward the same goal.
A strategic, or growth, business plan is a bigger picture, more-long-term look at your business. As such, the forecasts tend to look further into the future, and growth and revenue goals may be higher. Essentially, you want to use all the sections you would in a normal business plan and build upon each.
- Market analysis: comprehensive outlook
- Products and services: for launch and expansion
- Marketing plan: comprehensive outlook
- Logistics and operations plan: comprehensive outlook
- Financials: comprehensive outlook
Feasibility
Your feasibility business plan is sort of a pre-business plan—many refer to it as simply a feasibility study. This plan essentially lays the groundwork and validates that it’s worth the effort to make a full business plan for your idea. As such, it’s mostly centered around research.
Set yourself up for success as a business owner
Building a good business plan serves as a roadmap you can use for your ecommerce business at launch and as you reach each of your business goals. Business plans create accountability for entrepreneurs and synergy among teams, regardless of your business model .
Kickstart your ecommerce business and set yourself up for success with an intentional business planning process—and with the sample business plans above to guide your own path.
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Business plan examples FAQ
How do i write a simple business plan, what is the best format to write a business plan, what are the 4 key elements of a business plan.
- Executive summary: A concise overview of the company's mission, goals, target audience, and financial objectives.
- Business description: A description of the company's purpose, operations, products and services, target markets, and competitive landscape.
- Market analysis: An analysis of the industry, market trends, potential customers, and competitors.
- Financial plan: A detailed description of the company's financial forecasts and strategies.
What are the 3 main points of a business plan?
- Concept: Your concept should explain the purpose of your business and provide an overall summary of what you intend to accomplish.
- Contents: Your content should include details about the products and services you provide, your target market, and your competition.
- Cashflow: Your cash flow section should include information about your expected cash inflows and outflows, such as capital investments, operating costs, and revenue projections.
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- 5 Best Business Plan Software and Tools in 2023 for Your Small Business
Data as of 3 /13/23 . Offers and availability may vary by location and are subject to change.
We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure .
A business plan can do a lot for your business. It can help you secure investors or other funding. It can give your company direction. It can keep your finances healthy. But, if we’re being honest, it can also be a pain to write.
Luckily, you don’t have to start from scratch or go it alone. Business plan software and services can help you craft a professional business plan, like our top choice LivePlan , which provides templates, guidance, and more.
You’ve got quite a few choices for business plan help, so we’re here to help you narrow things down. Let’s talk about the best business plan tools out there.
- LivePlan : Best overall
- BizPlanBuilder : Most user-friendly
- Wise Business Plans : Best professional service
- Business Sorter : Best for internal plans
- GoSmallBiz.com : Most extra features
- Honorable mentions
Business plan software 101
The takeaway, business plan software faq, compare the best business plan software.
Cloud-based software | $12.00/mo. | 60-day money back guarantee | ||
Windows app and cloud-based software | $20.75/mo. | 60-day money back guarantee | ||
Professional service | Custom quote | N/A | ||
Cloud-based software | $10.00/mo. | 14 days | ||
Cloud-based software | $39.00/mo. | N/A |
By signing up I agree to the Terms of Use and Privacy Policy .
LivePlan: Best overall business plan software
Data as of 3 /13/23 . Offers and availability may vary by location and are subject to change. *With annual billing
LivePlan has been our favorite business plan software for a while now, despite the stiff competition.
There’s a lot to like about LivePlan. It has pretty much all the features you could want from your business plan software. LivePlan gives you step-by-step instructions for writing your plan, helps you create financial reports, lets you compare your business’s actual financials to your plan’s goals, and much more. And if you ever need inspiration, it includes hundreds of sample business plans that can guide your writing.
LivePlan software pricing
$12.00/mo. | $15.00/mo. | ||
$24.00/mo. | $30.00/mo. |
But the best part? You get all that (and more) at a very competitive price. (You can choose from annual, six-month, or monthly billing.) While LivePlan isn’t quite the cheapest business plan builder out there, it’s not too far off either. And if comes with a 60-day money back guarantee. So there’s no risk in trying LivePlan out for yourself.
With a great balance of features and cost, LivePlan offers the best business plan solution for most businesses.
BizPlanBuilder: Most user-friendly
Need something easy to use? BizPlanBuilder fits the bill.
BizPlanBuilder doesn’t have a flashy, modern user interface―but it does have a very clear, intuitive one. You’ll be able to see your plan’s overall structure at a glance, so you can quickly navigate from your title page to your market trend section to that paragraph on your core values. And as you write, you’ll use a text editor that looks a whole lot like the word processing programs you’re already familiar with.
BizPlanBuilder software pricing
$20.75/mo. | $29.00/mo. | $349.00 |
---|
Data effective 3/13/23. At publishing time, amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.
BizPlanBuilder also offers lots of helpful guidance for actually writing your plan. It gives you pre-written text, in which you just have to fill in relevant details. It offers explanations for what information you need to include in each section of your plan and way. It even gives you helpful tips from experts, so you’ll have all the information you need to plan like a pro.
So if you want planning software with almost no learning curve, you’ll like BizPlanBuilder.
Wise Business Plans: Best professional service
- Custom quote
Unlike all the other companies on this list, Wise Business Plans doesn’t offer software. Instead, it offers professional business plan writing services―meaning someone does all the hard work for you.
Now, you might think that sounds expensive―and you’re probably right (you have to request a custom quote for your plan). But there’s a lot to be said for expertise, and Wise Business Plans has plenty of that. Your business plan will get written by an experienced writer (with an MBA, no less). They’ll get information from you, do their own research, and then write your plan. You get one free revision, and you can always pay for more.
Wise Business Plans service pricing
N/A | N/A | Custom quote |
---|
Your end result will be a polished, entirely original business plan. (You can even get printed copies.) And best of all, you won’t have to spend your precious time working on the plan yourself. Wise Business Plans takes care of all the hard parts, and makes your business look good while doing it. Sounds like a service worth paying for, right?
Put simply, if you want the most professional business plan possible, we recommend using Wise Business Plans’s writing service.
Business Sorter: Best for internal plans
Many businesses need plans to show to people outside the company (to get financing, for example). But what if you just need a plan for internal use? In that case, we suggest Business Sorter.
Business Sorter uses a unique card-based method to help you craft the perfect business plan. (You can watch a demo video to see how it works.) You’ll plan some of the usual things, like finances and marketing. But Business Sorter also lets you make plans for specific teams and team members. It also emphasizes more internal matters, like operations, that might get overlooked in a business plan for outsiders.
Business Sorter software pricing
$10.00/mo. | $80.00/yr. | ||
$30.00/mo. | $240.00/yr. | ||
$80.00/mo. | $640.00/yr. | ||
Custom pricing | Custom pricing |
After you’ve made your business plan, Business Sorter also helps you stay accountable to it. You can create tasks, give them deadlines, and assign them to team members―giving you basic project management tools to make sure your business plans become business actions. (Oh, and did we mention that Business Sorter has the lowest starting prices of any software on this list?)
It all adds up to a business plan software that works great for internal planning.
GoSmallBiz: Most extra features
Want to get way more than just business planning software? Then you probably want GoSmallBiz.
See, GoSmallBiz offers business plan software as part of its service―but it’s just one part of a much bigger whole. You also get everything from discounts on legal services to a website builder to a CRM (customer relationship manager) to business document templates. And more. In other words, you get just about everything you need to get your startup off the ground.
GoSmallBiz software pricing
$39.00/mo. | ||
$49.00/mo. | ||
$199.00/mo. |
Don’t worry though―you still get all the business planning help you need. GoSmallBiz gives you business plan templates, step-by-step instructions, and the ability to create financial projections. And if you get stuck, GoSmallBiz will put you in touch with experts who can offer advice.
If you want business planning and much, much more, give GoSmallBiz a try.
- PlanGuru : Best financial forecasting
- EnLoop : Cheapest tool for startups
We recommend the software above for most business planning needs. Some businesses, though, might be interested in these more specialized planning software.
Honorable mention software pricing
$899.00/yr. | $99.00/mo. | N/A | ||
$11.00/mo. | $19.95/mo. | N/A |
PlanGuru: Best financial forecasting features
PlanGuru is pretty pricey compared to our other picks, but you might find its forecasting features worth paying for. It has more forecasting methods than other software (over 20) plus it lets you forecast up to 10 years.
EnLoop: Cheapest tool for startups
EnLoop doesn’t have our favorite features or interface, but it does have really, really low pricing plus a seven-day free trial. It's the most affordable software for startup business planning and still provides all the essential features like financial analysis, team collaboration, charting, and more.
Data as of 3 /13/23 . Offers and availability may vary by location and are subject to change. * With annual billing
Several of our previous favorite planning software, including BusinessPlanPro and StratPad, seem to have gone out of business.
A business plan is a written, living document that tells the story of your business and what you plan to do with it. It serves as the source of truth for you—the business owner—as well as potential partners, employees, and investors, but it also serves as a roadmap of what you want your business to be.
Why you need a business plan
While some small-business owners don’t see the point of creating a formal business plan, it can have some concrete benefits for your business. For example, one 2016 study found that business owners with written plans are more successful than those that don’t. 1
Still too vague? Then let’s get specific.
If you ever seek business funding (from, say, banks, angel investors , or venture capitalists ), you’ll have to prove that your business deserves the money you want. A formal business plan―complete with financial data and projections―gives you a professional document you can use to make your case. (In fact, most potential investors will expect you to have a business plan ready.)
Even if you’re not seeking funding right now, a business plan can help your business. A formal plan can guide your business’s direction and decision making. It can keep your business accountable (by, for example, seeing if your business meets the financial projections you included). And a formal plan offers a great way to make sure your team stays on the same page.
What to include in your business plan
Not all business plans are created equal. To make a really useful business plan, you’ll want to include a number of elements:
- Basic information about your business
- Your products/services
- Market and industry analysis
- What makes your business competitive
- Strategies and upcoming plans
- Your team (and your team’s background)
- Current financial status
- Financial and market projections
- Executive summary
Of course, you can include more or fewer elements―whatever makes sense for your business. Just make sure your business plan is comprehensive (but not overwhelming).
How business plan software can help
With so many elements to include, business plan creation can take a while. Business plan software tries to speed things up.
Most business plan software will include prompts for each section. In some cases, you can just fill in your business’s specific information, and the software will write the text for you. In other cases, the software will give you specific guidance and examples, helping you write the text yourself.
Plus, business plan software can help you stay organized. You’ll usually get intuitive menus that let you quickly flip through sections. So rather than endlessly scrolling through a long document in a word processor, you can quickly find your way around your plan. Some software even lets you drag and drop sections to reorganize your plan.
Sounds way easier than just staring at a blank page and trying to start from scratch, right?
Choosing business plan software
To find the right business plan builder for your business, you’ll want to compare features. For example, would you rather write your own text, getting prompts and advice from your software? Or would you rather go with a fill-in-the-blank method?
Likewise, think about the elements you need. If your plan will have a heavy focus on finances, you’ll want to choose business plan software with robust financial projection features. If you care more about market and competitor analysis, look for software that can help with that research.
You may also want to find business plan software that integrates with your business accounting software . Some plan builders will import data from Xero, QuickBooks, etc. to quickly generate your financial data and projections.
And of course, you’ll want to compare prices. After all, you always want to end up with software that fits your business budget.
The right business plan software can make your life easier. With LivePlan ’s wide breadth of features and online learning tools, you can’t go wrong. Plus, BizPlanBuilder 's one-time pricing makes it easy to invest while Business Sorter has a low starting cost. And if you're business is looking to grow, GoSmallBiz and Wise Business Plans will scale with you.
But of course, different companies have different needs. So shop around until you find the software that’s best for you and your business.
Now that you've got a business plan, take a look at our checklist for starting a small business. It can help you make sure you have everything else you need to get your startup off to a good start!
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Creating a business plan can take anywhere from a couple hours to several weeks. Your timeline will depend on things like the elements you choose to include, whether you use software or hire a writing service, and how much research goes into your plan.
That said, much of the business plan software out there brags that it can help you create a fairly detailed plan in a few hours. So if you’re going the software route, that can help you set your expectations.
If you want to get the most out of your business plan, you should update it on a regular basis―at least annually. That way, you can continually refer to it to inform your company’s strategies and direction.
At the very least, you should update your business plan before you start looking for a new round of funding (whether that’s with investors or lenders).
Thanks to business plan software, you can easily write your own business plan rather than pay someone to do it for you. And in most cases, software will cost you less than a professional business plan service.
There are some times you might want to go with a service though. If time is tight, you might find that it’s worth the cost of a service. Or if you’ve got big investor meetings on the horizon, you might want the expertise and polish that a professional service can offer.
Ultimately, you’ll have to decide for yourself whether business plan software or a business plan service will work better for your company.
Methodology
We ranked business plan software and tools based on features, pricing and plans, and connections to project management and other services. The value of each plan and service, along with what it offers, was a big consideration in our rankings, and we looked to see if what was offered was useful to small businesses or just extra. The final thing we looked at was the ease of use of the software to see if it's too complex for small businesses.
At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.
Sources 1. Harvard Business Review, “ Research: Writing a Business Plan Makes Your Startup More Likely to Succeed .” Accessed March 13, 2023.
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The Right Way to Build Your 2022 Business Plan As the last couple months of 2021 approach, it's time to start thinking about how to reach even greater heights next year.
By David Partain Edited by Ryan Droste Oct 22, 2021
Opinions expressed by Entrepreneur contributors are their own.
One thing that never changes is the fact that having a great plan for your organization is essential. Even after you open your doors, you'll continue to analyze, tweak and perfect that plan in order to improve operations. With the pandemic creating so much uncertainty, building a plan for 2022 may feel more difficult than in the past.
However, there's some good news. Sticking to a few key points will take some of the edge off.
1. Identify your assumptions and biases
Most business plans are built around at least a few assumptions. For example, you might assume that you have to follow a specific set of regulations or that you're the right person to run the organization. One thing I've learned in the investment world is that even though cycles repeat, nothing ever goes strictly to plan. What you assumed will happen can be very different from what actually happens.
Take a look at your assumptions from the previous year. What held up? What didn't? More importantly, why didn't they hold up? If you can answer that question, then you can avoid repeating the same mistakes. If you've never built a plan before, then try to identify the biases that could create problems. In either case, give yourself some breathing room and remember that life happens.
Related: How to Build Your 2021 Business Strategy in the Face of Uncertainty
2. Look at your results
Sometimes, your results are very different from expected. This is not necessarily because you did something right or wrong, but it can be because there are so many moving parts involved. Look at what you ended up with, and let those results give the business some direction. For example, if you find that people bought twice as much of a product as you thought they would — and market conditions and attitudes haven't changed — then it would make sense to invest more into that product for the upcoming year. Be discerning about what actually caused your results to know whether they're anomalies or real, long-term trends for the company. But don't start blind.
3. Create some projections
Projections tell people what you're committed to. For instance, you might say you're going to spend $500,000 on advertising or $1 million on Project A. That's very attractive to investors and shareholders who want to know that you know where you're going. In one of the companies that I started, these kinds of projections helped me find partners. If you're both honest and bold enough, your projections can mold your circumstances and influence the support you get.
Projections also acknowledge foreseen issues and anticipate circumstances to keep you prepared. To demonstrate this point, when I started a small business in the FinTech sector, I didn't project that I'd need more funding. I didn't look at what would happen if the stock market really took a dive. I just assumed that everything would work. When venture capitalists asked how it would work financially under different scenarios, I didn't really have an answer for them. When trouble hit, I had no plan for how to survive and the business went under. If I would have outlined what to do in different scenarios, then I might have been able to keep my doors open.
Always look at your best and worst-case scenarios, work with different people across departments, and create projections that paint a realistic picture of the company.
Related: How to Have Meaningful End-of-Year Vendor Meetings — Virtually
Business plans have to be somewhat fluid because both the market and the world change incredibly quickly. Be ready to respond and pivot. You can apply these same three points every time you need to create a plan for your organization. Just start early, define who you are, and make your commitments. The sooner you can clarify your identity and intentions, the faster great things can happen.
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Business Plan Templates
Free Download
2 Essential Templates For Starting Your Business. Available as an interactive PDF or a Google Docs template.
With this business plan template, you'll be able to:
- Write a company description that sells your story
- Plan for the future: lay out goals and metrics for success
- Describe your product line in detail and plan for how to stand out from competitors
- Consider any legal formalities that require attention when starting your business
- Put together necessary financial projections to make a strong start
- Create your buyer persona and determine your product/marketing fit
Build A Business Plan That Works
Available as a one-page interactive PDF and a full template on both Google Docs and Microsoft Word!
Whether you’re starting a business or drafting a formalized document with your current business goals, it’s important to clearly defi ne the scope of all aspects of the venture — from mission, to target customers, to fi nances, and beyond.
When just starting out, it can be tempting to think of a business plan as simply your company’s name and a description of your product or service. But in reality, planning a business involves thinking through a lot more details.
In this business plan template we’ll guide you through the steps of writing company and product descriptions, setting sales and marketing goals and plans, and thinking through legal and fi nancial logistics. We've included a plain text, designed , and completed example version of this template.
Frequently Asked Questions (FAQs)
How do you write a business plan.
A business plan is a formal written document that you can use to identify the purpose of your company, make important decisions about your future and help grow your company. HubSpot's free business plan templates provides guidance to establishing your company mission, customer research, competition, and a business strategy to profitability.
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Where can I get a free business plan template?
HubSpot's Free Business Plan Templates are the best way to create a professional, thorough business plan. The templates include instructions and everything you need to know about starting your company.
Is this really free?
Absolutely.
Just sharing some free knowledge that we hope you’ll find useful. Keep us in mind next time you have marketing questions!
What are the basic format of a business plan?
A business plan is a written document that outlines the company's goals, strategy and implementation. The format of the plan varies depending on the type of organization (e.g., for-profit or nonprofit) and size, but most plans share some common features such as an overview, executive summary, and financial information.
What is the best business plan template?
A great business plan template clearly defines the scope of the venture -- from mission, to target customers, to finances, and beyond. HubSpot's business plan template will guide you through the steps of writing company and product descriptions, setting sales and marketing goals and plans, and thinking through legal and financial logistics.
What is needed to start a business?
If you're thinking about starting a business, you'll need to do some research first. You can't just start a business without doing any market research. Market research will tell you if there's an opportunity to turn your idea into a successful business. After that, write your business plan so that you know how much money and time it will take for the project to succeed. Use HubSpot's free business plan template today!
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How to Write a Business Plan in 2023: The Ultimate Guide for Every Entrepreneur
Are you starting a new business or trying to get a loan for your existing venture? If so, you’re going to need to know how to write a business plan. Business plans give entrepreneurs the opportunity to formally analyze and define every aspect of their business idea .
In this post, you’ll learn how to put together a business plan and find the best resources to help you along the way.
What is a Business Plan?
A business plan is a formal document that outlines your business’s goals and how you will achieve those goals. Entrepreneurs who start out with business plans are 16 percent more likely to build successful companies , according to the Harvard Business Review. Developing a business plan ensures sustainable success, guiding you as you grow your business, legitimizing your venture, and helping you secure funding (among countless other benefits).
What Are the Main Purposes of a Business Plan?
Most financial institutions and service providers require you to submit a detailed business plan to obtain funding for your business. Online businesses will likely have a low overhead to start, so they may not need funding and therefore may not feel the need to write a business plan. That said, writing a business plan is still a good idea as it can help you secure a drastic increase limit on your credit card as your business grows or open a business account. This varies per bank.
If you’re growing your business, use it to help you raise expansion capital, create a growth strategy, find opportunities, and mitigate risks.Palo Alto software found that companies who make business plans are twice as likely to secure funding . .
If you’re just starting your business, making a business plan can help you identify your strengths and weaknesses, communicate your vision to others, and develop accurate forecasts.
How to Make a Business Plan: The Prerequisites
Here are the prerequisites to creating a solid business plan:
- Establish goals
- Understand your audience
- Determine your business plan format
- Get to writing!
Establish Goals
There are two key questions to ask here:
- What are you hoping to accomplish with your business?
- What are you hoping to accomplish with your business plan?
Approaching your business plan through that lens will help you focus on the end goal throughout the writing process. These also provide metrics to measure success against.
Before writing your business plan, gather the content and data needed to inform what goes in it. This includes researching your market and industry – spanning everything from customer research to legalities you’ll need to consider. It’s a lot easier to start with the information already in front of you instead of researching each section individually as you go.
Turn to guides, samples, and small business plan templates to help. Many countries have an official administration or service dedicated to providing information, resources, and tools to help entrepreneurs and store owners plan, launch, manage, and grow their businesses.
The following will take you to online business plan guides and templates for specific countries.
- United States Small Business Administration (SBA) – The “write your business plan page” includes traditional and lean startup business plan formats, three downloadable sample business plans, a template, and a step-by-step build a business plan tool.
- Australian Government – The “business plan template” page includes a downloadable template, guide, and business plan creation app.
- UK Government Business and Self-Employed – The “write a business plan” page includes links to a downloadable business plan template and resources from trusted UK businesses. .
- Canada Business Network – The “writing your business plan” page includes a detailed guide to writing your business plan and links to business plan templates from Canadian business development organizations and banks.
These business resource sites also offer a wealth of valuable information for entrepreneurs including local and regional regulations, structuring, tax obligations, funding programs, market research data, and much more. Visit the sites above or do the following Google searches to find official local business resources in your area:
- your country government business services
- your state/province government business services
- your city government business services
Some Chamber of Commerce websites offer resources for business owners, including business plan guides and templates. Check your local chapter to see if they have any.
Banks that offer business funding also often have a resource section for entrepreneurs. Do a Google search to find banks that offer business funding as well as business plan advice to see the business plans that get funding. If your bank doesn’t offer any advice, search for the largest banks in your area:
- business plan guide bank name
- business plan samples bank name
- business plan template bank name
If you’re looking for more sample business plans, Bplans has over 500 free business plan samples organized by business type as well as a business plan template. Their collection includes 116 business plans for retail and online stores. Shopify also offers business plan templates intended to help small business owners and aspiring entrepreneurs identify functional areas of a business they may not have considered.
Understand Your Audience
Because business plans serve different purposes, you’re not always presenting it to the same audience. It’s important to understand who’s going to be reading your business plan, what you’re trying to convince them to do, and what hesitations they might have.
That way, you can adapt your business plan accordingly. As such, your audience also determines which type of business plan format you use. Which brings us to our next point…
Which Business Plan Format Should You Use?
The United States Small Business Administration (SBA) presents two business plan formats:
- The traditional business plan format is for entrepreneurs who want to create a detailed plan for themselves or for business funding.
- The lean startup business plan format, on the other hand, is for business owners that want to create a condensed, single-page business plan.
If the business plan is just for you and internal folks, draft a lean startup business plan or a customized version of the traditional business plan with only the sections you need. If you need it for business funding or other official purposes, choose the formal business plan and thoroughly complete the required sections while paying extra attention to financial projections.
If your business operates outside the U.S., clarify the preferred format with your bank.
How to Create a Business Plan: Questions to Ask Yourself
As you write a business plan, take time to not only analyze your business idea, but yourself as well. Ask the following questions to help you analyze your business idea along the way:
- Why do I want to start or expand my business?
- Do my goals (personal and professional) and values align with my business idea?
- What income do I need to generate for myself?
- What education, experience, and skills do I bring to my business?
How to Write a Business Plan Step by Step
According to the business plan template created by SCORE, Deluxe, and the SBA , a traditional business plan encompasses the following sections.
- Executive summary
- Company description
- Products & services
- Market analysis
- Marketing & sales
- Management & organization
- Funding request
- Financial projections
- SWOT analysis
Since not everyone is aware of the key details to include in each section, we’ve listed information you can copy to fill in your business plan outline. Here’s how to build a business plan step by step.
Executive Summary
The Executive Summary is the first part of your business plan, so this is where you need to hook readers in. Every business plan starts this way — even a simple business plan template should kick off with the Executive Summary. Summarize your entire business plan in a single page, highlighting details about your business that will excite potential investors and lenders.
Explain what your business has to offer, your target market , what separates you from the competition, a little bit about yourself and the core people behind your business, and realistic projections about your business’ success.
While this is the first section of your business plan, write it after you’ve completed the rest of your business plan. It’s a lot easier because you can pull from the sections you’ve already written, and it’s easier to identify the best parts of your business plan to include on the first page.
Company Description
In the Company Description, share 411 about your business. Include basic details like:
- Legal structure (sole proprietor, partnership, corporation, etc.)
- Business and tax ID numbers
- When the business started
- Ownership information
- Number of employees
Your mission statement , philosophy and values, vision, short- and long-term goals, and milestones along with a brief overview of your industry, market, outlook, and competitors should also be in the Company Description.
Pro tip: These are the details you’ll use each time you create a business profile, whether that's on social media, business directories, or other networks. Keep your information consistent to reduce confusion and instill more confidence in potential customers.
Products & Services
The Products & Services section details what you plan to sell to customers. For a dropshipping business , this section should explain which trending products you’re going to sell, the pain points your products solve for customers, how you’ll price your products compared to your competitors, expected profit margin, and production and delivery details.
Remember to include any unique selling points for specific products or product groupings, such as low overhead, exclusive agreements with vendors, the ability to obtain products that are in short supply / high demand based on your connections, personalized customer service, or other advantages.
For dropshipping businesses selling hundreds or even thousands of products, detail the main categories of products and the number of products you plan to offer within each category. By doing this, it’s easier to visualize your business offerings as a whole to determine if you need more products in one category to fully flesh out your online store.
Market Analysis
The Market Analysis section of your business plan allows you to share the research you have done to learn about your target audience — the potential buyers of your products. People requesting a business plan will want to know that you have a solid understanding of your industry, the competitive landscape, who’s most likely to become your customers. It’s important to demonstrate that there’s a large enough market for your product to make it profitable and/or to make a strong return on investment .
To complete the Market Analysis component of your business plan, check out the following resources for industry, market, and local economic research:
- U.S. Embassy websites in most countries have a business section with information for people who want to sell abroad. Business sections include a basic “getting started” guide, links to economic and data reports, trade events, and additional useful business links for a particular region.
- IBISWorld is a provider of free and paid industry research and procurement research reports for the United States , United Kingdom , Australia , and New Zealand .
- Statista offers free and paid statistics and studies from over 18,000 sources including industry reports, country reports, market studies, outlook reports, and consumer market reports.
Use these websites and others to learn about the projected growth of your industry and your potential profitability. You can also use social media tools like Facebook Audience Insights to estimate the size of your target market on the largest social network
Another way to research your market and products is through Google Trends . This free tool will allow you to see how often people search for the products your business offers over time. Be sure to explain how your business plans to capitalize on increasing and decreasing search trends accordingly.
Marketing & Sales
Knowing your target market is half the battle. In the Marketing & Sales section, share how you plan to reach and sell products to your target market. Outline the marketing and advertising strategies you intend to use to market your product to potential customers – search marketing , social media marketing , email marketing , and influencer marketing methods .
If you’re unsure how to market your business’ products, analyze your competitors for some inspiration. Discovering your competition’s marketing tactics will help you customize your own strategy for building a customer base and ultimately taking your business to the next level.
Do a Google search for your competitor’s business name to find the websites, social accounts, and content they’ve created to market their products. Look at the ways your competitor uses each online entity to drive new customers to their website and product pages.
Then come up with a plan to convert a similar audience with your marketing and advertising messages. For dropshipping businesses, conversions will typically take place on your website as people purchase your products and/or by phone if you take orders over the phone.
Management & Organization
In the Management & Organization piece of your business plan, describe the structure of your business. In terms of legal structure and incorporation, most businesses are classified as sole proprietorships (one owner), partnerships (two or more owners), corporations, or S corporations.
Draft a condensed resume for each of the key members of your business. If you’re a solopreneur , include how your past education and work experience will help you run each aspect of your business. If you have one or more partner(s) and employee(s), include their relevant education and experience as well.
Think of this as a great way to evaluate the strengths of each individual running your business. When self-evaluating, you’ll be able to identify the aspects of your business that’ll be easier to manage and which ones to delegate to freelancers, contractors, employees, and third-party services. This also makes it easier to find the best way to utilize their strengths for business growth.
Funding Request
Chances are, you don’t have a funding request for a startup dropshipping business since the appeal to dropshipping is the low upfront investment . If you’re looking for a loan, however, this would be the section where you outline the dollar amount you need, what you plan to invest in, and how you see the return on your investment.
Another way to use this section is to analyze the investment you have or plan to make when starting or growing your business. This should include everything from the computer you use to run your website to the monthly fee for business services.
Financial Projections
In Financial Projections, share your projected revenue and expenses for the first or next five years of your business. The idea here is to demonstrate that the revenue you’re anticipating will easily lead to a return on any investment, whether from your personal finances or a capital lending service.
If you’re looking for funding, you’ll need to go into detail with projected income statements, balance sheets, cash flow statements, and capital expenditure budgets. If you aren’t looking for funding, it won’t hurt to create these types of financial projections so you can realistically plan for the future of your business.
The Appendix of your business plan includes any supplemental documents needed throughout the sections of your business plan. These may include, but are not limited to:
- Credit histories
- Product brochures
- Legal forms
- Supplier contracts
If you’re submitting your business plan for funding, contact the lender to see what documentation they want included with your funding request.
SWOT Analysis
In addition to the above sections, some business plans also include a SWOT Analysis. This is a one-page summary of your business’s strengths, weaknesses, opportunities, and threats. The strengths and weaknesses you include will be internal, whereas opportunities and threats you include will be external.
Depending on the revelations of this section, you may or may not want to make a SWOT analysis when submitting your business plan formally unless it is requested.
Summary: How to Create a Business Plan
As you can see, creating a business plan for your dropshipping business is a great way to validate your business idea , discover your business’s strengths and weaknesses, and make a blueprint for your business's future.
In summary, here are the sections you will need to write for your business plan, step by step:
- SWOT analysis (Optional)
If you haven’t already, take the time to create a business plan to launch or grow your business in 2023!
Want to Learn More?
- How to Start a Dropshipping Business
- How to Register a Business in the USA
- How to Launch Your Ecommerce Store in Less Than 30 Minutes Flat
- 30+ Amazing Startup Business Ideas That’ll Make You Money
How to Build a Detailed Business Plan That Stands Out [Free Template]
Updated: March 29, 2022
Published: March 11, 2022
While starting a company may seem easier now than ever before, entrepreneurs have an uphill battle from the moment they start a business. And without a clear, actionable business plan for selling, marketing, finances, and operations, you're almost destined to face significant challenges.
This is why crafting a business plan is an essential step in the entrepreneurial process.
In this post, we'll walk you through the process of filling out your business plan template, like this free, editable version :
Download a free, editable one-page business plan template.
We know that when looking at a blank page on a laptop screen, the idea of writing your business plan can seem impossible. However, it's a mandatory step to take if you want to turn your business dreams into a reality.
That's why we've crafted a business plan template for you to download and use to build your new company. You can download it here for free . It contains prompts for all of the essential parts of a business plan, all of which are elaborated on, below.
This way, you'll be able to show them how organized and well-thought-out your business idea is, and provide them with answers to whatever questions they may have.
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!
Download Free
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Click this link to access this resource at any time.
Building a Successful Business Plan
In the next section, we'll cover the components of a business plan , such as an executive summary and company description. But before we get to that, let's talk about key elements that should serve as building blocks for your plan.
For some entrepreneurs, the thought of writing a business plan sounds like a chore — a necessary means to an end. But that's a bad take.
A solid business plan is a blueprint for success . It's key to securing financing, presenting your business, outlining your financial projections, and turning that nugget of a business idea into a reality.
At the core, your business plan should answer two questions: why your business and why now?
Investors want to know why your business is entering the market, i.e. what problem it's solving and how it's different from what's currently out there. They also want to know why now is the right time for your type of product or service.
At a minimum, your plan should:
- Be more realistic than idealistic: Too often, business plans focus too much on how things could be instead of how they are. While having a vision is important, your plan needs to be rooted in research and data.
- Legitimize your business idea : If an idea fails on paper, it's a signal to go back to the drawing board. In doing so, you avoid losing precious time or money chasing an unrealistic idea.
- Position your business for funding: To get your business off the ground, chances are you'll need financial backing. Even with a solid business idea, investors, lenders, and banks still need convincing. An effective business plan will outline how much money you need, where it's going, what targets you will hit, and how you plan to repay any debts.
- Lay the foundation: Investors focus on risk – if anything looks shaky, it could be a dealbreaker. Ideally, your business plan will lay down the foundation for how you'll operate your business — from operational needs to financial projections and goals.
- Communicate your needs: It's nearly impossible to communicate your needs if you don't know what they are first. Of course, a business’ needs are always changing — but your plan should give you a well-rounded view of how your business will work in the short and long term.
So back to the question of why and why now – consider three things:
- Your industry – How does your product or service fit within your industry? Are you targeting a specific niche? Where do you see the industry going in the next five to 10 years?
- Your target audience – Who are you targeting? What challenges are they facing? How will your product or service help them in their daily lives?
- Your unique selling proposition (USP) – What sets you apart from your competitors? Is it your product/service features? Your company values? Price?
Once you know the answers to these questions, you'll be equipped to answer the question: why your business and why now.
How to Build a Business Plan
- Executive Summary
- Company and Business Description
- Product and Services Line
- Market Analysis
- Marketing Plan
- Legal Notes
- Financial Considerations
Featured Resource: Free Business Plan Template
1. cover page.
Your business plan should be prefaced with an eye-catching cover page. This means including a high-resolution image of your company logo, followed by your company's name, address, and phone number.
Since this business plan will likely change hands and be seen by multiple investors, you should also provide your own name, role in the business, and email address on the cover page.
At the bottom of this page, you can also add a confidentiality statement to protect against the disclosure of your business details.
The statement can read as follows: " This document contains confidential and proprietary information created by [your company name]. When receiving this document, you agree to keep its content confidential and may only reproduce and/or share it with express written permission of [your company name] ."
Remember to keep your cover page simple and concise — and save the important details for other sections.
Why it matters: First impressions are everything, and a clean cover page is the first step in the right direction.
Example of a Cover Page
2. Executive Summary
The executive summary of your business plan provides a one- to two-page overview of your business and highlights the most crucial pieces of your plan, such as your short-term and long-term goals.
The executive summary is essentially a boiled-down version of your entire business plan, so remember to keep this section to the point and filled only with essential information.
Typically, this brief section includes:
- A mission statement.
- The company's history and leadership model.
- An overview of competitive advantage(s).
- Financial projections.
- Company goals.
- An ask from potential investors.
Why it matters: The executive summary is known as the make-or-break section of a business plan. It influences whether investors turn the page or not — so effectively summarizing your business and the problem it hopes to solve is a must.
Think of the Summary as a written elevator pitch (with more detail). While your business plan provides the nitty-gritty details, your Summary describes — in a compelling but matter-of-fact language — the highlights of your plan. If it's too vague, complicated, or fuzzy, you may need to scrap it and start again.
Example of an Executive Summary Introduction
"The future looks bright for North Side Chicago, particularly the Rock Hill Neighborhood. A number of high-end commercial and residential developments are well on their way, along with two new condo developments in nearby neighborhoods.
While the completion of these developments will increase the population within the neighborhood and stimulate the economy, the area lacks an upscale restaurant where residents and visitors can enjoy fine food and drink. Jay Street Lounge and Restaurant will provide such a place."
3. Company & Business Description
In this section, provide a more thorough description of what your company is and why it exists.
The bulk of the writing in this section should be about your company's purpose – covering what the business will be selling, identifying the target market, and laying out a path to success.
In this portion of your business plan, you can also elaborate on your company's:
- Mission statement
- Core values
- Team and organizational structure
Why it matters: Investors look for great structures and teams in addition to great ideas. This section gives an overview of your businesses' ethos. It's the perfect opportunity to set your business apart from the competition — such as your team's expertise, your unique work culture, and your competitive advantage.
Example of a Values/Mission Statement
"Jay Street Lounge and Restaurant will be the go-to place for people to get a drink or bite in an elegant, upscale atmosphere. The mission is to be North Side's leading restaurant, with the best tasting food and the highest quality service."
3. Product & Services Line
Here's where you'll cover the makeup of your business's product and/or services line. You should provide each product or service's name, its purpose, and a description of how it works (if appropriate). If you own any patents, copyrights, or trademarks, it's essential to include this info too.
Next, add some color to your sales strategy by outlining your pricing model and mark-up amounts.
If you're selling tangible products, you should also explain production and costs, and how you expect these factors to change as you scale.
Why it matters: This section contains the real meat of your business plan. It sets the stage for the problem you hope to solve, your solution, and how your said solution fits in the market.
There's no one-size-fits-all formula for this section. For instance, one plan may delve into its ability to market in a more cost-effective way than the competition, whereas another plan focuses on its key products and their unique features and benefits.
Regardless of your angle, it's critical to convey how your offerings will differ from the competition.
Example of a Product/Service Offering
"The menu at Jay Street Lounge and Restaurant will focus on Moroccan cuisine. The stars of the menu (our specialties) are the Moroccan dishes, such as eggplant zaalouk, seafood bastilla, tagine, and chickpea stew. For those who enjoy American dishes, there will also be a variety of options, from burger sliders and flatbread pizza to grilled steak and salads.
The food at Jay Street will have premium pricing to match its upscale atmosphere. During the summer months, the restaurant will have extra seating on the patio where clients can enjoy a special summer menu. We will be open on all days of the week."
4. Market Analysis
It helps to reference your market research documentation in this section, like a Porter's Five Forces Analysis or a SWOT Analysis ( templates for those are available here ). You can also include them in your appendix.
If your company already has buyer personas, you should include them here as well. If not, you can create them right now using the Make My Persona Tool .
Why it matters: Having an awesome product is, well, awesome — but it isn't enough. Just as important, there must be a market for it.
This section allows you to dig deeper into your market, which segments you want to target, and why. The "why" here is important, since targeting the right segment is critical for the success and growth of your business.
It's easy to get lost (or overwhelmed) in a sea of endless data. For your business plan, narrow your focus by answering the following questions:
- What is my market? In other words, who are my customers?
- What segments of the market do I want to target?
- What's the size of my target market?
- Is my market likely to grow?
- How can I increase my market share over time?
Example of a Market Analysis
"Jay Street Lounge and Restaurant will target locals who live and work within the Rock Hill Neighborhood and the greater North Side Chicago area. We will also target the tourists who flock to the many tourist attractions and colleges on the North Side.
We will specifically focus on young to middle-aged adults with an income of $40,000 to $80,000 who are looking for an upscale experience. The general demographics of our target market are women between 20 to 50 years old.
A unique and varied Moroccan-American menu, along with our unique upscale atmosphere, differentiates us from competitors in the area. Jay Street will also set itself apart through its commitment to high-quality food, service, design, and atmosphere."
5. Marketing Plan
Unlike the market analysis section, your marketing plan section should be an explanation of the tactical approach to reaching your aforementioned target audience. List your advertising channels, organic marketing methods, messaging, budget, and any relevant promotional tactics.
If your company has a fully fleshed-out marketing plan, you can attach it in the appendix of your business plan. If not, download this free marketing plan template to outline your strategy.
Free Marketing Plan Template
Outline your company's marketing strategy in one simple, coherent plan.
- Pre-Sectioned Template
- Completely Customizable
- Example Prompts
- Professionally Designed
Why it matters: Marketing is what puts your product in front of your customers. It's not just advertising — it's an investment in your business.
Throwing money into random marketing channels is a haphazard approach, which is why it's essential to do the legwork to create a solid marketing plan.
Here's some good news — by this point, you should have a solid understanding of your target market. Now, it's time to determine how you'll reach them.
Example of a Marketing Plan Overview
"Our marketing strategy will focus on three main initiatives:
- Social media marketing. We will grow and expand our Facebook and Instagram following through targeted social media ads.
- Website initiatives. Our website will attract potential visitors by offering updated menus and a calendar of events.
- Promotional events. Jay Street will have one special theme night per week to attract new clients."
6. Sales Plan
It doesn't matter if your sales department is an office full of business development representatives (BDR) or a dozen stores with your products on their shelves.
The point is: All sales plans are different, so you should clearly outline yours here. Common talking points include your:
- Sales team structure, and why this structure was chosen.
- Sales channels.
- Sales tools, software, and resources.
- Prospecting strategy.
- Sales goals and budget.
Like with your marketing plan, it might make sense to attach your completed sales plan to the appendix of your business plan. You can download a template for building your sales plan here .
Why it matters: Among other things, investors are interested in the scalability of your business — which is why growth strategies are a critical part of your business plan.
Your sales plan should describe your plan to attract customers, retain them (if applicable), and, ultimately, grow your business. Be sure to outline what you plan to do given your existing resources and what results you expect from your work.
Example of a Sales Plan Overview
"The most important goal is to ensure financial success for Jay Street Lounge and Restaurant. We believe we can achieve this by offering excellent food, entertainment, and service to our clients.
We are not a low-cost dining option in the area. Instead, the food will have premium pricing to match its upscale feel. The strategy is to give Jay Street a perception of elegance through its food, entertainment, and excellent service."
7. Legal Notes
Your investors may want to know the legal structure of your business, as that could directly impact the risk of their investments. For example, if you're looking for business partners to engage in a non-corporation or LLC partnership, this means they could be on the line for more than their actual investment.
Because this clarification is often needed, explain if you are and/or plan to become a sole proprietor, partnership, corporation, LLC, or other.
You should also outline the steps you have taken (or will need to take) to operate legally. This includes licenses, permits, registrations, and insurance.
The last thing your investor wants to hear after they've sent you a big chunk of change is that you're operating without proper approval from the local, state, or federal government.
Why it matters: The last thing your investor wants to hear after they've sent you a big chunk of change is that you're operating without proper approval from the local, state, or federal government.
Example of Legal Notes
"Jay Street Lounge and Restaurant is up-to-date on all restaurant licenses and health permits. Our business name and logo are registered trademarks, presenting the possibility of expanding locally."
8. Financial Considerations
Ultimately, investors want to know two things:
- When they will earn their money back.
- When they will start seeing returns on their initial investment.
That said, be clear, calculated, and convincing in this section. It should cover:
- Startup costs.
- Sales forecasts for the next several months/quarters.
- Break-even analysis for time and dollars.
- Projected profit and loss (P&L) statement.
Facts and figures are key here, so be as specific as possible with each line item and projection. In addition, explain the "why" behind each of these sections.
However, keep in mind that information overload is a risk, especially when it comes to data. So, if you have pages upon pages of charts and spreadsheets for this section, distill them into a page or two and include the rest of the sheets in the appendix. This section should only focus on key data points.
Why it matters: One of the most important aspects of becoming "investor ready" is knowing your numbers. More importantly, you need to understand how those numbers will enhance your business.
While it's easy to write a number down on paper, it's more important to understand (and communicate) why you need capital, where it's going, and that your evaluation makes sense.
Example of Financial Projections
"Based on our knowledge and experience in the restaurant industry, we have come up with projections for the business.
Starting with an expenditure of $400,000 in year 1, we forecast sales of $1,500,000 and $2,800,000 for years two and three. We expect to achieve a net profit of 15% by year three."
9. Appendix
A detailed and well-developed business plan can range anywhere from 20 to 50 pages, with some even reaching upward of 80.
In many cases, the appendix is the longest section. Why? Because it includes the supportive materials mentioned in previous sections. To avoid disrupting the flow of the business plan with visuals, charts, and spreadsheets, business owners usually add them in the last section, i.e. the appendix.
Aside from what we've already mentioned – marketing plan, sales plan, department budgets, financial documents – you may also want to attach the following in the appendix:
- Marketing materials
- Market research data
- Licensing documentation
- Branding assets
- Floor plans for your location
- Mockups of your product
- Renderings of your office space or location design
Adding these pieces to the appendix enriches the reader's understanding of your business and proves you've put the work into your business plan without distracting from the main points throughout the plan.
Why it matters: An appendix helps the reader do their due diligence. It contains everything they need to support your business plan.
Keep in mind, however, that an appendix is typically necessary only if you're seeking financing or looking to attract business partners.
Use a Business Plan Template to Get Started
Writing a business plan shouldn't be an insurmountable roadblock to starting a business. Unfortunately, for all too many, it is.
That's why we recommend using our free business plan template. Pre-filled with detailed section prompts for all of the topics in this blog post, we're confident this template will get your business plan started in the right direction.
Editor's note: This post was originally published in June 2017 and has been updated for comprehensiveness.
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Marketing software that helps you drive revenue, save time and resources, and measure and optimize your investments — all on one easy-to-use platform
Best business plan software of 2024
For planning your business finance
Best overall
Best budget, best established, best for speed.
- How we test
The best business plan software makes it simple and easy to plan your business finances in order to present them to a bank or investors.
1. Best overall 2. Best budget 3. Best basic 4. Best established 5. Best for speed 6. FAQs 7. How we test
The whole point of a business plan is that it allows you to evaluate your strengths and weaknesses, not least via your Unique Selling Point (USP) ,and make product or service comparisons with competitors.
Of course, even the best business plan relies on estimates and guesstimates, as it's impossible to predict market changes, developments, and future performance under such conditions.
Ultimately, though, a business plan will demonstratively prove why your business is a solid enough investment to risk putting money into, and shows that you have properly and thoroughly researched your market, and details the real potential of a new business opportunities.
Here then are the best business plan software providers currently available.
You may also be interested in our featured business guides on best business laptops , best business computers and best business smartphones .
The best business plan software of 2024 in fill:
Why you can trust TechRadar We spend hours testing every product or service we review, so you can be sure you’re buying the best. Find out more about how we test.
Reasons to buy
Reasons to avoid.
Bizplan is the online business planning tool that claims usage of 30,000 startup founders from the Startups.co platform. They use a guided creator that can break the big project down into the component pieces that get tracked with a Progress Tracker, and expert guidance each step of the way including templates that can be dropped in, and completed, along with simple integration of visuals along the way.
Additional resources are also provided via the Bizplan Academy, with lessons on relevant topics, for example, “Building a Brand: How to Tell a Powerful Brand Story,” and “Critical Path Your Way to Higher Revenues,” among the many offerings. Those that need even more assistance also can take advantage of an expert consultation from a financial expert.
- ^ Back to the top
2. PlanGuru
PlanGuru is a comprehensive, and powerful software package in the business planning space. Education is provided via a series of case studies at their PlanGuru University and a whole slew of video tutorials.
The feature set includes flexible budgeting that can handle a simple small business, or a larger multi-department operating budget, and financial forecasting that uses multiple methods, including intelligent and turn-key methods - twenty methods in total. Historical results can also be imported with the general ledger import utility which can then applied to produce a rolling forecast. They also offer PlanGuru Launch, a service to bring in expertise and is charged per hour of assistance.
A significant downside is Planguru charges a higher cost than other software options. The cheapest option is around $75 per month for one business entity when billed annually. While there is no free trial, PlanGuru does offer a 30 day money back guarantee.
Our expert review:
Enloop is a great choice for business planning software for the cash strapped business as it is the rare offering that has a free tier. Step up up to the next tier, and this is no barebones product, as it has over 100 currency symbols, can automatically generate bank-ready financial reports, and even has automated text writing that can sync with financial data to turn it into text. There is also a real time performance score assigned, that dynamically changes as the business plan is strengthened.
The plans start with the Free tier, which is limited to a single business plan with simple text, no images, and does not offer any advanced features. The next plan up is the Detailed plan, that supports three business plans, and offers a significant 55% discount when paid annually, making it even better value. This plan costs around $20 per month. For a more comprehensive package you can buy the Performance plan costing around $40 per month.
Read our full Enloop business plan software review .
4. LivePlan
LivePlan is business planning software that offers a simple pricing scheme as there is only a single plan to choose from. As they have a 15+ year track record, they offer a clean and simple interface, that can create business plans that look like they were done by an expert consultant, and the software includes a live dashboard that can track day-to-day performance. Those with writer’s block will benefit from the over 500 included sample plans that can be turned to for inspiration.
Rather than complicate things with too many tiers to choose from, LivePlan only has a single plan which can be paid for monthly or annually.
5. Business Sorter
Business Sorter promises to simplify and speed up business planning and claims to be able to flesh out a plan in an hour or two, via a novel 273 card sort system that covers many common situations.
The ability to reword cards is included, or also to add cards to the already expansive deck, so no worries if there is not a pre-made card for your situation. Unlike some sites that have videos, the educational resources here are provided as PDFs and Word files, which can be quicker to access, but harder to follow for some learners.
The lowest tier plan, Basic is fully featured, and includes up to three team leaders.
Read our full Business Sorter review .
Other business plan software to consider
We've only covered some of the most popular business plan software platforms out there, but there are a number of other notables worth mentioning, plus a wide variety of providers of business plan templates. Below we'll briefly cover a range of some of the additional options out there that are worth considering to get your business plan right.
Go Business Plans is more of a consultancy than a software solution, but is worth mentioning for the simple fact that it's one of America's biggest business plan companies. While software might be able to do the job for you, if you're looking for significant funding, it's probably useful to get some professional advice, not least in terms of strategic planning, feasibility studies, and financial projections to ensure you have a solid base for your business plan.
Wise Business Plans provides a very wide range of templates to work from in constructing a business plan. These are particularly designed with funding in mind, no matter what kind of business you run. What is especially helpful is that Wise doesn’t simply deal with business plan templates for a diverse range of business types, the company also provides plan templates for franchises and non-profits.
Plan Writers is another bespoke service that essentially listens to what you want and then puts the plan together for you. Again, this technically falls outside of business plan "software", but the chances are you'll use a software package as a platform to build from, and Plan Writers can then help you build up from that base.
Bplans is another provider of business plan templates, but goes beyond that with additional pitch and SWOT analysis templates. There are also business plan guides, industry reports, and a free course on writing a business plan. Bplans also publishes a lot of free-to-use articles on business planning, financials, and tax reporting, to help ensure you can keep your figures and projections accurate and compliant.
We've also listed the best free software for small business .
A business plan is essentially your roadmap to profitability from an initial investment. Whether it's your own money, or a loan from a bank, it's still a good idea to set up a business plan for yourself.
Main things to look to are a SWOT analysis to provide an idea of your business idea's strengths and weaknesses, as well as identify a unique selling point (USP) that will give your business an edge.
While business plans inevitably demand the use of figures, and while these can be impossible to be accurate with, at least by making intelligent guesses you can set yourself targets to work towards.
That's another common feature of a plan, so that specific periods you can review your business progress and make adjustments to your plan as required. This allows you to use real figures for your projections, allowing you to better plan ahead.
Which business plan software is best for you?
When deciding which business plan software to use, first consider what your actual needs are, as sometimes free platforms may only provide basic options, so if you need to use advanced tools you may find a paid platform is much more worthwhile. Additionally, free and budget software options can sometimes prove limited when it comes to the variety of tools available, while higher-end software can really cater for every need, so do ensure you have a good idea of which features you think you may require.
How we tested the best business plan software
To test for the best business plan software we first set up an account with the relevant software platform, whether as a download or as an online service. We then tested the service to see how the software could be used for different purposes and in different situations. The aim was to push each business plan software platform to see how useful its basic tools were and also how easy it was to get to grips with any more advanced tools.
Read how we test, rate, and review products on TechRadar .
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7 Best Business Plan Software for Startups in 2024
- Resources for Planning a Business
- Best Business Plan Software
Last Updated: April 26, 2024 By TRUiC Team
Launching a new startup is an exciting yet challenging endeavor. Crafting a comprehensive business plan is a critical first step for any founder to outline their vision, objectives, and strategy. It acts as a roadmap to help guide important decisions and next steps as a company grows.
With so many options available, finding the right business planning tool can be daunting. The best software should be affordable, user-friendly, and offer a robust set of features to aid in financial modeling, strategic planning, and more.
In this review, we'll explore some of the top business plan software solutions designed specifically for entrepreneurs. We'll compare capabilities, ease of use, templates and resources, integrations, pricing, and more. Whether you’re looking to create an investor-ready plan or simply organize your strategy, choosing the right tool can help you get started on the right foot.
Best Business Plan Software for Startups: LivePlan
Top Business Plan Software Solutions
4.8/5 |
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4.6/5 |
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4.5/5 | ||
4.5/5 | ||
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4.3/5 |
In this review, we'll look at seven of the best business plan software platforms — discussing their pros, cons, features, pricing, and more — so you can decide which one is right for your startup.
Best Business Plan Software for Startups 2024:
- LivePlan - Best Overall
- Bizplan - Easiest to Use
- Enloop - Best Automation Features
- PlanGuru - Best Financial Forecasting
- IdeaBuddy - Best for Idea Validation
- iPlanner - Best for Nonprofits
- Wise Business Plans - Best Professional Services
The following tools all have their own great features. Based on its affordable pricing and usability, LivePlan is our top business plan software choice for startups.
Try LivePlan today or continue reading to explore your options!
Best Business Plan Software: LivePlan
LivePlan is the overall best business plan tool, offering a large number of features at an affordable price.
Visit LivePlan
1. LivePlan - $15/month to $30/month
We love LivePlan overall because it offers great value at an affordable cost. The software lets you quickly create a business plan from anywhere in the world using what is arguably the best business plan software available on the market. It does everything better than its competition and costs way less.
What’s more, the online “cloud-based” platform is easy to use and you are under no contract or obligation to keep paying for the service. Even better, if you decide to stop service for whatever reason, Palo Alto Software, the makers of LivePlan, will keep your account active and data preserved for at least a year should you decide to reactivate your account later.
- Create an unlimited number of business plans
- A forecast feature for those less mathematically inclined. Plug in data, and it will generate charts, graphs, figures, and even the profit and loss, balance sheet, and cash flow statements
- 500+ business plan templates spanning all major industries
- Real-time financial data tracking
- Performance dashboards track sales and budgeting
- Create one-page pitch plans for potential investors
- Milestone scheduling feature — Some people will use it when working with others on their plan; it will let you assign milestones to people.
- Low-cost annual plans
- Affordable pay-as-you-go plans
- No cancellation fees
- Data saved for 12-months, even after cancellation
- Clean, modern platform
- Cloud-based; works on any business machine (Linus, Windows, Mac)
- Integrates with Quickbooks and Xero to import your data easily
- Knowledgeable customer support to get help with your plan
- No valuation capabilities
- Templates built on Palo Alto Software’s earlier software Business Plan Pro require some modifications to be used on LivePlan
Insider Information
Talking to the nice people at LivePlan we learned some inside information that we wanted to share with our readers.
Here's what we learned:
- LivePlan has been used by contestants on ABC's hit show "Shark Tank" to win over angel investors to help them get their ideas and businesses funded.
- Accountants use LivePlan as an added-value service to sell to their clients.
- Businesses continue using LivePlan because of a feature called “Dashboard” which lets you manually enter your actuals or pull actuals from Quickbooks online to do comparative forecasting and analysis.
- LivePlan helps with business continuity planning (BCP).
- LivePlan executives use LivePlan to make important business decisions.
- "Dashboard" does profit and loss, cash flow, and balance sheet reports and lets you compare and contrast your actuals from your forecasts to be able to show to investors.
- LivePlan lets you create business plans in 1/5th the time it takes using templates.
Customer Reviews
LivePlan receives great feedback from customers. LivePlan reviews average 4.5 stars out of 5 on GetApp. LivePlan is an easy company for us to recommend for the best business plan software.
2. Bizplan - $29/month, $249/year, $349 lifetime
Bizplan rates high on our list because they offer a lifetime plan that gets you "forever access" to their business plan software. As an added bonus, you also receive free access to Startup Courses and LaunchRock, a landing page builder.
- Easy, "fill-in-the-blanks" plan builder
- Publish your business plan online
- Unlimited business plans
- Bizplan takes care of the financials
- Cloud-based (use any browser on any computer)
- Options to add more graphics and photos
- Low-cost yearly plans
- Create unlimited business plans
- Xero to import your data easily
- Excellent and responsive customer support (email/chat/phone)
- Free access to Startup.com and LaunchRock.com
- Discount at Fundable.com (connect with lenders and investors)
- Can't export in Word
- Doesn't currently integrate with QuickBooks
- No free trial
- No third-party app integrations
Talking with BizPlan insiders, we learned that the premise behind BizPlan is to help startups easily create professional business plans to give them a leg-up with lenders and investors.
Here's what else we learned:
- BizPlan's does all your financial calculations for you.
- BizPlan strives to be an all-in-one solution for Startups needing funding.
- BizPlan is constantly making improvements to its software.
BizPlan receives great feedback from customers. BizPlan reviews average 4.4 stars out of 5 on GetApp. Still a relatively new option, BizPlan already has over 30,000 satisfied customers. As their platform grows, we wouldn’t be surprised to see them integrate even more valuable features. Keep a close eye on this one.
3. Enloop - Free to $39.95/month
If you’re looking to try before you buy, Enloop is a strong choice as one of the only business planning software tools with a free trial.
- User-friendly platform
- Compare your financials against your industry's performance
- Bank ready financial statements (Profit and Loss, Balance Sheet, Cash flow)
- Lets multiple team members work on a business plan
- 36-Month detailed financial reports
- Sync date and text into your business plan
- Real-time performance rating
- Generated business plan Pass/Fail report
- Multiple currency formatting
- Seven-day free trial (no credit card required)
- Advanced financial ratios
- Financial projections
- Video tutorials to help you with the writing process
- No phone or chat support, just a "contact us" form.
- Three business plan limit per account
- Doesn't integrate with QuickBooks or Xero
- No financial forecasts beyond 36-months
- No 30-day money-back guarantee
We learned that the premise behind Enloop is to make business planning easier for entrepreneurs. Enloop achieves this by making software simple to navigate through and takes risks off the table with their no credit card needed seven-day free trial. Their business plan creation software offers financial forecasting features for up to 36 months.
- Enloop utilizes 16 financial ratios to get your business ready for investors.
- Enloop offers some sample business plans that are easy to modify.
- Enloop's performance score increases as you create your detailed plan.
- A new business or small businesses benefit the most from Enloop's solutions.
Enloop receives fair feedback from customers. Enloop's reviews average 3 stars out of 5 on PCMag. Enloop's main complaint is its lack of instructional text for writing mission statements and other key sections. What they rank high on is their efficiency and the speed at which the software lets you write a business plan.
Even beyond the free version, Enloop Basic is just $9.95/month ($6/month when paid annually), so they’re one of the least expensive tools for writing a business plan.
4. PlanGuru - $99/month to $299/month
PlanGuru is a good option if you’re looking for considerably more robust software that offers quite a bit more. The most notable feature we like is the valuation tool, only present on the desktop version of the software. PlanGuru lets you calculate the valuation of your business using three different methods. No other business plan software offers this that we know of.
PlanGuru also offers budgeting, forecasting, and performance tools to help you put together a business plan. In the main, PlanGuru allows you to get a custom-tailored three financial statement budget model up and running out of QuickBooks or Xero in a matter of minutes. PlanGuru's business plan writing software takes you through a setup process where it asks you questions such as:
- What's the first month of your fiscal year?
- How many historical years do you want to import?
And, once you answer these questions, PlanGuru then generates a model for you that you can then populate with your historical data if you have it. Then you can go through PlanGuru's 20+ projection methods.
Some financial data projection methods include:
- Expenses, like payroll, etc.
- Balance sheet items, like accounts receivable, accounts payable, crude expenses, prepaid expenses, loans, etc.
These are only a few of the features the business plan software offers. Here are some more.
- Budgeting/Forecasting Software
- Analytics Service for Financial Performance & KPIs
- Valuation calculations (desktop software only)
- Desktop and cloud-based options
- Free 14-day trial and 30-day money-back guarantee
- Great customer support and knowledgeable sales staff
- Lower-cost yearly plans offered
- Advanced financial calculations
- Business valuation calculations
- No contracts
- Integrates with QuickBooks and Xero
- Costlier than LivePlan and most other business plan software options
- Additional cost per user can add up quickly
The great thing about PlanGuru is that the only thing you have to worry about is the income statement and balance sheet projections because the cash flow statement is automatically generated.
Then once you have the cash flow statement, income statement, and balance sheet in place, you can then lock down the budget.
- PlanGuru's desktop version has three different types of valuation methods that calculate the worth of your business.
- PlanGuru has some really nice reporting tools that pull together your financial statements into table formats, say, for the bank, line-by-line.
- PlanGuru also has some nice charts, graphs, scorecards, and some easily digestible reports that can help you visualize how your company is performing.
- Exports to Excel, PDF, and Word documents --and, there's even a tool that lets you create customized reports.
- You can print your plan off too to show partners, lenders, and investors.
- PlanGuru now offers a cloud-based version of its software, though it will take some time to catch up to the rich features offered by the current desktop software version.
- With PlanGuru you also get free updates, bug fixes, and new releases as they become available.
Important Note: These tools are important because investors may want to see not only historical performance but also projections.
5. IdeaBuddy - Free to $35/month
IdeaBuddy makes our list because of what's behind their approach. IdeaBuddy focuses on helping entrepreneurs develop their idea first, then share it, and then refine it into a plan. If you have a business idea and don't know what to do next, IdeaBuddy could be what you're looking for in a business plan software.
- Single-page business plan pitch (Idea plan)
- Clean modern design platform combined with great financial tools
- Marketing plan for selling and promoting your products
- Market overview plan where you create targeted customer profiles, identify your competition and calculate the market potential
- Business plan creation that includes forecasting performance and cash flow projections
- A proprietary algorithm calculates a final score for your idea providing recommendations for improvement after you complete "Story Mode"
- Idea Journal, that is an internal business plan for you to show potential investors
- A lifetime plan costs only $178
- Great for developing ideas
- Great for doing market research
- Pay-as-you-go plans offered
- Email-only customer service
- Software lag time issues
- Fewer software options than most other small business options
IdeaBuddy has some great features that are fantastic from idea conceptualization down to cost projections and the laying out of steps to take to start a business. We would have liked, however, to been given more KPIs that would notify us of tasks, help with idea validation, and help us measure other objectives to better monitor the health of our business. Another thing lacking was the design of the finished plan--it contained some noticeable structural issues.
IdeaBuddy has received some outstanding customer reviews on GetApp. IdeaBuddy has earned a 4.6-star rating out of 5 possible stars.
6. iPlanner - Starts at $55/year
iPlanner is a comprehensive business plan software that has been aiding entrepreneurs since 2007, providing a robust framework for developing business plans, models, and financial forecasts online.
- Unlimited Team Members & Collaboration
- A La Carte Pricing Model vs Packages
- Discounts for Serial Entrepreneurs & Business Coaches
- Solid amount of industry knowledge and experience.
- They've got two trademarked business planning services, Startup Framework™ and Strategy Designer™
- All of their business planning packages allow you to have unlimited collaborators and assign people three different roles: Project Owners, Advisors, and Viewers.
- Their Startup Framework software has a business modeling section where you can design a business model canvas and strategize as much as you need before diving into your plan.
- Doesn't have a month-to-month option for either of their services. Their Strategy Designer is payable only annually, while their Startup Framework is available for 3-month, 6-month, or 12-month payments.
- They don't offer refunds
- Their website is pretty old school and tough to navigate.
- Unlike other business planning software, iPlanner doesn't offer a free version or trial. However, you can take a tour of their Startup Framework software or view a demo of the Strategy Designer to get a feel for them.
iPlanner's Business Planning Software
If a simple framework is all you're looking for, iPlanner can help you out. They don't have many bells and whistles, but at these price points, they offer a good value for nonprofits and corporations.
7. Wise Business Plans - Pricing by Request
Wise business plans website is a little confusing to navigate, and pricing is by request only, which can get frustrating. They do have a lot of options for different kinds of business plans for various types of business types, which makes them versatile. They also have business building and funding options as well. And, if you wish to establish business credit, they offer net-30 accounts that get reported to Equifax business.
- Claim to be the only business plan company to write for Fortune 100 and 500 companies
- Business formation services
- Business license searches
- EIN services
- Digital marketing services
- Business website design and branding
- Has a lot of helpful information
- Helpful options for forming your business
- Options to help after you start your business
- Helps small businesses establish business credit
- Not an actual business plan software
- Expensive by comparison
- Website is difficult to navigate
- Pricing is by request only
- Limited products and features
- Turnaround is one month
- Requires some work on your end
Business Plan Software Pros and Cons
- By using business plan software providers, you’ll be able to create a solid outline for your business. Although some of the options above are better than others, each will walk you through from start to finish.
- No matter how you look at it, business plan software is cost-effective. As long as you actually use the tool, you’ll generate significantly more value than you’re spending on monthly subscription fees.
- If you spend the time to create a solid plan, you’re much more likely to hold yourself accountable. Think of planning software like an accountability buddy for entrepreneurship.
- Your business plan tool will help set realistic financial goals, and most can also keep your bottom line in check by integrating your accounting software.
- Business planning software enables you to collaborate with partners, mentors and investors.
- Some of the business plan tools don’t offer support and can have slightly buggy features. That said, if you’re serious about writing a solid plan, go with a tool that’s constantly updated and well made.
- Although some business plan tools have a collaboration feature, none of them can review it when you’re done. All business planning tools lack a human touch.
How to Choose the Right Business Plan Software
With the array of business planning tools available, it can be daunting to select the right one for your needs. Here are some tips for choosing a business plan software solution:
- Consider your skill level – Opt for software like a wizard-guided template if you are less experienced in writing plans. Choose more advanced software with greater flexibility once you know what you are doing. Look for drag-and-drop tools to easily organize sections.
- Determine your budget – Prices range from free to several hundred dollars. Know how much you can spend before shopping.
- Compare features – Look for software with the specific tools you need, like financial projections, sample text, customizable templates, and more.
- Evaluate the financial tool capabilities – The software should provide extensive financial tools like forecasting, modeling, projections, and dashboards to streamline financial planning.
- Check reviews and ratings – Get feedback from other users about their experience with the software. High reviews indicate easier, more user-friendly software.
Which Is the Best Business Plan Software?
You know the unique requirements of your startup better than we do. These are all quality services that offer business planning software tools for entrepreneurs like you. Feel free to read over our full reviews if you’d like to know more about any of them or even visit the websites directly.
In general, we do prefer LivePlan because they have a huge library of business plan templates, and we love their convenient dashboard. They're the planning software that is most likely to help you via customer support, continue updating their tool, and figure out ways to make your business experience better. Enjoy!
What is the purpose of a business plan?
The purpose of a business plan is to provide a structured outline and roadmap for a business's goals, strategies, and operations. It serves as a guide for decision-making, resource allocation, and management.
Furthermore, it can be a crucial tool for attracting investors, securing loans, and ensuring that all stakeholders have a clear understanding of the business's direction and objectives.
What does business plan software do?
Business plan software assists entrepreneurs and businesses in creating, organizing, and refining their business plans. It provides tools, templates, and guidance to streamline the planning process.
Features often include financial forecasting, market analysis, visual aids like charts and graphs, collaboration capabilities, and even integration with other business tools. This software aims to simplify the task of creating a thorough and professional business plan.
How do you write a business plan?
To write a business plan, start by writing an executive summary that provides an overview of your business idea, products/services, market opportunity, and projected growth. Outline your company description, industry analysis, target customers, competitive advantage, marketing and sales plans, operations, management team, and financial projections.
How long should a business plan be?
The length can vary based on the complexity of the business, its stage, and its intended audience. In general, it might range from 15-50 pages. However, the key is to ensure that the plan is comprehensive yet concise.
For many situations, especially when seeking investment, a more detailed one is preferable. Yet, for internal purposes or for businesses at very early stages, a shorter, more concise plan might suffice.
Are there business plan templates on Word?
Yes, Microsoft Word has business plan templates you can download and customize. The templates provide section headings, instructions, sample text, and tables to input your specific business information.
What is Palo Alto Software?
Palo Alto Software is a company that's been around since the late 1980s. They created business management software for startups and existing businesses. The software has since been updated and rebranded as LivePlan and today happens to be one of the most sought-after business plan software available in the marketplace.
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40 Startup Business Ideas to Try in 2024
Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .
Aspiring entrepreneurs are often one brilliant startup business idea away from becoming their own boss. Of course, brilliance is easier said than done when starting a business .
The best startup ideas have business plans that solve a problem, meet an unmet demand or improve upon something already on the market — if not all of the above. Here are 40 ideas to help get your wheels turning as you look to bring a company to life.
40 best startup business ideas
Even startup ideas that seemingly come out of left field can yield incredible success. Read through this list for instant inspiration.
1. Create educational content or activities
Parents are always looking for tools and activities to keep their kids entertained and engaged. Printable activity guides for different age groups, home-school lesson plans or even virtual nature walks or story time could all be viable startup ideas.
2. Offer virtual team-building
Companies need new ways to boost morale and build camaraderie among remote and hybrid teams. Enter the virtual team-builder. Cheesemongers, mixologists, chefs, magicians, artists, historians, master gardeners — almost anyone can create and offer bonding experiences for virtual companies.
3. Start a meal-prep business
The U.S. market for meal kits is expected to grow 14.2% annually between 2023 and 2030, according to market analysis by Grand View Research [0] Grand View Research . Meal Kit Delivery Services Market Size, Share & Trends Analysis Report By Offering (Heat & Eat, Cook & Eat), By Service (Single, Multiple), By Platform (Online, Offline), Meal Type (Vegan, Vegetarian), By Region, And Segment Forecasts, 2023 - 2030 . Accessed Feb 21, 2024. View all sources . Tap into that market and start a meal-prep service to make people’s lives easier and cater to specialized diets (keto, vegan, Whole30).
4. Create a food waste solution
Creating a startup focused on reducing food waste could not only earn you some serious funding, but also positively change the food system and help save grocery stores and restaurants money.
5. Capitalize on plant-based foods
The U.S. plant-based market was worth $8 billion in 2022, with sales of plant-based foods projected to climb 44% over three years, according to the most recent annual report from the Good Food Institute [0] Good Food Institute . U.S. retail market insights for the plant-based industry . Accessed Feb 21, 2024. View all sources . Creating a vegan supermarket or making meat-free versions of traditional foods could be the ticket to success for aspiring entrepreneurs.
6. Start a dropshipping business
The e-commerce business model of dropshipping is especially attractive because it doesn’t require you to purchase inventory upfront. Selling higher-end products with low shipping costs could become profitable quickly if you do thorough competition research.
» MORE: 25 low-cost business ideas
7. Curate subscription boxes
Subscription boxes were a $32.9 billion business globally in 2023 (up from $22.7 billion in 2021), and the industry is still set to grow, according to a market research report by the International Market Analysis Research and Consulting Group [0] International Market Analysis Research and Consulting Group . Subscription Box Market Report by Type (Replenishment Subscription, Curation Subscription, Access Subscription), Gender (Male, Female), Application (Clothing and Fashion, Beauty, Food and Beverages, Pet Food, Baby Products, Health and Fitness, and Others), and Region 2024-2032 . Accessed Feb 21, 2024. View all sources . Pick a niche, and then curate a collection of specialized goods to deliver unique experiences to consumers. Some subscription boxes focus on a mix of products, like makeup or dog toys; others focus on a single item or theme, like shaving or sustainability. Find the right starting point for you and run with it.
Ready to get started? Here's what to do next
Open a business bank account.
Start keeping the books.
Build your website.
Protect yourself from liability.
8. Create an airport-centric app
Creating an all-in-one app that allows travelers tonavigate unfamiliar airports with real-time information is a relatively untapped startup idea. Though various travel applications exist, an app that shows amenities, TSA line wait times, ground transportation options and airport maps could be useful to passengers.
9. Become a destination wedding planner
Planning a wedding is stressful; planning a wedding from afar could fray any couple’s nerves. That creates a niche for a destination wedding planner who can advise on venue and vendor selections, as well as manage wedding and travel logistics for the bridal party and guests. If you love exploring, have expertise in a popular wedding locale and are great under pressure, this could be the startup idea for you.
10. Make local guides
Even if you don’t consider yourself a local expert, creating local guides can get you familiar with your surroundings and help tourists enjoy off-the-beaten-path experiences in your area. Make themed guides, highlight attractions and partner with local businesses for advertising opportunities.
» MORE: 25 side business ideas
11. Create a local grocery delivery service
A grocery delivery startup can come with minimal setup costs — you only need a vehicle and a cell phone to get started. Help older people or others who are too busy to shop by offering this community-friendly service. You can even approach grocery stores in your area to see if they're willing to partner with you to get the service off the ground.
12. Start a virtual event planning company
Virtual event planning is a new booming business as in-person gatherings go online or take a hybrid approach. A skilled planner who can ensure all attendees are engaged, regardless of location, will be in high demand for years to come.
» MORE: Best business credit cards for LLCs
13. Sell zero-waste products
Starting a zero-waste company is more than just a trendy thing to do; it can be an ethical, environmentally conscious decision. Selling sustainable products such as reusable bags, bamboo toothbrushes or products with zero-waste packaging could appeal to a growing number of sustainability-focused consumers.
14. Make products for pets
Create innovative pet products to take advantage of the fact that 66% of U.S. households (about 86.9 million households) have at least one animal companion, according to the annual pet ownership survey by the American Pet Products Association [0] American Pet Products Association . Industry Trends and Stats . View all sources . Developing toys, accessories or clothing for furry friends can help you tap into that expansive market. You can also go the service route and offer pet sitting, walking or virtual dog training. Or develop an app or tech solution that makes pet parents’ lives easier.
15. Create custom clothing
Selling custom clothing or offering a tailoring service could be your winning startup idea. The custom clothing industry is gaining popularity and offers room for long-term growth.
» MORE: How to open an Etsy shop
16. Sell vintage clothing online
Demand for sustainable fashion has helped propel second-hand clothing into a $39 billion industry in the U.S. with projections to hit $70 billion by 2027, according to an annual resale report by online consignment company ThredUp [0] ThredUp . ThredUp Resale Report 2023 . View all sources . Consider selling thrifted, vintage or upcycled clothing on social media, an ecommerce platform or an app such as ThredUp or Poshmark.
17. Begin niche blogging
Find a niche (think e-sports or urban farming) and create engaging content around it. You can earn money through advertising, affiliate links and even product sales once you build an audience.
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.
18. Become an e-book writer
If you’ve got a way with words, consider becoming a self-published author and selling e-books on virtual platforms.
» MORE: 14 profitable e-commerce business ideas
19. Start ghostwriting
Create content for busy professionals who don’t have the time or the skill to write themselves. If you don’t mind not attaching your name to your writing, ghostwriting is a great way to earn money with little to no startup costs attached.
20. Become a resume writer
Everyone needs a resume, but few people are skilled at or enjoy writing their own. If you’ve got writing experience and are looking to launch a startup with no setup costs, creating a resume-writing service could be the path for you.
21. Open a coworking space
Capitalize on the rising popularity of remote work by creating a modern coworking space that addresses pain points of entrepreneurs. Pick a convenient location and build it out with highly sought-after amenities.
» MORE: 35 businesses that every community needs
22. Become an online coach
If you enjoy helping others achieve their goals and are a people person, this startup idea could be fulfilling for yourself and for your clientele. You can provide wellness, business or life coaching.
23. Flip failing websites
Buy an existing website, make improvements on it and sell it for a profit. You’ll need to understand the market well and have some web development skills, but this can be a profitable pursuit.
24. Become a web developer
The need for custom websites isn’t ever going away, and if you know your way around WordPress or know a programming language or two, you can start a profitable website development startup.
25. Start a podcast
If you’re deeply knowledgeable or passionate about a subject, consider getting into podcast production or hosting. Building an audience takes time, but once established, podcasters can earn money through affiliate marketing, donations and sponsorships.
26. Be a social media influencer
Once you find a niche and build a personal brand, amassing a large following on Instagram or YouTube can lead to a solid source of income through influencer marketing.
» MORE: 30 Instagram business ideas
27. Create online courses
Obscure hobbies can lead to lucrative business ideas if you make them easy for others to learn. If you’d like to teach others but aren’t interested in the coaching route, creating an online course could lead to reliable passive income.
28. Become a marketing consultant
If you’ve got digital marketing chops, help small businesses reach their target audiences by providing SEO, social media or copywriting services.
29. Develop an app
If you’ve got a unique idea and the necessary technical skills, creating an app could be your gold mine. It’s also possible to build an app without extensive coding skills, and once it launches, it can bring in passive earnings.
» MORE: 25 tech business ideas
30. Make a smart appliance
Smart accessories and home appliances are all the rage and becoming an important part of daily life for the average consumer. For inspiration, take note of daily tasks at home or at work that would be easier with a smart appliance.
31. Tap into virtual reality experiences
VR is the future, and the future is now. Create virtual reality experiences or accessories to tap into a global industry that’s projected to grow to a $165.91 billion market by 2030, according to a report by Fortune Business Insights [0] Fortune Business Insights . The global virtual reality market size was valued at $19.44 billion in 2022 & is projected to grow from $25.11 billion in 2023 to $165.91 billion by 2030... Read More at:- https://www.fortunebusinessinsights.com/industry-reports/virtual-reality-market-101378 . View all sources , a market research firm.
32. Make a niche dating site
The stigma around online dating has decreased over the past decade, so take the opportunity to help others find love. With various dating sites targeted to everyone from sea captains to farmers, there is market demand for specialty dating options.
33. Develop a chatbot
Create a chatbot — which uses artificial intelligence to communicate with people — to help businesses improve their communication. Chatbots have become more popular in recent years, and you can create one without knowing how to code.
34. Offer matchmaking skills
This is like creating a dating site but with a personal touch. If you have a knack for knowing what types of people and which personalities get along well, you might be the perfect person to start matchmaking. You can do this online or meet clients in person as well.
35. Be a virtual assistant
Being an online assistant for someone, or starting a company of virtual assistants, can be a huge success. Everyone could use a little extra help, and creating a startup focused around getting people that help for the administrative tasks in their lives, professional or personal, can be a huge moneymaker.
» MORE: Home-business ideas: 40 remote jobs to explore
36. Reinvent exercising
If there's one thing people get bored with, it's doing the same type of exercise day in and day out to stay healthy. Plenty of people have turned the exercise industry on its head, with businesses like CrossFit and Peloton popping up. You can do the same if you have an idea for a new regimen or activity for exercise enthusiasts.
37. Create eco-friendly, health-friendly makeup and beauty products
As people become more aware of the impact their personal choices have on their health and on the environment, they're looking for more health and beauty products that are also eco-friendly. Creating safe and eco-friendly products could be a great startup idea.
38. Open a food truck or restaurant pop-up
Opening a food truck or restaurant pop-up is a great startup idea for entrepreneurs with a knack for cooking. Both options are easier to launch than a full-scale restaurant and allow you to get started with a smaller staff and menu. You can open a food truck that only sells french fries with crazy toppings, for example, or launch a breakfast sandwich pop-up in your neighborhood coffee shop.
» MORE: Best food truck loan options
39. Start an organization business
Shows like "Tidying Up With Marie Kondo" and "The Home Edit" put professional organizing on the map, exposing millions to the magic of a tidy home. If you have a knack for making order out of chaotic spaces, you could start a business offering those services to those who need them. Organizing kitchen pantries, closets, bookshelves and more are all options you could offer customers at your new business.
40. Do interior design for young professionals
Have an eye for decorating? Start an interior design business, offering your services at an hourly rate virtually to young professionals looking for inspiration. It can be as simple as them uploading some images of their new space to your site and you sending back a few links with furniture in their budget and example images of what the room might look like when it's finished.
Start Your Dream Business
How to choose a startup idea
Do your homework before diving headfirst into a startup idea. First, make sure there's demand for the business you want to start, where you want to start it. More than 35% of businesses fail because there isn't a market need for their services or product, according to research from CB Insights [0] CB Insights . The Top 12 Reasons Startups Fail . View all sources .
You also need to write a business plan , which should include your company’s objective, sales plan, market analysis and financial projections. A good business plan can help to keep your business on track. Lenders will also want to see your business plan when considering you for a startup business loan . You should also consider the skills you already have and see how those align with any of the startup business ideas you might go with.
This article originally appeared on JustBusiness, a subsidiary of NerdWallet.
On a similar note...
Find the best business loan rates (2024)
How to Create a Business Plan to Succeed in 2024
TABLE OF CONTENTS
As a small business owner, you’re no stranger to goal setting. Bolster your business for an even better year by preparing a sound business plan to help you achieve greater success in 2024.
What Is a Business Plan?
A business plan lists your company’s objectives and the steps you’ll take to achieve your short- and long-term goals. It’s an invaluable tool you shouldn’t be without.
Why Should You Have One?
Having a business plan is crucial to preparing for the future. Indeed, according to a Harvard Business Review study , 16% of entrepreneurs who develop formal business plans are more likely to have viable companies.
Without question, a business plan can help you better target the right customers and identify the specific ways you’ll go about reaching them. A business plan can also prove invaluable when you need to access capital to keep your business going strong.
Achieve Objectives
Your business plan is a way to document your company goals for the year in one place. It’s a benchmark you can use to track the progress of your business activities, by individual departments and as a whole. Refer back to this document when you consider how certain investments may (or may not) contribute to the goals you’ve set forth.
Assess the Market and Industry
While you likely have a broad view of your target customers, dig deeper to identify what’s going on in your market and industry and include this information in your business plan. Research your competitors and better pinpoint your ideal clientele .
Outline Your Marketing Plan
Your business plan is a place to document what promotional avenues and methods you’ll leverage to reach your target customers. It’s also where you can notate the budget you anticipate and can afford to spend. Refer back to this periodically to make sure you haven’t veered off course.
Access Financing and Attract Investors
Whether you’re a new or established business, there comes a time when you need a boost of funds to get your company where you want it to be. Lenders, investors and potential partners will want to look at your business plan to determine if it’s worthwhile to invest in your venture.
See Your Loan Options
When Should You Develop a Business Plan?
You should develop a business plan when you have a vision of where you want to take your company and could benefit from plotting a map to guide you toward that destination. A business plan can prove beneficial whether you’re a business owner who’s been running your operation for years or a startup entrepreneur beginning a new venture.
With the start of a new year, there will undoubtedly be new opportunities you’ll want to take advantage of. Creating a business plan can help set your business in the right direction.
Keep in mind, as your business changes and grows, you’ll want to adjust accordingly.
What Information Should Be Included?
While business plans can vary in format, one thing’s for sure, lenders and investors will want to see several key details.
This information provides insight as to where your business is today, how it got there and where it’s heading in the future:
- Industry overview and forecasts
- Breakdown of customer segments
- Summary of the competition
- Current business and sales data
- Business forecasts for your company
- Business performance over the past 2 years
- Comparison of business performance to upcoming year’s projections
Ready to start planning? Get our Business Plan Checklist .
How Do You Write a Business Plan?
When you’re drafting your business plan, you’ll want to address these elements. Be sure to create a compelling and detailed summary of your efforts to date and your anticipated trajectory.
1. Executive Summary
Think of this section as a book summary. In a few paragraphs, briefly touch on what you will cover in each section of your business plan.
2. Company Overview
In this section, discuss your business history and the role of your company.
3. Mission and Goals
Clue investors, lenders and your team into why you started your business and where you see your business going.
4. Market and Competitive Analysis
In this section, detail what’s happening in your industry, including market fluctuations, historical performance and projections. Also, identify your competition. Who are you up against for a share of the market you’re in?
5. Operations and Management Plan
Explain how components of your company will contribute to your overall business plan objectives.
6. Products and Services
Use this section to introduce your business’s product or service offering in detail. What do you sell and what customer pain point(s) does it address?
7. Marketing and Sales Plan
Detail how your marketing and sales plan will help you reach the goals you’ve set for the year.
8. Financial Information
- Profit-and-loss statements
- Balance sheet
- Cash-flow statement
- Expected expenses
- Budget for anticipated expenses
- Best-case projections
- Worst-case projections
Be sure your business plan projections can be supported by research or proven results.
9. Additional Supporting Documentation
Create an appendix for any relevant information not included elsewhere, such as charts, contracts, patents and permits.
When Should You Use a Business Plan?
A business plan is an informative tool to map out a company’s growth strategy. It’s also an important resource owners and management can reference before making major business decisions.
Additionally, it’s a critical document investors and lenders review when considering whether to provide a small business with capital for business development or expansion.
Keep in mind, a business plan is not meant to be a static document. Adjust it as needed to reflect the evolution of your business. Here’s to your success!
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The Best Business Phone Systems of 2024
Modern business phone systems boast AI tools for conversation intelligence, video capabilities, detailed analytics and more.
- Starts at $30 per user/month
- Video capacity: 200
- 24/7 customer support
855-619-0564
- Starts at $19.95 per user/month
- Video capacity: 100
- Starts at $10 per user/month
- Video capacity: 1000
- Starts at $29.95 per user/month
- Video capacity: unlimited
- Starts at $23 per user/month
- Video Capacity: 10
- 24/7 support on upgraded plans
Table of Contents
Why you should trust us.
In identifying the best business phone systems, we researched whether each platform facilitated unlimited calling, international calling, video calling and text messaging — and how well. We examined usage rates and caps, tried the software to gauge user-friendliness and explored each program’s reporting functionality. We favored solutions that featured AI tools and allowed customization and integrations. In addition to comparing plan options, we sought free trials and tried the customer service resources.
The business.com team of business software experts and analysts regularly assess the latest tools to determine the best solutions on the market. These evaluations involve industry research, vendor demonstrations, hands-on testing and product comparisons. We also seek user testimonials and consult third-party customer reviews. To ensure impartiality and accuracy, every recommendation is verified by a top editor before publication. Learn more about our methodology and editorial process.
The best business phone systems unify conversations and streamline administration. For a small company, the right platform can deliver significant returns by enhancing customer experience and boosting employee productivity. We’ve tested dozens of voice-over-internet-protocol (VoIP) phone services rigorously to identify their strengths and weaknesses. Start your research confidently by comparing solutions and reviewing our comprehensive buyer’s guide.
Having a top-notch business phone system is vital to ensuring your organization can communicate effectively both internally and externally. Source: Ooma
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How We Decided
Our team spends weeks evaluating dozens of business solutions to identify the best options. To stay current, our research is regularly updated.
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Rating (Out of 10) | 9.1 | 9.0 | 9.0 | 8.5 | 8.8 | 8.6 | 8.6 |
Best For | |||||||
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Annual Cost of Cheapest Plan (Monthly Per User) | |||||||
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Our Reviews
- Base Price: $30 per user per month or $20 per user when paid annually
- Top Features: Collaborative notes, integrated whiteboards, productivity integrations, built-in AI, interactive team calendar, multilevel auto attendant and video conferencing
- Trial Period: 14 days
Why RingCentral is Best for Collaboration
RingEX, formerly RingCentral MVP, from RingCentral, is our top pick for collaboration because it connects internal and external partners in interactive spaces. Its collaborative notes, integrated whiteboards and productivity integrations distinguish RingEX from its competitors. When testing the platform, we appreciated the ease of organizing chat messages and turning shared notes into formatted documents. Moreover, we loved the searchable voice and video meeting summaries generated by RingSense AI for RingEX.
RingEX makes it simple to manage all of your communication threads via its desktop application. Source: RingCentral
RingCentral Costs
Core | $30 per user/month $20 per user/ month paid annually | |
Advanced | $35 per user/moth $25 per user/ month paid annually | Everything in Core, plus: |
Ultra | $45 per user/month $35 per user/ month paid annually | Everything in Advanced, plus: |
RingCentral Advantages
- Feature-rich team spaces support real-time interactions, ideal for increasing engagement.
- RingSense AI for RingEX summarizes voice and video interactions
- A robust set of integrations gives businesses the ability to get even more out of the system
RingCentral Disadvantages
- RingCentral supplies fewer short message service (SMS) text messaging credits per user than most competitors.
- Virtual faxing is not included with all service plans
- Pricing discounts are only available to businesses with more than 100 users.
RingCental User Scores
TrustRadius: 7.7/10
“RingEX allows us to create precise work groups for all the teams in our organization to keep track of their tasks and files,” wrote one user .
Trust Pilot: 2.3/5
“We love the versatility of communications among various devices (desk ph; iPad; computer; cell ph.) And that R/C can be on the go,” one user wrote .
Learn more about RingCentral in our complete review .
- Base Price: $19.95 per user/month
- Top Features: Mobile and desktop apps, video meetings, messaging templates, appointment scheduling and virtual receptionist
- Trial Period: 30-day money-back guarantee
Why Ooma is Best for Ease of Use
Ooma Office is an excellent choice for business phone service that can be deployed in minutes, not hours. It features a redesigned desktop client and intuitive mobile apps. Admins can configure the system in three steps and employees can view settings from their main screen. Indeed, Ooma is our pick as the best VoIP system for ease of use. With Ooma’s latest updates, the platform has evolved to rival top competitors without losing its small business focus.We loved the wholly reimagined desktop client. It has an uncluttered interface with clean fonts and an intuitive feel. Likewise, the mobile apps separate personal and professional calls while giving users similar functionality as desktop clients.
Customizing the Ooma platform is an easy process thanks to the platform’s intuitive interface. Source: Ooma
Ooma Office Essentials | $19.95 | |
Ooma Office Pro | $24.95 | Includes everything in Ooma Office Essentials, along with: |
Ooma Office Pro Plus | $29.95 | Includes everything in Ooma Office Pro, along with: |
Ooma Advantages
- Ooma’s Express Setup Assistant walks small businesses through the simple three-step process.
- A revamped desktop client shows texts, video meetings and voice conversations.
- Faxing, both virtual and analog, are included in all plans
Ooma Disadvantages
- It does not allow companies to mix and match VoIP service plans.
- The Essentials plan does not include video conferencing and SMS.
- Ooma does not give you the option of mixing and matching different service plans.
Ooma User Scores
Trust Radius: 7.5/10
“Ooma gives me all the capacity of my office phone even on-the-go. It’s great being able to receive voicemails straight to my email and creates a seamless transition from office to on-the-go,” according to one user .
Trust Pilot: 2.0/10
“We have used Ooma for our small business for over 15 years. Overview: the service is good for small businesses with limited phone budgets…The reasons we stuck with its service are many: low price, ease of adding extensions, phone functionalities like forwarding, and digital reception, and it is painless to move the lines to new offices,” one user wrote .
Learn more in our complete review of Ooma .
- Base Price: $10 per user/month
- Top Features: Video conferencing, AI companion, call recording, monitoring and voice transcription.
- Trial Period: None
Why Zoom is Best for Video Conferencing
Zoom’s familiar video conferencing software and full-featured business phone system are powerful. The single platform solution’s flexibility differentiates it from other VoIP providers. You can equip employees in video-intensive roles with top-rated technologies and achieve cost savings through metered and unlimited phone licenses. For these reasons and others, Zoom is the best business phone service for video conferencing.
The free video meeting tools come with Zoom Phone subscriptions while Zoom Workplace plans have advanced capabilities, including Zoom’s AI Companion. While RingEX and GoTo Connect summarize video meetings, only Zoom offers a digital assistant. It answers participants’ basic questions. The AI Companion also sums up chat threads, which is a huge time-saver for us. Asynchronous video (Zoom Clips) is another unique feature that conveys ideas without turning everything into a real-time meeting.
Zoom gives you the freedom to set up specific call rules for how incoming calls should be answered. Source: Zoom
U.S. & Canada Metered (Zoom Phone) | $10 per user/month | |
U.S. & Canada Unlimited (Zoom Phone) | $15 per user/month | |
Global Select (Zoom Phone) | $20 per user/month | |
Business Plus (Zoom Workplace) | $26.99 per user/month | |
Enterprise (Zoom Workplace) | Custom |
Zoom Advantages
- Innovative AI-powered tools summarize chat threads and answer questions during video meetings.
- Zoom Phone and Workplace subscriptions support live and asynchronous video interactions.
- You can mix and match service plans based on individual employee needs.
Zoom Disadvantages
- Zoom doesn’t receive the highest marks for customer service.
- There are not phone dial-in numbers when using the free video service plan.
- Some users have said the set up can be confusing at time.
Zoom User Scores
Trust Radius: 8.8/10
“Zoom Phone was a great fit for us as our staff, mostly non-technical, was all-in on Zoom. We were able to go fully cloud-based with just a handful of handsets. It was easy to use personal cell phones as office phones,” one user wrote .
TrustPilot: 1.5/5
“This is the one of the best bussines communicative meetup software that can run at average network and gives good hd quality video & audio calls,” one user wrote .
Learn more in our complete review of Zoom .
- Base Price: $29.95 per user/month
- Top Features: Threaded conversations, video calling, desktop and mobile apps, SMS/MMS messaging, and call flow builder.
Why Nextiva is Best for Customer Support
Nextiva’s expert-level customer service agents give this business phone system an edge over rivals. Not all competitors offer phone support on entry-tier plans as most provide self-guided deployment experiences. In comparison, Nextiva supplies all accounts with free implementation assistance and round-the-clock customer service. We were pleased with our first-hand experiences and user feedback analysis, which is why we chose Nextiva as the best VoIP system for customer support.
In addition to knowledgeable and responsive agents, Nextiva provides detailed user documentation. Admins can sign up for status alerts or view real-time updates online. We appreciated that Nextiva promptly replied to mobile app reviews and support tickets. NextivaONE Threaded Conversations is another valuable feature for managing business communications from one spot.
Nextiva’s threaded conversations allow users to see all of their communications, whether it be by phone, text or instant message, all in one place. Source: Nextiva
Nextiva Costs
Essential | $29.95 per user/month | |
Professional | $33.95 per user/month | Everything in the Essential plan, plus: |
Enterprise | $43.95 per user/month | Everything in the Professional plan, plus: |
Nextiva Advantages
- Accounts receive hands-on implementation support and 24-hour customer service.
- NextivaONE centralizes conversations and files into a single app.
- All users have access to 24/7 phone support
Nextiva Disadvantage
- It only offers voicemail transcriptions to Nextiva Enterprise users.
- To get the lowest rates, you must sign a long-term contract.
- Lacking as many AI tools as some competitors.
Nextiva User Score
Trust Radius: 9.2/10
“We like the user-friendly platform and the advanced technology for calling needs,” one user wrote .
Trustpilot: 4.6/5
“We have been using the new Nextiva One platform for several months and really enjoy it. The ability to have access to your ‘phone’ on any device has been great. Customer service has been very responsive,” one user wrote .
Learn more in our complete Nextiva review .
- Base Price: $23 per user/month
- Top Features: Variety of AI tools, auto-attendants, voicemail transcription and messaging.
Why Dialpad is Best for Voice Intelligence
Dialpad is the right business phone system for sales and recruiting teams that want to leverage AI for voice intelligence. The vendor trained DialpadGPT on over six billion minutes of conversational business data from sales, collaboration and service spaces. Its company dictionary feature elevates Dialpad above similar phone services. We love that it picks up keywords specific to your brand or industry. Indeed, every recorded call turns into an easy-to-digest email with action items and a searchable transcript.
The business communication plans provide basic speech coaching cards, which we found helpful for entry-level agents. Most advanced AI tools, like Ai Assist or Playbooks, are optional add-ons for Ai Sales Center subscriptions. Likewise, Dialpad doesn’t include generative AI video meeting tools with VoIP services. This is disappointing since RingEX, GoTo Connect and Zoom offer AI-powered video summaries.
Dialpad’s Ai Assist tool provides users with transcripts and advice while a call is happening. Source: Dialpad
Dialpad Costs
Standard | $23 per user | |
Pro | $35 per user | Everything in Standard, plus: |
Enterprise | Custom | Everything in Pro, plus: |
Dialpad Advantages
- Generative AI technology converts voice calls into searchable and actionable summaries.
- Out-of-the-box reports cover calling habits, interactive voice response (IVR) call flows and more.
- There are robust speech coaching tools that can be super valuable for both sales and customer service teams
Dialpad Disadvantage
- Video conferencing is limited to 10 participants at a time.
- The video conferencing AI tools and capacity fall behind rival business phone solutions.
- Users have reported glitches in the mobile app.
Dialpad User Scores
Trust Radius: 7.7/10
“Since transitioning to Dialpad Ai Voice, we have benefited from having a single, dependable, user-friendly platform that is easy to oversee. As a result, staff morale has improved, and customer satisfaction has increased,” one user wrote .
Trustpilot: 4.4/5
“Been with Dialpad for years and always has worked as designed, clean and clear with just the right admin features,” one user wrote .
Learn more in our complete review of Dialpad.
- Base Price: Custom pricing
- Top Features: Customizable auto-attendants, visual plan editor, video conferencing, paging, and robust admin dashboard.
Why GoTo Connect is Best for Multisite Businesses
GoTo Connect solves the administrative headache of managing business phone systems for multiple workplaces. We were impressed by the tools that helped us handle user licenses and devices, call quality control and even our return on text messaging campaigns. As our preferred business phone service for multisite management, GoTo Connect supports unlimited locations and a remarkable number of network devices. Plus, you can add customer engagement or contact center licenses to increase an employee’s capabilities.
Rivals like RingEX and Dialpad only support one branch on their entry-tier plans. Only some competitors give detailed call quality reports. Meanwhile, GoTo Connect displays several network metric cards on the system health dashboard and you can configure alerts. With more VoIP providers restricting SMS usage, we especially liked the SMS/multimedia messaging service (MMS) failure and delivery rate report. When combined with call volume analytics from the dial plan editor, companies have multiple ways to analyze trends.
GoTo’s dashboard makes it simple to make calls straight from your computer. Source: GoTo
GoTo Connect Costs
Phone System | Custom; contact GoTo for pricing details | |
Customer Engagement | Custom; contact GoTo for pricing details | Everything in Phone System plan, plus: |
Complete CX | Custom; contact GoTo for pricing details | Everything in Customer Engagement plan, plus: |
GoTo Connect Advantages
- Companies can establish unlimited sites, ring groups, dial plans and automated greetings.
- A comprehensive admin control center and health dashboard increase visibility into sites, users and devices.
- All plans have international calling options to 50+ countries
GoTo Connect Disadvantages
- GoTo Connect support documentation and customer service options can be challenging to navigate.
- In the Phone System plan, AI tools are not included.
- Upgraded plans are required to use custom permissions.
GoTo Connect User Score
Trust Radius: 8.0/10
“GoTo Connect facilitates remote collaboration. This is especially valuable for our company with dispersed teams and adopting remote work arrangements, allowing employees to communicate effectively regardless of their physical location,” one user wrote .
Trustpilot: 2.4/5
Learn more in our full review of GoTo Connect .
- Top Features:
Why 8×8 is Best for Growing Businesses
Small businesses may face limitations with VoIP systems when connecting a team outside the United States or obtaining an international phone number. This isn’t a concern with 8×8, as it offers direct inward dial numbers in 55 countries for local workers or virtual phone numbers for brands looking to test the market. 8×8 X-Series is our first choice as a business phone system for growing companies because of its global scalability and abundant voice, video and messaging features.
We appreciate that every team member uses a single application, from the work-from-home call center agent or on-the-go sales representative to the front office receptionist or accountant. Administrators can manage X-Series licenses via desktop or mobile apps to give employees the required functionality. 8×8 provides comprehensive tools for each job role. Although GoTo Connect offers an excellent admin experience and unlimited global calling, it falls behind on international workplace support and phone numbers.
8×8 gives businesses the freedom to route calls in any way they see fit. Source: 8×8
8×8 Costs
x2 | Custom pricing. Contact 8×8 for details | |
x4 | Custom pricing. Contact 8×8 for details | Everything in 8×8 x2, plus the following: |
x6 | Custom pricing. Contact 8×8 for details | Everything in x4, plus the following: |
x7 | Custom pricing. Contact 8×8 for details | Everything in 8×8 x6, plus the following: |
x8 | Custom pricing. Contact 8×8 for details | Everything in 8×8 x7, plus the following: |
8×8 Advantages
- Companies can scale communications on a budget with mix-and-match plans and unmetered international calls.
- 8×8 X-Series offers global toll-free and business phone number coverage.
- Mobile devices can be used to monitor activity metrics.
8×8 Disadvantage
- The customer support services fall behind those offered by some rivals.
- Users report mobile app can have issues, especially following updates
- 8×8 does not offer as many AI tools as some competitors.
8×8 User Score
Trust Radius: 8.5/10
“We are a small business and it has been a great experience transferring over to 8×8 knowing that our account and services can grow with our company,” one user wrote .
Trustpilot: 2.2/5
“I have used many different service providers in the past and 8×8 has the best support and easiest to manage system. I migrated my own business to 8×8 just over a year ago and its worked fine ever since,” one user wrote .
Learn more in our complete 8×8 review .
Business Phone System Pricing
Cloud-based phone systems typically cost $10 to $75 per user, per month. Many office phone and UC system providers have several service plans that vary in price and features. Restaurants and retail shops use a mix of dedicated and shared VoIP numbers while remote team members may require metered or unlimited phone lines. Some providers allow companies to mix and match subscriptions, ensuring each employee has access to the tools they need.
Most vendors ask for annual prepayment or extended contract terms for the lowest pricing. A long-term agreement can result in early termination fees if you cancel before it expires or forget to stop the auto-renewal, which is relatively standard. These costs can be significant, especially if you participated in a promotion for free desk phones or headsets.
Since the hosted PBX equipment is stored in the cloud, there are usually no large installation or setup costs. Unlike a traditional office phone system, modern phone services work with your existing hardware, such as tablets, cell phones and computers. Softphone apps and browser-based programs provide full business phone functionality.
Several multiline business phone systems sell or lease hardware with service plans. Renting phones can reduce capital costs but most experts recommend purchasing them outright. Buying them through the phone provider does have its benefits as it’s often preprovisioned for your account.
Phone System Features
Business phone systems are full of valuable features and tools. Some VoIP providers offer only a few dozen features while others have over 100.
Metered or Unlimited Calling
Most VoIP phone services today allow unlimited incoming and outgoing calls. However, this usually only applies to domestic calls and calls using local phone numbers. Many providers impose extra charges and restrictions for toll-free calling. In addition, some cloud phone systems offer metered extensions or pay-as-you-go phone lines.
Voicemail Options
Business phone systems may offer shared and individual voicemail boxes. Most let users check messages from anywhere. VoIP providers also offer visual voicemail and voicemail-to-email. The former displays a list of your voicemails and you can listen to them in any order while the latter sends an email with your message as an audio attachment. Voicemail transcription is another popular feature but availability varies according to the service plan.
Most business phone systems offer users the ability to read their voicemail messages directly from their desktop or mobile app. Source: RingCentral
This basic function shows the number of the person calling you. The caller ID appears on desk phones or through a softphone on your computer or mobile device.
Instead of dialing a seven-digit number, you can push one button to connect to the numbers you call most. This feature applies to desk phones but many softphone apps provide a favorites list for your most-used contacts.
Did You Know? Did you know Softphone apps connect your tablet, computer or cell phone to your business phone service. This software provides a keypad and other call handling features for placing a caller on hold or transferring them to a co-worker.
Personal and Company Directories
A personal directory is an easy way to manage your contacts. It gives you access to your contacts’ phone numbers whenever needed. A company directory displays every employee (and their contact information).
Do Not Disturb
When working on a big project or important task, you can put your phone in this mode to prevent interruptions. Your phone will not ring and all callers are sent directly to voicemail.
Single and Multilevel Automated Attendants
An auto attendant answers calls to your business, plays a greeting and directs the caller to the person or department they are trying to reach automatically. Advanced systems may offer multilevel auto attendants, which offer more extensive options, including transferring the caller to another auto attendant or IVR system .
On-hold Music
You can choose the music callers hear while they wait on hold. Most vendors offer prerecorded tracks while others let you upload a custom music playlist, which may include messages for callers.
You can use your phone to send messages to everyone, similar to a traditional intercom system. Certain services can also connect your VoIP system to a physical paging system.
This option allows users to move seamlessly between devices while on a call without putting the caller on hold. It’s ideal for business owners who run their company from a smartphone or anyone who shifts between mobile and desktop devices frequently.
The presence status shows employees whether their colleagues are on a call or available to chat. Some solutions let users choose a status like out-of-the-office, away from my desk or in a meeting.
Call Reports
Call logs provide basic analytics on your company’s phone usage. You can often break down usage statistics by filters, such as by employee or department.
Business phone systems include various reports and analytics that give businesses better insight into the calls their organization is making and receiving. Source: Nextiva
Online Management
All VoIP systems can be managed in an online portal. From the dashboard, you and the other administrators can add users, set phone numbers, review call reports, create ring groups and see monthly statements. Employees can also access the portal to check their voicemail, view a company directory and set call forwarding routes.
Call Forwarding
Your office phone can forward calls to another number automatically. This could be a mobile phone, another employee’s line or an external VoIP or analog phone.
Extension Dialing
Employees can dial a co-worker by a three-, four- or five-digit extension instead of their entire phone number.
Call Recording
Many cloud-based phone systems give you the ability to record your calls. Depending on the phone provider and administrator settings, this feature may be on-demand or automatic.
Ring Groups
You can create ring groups for employees who answer calls from the same group of customers. For example, your customer service team might have its own ring group. The entire group is notified when a caller asks to speak to a customer service representative.
Call Queues
This tool is typically used in call centers or companies with high call volumes. However, even small businesses like restaurants can use this feature during peak hours to manage phone orders. It puts callers “in line” so that their calls can be answered when operators become available.
Speakerphone
Many IP phones include a speakerphone option that allows you to speak to a caller without using the phone’s handset.
Call Transfer
Employees can quickly transfer calls to their colleagues. Some solutions offer warm transfers, which let you speak with your co-worker before passing the call.
Audio and Video Conferencing
Top-rated phone systems typically support three-way calling, one-to-one video meetings or larger conferences on one or more service plans. Native online meeting technologies let your team convert a chat or voice conversation into a video call with one click.
Team Messaging and SMS
Most business phone systems offer SMS/MMS text messaging options and team chat tools. Employees can use softphone or browser-based apps to communicate one-on-one or in groups. The team messaging services usually support file sharing while business texting solutions may vary by subscription.
How to Choose Business Phone Systems
The best business tools and technology are those that seamlessly integrate into existing workflows and enhance communications. However, what may work for a solopreneur or small team might not meet the needs of a small to midsize business. Given that your phone service is a vital business technology, it’s crucial to compare your options and consider several factors before making a decision.
1. Develop your use cases.
Decide who will use your business phone service, what they will use it for and where. List employees and their locations (on-site, remote or hybrid). Identify specific communications requirements, such as the ability to host video conferences or share files. Also, determine which team members need hardware, such as desk phones or headsets.
2. Evaluate your options.
Consider the differences between phone systems and determine whether you want an on-premise or cloud-based service. Estimating short- and long-term costs for each approach is a good idea. Remember to factor in phone equipment and international calling expenses .
Next, go through user reviews on third-party sites and the Better Business Bureau. Look for guides that break down differences among services. Also, request recommendations from professional groups. After researching solutions, develop a list of potential vendors.
3. Review pricing and features.
Use a spreadsheet or project management tools to compare providers. Enter features, prices and any standout capabilities. Also, note customer support options and see if the vendor offers additional integrated programs, such as webinar, event or call center software .
4. Set up demonstrations and trials.
Several business phone services provide on-demand demos in exchange for your contact details. Others will set up a meeting where company representatives answer your questions and walk through various functions based on your specific use cases.
Also, take advantage of free trials. This allows your team to test the mobile and desktop applications, different features and admin panel. Remember to interact with customer support to assess response times and agents’ familiarity with the system.
5. Request input from your team.
Once you’ve documented each company’s details and tested the software, ask your team to weigh in . Encourage them to share their experiences and concerns. With their input, decide what training your employees will require and how this impacts your decision. Look for a VoIP service that fits your budget while serving the needs of your staff.
Benefits of Business Phone Systems
Cloud-hosted phone services improve customer experiences while increasing efficiency. A professional phone number boosts a solopreneur’s credibility in the eyes of consumers while automation features fuel a small team’s productivity.
Lower Costs
Many companies switch to VoIP to save money. Unlike an on-premises system, your business isn’t responsible for server maintenance or upgrades. A cloud service’s flexibility means you don’t necessarily need hardware. Employees can use their existing computers or cell phones for free or add an analog telephone adapter to connect traditional desk phones.
Better Customer Experiences
Advanced features like auto attendants and customer relationship management (CRM) integrations translate into satisfying customer experiences. Clients can reach the correct department or select an employee by name through the company directory. Likewise, employees see ring group details (the line your caller chose) and customer information, such as when they last called or their survey results. This enables your staff to personalize their greeting and meet customer expectations.
Scalability
With a VoIP phone service, you can add or remove lines, features and user permissions from the admin dashboard. Call reports provide insights about call volumes and missed calls, which informs scheduling and hiring decisions. These capabilities help small businesses scale operations to meet demand.
Increased Productivity
The best business phone systems of 2024 unify business communications, resulting in less application switching. They also provide virtual receptionists and IVR menus, reducing call transfers. AI-powered tools can generate voice and video summaries, highlight action items and track assigned task progress. Moreover, admins can schedule recurring reports to keep leaders abreast of call volumes without performing the same steps weekly or monthly.
Additional Options Worth Exploring
Here are several more business phone systems that might be a good fit for your needs.
Vonage stands out for its customization due to its a la carte features, pay-as-you-go APIs and low-code or no-code design tools. It offers over a dozen add-ons to expand your capacity during peak season. With a couple of clicks, you can add metered or unlimited extensions, call queues or call recording. Likewise, we appreciate the free trial credits and sample code to embed the voice and message APIs.
A nice aspect of Vonage is that it’s subscriptions differ from rivals because it doesn’t include every feature. If an employee doesn’t require desk phone or fax functionality , there’s no need to pay for it. We were impressed with the range of add-ons. It has standard and advanced options, from a popular shared business inbox to an AI virtual assistant. Learn more in our Vonage review or visit the Vonage website directly .
OpenPhone is a versatile virtual phone system. Its unified inbox and conversation features align remote teams, allowing them to deliver exceptional customer experiences. We were pleased that it offers an economical base plan with business hours routing and shared inboxes while the step-up tier adds phone menus. Time-saving auto-responses, snippets and voicemail transcripts come with all plans.
We were impressed by the unified conversations and internal threads features. Shared spaces track all communications and group them into active, unread and unresponded categories, ensuring no customers fall through the cracks. Distributed workers can view the entire interaction history on individual records, including call transcripts, voicemails and text messages. Internal conversations appear here also and team members can @mention each other to request additional context or status updates.
Grasshopper
Grasshopper’s unique offering sets the platform apart from competitors. It doesn’t aim to replace your current office PBX system or transform how you handle calls. Instead, Grasshopper provides one or more business phone numbers and softphone apps with the fundamentals, plus a few perks. Depending on the plan, you can forward calls to one or more co-workers without per-user fees.
With softphone apps for desktop computers and mobile devices, professionals can use Grasshopper for cellular, Wi-Fi and VoIP calling. It works particularly well for partnerships or small teams covering low-volume phone lines. When customers call your number, Grasshopper forwards it to the first provided call forwarding number. If that line is busy or doesn’t pick up, the virtual service tries the next available forwarding number automatically.
Rather than a complete phone service like some others on this page, 800.com is a provider of 1-800, vanity and local phone numbers. This service allows small business owners the ability to separate their personal and business calls. 800.com offers three service plans, each of which includes a fax number, call recording, text messaging, analytics, voicemail transcription and a variety of call-forwarding options.
What’s the average cost for a business phone line?
VoIP phone lines start at $10 monthly, with annual billing for metered calls (pay-as-you-go). Unlimited calling plans run about $20 to $30 monthly.
Is VoIP service worth it for small businesses?
Cloud-based phone services are ideal for small teams. Time-saving automation features and UC channels improve business operations and customer experiences.
Can I get a second phone number without buying another phone?
By ordering a virtual phone number, you can forward calls to your current phone without adding another cell line or buying a separate device. Softphone apps display incoming calls by line, so you always know when a customer is calling.
Are there disadvantages to using VoIP?
VoIP relies on the internet, which requires electricity. If you don’t have a backup plan, an outage can leave your business without phone service. Several phone providers let you configure an automatic failover solution.
How many VoIP lines does my business need?
This figure depends on your business model. A small restaurant with two counter phones and one in the office may pay for two to four users and numbers while a five-member remote staff needs at least five subscriptions.
What to Expect in 2024
Multichannel communications are here to stay. VoIP providers recognize that businesses want unified platforms, not dozens of subscriptions to siloed products.
VoIP Market Growth
Internet-based phone services will continue to grow rapidly in 2024. MarketWatch estimates that the global cloud PBX market will grow at a compound annual growth rate of 13.54 percent, from $14.93 billion in 2023 to $36.33 by 2030.
As phone vendors phase out landline service and internet service providers roll out fiber optics to more U.S. regions, we expect a growing number of small business leaders will shift to online communications. The draw of artificial intelligence and machine learning tools and the desire for data also increase interest in the VoIP market.
U.S.-based infrastructure improvements could fuel VoIP adoption among small businesses in less connected areas. In 2024, U.S. states will finalize their Broadband Equity, Access and Deployment proposals and expand broadband access, potentially increasing internet speed and reliability for many workforces.
Mergers, Acquisitions and Strategic Partnerships
Communications companies partner with third parties to improve integrations and work toward shared objectives. Meanwhile, acquisitions give vendors access to technologies that complement their platform and vision.
Recent collaborations include:
- Nextiva Acquires Thrio: In 2024, Nextiva purchased the AI-powered contact center solution Thrio to improve its customer experience offerings.
- Vonage and Verizon collaboration: In 2024, the providers agreed to develop new APIs together and Verizon will offer its network APIs on Vonage’s platform.
- Zoom and Lumen partnership: In 2023, the companies announced that their agreement would simplify integration and offer Lumen Solutions for Zoom.
- RingCentral buys Hopin’s Virtual Events Assets: In 2023, RingCentral acquired technology and talent from Hopin, the all-in-one event and audience engagement platform.
- Ooma acquires 2600Hz: In 2023, Ooma bought its key supplier, 2600Hz, which will generate recurring revenue, provide control over its technology stack and expand its market.
- Nextiva purchases Simplify360: In 2023, Nextiva acquired Simplify360 to leverage technologies for reputation management, helpdesk CRM, social media and live chat.
Emerging Technologies Driving VoIP Feature-Sets
As noted in our best business phone system reviews, several providers updated their VoIP services to leverage emerging technologies, such as generative AI. We expect communications platforms to prioritize these capabilities by enhancing their AI offerings as we’ve seen with RingCentral and Dialpad .
Look for vendors to offer AI tools to summarize chat threads and improve data analytics. Another trend is that more platforms integrate call center and event technologies and provide them as add-ons to VoIP systems. We also expect continued investments in platform integrations and security.
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How To Start A Business In 11 Steps (2024 Guide)
Updated: Apr 7, 2024, 1:44pm
Table of Contents
Before you begin: get in the right mindset, 1. determine your business concept, 2. research your competitors and market, 3. create your business plan, 4. choose your business structure, 5. register your business and get licenses, 6. get your finances in order, 7. fund your business, 8. apply for business insurance, 9. get the right business tools, 10. market your business, 11. scale your business, what are the best states to start a business, bottom line, frequently asked questions (faqs).
Starting a business is one of the most exciting and rewarding experiences you can have. But where do you begin? There are several ways to approach creating a business, along with many important considerations. To help take the guesswork out of the process and improve your chances of success, follow our comprehensive guide on how to start a business. We’ll walk you through each step of the process, from defining your business idea to registering, launching and growing your business.
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The public often hears about overnight successes because they make for a great headline. However, it’s rarely that simple—they don’t see the years of dreaming, building and positioning before a big public launch. For this reason, remember to focus on your business journey and don’t measure your success against someone else’s.
Consistency Is Key
New business owners tend to feed off their motivation initially but get frustrated when that motivation wanes. This is why it’s essential to create habits and follow routines that power you through when motivation goes away.
Take the Next Step
Some business owners dive in headfirst without looking and make things up as they go along. Then, there are business owners who stay stuck in analysis paralysis and never start. Perhaps you’re a mixture of the two—and that’s right where you need to be. The best way to accomplish any business or personal goal is to write out every possible step it takes to achieve the goal. Then, order those steps by what needs to happen first. Some steps may take minutes while others take a long time. The point is to always take the next step.
Most business advice tells you to monetize what you love, but it misses two other very important elements: it needs to be profitable and something you’re good at. For example, you may love music, but how viable is your business idea if you’re not a great singer or songwriter? Maybe you love making soap and want to open a soap shop in your small town that already has three close by—it won’t be easy to corner the market when you’re creating the same product as other nearby stores.
If you don’t have a firm idea of what your business will entail, ask yourself the following questions:
- What do you love to do?
- What do you hate to do?
- Can you think of something that would make those things easier?
- What are you good at?
- What do others come to you for advice about?
- If you were given ten minutes to give a five-minute speech on any topic, what would it be?
- What’s something you’ve always wanted to do, but lacked resources for?
These questions can lead you to an idea for your business. If you already have an idea, they might help you expand it. Once you have your idea, measure it against whether you’re good at it and if it’s profitable.
Your business idea also doesn’t have to be the next Scrub Daddy or Squatty Potty. Instead, you can take an existing product and improve upon it. You can also sell a digital product so there’s little overhead.
What Kind of Business Should You Start?
Before you choose the type of business to start, there are some key things to consider:
- What type of funding do you have?
- How much time do you have to invest in your business?
- Do you prefer to work from home or at an office or workshop?
- What interests and passions do you have?
- Can you sell information (such as a course), rather than a product?
- What skills or expertise do you have?
- How fast do you need to scale your business?
- What kind of support do you have to start your business?
- Are you partnering with someone else?
- Does the franchise model make more sense to you?
Consider Popular Business Ideas
Not sure what business to start? Consider one of these popular business ideas:
- Start a Franchise
- Start a Blog
- Start an Online Store
- Start a Dropshipping Business
- Start a Cleaning Business
- Start a Bookkeeping Business
- Start a Clothing Business
- Start a Landscaping Business
- Start a Consulting Business
- Start a Photography Business
- Start a Vending Machine Business
Most entrepreneurs spend more time on their products than they do getting to know the competition. If you ever apply for outside funding, the potential lender or partner wants to know: what sets you (or your business idea) apart? If market analysis indicates your product or service is saturated in your area, see if you can think of a different approach. Take housekeeping, for example—rather than general cleaning services, you might specialize in homes with pets or focus on garage cleanups.
Primary Research
The first stage of any competition study is primary research, which entails obtaining data directly from potential customers rather than basing your conclusions on past data. You can use questionnaires, surveys and interviews to learn what consumers want. Surveying friends and family isn’t recommended unless they’re your target market. People who say they’d buy something and people who do are very different. The last thing you want is to take so much stock in what they say, create the product and flop when you try to sell it because all of the people who said they’d buy it don’t because the product isn’t something they’d buy.
Secondary Research
Utilize existing sources of information, such as census data, to gather information when you do secondary research. The current data may be studied, compiled and analyzed in various ways that are appropriate for your needs but it may not be as detailed as primary research.
Conduct a SWOT Analysis
SWOT stands for strengths, weaknesses, opportunities and threats. Conducting a SWOT analysis allows you to look at the facts about how your product or idea might perform if taken to market, and it can also help you make decisions about the direction of your idea. Your business idea might have some weaknesses that you hadn’t considered or there may be some opportunities to improve on a competitor’s product.
Asking pertinent questions during a SWOT analysis can help you identify and address weaknesses before they tank your new business.
A business plan is a dynamic document that serves as a roadmap for establishing a new business. This document makes it simple for potential investors, financial institutions and company management to understand and absorb. Even if you intend to self-finance, a business plan can help you flesh out your idea and spot potential problems. When writing a well-rounded business plan, include the following sections:
- Executive summary: The executive summary should be the first item in the business plan, but it should be written last. It describes the proposed new business and highlights the goals of the company and the methods to achieve them.
- Company description: The company description covers what problems your product or service solves and why your business or idea is best. For example, maybe your background is in molecular engineering, and you’ve used that background to create a new type of athletic wear—you have the proper credentials to make the best material.
- Market analysis: This section of the business plan analyzes how well a company is positioned against its competitors. The market analysis should include target market, segmentation analysis, market size, growth rate, trends and a competitive environment assessment.
- Organization and structure: Write about the type of business organization you expect, what risk management strategies you propose and who will staff the management team. What are their qualifications? Will your business be a single-member limited liability company (LLC) or a corporation ?
- Mission and goals: This section should contain a brief mission statement and detail what the business wishes to accomplish and the steps to get there. These goals should be SMART (specific, measurable, action-orientated, realistic and time-bound).
- Products or services: This section describes how your business will operate. It includes what products you’ll offer to consumers at the beginning of the business, how they compare to existing competitors, how much your products cost, who will be responsible for creating the products, how you’ll source materials and how much they cost to make.
- Background summary: This portion of the business plan is the most time-consuming to write. Compile and summarize any data, articles and research studies on trends that could positively and negatively affect your business or industry.
- Marketing plan: The marketing plan identifies the characteristics of your product or service, summarizes the SWOT analysis and analyzes competitors. It also discusses how you’ll promote your business, how much money will be spent on marketing and how long the campaign is expected to last.
- Financial plan: The financial plan is perhaps the core of the business plan because, without money, the business will not move forward. Include a proposed budget in your financial plan along with projected financial statements, such as an income statement, a balance sheet and a statement of cash flows. Usually, five years of projected financial statements are acceptable. This section is also where you should include your funding request if you’re looking for outside funding.
Learn more: Download our free simple business plan template .
Come Up With an Exit Strategy
An exit strategy is important for any business that is seeking funding because it outlines how you’ll sell the company or transfer ownership if you decide to retire or move on to other projects. An exit strategy also allows you to get the most value out of your business when it’s time to sell. There are a few different options for exiting a business, and the best option for you depends on your goals and circumstances.
The most common exit strategies are:
- Selling the business to another party
- Passing the business down to family members
- Liquidating the business assets
- Closing the doors and walking away
Develop a Scalable Business Model
As your small business grows, it’s important to have a scalable business model so that you can accommodate additional customers without incurring additional costs. A scalable business model is one that can be replicated easily to serve more customers without a significant increase in expenses.
Some common scalable business models are:
- Subscription-based businesses
- Businesses that sell digital products
- Franchise businesses
- Network marketing businesses
Start Planning for Taxes
One of the most important things to do when starting a small business is to start planning for taxes. Taxes can be complex, and there are several different types of taxes you may be liable for, including income tax, self-employment tax, sales tax and property tax. Depending on the type of business you’re operating, you may also be required to pay other taxes, such as payroll tax or unemployment tax.
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When structuring your business, it’s essential to consider how each structure impacts the amount of taxes you owe, daily operations and whether your personal assets are at risk.
An LLC limits your personal liability for business debts. LLCs can be owned by one or more people or companies and must include a registered agent . These owners are referred to as members.
- LLCs offer liability protection for the owners
- They’re one of the easiest business entities to set up
- You can have a single-member LLC
- You may be required to file additional paperwork with your state on a regular basis
- LLCs can’t issue stock
- You’ll need to pay annual filing fees to your state
Limited Liability Partnership (LLP)
An LLP is similar to an LLC but is typically used for licensed business professionals such as an attorney or accountant. These arrangements require a partnership agreement.
- Partners have limited liability for the debts and actions of the LLP
- LLPs are easy to form and don’t require much paperwork
- There’s no limit to the number of partners in an LLP
- Partners are required to actively take part in the business
- LLPs can’t issue stock
- All partners are personally liable for any malpractice claims against the business
Sole Proprietorship
If you start a solo business, you might consider a sole proprietorship . The company and the owner, for legal and tax purposes, are considered the same. The business owner assumes liability for the business. So, if the business fails, the owner is personally and financially responsible for all business debts.
- Sole proprietorships are easy to form
- There’s no need to file additional paperwork with your state
- You’re in complete control of the business
- You’re personally liable for all business debts
- It can be difficult to raise money for a sole proprietorship
- The business may have a limited lifespan
Corporation
A corporation limits your personal liability for business debts just as an LLC does. A corporation can be taxed as a C corporation (C-corp) or an S corporation (S-corp). S-corp status offers pass-through taxation to small corporations that meet certain IRS requirements. Larger companies and startups hoping to attract venture capital are usually taxed as C-corps.
- Corporations offer liability protection for the owners
- The life span of a corporation is not limited
- A corporation can have an unlimited number of shareholders
- Corporations are subject to double taxation
- They’re more expensive and complicated to set up than other business structures
- The shareholders may have limited liability
Before you decide on a business structure, discuss your situation with a small business accountant and possibly an attorney, as each business type has different tax treatments that could affect your bottom line.
Helpful Resources
- How To Set Up an LLC in 7 Steps
- How To Start a Sole Proprietorship
- How To Start a Corporation
- How To Start a Nonprofit
- How To Start a 501(c)(3)
There are several legal issues to address when starting a business after choosing the business structure. The following is a good checklist of items to consider when establishing your business:
Choose Your Business Name
Make it memorable but not too difficult. Choose the same domain name, if available, to establish your internet presence. A business name cannot be the same as another registered company in your state, nor can it infringe on another trademark or service mark that is already registered with the United States Patent and Trademark Office (USPTO).
Business Name vs. DBA
There are business names, and then there are fictitious business names known as “Doing Business As” or DBA. You may need to file a DBA if you’re operating under a name that’s different from the legal name of your business. For example, “Mike’s Bike Shop” is doing business as “Mike’s Bikes.” The legal name of the business is “Mike’s Bike Shop,” and “Mike’s Bikes” is the DBA.
You may need to file a DBA with your state, county or city government offices. The benefits of a DBA include:
- It can help you open a business bank account under your business name
- A DBA can be used as a “trade name” to brand your products or services
- A DBA can be used to get a business license
Register Your Business and Obtain an EIN
You’ll officially create a corporation, LLC or other business entity by filing forms with your state’s business agency―usually the Secretary of State. As part of this process, you’ll need to choose a registered agent to accept legal documents on behalf of your business. You’ll also pay a filing fee. The state will send you a certificate that you can use to apply for licenses, a tax identification number (TIN) and business bank accounts.
Next, apply for an employer identification number (EIN) . All businesses, other than sole proprietorships with no employees, must have a federal employer identification number. Submit your application to the IRS and you’ll typically receive your number in minutes.
Get Appropriate Licenses and Permits
Legal requirements are determined by your industry and jurisdiction. Most businesses need a mixture of local, state and federal licenses to operate. Check with your local government office (and even an attorney) for licensing information tailored to your area.
- Best LLC Services
- How To Register a Business Name
- How To Register a DBA
- How To Get an EIN for an LLC
- How To Get a Business License
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Open a Business Bank Account
Keep your business and personal finances separate. Here’s how to choose a business checking account —and why separate business accounts are essential. When you open a business bank account, you’ll need to provide your business name and your business tax identification number (EIN). This business bank account can be used for your business transactions, such as paying suppliers or invoicing customers. Most times, a bank will require a separate business bank account to issue a business loan or line of credit.
Hire a Bookkeeper or Get Accounting Software
If you sell a product, you need an inventory function in your accounting software to manage and track inventory. The software should have ledger and journal entries and the ability to generate financial statements.
Some software programs double as bookkeeping tools. These often include features such as check writing and managing receivables and payables. You can also use this software to track your income and expenses, generate invoices, run reports and calculate taxes.
There are many bookkeeping services available that can do all of this for you, and more. These services can be accessed online from any computer or mobile device and often include features such as bank reconciliation and invoicing. Check out the best accounting software for small business, or see if you want to handle the bookkeeping yourself.
Determine Your Break-Even Point
Before you fund your business, you must get an idea of your startup costs. To determine these, make a list of all the physical supplies you need, estimate the cost of any professional services you will require, determine the price of any licenses or permits required to operate and calculate the cost of office space or other real estate. Add in the costs of payroll and benefits, if applicable.
Businesses can take years to turn a profit, so it’s better to overestimate the startup costs and have too much money than too little. Many experts recommend having enough cash on hand to cover six months of operating expenses.
When you know how much you need to get started with your business, you need to know the point at which your business makes money. This figure is your break-even point.
In contrast, the contribution margin = total sales revenue – cost to make product
For example, let’s say you’re starting a small business that sells miniature birdhouses for fairy gardens. You have determined that it will cost you $500 in startup costs. Your variable costs are $0.40 per birdhouse produced, and you sell them for $1.50 each.
Let’s write these out so it’s easy to follow:
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Describe Your Services or Products. The business plan should have a section that explains the services or products that you're offering. This is the part where you can also describe how they fit ...
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7 business plan examples: section by section. The business plan examples in this article follow this template: Executive summary. An introductory overview of your business. Company description. A more in-depth and detailed description of your business and why it exists. Market analysis.
Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. A good business plan is much more than just a document that you write once and forget about. It's also a guide that helps you outline and achieve your goals. After completing your plan, you can ...
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5 Best Business Plan Software and Tools in 2023 for Your Small Business. Entrepreneurs who write formal business plans are 16% more likely to achieve success than entrepreneurs who don't. 1 This software can help. Data as of 3/13/23. Offers and availability may vary by location and are subject to change.
Sticking to a few key points will take some of the edge off. 1. Identify your assumptions and biases. Most business plans are built around at least a few assumptions. For example, you might assume ...
With this business plan template, you'll be able to: Write a company description that sells your story. Plan for the future: lay out goals and metrics for success. Describe your product line in detail and plan for how to stand out from competitors. Consider any legal formalities that require attention when starting your business.
Here's how to build a business plan step by step. Executive Summary. The Executive Summary is the first part of your business plan, so this is where you need to hook readers in. Every business plan starts this way — even a simple business plan template should kick off with the Executive Summary. Summarize your entire business plan in a ...
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.
A business plan is a document that helps small business owners determine the viability of their business idea. Combining market research and financial analysis, a professional business plan helps startup CEOs and potential investors determine if the company can compete in the target market. Typically, a good business plan consists of the following:
This is why crafting a business plan is an essential step in the entrepreneurial process. In this post, we'll walk you through the process of filling out your business plan template, like this free, editable version: Download a free, editable one-page business plan template. We know that when looking at a blank page on a laptop screen, the idea ...
Here's how it works. Best business plan software of 2024. The best business plan software makes it simple and easy to plan your business finances in order to present them to a bank or investors ...
Learn about the best business plan software. 1. Write an executive summary. This is your elevator pitch. It should include a mission statement, a brief description of the products or services your ...
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Traditional business plans use some combination of these nine sections. Executive summary. Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company's leadership team, employees, and location.
1. Executive Summary. Think of this section as a book summary. In a few paragraphs, briefly touch on what you will cover in each section of your business plan. 2. Company Overview. In this section, discuss your business history and the role of your company. 3.
Ensure that you keep the business plan's voice, tone, and format consistent. Either let a single person work on drafting a business plan or draft guidelines that the writer strictly obeys. Your business plan should be short. It usually takes 30-40 pages to complete a business plan, but try to keep it more concise.
A business plan is a written document that defines your business goals and the tactics to achieve those goals. A business plan typically explores the competitive landscape of an industry, analyzes a market and different customer segments within it, describes the products and services, lists business strategies for success, and outlines ...
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