what is unit in business plan

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Business Unit Strategy: Definition, Types, & Development

What is business unit level strategy.

By definition, a business unit (also referred to as a division or major functional area) is a part of an organization that represents a specific line of business and is part of a firm’s value chain of activities including operations, accounting, human resources, marketing, sales, and supply-chain functions. Business units and functional areas help a company organize itself internally. For example, a company may have several strategic business units that each sell different products or provide distinct services. As fully functional segments of a company, business units typically have their own strategic direction and vision.

When it comes to strategy , each business unit has a role to play in the company’s grand plans and enterprise strategy. Each line of business or sector must align with and contribute value to the primary corporate business strategy . In order to optimize results, strategy needs to be part of everyone’s responsibilities. As such, each business unit must develop its own business-unit strategy framework that will define how it will fulfill its part of the primary corporate strategy and make a distinct, value-added contribution to the organization’s long-term success.

What Are the Strategy Level Types?

There are three major strategy level types:

Corporate-Level Strategy: Concerned with the overall scope and direction of an organization across its various businesses. This includes diversification and vertical integration.

Business-Level Strategy: Focuses on competing successfully in individual markets or industries. This involves being an industry leader or differentiating a brand.

Functional-Level Strategy: Deals with optimizing specific departments or functions to support business-level strategy. This level of strategy can include areas like extensive advertising, brand management, and global distribution.

The Importance of Business-Level Strategy

Business-level strategy is important as it defines how a company competes in a specific market, which influences its competitive position and success. It helps differentiate the company from competitors, attract customers, and achieve a sustainable advantage.

How to Develop a Business Unit Strategy Framework

CMOE helps organizations worldwide become more proficient at setting strategy and thinking strategically throughout the organization: at the corporate level, the business-unit level, and even the department, team, and individual level.

Enterprise strategy is a clear and compelling direction for the organization, typically created by senior leaders. It is a “plan to win” and defines the long-term goals, objectives, and initiatives that will secure the future.

Business Unit

Business units determine which parts of the core, enterprise strategy the unit or division will contribute to directly and then formulates a unit or division strategy with their own supporting priorities. This where the division’s strategy intersects with the enterprise strategy. It creates a strategy within the company’s larger strategy. Business unit leaders are responsible for communicating a clear direction for departments, teams, and individuals as well as ensuring their functions adapt and evolve in a dynamic business environment.

For strategy to be effective, it must be cascaded through the organization. Departments need to identify strategic connection points within the business unit’s strategy and formulate initiatives and plans they can operationalize and execute on.

Teams too must have a line of sight to the department strategy that is in alignment with the business unit and enterprise. All team members need to be aligned on how the team will add value to the business and help create competitive advantage. Teams need to take responsibility for delivering results today, while formulating and executing on aligned strategies that shape a promising future.

People bring strategy to life and create the strategic edge businesses need to compete so individual need to define how they will contribute to the strategic priorities of their team. This creates the conditions for people to discover their personal connection to the firm’s future. Individual contributors at all levels need to think about the future in innovative and entrepreneurial ways, especially in their individual areas of responsibility.

It doesn’t matter if you are a leader or an individual contributor: you have to know how to work strategically in order to help move the enterprise or corporate strategic plan along.

The methodology in CMOE’s Strategic Leadership™ Workshop has been expressly designed for leaders who need to develop the ability to create and implement a strategic direction for their part of the business. CMOE also offers the Applied Strategic Thinking® Workshop , which is designed for team leaders and individual contributors who want to develop the ability to think proactively and capitalize on opportunities to make a strategic contribution to the enterprise strategy.

Our business unit strategy and strategic thinking programs and processes improve the strategic capability of the organization at all levels and enhance strategy alignment and effectiveness. No longer is strategy the sole responsibility of senior leaders; business-units must create their own strategic plans that align with and support the enterprise vision.

Why Choose CMOE’s Business Unit Strategy Workshops

Because every organization has different needs, the  Strategic Leadership™ Workshop and the Applied Strategic Thinking® Workshop are available in a variety of learning formats designed to fit your specific needs.

Participants are exposed to real, actionable ways to become more strategic in every part of their work, and they have numerous opportunities to apply the concepts as they begin building strategy for their piece of the business.

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“Think about a whole army of people being more strategic, not just the generals. Imagine the possibilities if everyone in your organization devoted a little extra discretionary effort and thought to the future, to how to achieve the future he or she needs and wants.”

“Moving the strategic needle on some longer term opportunities does take good strategic leadership, alignment, and communication throughout the organization. Every function should strive to achieve better alignment across the business, both in the short term and farther out.”

“Regardless of where you sit in the organization, your job is to sort through all of the signals you receive. This will give you clues about how the broader organization is adapting and shifting and help you develop your own strategic program before you are even asked.”

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In order to meet the specific needs of each client we partner with and make the most of the learning and development investment, CMOE offers programs in the following formats and lengths:

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Business Plan Example and Template

Learn how to create a business plan

What is a Business Plan?

A business plan is a document that contains the operational and financial plan of a business, and details how its objectives will be achieved. It serves as a road map for the business and can be used when pitching investors or financial institutions for debt or equity financing .

A business plan should follow a standard format and contain all the important business plan elements. Typically, it should present whatever information an investor or financial institution expects to see before providing financing to a business.

Contents of a Business Plan

A business plan should be structured in a way that it contains all the important information that investors are looking for. Here are the main sections of a business plan:

1. Title Page

The title page captures the legal information of the business, which includes the registered business name, physical address, phone number, email address, date, and the company logo.

2. Executive Summary

The executive summary is the most important section because it is the first section that investors and bankers see when they open the business plan. It provides a summary of the entire business plan. It should be written last to ensure that you don’t leave any details out. It must be short and to the point, and it should capture the reader’s attention. The executive summary should not exceed two pages.

3. Industry Overview

The industry overview section provides information about the specific industry that the business operates in. Some of the information provided in this section includes major competitors, industry trends, and estimated revenues. It also shows the company’s position in the industry and how it will compete in the market against other major players.

4. Market Analysis and Competition

The market analysis section details the target market for the company’s product offerings. This section confirms that the company understands the market and that it has already analyzed the existing market to determine that there is adequate demand to support its proposed business model.

Market analysis includes information about the target market’s demographics , geographical location, consumer behavior, and market needs. The company can present numbers and sources to give an overview of the target market size.

A business can choose to consolidate the market analysis and competition analysis into one section or present them as two separate sections.

5. Sales and Marketing Plan

The sales and marketing plan details how the company plans to sell its products to the target market. It attempts to present the business’s unique selling proposition and the channels it will use to sell its goods and services. It details the company’s advertising and promotion activities, pricing strategy, sales and distribution methods, and after-sales support.

6. Management Plan

The management plan provides an outline of the company’s legal structure, its management team, and internal and external human resource requirements. It should list the number of employees that will be needed and the remuneration to be paid to each of the employees.

Any external professionals, such as lawyers, valuers, architects, and consultants, that the company will need should also be included. If the company intends to use the business plan to source funding from investors, it should list the members of the executive team, as well as the members of the advisory board.

7. Operating Plan

The operating plan provides an overview of the company’s physical requirements, such as office space, machinery, labor, supplies, and inventory . For a business that requires custom warehouses and specialized equipment, the operating plan will be more detailed, as compared to, say, a home-based consulting business. If the business plan is for a manufacturing company, it will include information on raw material requirements and the supply chain.

8. Financial Plan

The financial plan is an important section that will often determine whether the business will obtain required financing from financial institutions, investors, or venture capitalists. It should demonstrate that the proposed business is viable and will return enough revenues to be able to meet its financial obligations. Some of the information contained in the financial plan includes a projected income statement , balance sheet, and cash flow.

9. Appendices and Exhibits

The appendices and exhibits part is the last section of a business plan. It includes any additional information that banks and investors may be interested in or that adds credibility to the business. Some of the information that may be included in the appendices section includes office/building plans, detailed market research , products/services offering information, marketing brochures, and credit histories of the promoters.

Business Plan Template

Here is a basic template that any business can use when developing its business plan:

Section 1: Executive Summary

• Present the company’s mission.
• Describe the company’s product and/or service offerings.
• Give a summary of the target market and its demographics.
• Summarize the industry competition and how the company will capture a share of the available market.
• Give a summary of the operational plan, such as inventory, office and labor, and equipment requirements.

Section 2: Industry Overview

• Describe the company’s position in the industry.
• Describe the existing competition and the major players in the industry.
• Provide information about the industry that the business will operate in, estimated revenues, industry trends, government influences, as well as the demographics of the target market.

Section 3: Market Analysis and Competition

• Define your target market, their needs, and their geographical location.
• Describe the size of the market, the units of the company’s products that potential customers may buy, and the market changes that may occur due to overall economic changes.
• Give an overview of the estimated sales volume vis-à-vis what competitors sell.
• Give a plan on how the company plans to combat the existing competition to gain and retain market share.

Section 4: Sales and Marketing Plan

• Describe the products that the company will offer for sale and its unique selling proposition.
• List the different advertising platforms that the business will use to get its message to customers.
• Describe how the business plans to price its products in a way that allows it to make a profit.
• Give details on how the company’s products will be distributed to the target market and the shipping method.

Section 5: Management Plan

• Describe the organizational structure of the company.
• List the owners of the company and their ownership percentages.
• List the key executives, their roles, and remuneration.
• List any internal and external professionals that the company plans to hire, and how they will be compensated.
• Include a list of the members of the advisory board, if available.

Section 6: Operating Plan

• Describe the location of the business, including office and warehouse requirements.
• Describe the labor requirement of the company. Outline the number of staff that the company needs, their roles, skills training needed, and employee tenures (full-time or part-time).
• Describe the manufacturing process, and the time it will take to produce one unit of a product.
• Describe the equipment and machinery requirements, and if the company will lease or purchase equipment and machinery, and the related costs that the company estimates it will incur.
• Provide a list of raw material requirements, how they will be sourced, and the main suppliers that will supply the required inputs.

Section 7: Financial Plan

• Describe the financial projections of the company, by including the projected income statement, projected cash flow statement, and the balance sheet projection.

Section 8: Appendices and Exhibits

• Quotes of building and machinery leases
• Proposed office and warehouse plan
• Market research and a summary of the target market
• Credit information of the owners
• List of product and/or services

Related Readings

Thank you for reading CFI’s guide to Business Plans. To keep learning and advancing your career, the following CFI resources will be helpful:

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• Business Unit

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A business unit is a segment of a company with strategic objectives separate from the parent company but enhances the overall performance of the enterprise. It is set up to perform a specific business function to a specific market which requires a management specialty that is not within the parent company.

How to ensure the business units are successful

Empower the unit manager : The success of a business unit depends on the leadership provided in the particular unit. The manager is in charge of the unit but is also under the main organization’s top management. For the manger to perform well, you must empower him and trust his decision-making capabilities. Besides, he is the one on the ground so he is in the best place to suggest changes and strategies that will work well for the unit. Since the success of a unit contributes to the success of the organization, you should empower all unit managers so that the units become successful.

Sharing between different units : The business units must be willing to share the available resources. Therefore times when one unit will need more resources that the others, what do you do in such a situation? The managers must be ready to share. When the resources are not enough for all the needs presented, then managers must learn to prioritize their needs.

Flexibility: The organization must allow the business units some flexibility. It is important as the unit is in direct control of their products and market. The organization should be supportive of suggestions brought forth from the units. A good example is a situation when a unit manger identifies an opportunity. If the unit deal with baby diapers and then the manager realizes that mothers who buy diapers want baby wipes also, then the organization should be supportive. The strategy will require more financing, but it will also increase the amount of profits earned.

Importance of Business Units

Organization: Business units exist purely as units of specialization. When you create units within the organization, then you maximize on time management. Business units allow you to see the organization more clearly. If you were to have one manager handling more than three products at a go, then he or she will be unable to operate them effectively. Besides, he will not have time for innovation and h will not be able to organize his time well.

Micro-management : It is easy to manage small units within an organization. Every manager will be able to take care of even the smallest details. Every detail of the unit will, therefore, be attended to. The top management can track progress in the various units. This will lead to better decision making.

Profitability : For a product to perform well in the market, then it has to meet the needs of the market. So, the units need to find a way to continuously gather feedback from the market, identify a target market, target the market and position the product accordingly. If one person is assigned product, he or she will be able to give valuable contribution regarding the target market. Unfortunately, if one person is assigned more than two products to handle, the work might be too much, and it might affect his effectiveness. The financial statement for every unit is prepared separately. This enables the top management to keep tabs on the return on investment of every unit. They are also able to have a general overview of the organization’s profitability.

Decision making : When it comes to making decisions about in the organization of the units, the top managers can rely on the numbers from the financial statements. When a new unit is about to be set up, then better performing units take charge of the process. When it comes to allocation of resources, the top management uses the financial statements.

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What Is a Business Plan?

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

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

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A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

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

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

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

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

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

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

Harvard Business Review. " How to Write a Winning Business Plan ."

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

SCORE. " When and Why Should You Review Your Business Plan? "

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

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

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

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

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

Let’s get started.

What Do You Need A Business Plan For?

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

1. Secure Funds

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

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

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

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

2. Monitor Business Growth

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

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

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

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

3. Measure Business Success

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

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

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

4. Document Your Marketing Strategies

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

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

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

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

How to Write a Business Plan Step-by-Step

1. create your executive summary.

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

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

A good executive summary should do the following:

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

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

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

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

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

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

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

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

2. Add Your Company Overview

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

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

Your company overview should contain the following:

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

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

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

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

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

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

• Mission Statement

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

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

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

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

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

Business Objectives

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

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

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

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

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

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

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

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

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

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

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

Market Analysis

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

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

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

• Market Research

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

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

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

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

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

How to Quantify Your Target Market

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

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

What Does a Good Market Analysis Entail?

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

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

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

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

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

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

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

Competitive Analysis

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

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

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

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

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

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

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

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

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

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

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

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

Direct vs Indirect Competition

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

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

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

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

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

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

Factors that Differentiate Your Business from the Competition

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

1. Cost Leadership

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

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

2. Product Differentiation

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

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

3. Market Segmentation

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

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

4. Define Your Business and Management Structure

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

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

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

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

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

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

Management Team

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

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

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

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

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

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

Key Questions to Answer When Structuring Your Management Team

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

Additional Tips for Writing the Management Structure Section

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

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

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

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

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

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

Organizational Chart

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

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

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

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

5. Describe Your Product and Service Offering

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Avoid Technical Descriptions and Industry Buzzwords

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

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

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

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

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

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

3. Long or Short Products or Services Section

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

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

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

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

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

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

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

4. Describe Your Relationships with Vendors or Suppliers

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

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

5. Your Primary Goal Is to Convince Your Readers

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

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

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

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

Key Questions to Answer When Writing your Products and Services Section

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

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

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

6. Show and Explain Your Marketing and Sales Plan

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

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

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

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

Outline Your Business’ Unique Selling Proposition (USP)

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

Target Market and Target Audience

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

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

Creating a Smart Marketing and Sales Plan

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

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

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

Your Positioning Statement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Basic Rules to Follow When Pricing Your Offering

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

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

Pricing Strategy

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

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

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

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

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

Advertising

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

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

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

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

Public Relations

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

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

Content Marketing

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

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

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

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

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

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

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

Social Media

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

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

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

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

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

Strategic Alliances

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

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

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

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

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

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

2. Evaluate Your Competition

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

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

These questions can help you know your competition.

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

3. Consider Your Brand

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

4. Focus on Benefits

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

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

5. Focus on Differentiation

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

Key Questions to Answer When Writing Your Marketing and Sales Plan

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

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

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

7. Clearly Show Your Funding Request

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

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

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

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

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

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

Funding Request: Debt or Equity?

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

Case for Equity

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

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

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

Case for Debt

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

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

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

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

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

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

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

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

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

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

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

8. Detail Your Financial Plan, Metrics, and Projections

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

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

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

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

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

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

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

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

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

Use Graphs and Charts

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

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

Address the Risk Factors and Show Realistic Financial Projections

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

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

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

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

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

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

1. Sales Forecast

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

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

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

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

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

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

2. Personnel Plan

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

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

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

3. Income Statement

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

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

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

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

4. Cash Flow Statement

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

5. Balance Sheet

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

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

6. Exit Strategy

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

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

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

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

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

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

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

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

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

9. Add an Appendix to Your Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

Tips and Strategies for Writing a Convincing Business Plan

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

1. Know Your Audience

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

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

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

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

2. Get Inspiration from People

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

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

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

3. Avoid Being Over Optimistic

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

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

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

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

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

4. Keep it Simple and Short

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

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

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

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

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

5. Make an Outline and Follow Through

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

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

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

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

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

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

6. Ask a Professional to Proofread

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

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

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

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

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

1. hubspot's one-page business plan.

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

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

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

2. Bplan’s Free Business Plan Template

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

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

3. HubSpot's Downloadable Business Plan Template

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

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

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

4. Business Plan by My Own Business Institute

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

The comprehensive template consists of a whopping 15 sections.

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

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

5. Score's Business Plan Template for Startups

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

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

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

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

6. Minimalist Architecture Business Plan Template by Venngage

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

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

7. Small Business Administration Free Business Plan Template

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

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

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

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

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

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

9. PandaDoc’s Free Business Plan Template

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

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

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

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

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

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

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

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

Alternatives to the Traditional Business Plan

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

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

Business Model Canvas (BMC)

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

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

Segments of the Business Model Canvas

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

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

Lean Canvas

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

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

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

Startup Pitch Deck

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

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

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

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

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

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

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

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

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

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

Business Plan FAQ

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

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

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

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

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

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

Exlore Further

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

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Martin luenendonk.

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

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

Small Business Trends

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

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

Table of Contents

How to Write a Business Plan

Executive summary.

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

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

Overview and Business Objectives

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

Company Description

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

Define Your Target Market

Market analysis.

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

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

SWOT Analysis

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

Competitive Analysis

Organization and management team.

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

Products and Services Offered

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

Marketing and Sales Strategy

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

Logistics and Operations Plan

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

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

Financial Projections Plan

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

Income Statement

Cash flow statement.

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

Tips on Writing a Business Plan

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

FREE Business Plan Template

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

What is a Business Plan?

Why you should write a business plan.

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

What are the Different Types of Business Plans?

Using Business Plan Software

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

Business Plan FAQs

What is a good business plan.

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

What are the 3 main purposes of a business plan?

Can i write a business plan by myself, is it possible to create a one-page business plan.

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

How long should a business plan be?

What is a business plan outline, what are the 5 most common business plan mistakes, what questions should be asked in a business plan.

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

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

How is business planning for a nonprofit different.

Breaking Down The Three Levels Of Strategy In Any Business

Understanding the levels of your business strategy can help align your company goals

“How ‘far down’ into the company does our strategy really need to go?” In other words, in what areas of the company should the groundwork for strategy be laid?

‍ This is a question we’ve heard repeatedly from people at companies that are either in the beginning phases of strategy creation or are updating an outdated strategy. Regardless of which of those two camps you belong to, you should have a clear understanding of the three levels of strategy in your business.

Introducing ClearPoint Strategy , the ultimate tool to help you define, track, and manage your strategic goals across all levels of your organization. ClearPoint ensures that your strategy is seamlessly integrated from the corporate level down to individual departments, enhancing alignment and execution throughout the company.

See ClearPoint Strategy in action! Click here to watch a quick DEMO on the software

The three levels of strategy.

• Level 1: The Corporate Level
• Level 2: The Business Unit Level
• Level 3: The Functional Level

Having a solid understanding of these levels of strategy will help you break your strategy into the correct levels, so you can align your company-wide goals from the top of your organization (the corporate level) to the bottom (the functional level).

Additionally, if you approach your strategy using these three levels, leaders across your organization will have a better understanding of how their strategic activities impact your company’s high-level strategy.

Strategy Level 1: The Corporate Level

The corporate level is the highest, and therefore the most broad, level of strategy in business.

‍ Corporate-level strategy should define your organization’s main purpose. It should also direct all your downstream decision-making. For example, the objectives (e.g. high-level goals) in the levels below this one should all have a direct line to the goals defined here.

Creating and understanding your corporate-level strategy is particularly important for organizations that have multiple lines of business. For example, if one arm of your business manufactures a product and another arm sells that product, you’ll have a separate business unit strategy for each—but one single corporate-level strategy that describes why those two arms are important, and how those businesses interact for the good of the organization.

There are a handful of things to do as you work on your corporate-level strategy:

‍ 1. Confirm your overall mission and vision. These two elements define your entire organization, and so should be done at the corporate level:

• Your mission statement describes what your company does and how it is different from other organizations in your competitive space.
• Your vision statement describes the desired future state of your organization at a certain point in time.

To create these elements, you may want to write out an OAS statement ( Objective, Advantage, Scope) or use a tool known as Strategic Shifts. You can read about both here.

2. Create your corporate objectives. Your objectives describe the high-level goals that will help you achieve your mission and vision. Take, for example, a bank. This bank used the Balanced Scorecard to outline objectives across four perspectives (from the top of the scorecard to the bottom): financial, customer, internal, and learning and growth (L&G). You can see their objectives written in the sample strategy map below.

Strategy Level 2: The Business Unit Level

Your business unit strategy is used for different areas of your business (like services and products, or multiple departments or divisions, for example). The complexity of this level will depend on how many businesses you are in, and how your company is structured. It’s important to create a strategy for each business unit so that you can see which units are excelling and which need improvement.

Having a strategy at the business unit level allows you to weigh the costs and benefits of each business unit and to decide where you should spend your resources. Depending on the progress towards your goals and your analysis of the market, you may even decide it’s time to divest or sell some of your business units so you can focus on the areas that are most important to achieving your company’s corporate strategy.

There are a few things to do as you work on your business unit strategies:

‍ 1. Differentiate yourself from your competitors. One of the best ways to tell if you’ve done this adequately is through a SWOT analysis , which allows you to review your competitive environment and define a strategy based on what sets your organization—and specifically, the business unit—apart from the competition.

Claim your FREE 41-page Strategy Execution Toolkit for enhanced strategic performance

2. Create objectives and initiatives that support your business unit and the corporate level. Your goal while creating a business unit strategy is to create objectives and initiatives that support the unit while simultaneously contributing to the objectives and initiatives of the organization as a whole.

For example, at the corporate level for the learning and growth perspective, one of the bank’s main priorities (in the example above) is to “provide valuable skills training.” With this objective in mind, your business units will be able to determine what activities they’ll need to do to support this—like providing customer training services relevant to its specific function.

Strategy Level 3: The Functional Level

The functional level of your strategy involves each department —and what those at the department level are doing day-to-day to support corporate initiatives. Whereas your business unit strategy would be defined and evaluated by senior leadership, your functional strategy is typically produced by department heads (e.g. leaders in marketing, operations, finance, IT, etc.).

These individuals can help ensure that the departments execute the defined strategic elements, and that the components laid out at the functional level help support both the department level and corporate level strategies.

There are a few things to consider as you work on your functional strategies:

‍ 1. Understand that this level has the most detailed measures and projects . Measures help you answer the question, “How are we doing toward meeting a particular objective?” Projects (or initiatives ) help you answer, “What are the key actions we can take to support our objectives?” While you’ll have measures and projects at every level of your strategy, they should be extremely detailed at the functional level. You can leverage a RACI matrix to ensure everyone knows who is responsible for completing your projects and who they need to go to for help or direction.

‍ 2. Make sure the goals in your functional strategy align with the goals at the corporate level. Corporate goals are set by the most senior members of your organization, and those goals drive decision making. You’ll gain support from the top level of executives if your projects and goals align with their goals. You’ll also be able to see how the work you are doing contributes to the overall success of the company.

‍ 3. Don’t get too “measure happy.” We’ve seen organizations measure hundreds of data points at the functional level. But keep in mind what your bigger goals are and measure only the things that help you determine if you’re progressing toward those goals. ( This blog gives detailed instructions on selecting the right measures, if you need a hand. )

Going back to our bank example, this organization may decide that, at the functional level, measuring the number of service calls responded to and the response time for customer service calls are the most effective measures for customer service training, which rolls up to support the skills training corporate-level initiative.

Don’t Forget to Constantly Give and Gather Feedback as You Create Your Strategies at Every Level

Providing support and feedback during strategy creation is critical, as it’ll help those involved to fine-tune things and emphasizes the importance of the activity to the organization as a whole. And don’t forget to ask for feedback as well.

For example, if customer service is a focus, talk to those who are actually speaking to the customers and gather concerns and comments from them as well.

Transform Your Strategic Planning with ClearPoint Strategy Software

Ready to align your entire organization’s strategy from top to bottom? ClearPoint Strategy is here to help. Our comprehensive software solution ensures seamless integration and execution of your strategic goals across all levels of your company.

Book a personalized demo with our experts and discover how our software can help you effectively manage and track your corporate, business unit, and functional level strategies.

Book your FREE 1-on-1 DEMO with ClearPoint Strategy

Ted Jackson

Ted is a Founder and Managing Partner of ClearPoint Strategy and leads the sales and marketing teams.

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What Is A Strategic Business Unit? Strategic Business Unit In A Nutshell

A strategic business unit (SBU) is an independently managed division of a large organization with its own vision , mission , and objectives. A strategic business unit is a division responsible for managing its own strategy and bottom line and in some cases, is operated as a completely separate business. In some cases, SBUs encompass teams within an organization that share operational and administrative functions.

Table of Contents

Understanding a strategic business unit

Many strategic business units are large enough to support functional departments such as human resources and training.

Despite enjoying some degree of autonomy, each unit must still report directly to company headquarters.

Some of the main characteristics of a strategic business unit include:

• The competition is clearly and concisely identified.
• A unique objective that differentiates it from the rest of the organization or other business units.
• A well-defined and well-researched target market , and
• The separation of businesses or grouping of similar businesses provided there is scope for autonomous planning and functioning. 

General Electric was one of the first companies to implement SBUs in the 1960s.

Today, the company contains approximately 49 separate strategic business units in energy, finance, software, water, and healthcare, among many others. 

Strategic business unit examples

Strategic business units can be defined according to the following:

Large companies can be split into smaller divisions based on the product category.

For example, an automobile manufacturer may split its product divisions into luxury sedans and off-road vehicles.

This sort of split into business units based on products fits into a sort of functional organizational structure .

Having this kind of division might help to have a dedicated team for each product.

And the advantage of it might be that each of those products gets dedicated resources.

However, depending on the market size the product is tackling, it might lose priority in the organization.

Take the case of a large company launching an experimental product in an area of the business far from its core product.

In that case, no only that business unit will get minimal resources. But they might get utterly de-prioritized as most of the executive team sees the new product line as distracting.

So to work out, this sort of division based on the product must get priority also from top executives.

Strategic business units are also useful for global organizations operating in many different markets.

The same automobile company may have a North American and European SBU to manage each region’s various rules, regulations, and consumer preferences.

This sort of organizational structure tackles different markets with different contexts.

It’s critical, though, that while each market operates independently, there is thought coordination between the various geography, as transfer learning within the organization.

Customer segment

Some companies, such as banks, may have separate business units for high-net-worth customers and small business loans.

This type of organizational structure is also suitable to prevent the company lose track of its core customer base, which finances the business.

Tech companies may also create new SBUs for innovations they do not expect to see a return on in the short term.

This organizational structure is compelling to bet into areas that ultimately move beyond the core business.

They call for a potentially renewed business model .

Like Google does with its other bets .

In general, any organization should have innovation units, which are like small startups within organizations, which not only act independently but also have the freedom to build their own culture.

Indeed, since startups often operate within a counter-culture environment, enabling these innovation units to operate in the proper context is critical for them to succeed.

Advantages and disadvantages of strategic business units

Let’s now take a look at some of the general advantages and disadvantages of strategic business units.

Profitability

When strategic business units can create their own value propositions for their respective target audiences, there is a higher likelihood of profitability.

This likelihood is further enhanced since each SBU operates under a budget based on its own specific requirements.

Decision-making

When faced with challenges or obstacles, management within each strategic business unit can focus on their immediate concerns and make rapid decisions that do not impact the organization as a whole.

With markets become increasingly dynamic, only the most adaptable businesses will survive over the long term.

The SBU structure allows each subunit to evolve as marketplace or consumer demographics evolve.

Again, these changes in strategy can be made without negatively impacting the broader organization. 

Disadvantages

Creating semi-autonomous SBUs that still work to further organizational objectives can be a complex task.

Factors that need to be considered include culture, market conditions, short and long-term goals, brand messaging, and resource utilization.

Competition

In some cases, one strategic business unit may compete with another unit from the same organization.

While it is possible for a company to dominate its market with an umbrella of products, the potential for so-called product cannibalization exists.

Strategic business units are also costly to implement.

With each new unit requiring management, branding, recruitment, accounting, and other personnel, the organization must fill a range of positions many times over.

Key takeaways

• A strategic business unit is an independently managed division of a large organization with its own vision , mission , and objectives.
• A strategic business unit is commonly product, location, customer segment, or innovation -based. A company can create a strategic business unit in any situation provided there is a clear and unique target market and competitive presence. There must also be scope for the separation or grouping of business activities that can function autonomously. 
• Strategic business units improve decision-making, profitability, and increase the likelihood of company longevity. However, they are costly and complex to implement and may result in product cannibalization.

Key Highlights

• Definition : A Strategic Business Unit (SBU) is an autonomous division within a larger organization, equipped with its distinct vision , mission , and objectives. SBUs can operate as separate businesses and are responsible for their strategy and bottom-line results. SBUs can also encompass teams that share operational functions while maintaining independent planning and operations.
• SBUs are often large enough to have functional departments such as HR and training, yet they report to the organization’s headquarters.
• Key characteristics of SBUs include clear competition identification, unique objectives, well-defined target markets, and the ability to operate autonomously.
• The concept of SBUs was pioneered by General Electric in the 1960s, and today, many large organizations use this framework to manage diverse business areas.
• Product-based SBUs : Divisions organized by product category, such as luxury sedans and off-road vehicles in an automobile manufacturer.
• Location-based SBUs : Created by global organizations to manage different markets or regions, like North American and European divisions.
• Customer segment-based SBUs : Division focused on specific customer segments, e.g., high-net-worth customers and small business loans in a bank.
• Innovation-based SBUs : Created for experimental innovations with long-term potential that may deviate from the core business model .
• Profitability : SBUs can tailor value propositions for target audiences, leading to higher profitability due to specific budget allocation.
• Decision-making : SBUs can respond quickly to challenges without impacting the entire organization’s decision-making process.
• Longevity : Adaptability to changing markets or consumer trends allows SBUs to evolve independently over the long term.
• Complexity : Balancing autonomy while aligning with organizational objectives can be complex, considering cultural, market, and resource factors.
• Competition : Competing SBUs within an organization may lead to product cannibalization and market confusion.
• Cost : Implementing SBUs requires substantial resources for management, branding, recruitment, and more.
• An SBU operates as an autonomous division with distinct objectives within a larger organization.
• SBUs can be product, location, customer segment, or innovation -based, offering flexibility in various scenarios.
• SBUs enhance decision-making, profitability, and adaptability but can be complex and costly to implement and may lead to competition or cannibalization.

Case Studies

What are some examples of strategic business units?

Strategic business units can usually be organized based on the following:

• Product : with a company organizing strategic units based on product division.
• Location : with business units organized around various geographies.
• Customer segment : with strategic units organized around high-net-worth customers vs. smaller segments.
• Innovation : this can be a compelling organizational structure where the company has dedicated innovation units focused on bets beyond the core business model .

What are the advantages of strategic business units?

Some of the advantages of strategic business units comprise:

• Increased Profitability .
• Improved Decision-making .
• And Longevity .

What are some disadvantages of strategic business units?

Some disadvantages of strategic business units might be:

• Increased Complexity .
• Competition or cannibalization.
• And increased Costs.

Connected Business Frameworks

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McKinsey’s Seven Degrees of Freedom

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Strategic Business Unit (SBU): Definition and Theory

Strategic Business Unit (SBU): this article provides a practical explanation of the Strategic Business Unit or SBU . This article covers what an SBU is, what its structure is, how to set it up and what its pros and cons are. We also discuss the difference between divisions and SBUs, and what the GE model is. After reading, you’ll understand the basics of the SBU. Enjoy redaing!

What is a Strategic Business Unit (SBU)?

A Strategic Business Unit (SBU) is a fully independently operating entity or unit of a business with its own vision and course. Although it operates independently, it has to report directly to the organisation’s head office about the status of their operations and performance. Strategic Business Units (SBU) are often aimed at a specific market.

SBUs are large enough to have their own support functions in terms of Human Resource Management (HRM) , training & development, and marketing. The use of seperate divisions (SBU’s) offers several advantages to organisations. For example, each SBU can fully focus on a separate target market.

The structure works best for organisations with multiple product structures. Examples of this are LG and Proctor & Gamble. The former manufactures many consumer products, such as fridges, televisions, air conditions, and so on. These are made by different ‘small’, independent business units, making it possible to track costs, income, and profits independently. The units are typically considered as profit centres, and are under control of corporate officers or senior executives.

When a unit is labelled as an SBU, it’s given full independence when it comes to decision making, investments, and budgets. Another advantage of this business structure is that it can respond quickly to shifts in product markets.

Strategic Business Units (SBU) structure

The structure of an organisation with SBUs consists of operational units.

In some cases, these units operate as autonomous companies. The highest corporate official assigns the responsibilities for the company to the division managers.

Figure 1 – The Organizational Structure of a Strategic Business Unit (SBU)

A single Strategic Business Unit (SBU) is considered a ‘profit centre’. It is run by supervisors. The emphasis from the parent company is on strategic planning , not on checks.

The less checking and interactions there are between the SBUs and the parent company, the quicker SBUs can respond to changing business environments.

Setting up a strategic business unit

By creating Strategic Business Units (SBU), companies can develop and gain access to new products, markets, or technologies, without experiencing the limitations of working in a huge organisation.

The business unit has its own dedicated management team, own brand and reputation, own objectives , and often other physical locations. It benefits from the advantages related to working in a smaller organisation, but is not bound by limited availability of resources.

At the same time, the smaller business also benefits from the advantages of a larger company, such as an established brand and broad base of customers. The challenges larger organisations are faced with, such as excessive bureaucracy, can be avoided.

In order to make independent and effective Strategic Business Units from a large company, there are a few requirements to be met. The most far-reaching changes that have to be implemented relate to the organisational structure, recruitment & selection, corporate culture, and the remuneration system. These are explained below.

1. Adapting the organisational structure

Naturally, the organisational structure is the first thing that will have to be changed when switching to a Strategic Business structure. Large bureaucratic organisations aren’t flexible and agile .

Another big advantage of adapting the organisational structure is the independence and freedom this grants the separate business units.

By separating business units from each other, teams are given room to experiment and break things, without this creativity being suppressed by process and branding problems .

2. Changing the recruitment and selection process

Developing a new company is different than leading an established one. People who excel in an established company may have great difficulty when asked to run a new business and vice versa.

In order to create a strong culture, the focus during the interview process should be on understanding the organisational objectives. This is a useful way to keep a team motivated.

Only hire people who want to build a new organisation from the ground up and want to learn to work effectively in an uncertain environment with lots of experiments.

3. Adjusting the remuneration system

The rewards for starting a successful business are obvious. Fame and fortune. But bigger companies can’t always offer shares or other important financial incentives to their employees.

Luckily, they don’t always have to. As Frederick Herzberg describes in his two-factor theory , financial incentives only partially influence employee motivation .

Employees are also motivated by their own careers. They want to be recognised for their work within the company and grow along with it.

4. Changing the corporate culture

It’s also important that employees experience other benefits to keep them motivated, or that they are at least satisfied about the work environment and working conditions.

Employees want to feel appreciated for their contributions to the organisation. It’s therefore a good idea to fulfil employee wishes or demands as much as possible, if this helps them to become even more effective in their work.

If a computer programmer works better at night, then they should be offered the option of working at night.

Difference between divisions and Strategic Business Units

A larger company is likely organised in divisions to divide the management of the company in to smaller, organisationally related parts. The head office will in that case still be in full control of the divisions.

Strategic Business Units are organisationally complete, independent units that develop and implement their own strategies. They do still report to headquarters about their performance, but they operate completely independently and are organised in a way that suits their market.

The units are often large enough to implement their own internal management structures.

Switching a larger company to these strategic units means a completely different management structure and approach to business. A company’s division reflects how the activities of the company can best be carried out.

Divisions arise from analyses of business activities, while strategic units should be set up in order to respond to the external market. Instead of looking at themselves and analysing themselves, companies should analyse and study the market .

The main difference between divisions and Strategic Business Units (SBU) is that divisions have an internal focus, while the focus of strategic units is directed outwards. The market.

Strategy and structure

The fact that SBUs have been developed emphasises the differences and necessity of strategic leadership within an organisation. Developing a general strategy for a diversified business is difficult and often means that certain strategic elements do not entirely match the different divisions.

A department can often receive instructions that are unclear or not fully applicable. When a company has adapted its structure and converted divisions into strategic units, they can develop their own strategies.

They can then also analyse their own competitive position, develop products, and meet the needs and demands of their customers in specific markets . Divisions tend not to do those kinds of things.

Value of business processes

Companies that are organised based on different divisions often find it difficult to determine which activities and business process actually generate the most value and which ones should be ceased. This applies mainly to businesses where the divisions are purely functional in nature, such as sales, service, and logistics.

Although different divisions can have different profit centres, decisions about the allocation of resources are not easy ones. For Strategic Business Units (SBU), it’s easier to make such decisions, making their use of resources more likely to be efficient. Strategic units who are the market leader in a certain segment are likelier to be allocated resources .

Pros and cons of Strategic Business Units (SBU)

• Strategic Business Units (SBU) support the collaboration between different company departments
• SBUs make strategic management simpler
• SBUs are efficient for the bookkeeping of larger organisations
• SBUs are easier to monitor and check
• Communication with upper management can be a challenge
• Can lead to internal tension as a result of access to sources of funding

SBU and GE model

One of the way in which companies assess the success or failure of a strategic unit, is by using the GE model .

General Electric uses a simple diagram of nine boxes and three essential labels to define the importance of each business unit. This is done in terms of uniqueness and appeal for each industry and the strength of individual business units in this industry.

These criteria make up the foundation of an analysis GE uses to assess the viability of a strategic unit in the long term.

The idea behind the model is to determine the appeal and relative strength of a unit to see if they would be successful, which ones would perform averagely, and which ones would perform poorly and therefore have to be closed.

Strengths and weaknesses

Managers who wish to apply the GE model must be able to accurately define the strengths and weaknesses of each business unit. They then have to be able to assess the uniqueness of the strategic units in terms of high or low.

Companies that perform strongly are businesses with strong business strengths and high uniqueness values in a sector. Companies that perform averagely, are in the mid-range. Weak business units don’t have strengths and are not very unique in the sector.

Strategic Business Units (SBUs) core concepts

• An SBU is a business or collection of related businesses that operate independently from the rest of an organisation. These units can therefore be planned separately. An SBU has its own marketing strategy , own business objectives and other SMART objectives that may differ from those of the parent company.
• An SBU has its own competitors, so its own competitive position as well. This structure makes it possible to create unique business units that focus on different markets in which the company is active. This stimulates competition and makes markets and revenues grow.
• SBUs have their own managers who are responsible for the strategic planning process and the performance of the unit.

Now it’s your turn

What do you think? Are you familiar with the explanation of a Strategic Business Unit (SBU)? Do you work in a strategic business unit? Do you think it would be a good idea for larger organisations to split up into strategic business units? What are some of the pros and cons of Strategic Business Units (SBU) you’ve noticed? Would you like to share any? Do you have any other tips or additional comments?

Share your experience and knowledge in the comments box below.

More information

• Dvir, D., & Shenhar, A. (1992). Measuring the success of technology-based strategic business units . Engineering Management Journal, 4(4), 33-38.
• Dvir, D., Segev, E., & Shenhar, A. (1993). Technology’s varying impact on the success of strategic business units within the Miles and Snow typology . Strategic Management Journal, 14(2), 155-161.
• Hinterhuber, H. H., & Levin, B. M. (1994). Strategic networks—the organization of the future . Long range planning, 27(3), 43-53.
• Website Zintego . Retrieved 02/20/2024 from Zintego.com

How to cite this article: Janse, B. (2020). Strategic Business Unit (SBU) . Retrieved [insert date] from Toolshero: https://www.toolshero.com/strategy/strategic-business-unit-sbu/

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Ben Janse is a young professional working at ToolsHero as Content Manager. He is also an International Business student at Rotterdam Business School where he focusses on analyzing and developing management models. Thanks to his theoretical and practical knowledge, he knows how to distinguish main- and side issues and to make the essence of each article clearly visible.

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Business Unit Strategy Template

What is a Business Unit Strategy?

A business unit strategy is a plan that outlines the goals and objectives of a business unit and outlines the steps needed to achieve them. It identifies the focus areas, objectives, and measurable targets that will help a business unit achieve its goals. It also outlines the actions required to reach the objectives, as well as the resources needed to carry out the actions. The strategy is designed to maximize performance and profitability and help the business unit reach its desired results.

What's included in this Business Unit Strategy template?

• 3 focus areas
• 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the Business Unit Strategy template for?

The Business Unit Strategy template is designed for business unit leaders and teams who are looking to develop strategies to maximize performance and profitability. It provides a framework for business units to create their own strategies, and the templates provide a structure for each focus area, objectives, measurable targets, and actions needed to reach the desired results.

1. Define clear examples of your focus areas

Focus areas are the main areas of focus for the business unit in a given time frame. Examples of focus areas could include improving profitability, increasing customer satisfaction, or improving efficiency. It is important to identify the focus areas clearly, as they will be the basis of the strategy and inform the objectives, measures, and actions needed to reach the desired results.

2. Think about the objectives that could fall under that focus area

Objectives are specific goals that are outlined to help the business unit reach its desired results. They should be measurable and achievable, and should align with the focus areas. For example, if the focus area is improving profitability, the objectives could include increasing revenue and decreasing costs.

3. Set measurable targets (KPIs) to tackle the objective

KPIs, or Key Performance Indicators, are measurable targets that can help the business unit track its progress towards achieving its objectives. They help to provide a tangible measure of success, and can be used to measure the success of the strategy. Examples of KPIs include conversion rate, average shipping cost, customer satisfaction rate, and average time per session. An example of a KPI for the focus area of Improve Profitability could be: Increase Conversion Rate from 10% to 15%.

4. Implement related projects to achieve the KPIs

Projects, or actions, are the steps needed to reach the objectives. For example, if the objective is to increase revenue, the project could be to increase the conversion rate. It is important to identify the projects needed to reach each objective, as they will help the business unit progress towards its desired results.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Cascade is a strategy execution platform that helps business units to develop, implement, and track the progress of their strategies. It provides an easy-to-use interface to help teams collaborate and track their progress, as well as tools to help identify and set measurable targets. With Cascade, teams can see faster results from their strategies and reach their desired goals more quickly.

What is a Business Plan? Definition and Resources

9 min. read

Updated May 10, 2024

If you’ve ever jotted down a business idea on a napkin with a few tasks you need to accomplish, you’ve written a business plan — or at least the very basic components of one.

The origin of formal business plans is murky. But they certainly go back centuries. And when you consider that 20% of new businesses fail in year 1 , and half fail within 5 years, the importance of thorough planning and research should be clear.

But just what is a business plan? And what’s required to move from a series of ideas to a formal plan? Here we’ll answer that question and explain why you need one to be a successful business owner.

• What is a business plan?

A business plan lays out a strategic roadmap for any new or growing business.

Any entrepreneur with a great idea for a business needs to conduct market research , analyze their competitors , validate their idea by talking to potential customers, and define their unique value proposition .

The business plan captures that opportunity you see for your company: it describes your product or service and business model , and the target market you’ll serve. 

It also includes details on how you’ll execute your plan: how you’ll price and market your solution and your financial projections .

Reasons for writing a business plan

If you’re asking yourself, ‘Do I really need to write a business plan?’ consider this fact: 

Companies that commit to planning grow 30% faster than those that don’t.

Creating a business plan is crucial for businesses of any size or stage. It helps you develop a working business and avoid consequences that could stop you before you ever start.

If you plan to raise funds for your business through a traditional bank loan or SBA loan , none of them will want to move forward without seeing your business plan. Venture capital firms may or may not ask for one, but you’ll still need to do thorough planning to create a pitch that makes them want to invest.

But it’s more than just a means of getting your business funded . The plan is also your roadmap to identify and address potential risks. 

It’s not a one-time document. Your business plan is a living guide to ensure your business stays on course.

Related: 14 of the top reasons why you need a business plan

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What research shows about business plans

Numerous studies have established that planning improves business performance:

• 71% of fast-growing companies have business plans that include budgets, sales goals, and marketing and sales strategies.
• Companies that clearly define their value proposition are more successful than those that can’t.
• Companies or startups with a business plan are more likely to get funding than those without one.
• Starting the business planning process before investing in marketing reduces the likelihood of business failure.

The planning process significantly impacts business growth for existing companies and startups alike.

Read More: Research-backed reasons why writing a business plan matters

When should you write a business plan?

No two business plans are alike. 

Yet there are similar questions for anyone considering writing a plan to answer. One basic but important question is when to start writing it.

A Harvard Business Review study found that the ideal time to write a business plan is between 6 and 12 months after deciding to start a business. 

But the reality can be more nuanced – it depends on the stage a business is in, or the type of business plan being written.

Ideal times to write a business plan include:

• When you have an idea for a business
• When you’re starting a business
• When you’re preparing to buy (or sell)
• When you’re trying to get funding
• When business conditions change
• When you’re growing or scaling your business

Read More: The best times to write or update your business plan

How often should you update your business plan?

As is often the case, how often a business plan should be updated depends on your circumstances.

A business plan isn’t a homework assignment to complete and forget about. At the same time, no one wants to get so bogged down in the details that they lose sight of day-to-day goals. 

But it should cover new opportunities and threats that a business owner surfaces, and incorporate feedback they get from customers. So it can’t be a static document.

Related Reading: 5 fundamental principles of business planning

For an entrepreneur at the ideation stage, writing and checking back on their business plan will help them determine if they can turn that idea into a profitable business .

And for owners of up-and-running businesses, updating the plan (or rewriting it) will help them respond to market shifts they wouldn’t be prepared for otherwise. 

It also lets them compare their forecasts and budgets to actual financial results. This invaluable process surfaces where a business might be out-performing expectations and where weak performance may require a prompt strategy change. 

The planning process is what uncovers those insights.

Related Reading: 10 prompts to help you write a business plan with AI

• How long should your business plan be?

Thinking about a business plan strictly in terms of page length can risk overlooking more important factors, like the level of detail or clarity in the plan. 

Not all of the plan consists of writing – there are also financial tables, graphs, and product illustrations to include.

But there are a few general rules to consider about a plan’s length:

• Your business plan shouldn’t take more than 15 minutes to skim.
• Business plans for internal use (not for a bank loan or outside investment) can be as short as 5 to 10 pages.

A good practice is to write your business plan to match the expectations of your audience. 

If you’re walking into a bank looking for a loan, your plan should match the formal, professional style that a loan officer would expect . But if you’re writing it for stakeholders on your own team—shorter and less formal (even just a few pages) could be the better way to go.

The length of your plan may also depend on the stage your business is in. 

For instance, a startup plan won’t have nearly as much financial information to include as a plan written for an established company will.

Read More: How long should your business plan be?  

What information is included in a business plan?

The contents of a plan business plan will vary depending on the industry the business is in. 

After all, someone opening a new restaurant will have different customers, inventory needs, and marketing tactics to consider than someone bringing a new medical device to the market. 

But there are some common elements that most business plans include:

• Executive summary: An overview of the business operation, strategy, and goals. The executive summary should be written last, despite being the first thing anyone will read.
• Products and services: A description of the solution that a business is bringing to the market, emphasizing how it solves the problem customers are facing.
• Market analysis: An examination of the demographic and psychographic attributes of likely customers, resulting in the profile of an ideal customer for the business.
• Competitive analysis: Documenting the competitors a business will face in the market, and their strengths and weaknesses relative to those competitors.
• Marketing and sales plan: Summarizing a business’s tactics to position their product or service favorably in the market, attract customers, and generate revenue.
• Operational plan: Detailing the requirements to run the business day-to-day, including staffing, equipment, inventory, and facility needs.
• Organization and management structure: A listing of the departments and position breakdown of the business, as well as descriptions of the backgrounds and qualifications of the leadership team.
• Key milestones: Laying out the key dates that a business is projected to reach certain milestones , such as revenue, break-even, or customer acquisition goals.
• Financial plan: Balance sheets, cash flow forecast , and sales and expense forecasts with forward-looking financial projections, listing assumptions and potential risks that could affect the accuracy of the plan.
• Appendix: All of the supporting information that doesn’t fit into specific sections of the business plan, such as data and charts.

Read More: Use this business plan outline to organize your plan

• Different types of business plans

A business plan isn’t a one-size-fits-all document. There are numerous ways to create an effective business plan that fits entrepreneurs’ or established business owners’ needs. 

Here are a few of the most common types of business plans for small businesses:

• One-page plan : Outlining all of the most important information about a business into an adaptable one-page plan.
• Growth plan : An ongoing business management plan that ensures business tactics and strategies are aligned as a business scales up.
• Internal plan : A shorter version of a full business plan to be shared with internal stakeholders – ideal for established companies considering strategic shifts.

Business plan vs. operational plan vs. strategic plan

• What questions are you trying to answer? 
• Are you trying to lay out a plan for the actual running of your business?
• Is your focus on how you will meet short or long-term goals? 

Since your objective will ultimately inform your plan, you need to know what you’re trying to accomplish before you start writing.

While a business plan provides the foundation for a business, other types of plans support this guiding document.

An operational plan sets short-term goals for the business by laying out where it plans to focus energy and investments and when it plans to hit key milestones.

Then there is the strategic plan , which examines longer-range opportunities for the business, and how to meet those larger goals over time.

Read More: How to use a business plan for strategic development and operations

• Business plan vs. business model

If a business plan describes the tactics an entrepreneur will use to succeed in the market, then the business model represents how they will make money. 

The difference may seem subtle, but it’s important. 

Think of a business plan as the roadmap for how to exploit market opportunities and reach a state of sustainable growth. By contrast, the business model lays out how a business will operate and what it will look like once it has reached that growth phase.

Learn More: The differences between a business model and business plan

• Moving from idea to business plan

Now that you understand what a business plan is, the next step is to start writing your business plan . 

The best way to start is by reviewing examples and downloading a business plan template. These resources will provide you with guidance and inspiration to help you write a plan.

We recommend starting with a simple one-page plan ; it streamlines the planning process and helps you organize your ideas. However, if one page doesn’t fit your needs, there are plenty of other great templates available that will put you well on your way to writing a useful business plan.

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

Table of Contents

• Reasons to write a business plan
• Business planning research
• When to write a business plan
• When to update a business plan
• Information to include
• Business vs. operational vs. strategic plans

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Creating Effective Unit Plans: A Guide for Teachers

Why unit plans matter, components of an effective unit plan, creating unit plans at different career stages, sample unit plan formats, frequently asked questions about unit planning.

Unit planning is a crucial aspect of teaching that allows educators to organize and deliver cohesive and comprehensive learning experiences. Whether you’re a new teacher or an experienced educator , effective unit planning can enhance student engagement , promote deeper understanding, and align instruction with learning goals . In this article, we’ll explore the importance of unit plans, key components to include, and strategies for creating meaningful unit plans for different stages of your teaching career.

Unit plans provide a broader framework for a series of lessons, ensuring that learning objectives are met over an extended period. They help teachers:

• Promote Coherence: Unit plans ensure that lessons are interconnected and build upon each other, providing students with a holistic understanding of a topic or concept.
• Focus on Learning Goals: By outlining clear learning objectives, unit plans keep instruction aligned with curriculum standards and essential skills.
• Enhance Engagement: Well-structured units incorporate diverse teaching strategies, activities, and assessments that cater to varied learning styles.
• Guide Assessment: Unit plans help educators develop assessments that accurately measure student progress and mastery of key concepts.
• Unit Overview: Provide a concise summary of the unit’s theme, learning objectives, and the scope of content to be covered.
• Learning Objectives: Clearly define what students should know, understand, and be able to do by the end of the unit.
• Assessment Strategies: Outline formative and summative assessments that align with the unit’s objectives and allow you to gauge student progress.
• Learning Activities: Describe engaging and varied activities that support the learning objectives, such as discussions, projects, hands-on tasks, and technology integration.
• Resources and Materials: List the materials, textbooks, technology tools, and resources required for the unit.
• Differentiation Strategies: Explain how you’ll tailor instruction to accommodate diverse student needs, including gifted learners and those requiring additional support.
• Timetable: Break down the unit into lessons, allocating time for each activity and assessment. Flexibility is essential, but a tentative schedule helps with pacing.
• Reflection and Adaptation: Dedicate a section to reflect on what worked well and what could be improved after teaching the unit. Use this insight to enhance future planning.
• Early-Career Teachers: Focus on clear learning objectives, engaging activities, and effective assessment strategies. Seek mentorship to refine your planning skills.
• Mid-Career Teachers: Incorporate innovative teaching methods, technology integration, and interdisciplinary connections to deepen student understanding.
• Experienced Teachers: Use your expertise to design in-depth, inquiry-based units that encourage critical thinking, problem-solving , and student autonomy.
• New Teacher Sample Unit Plan: Download here to access a unit plan example tailored for early-career educators.
• Experienced Teacher Sample Unit Plan: Download here to access a unit plan example designed for experienced teachers.

Remember, effective unit planning is an ongoing process. Regularly assess the impact of your unit plans on student learning and adjust them as needed. Unit planning not only benefits your students but also enhances your teaching practice and helps you showcase your instructional design skills in professional portfolios and job interviews.

• What is a unit plan, and why do I need it? A unit plan is a comprehensive outline for a series of lessons that make up a broader instructional unit. It ensures that learning goals are met, instruction is coherent, and assessment is aligned.
• What should a unit plan include? A unit plan should have an overview, learning objectives, assessment strategies, learning activities, resources, differentiation methods, timetable, and a reflection section.
• How can unit plans enhance student engagement? By incorporating varied activities, technology, real-world applications, and interdisciplinary connections, unit plans can engage students through diverse learning experiences.
• How can I differentiate instruction in my unit plan? Incorporate strategies such as flexible grouping, varied content delivery, alternative assessment methods, and scaffolded activities to meet the needs of diverse learners.
• Can I adapt the same unit plan format throughout my teaching career? Yes, while the depth and complexity may vary, the core components of a unit plan remain consistent. Adapt your approach based on your experience and students’ needs.
• How can I make my unit plan more effective for interdisciplinary teaching? Integrate content from multiple subjects, encourage connections between disciplines, and collaborate with colleagues from other subjects to create a rich, interdisciplinary learning experience.
• Why is reflection important in unit planning? Reflection helps you evaluate the effectiveness of your unit plan, identify areas for improvement, and make data-driven adjustments to enhance future instruction.
• Can I share my unit plans with colleagues? Sharing unit plans fosters collaboration and allows colleagues to provide feedback, suggest improvements, and align instruction across grade levels or subjects.
• Are unit plans useful for job interviews or professional portfolios? Yes, showcasing well-structured unit plans demonstrates your instructional design skills, your understanding of curriculum alignment, and your commitment to effective teaching practices.

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Business Plan Executive Summary Example & Template

Updated: Jun 3, 2024, 1:03pm

Table of Contents

Components of an executive summary, how to write an executive summary, example of an executive summary, frequently asked questions.

A business plan is a document that you create that outlines your company’s objectives and how you plan to meet those objectives. Every business plan has key sections such as management and marketing. It should also have an executive summary, which is a synopsis of each of the plan sections in a one- to two-page overview. This guide will help you create an executive summary for your business plan that is comprehensive while being concise.

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The executive summary should mimic the sections found in the business plan . It is just a more concise way of stating what’s in the plan so that a reader can get a broad overview of what to expect.

State the company’s mission statement and provide a few sentences on what the company’s purpose is.

Company History and Management

This section describes the basics of where the company is located, how long it has been in operation, who is running it and what their level of experience is. Remember that this is a summary and that you’ll expand on management experience within the business plan itself. But the reader should know the basics of the company structure and who is running the company from this section.

Products or Services

This section tells the reader what the product or service of the company is. Every company does something. This is where you outline exactly what you do and how you solve a problem for the consumer.

This is an important section that summarizes how large the market is for the product or service. In the business plan, you’ll do a complete market analysis. Here, you will write the key takeaways that show that you have the potential to grow the business because there are consumers in the market for it.

Competitive Advantages

This is where you will summarize what makes you better than the competitors. Identify key strengths that will be reasons why consumers will choose you over another company.

Financial Projections

This is where you estimate the sales projections for the first years in business. At a minimum, you should have at least one year’s projections, but it may be better to have three to five years if you can project that far ahead.

Startup Financing Requirements

This states what it will cost to get the company launched and running. You may tackle this as a first-year requirement or if you have made further projections, look at two to three years of cost needs.

The executive summary is found at the start of the business plan, even though it is a summary of the plan. However, you should write the executive summary last. Writing the summary once you have done the work and written the business plan will be easier. After all, it is a summary of what is in the plan. Keep the executive summary limited to two pages so that it doesn’t take someone a long time to peruse what the summary says.

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It might be easier to write an executive summary if you know what to expect. Here is an example of an executive summary that you can use as a template.

Bottom Line

Writing an executive summary doesn’t need to be difficult if you’ve already done the work of writing the business plan itself. Take the elements from the plan and summarize each section. Point out key details that will make the reader want to learn more about the company and its financing needs.

How long is an executive summary?

An executive summary should be one to two pages and no more. This is just enough information to help the reader determine their overall interest in the company.

Does an executive summary have keywords?

The executive summary uses keywords to help sell the idea of the business. As such, there may be enumeration, causation and contrasting words.

How do I write a business plan?

If you have business partners, make sure to collaborate with them to ensure that the plan accurately reflects the goals of all parties involved. You can use our simple business plan template to get started.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of directors of two non-profit organizations seeking to revitalize her former railroad town. Prior to joining the team at Forbes Advisor, Cassie was a content operations manager and copywriting manager.

How to Write a Business Plan: Your Step-by-Step Guide

So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.

Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.

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What is a business plan, and when do you need one?

According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.

“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”

Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.

Different types of business plans

The four main types of business plans are:

Startup Business Plans

Internal business plans, strategic business plans, one-page business plans.

Let's break down each one:

If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.

Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.

Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.

Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.

As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .

Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.

Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).

A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.

How to create a business plan in 7 steps

Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:

1. Conduct your research

Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?

2. Define your purpose for the business plan

The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.

3. Write your company description

Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.

4. Explain and show how the company will make money

A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.

For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.

5. Outline your marketing strategy

How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.

6. Explain how you’ll spend your funding

What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.

7. Include supporting documents

Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”

A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.

“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”

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• Creating Lesson Plans

How to Write a Unit Plan

Last Updated: April 13, 2024 Fact Checked

This article was co-authored by César de León, M.Ed. . César de León is an Educational Leadership Consultant and currently serves as an Assistant Principal for the Austin Independent School District in Austin, TX. César specializes in education program development, curriculum improvement, student mentorship, social justice, equity leadership, and family and community engagement. He is passionate about eradicating inequities in schools for all children, especially those who have been historically underserved and marginalized. César holds a Bachelor’s degree in Education and Biology from Texas State University and a Master’s degree in Educational Leadership from The University of Texas at Austin. There are 7 references cited in this article, which can be found at the bottom of the page. This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources. This article has been viewed 291,792 times.

As a new teacher or educator, it can be overwhelming to face all the responsibilities in writing a good unit plan that maps to all the audiences in your classrooms. Successful unit plans help you organize individual lessons into a coherent structure. Careful attention to advance planning will provide important benefits for both you and your students. You may use a variety of approaches toward unit planning, from short- and long-term outlines to interdisciplinary unit plans shared with instructors in other departments.

Things You Should Know

• A unit plan is a broad overview of a set of lessons; a unit may take an entire quarter, a specific topic you’ll cover, or a set of educational standards.
• You must identify the objectives and standards that you’re going to cover over the course of the unit.
• Include the topics, materials, and assessments that you’re going to use to measure learning outcomes.
• “Backmapping” or “backplanning” is one of the most popular methods for unit planning and it involves mapping out the standards and objectives first and then working backwards to select materials and activities.

Understanding Unit Planning

• Use unit planning to weave key concepts and learning goals together over time and between or among disciplines.
• Consider overlapping lessons with fellow instructors to provide longer spans of time for study and practice.

Planning Short-Term Units for Specific Courses

• For example, if you're planning a history unit on the Great Depression, you may want students to understand 1) the root causes of the Great Depression; 2) the efforts taken by Herbert Hoover to address the Depression; 3) the accomplishments of Franklin Roosevelt and the New Deal; 4) challenges to the emerging New Deal order; and 5) the influence of World War II in ending the Depression.
• Use these five goals to plan lessons and activities that will meet these goals.

• The templates provided at the end of this article may be useful for course planning.

Joseph Meyer

Build strong connections with your fellow teachers. A supportive network of colleagues is essential. They can provide valuable insights, offer encouragement during tough times, and create a sense of community – all crucial for a fulfilling teaching career.

• If, for example, you have four weeks to address the five Great Depression unit goals outlined above, you may opt to begin with three lessons on the Depression's root causes and end with two focused upon the influence of World War II in ending the Depression. In between, you might allocate roughly a week to each of the other three goals, but leave a "float" day or two built into the schedule.
• Plan supplemental assignments for "float" days that, while enriching, are not required material for meeting state standards. You'll be well-prepared if you do need the lessons, but you'll retain the capacity to sacrifice this material in favor of spending an extra day on a key learning goal.

• Formative assessments monitor student learning to provide ongoing feedback. These tools help you understand how well students are grasping course material so you can make adjustments as you go. Formative assessments typically have little or no point value -- they are meant as a check for the instructor and not as an assessment of student performance. [10] X Research source A formative assessment tool for our Great Depression example might be a request that students submit two key points gleaned from a lecture on the First Hundred Days of the New Deal.
• Summative assessments evaluate student learning and are typically given at the end of an instructional unit. These tools typically have high point value as they do gauge student performance. [11] X Research source A summative assessment tool for our Great Depression example might be a research paper on a topic of the student's choosing.

• Our unit on the Great Depression, for example, might mix periodic lectures with examination of primary source documents, conversations about images of the Dust Bowl, audio recordings of some of Franklin Roosevelt's "Fireside Chats," and viewing of the film The Grapes of Wrath.

• Formative assessments can provide useful benchmarks.
• Plan points at which you will commit to move onto new material even if student understanding remains incomplete. Spending too much time on one segment of your unit sacrifices the others.

Planning Backward

• What state standards are you required to fulfill in this course?
• What are your district's course curriculum requirements?
• What are your students' specific needs and learning styles? Consider broad factors such as demographics and past assessment data, but also trust your instincts as you consider the dynamics of your student population.
• A broad "road map" allows you to circumvent common pitfalls such as running short on instructional time. When planning a post-Civil War U.S. history course, for example, if you begin with the understanding that you'll end the course in 2001 you can plot out a series of units that will enable you to reach that goal.

Teach foundational skills so all students grasp the basics. Proactively address the challenges and learning obstacles your students would face, and work to close the achievement gap between high and low performers. Create a collaborative environment where all students have the opportunity to thrive.

• Identify key content, skills, and vocabulary. What will your students need to know when they exit your course?
• Develop ways of assessing your students to determine whether they are learning this information. Remember to diversify your assessment tools; some students will respond better to certain forms of assessment than others.
• Design a structure that will place these essential questions in a proper learning sequence. Now you have your units, and can focus upon specific lesson plans.
• Determine what materials you'll need to properly teach these concepts and skills.

Crafting Interdisciplinary Units

• A history teacher undertaking a unit on the Great Depression, for example, may opt to combine forces with an instructor in a related field such as economics or political science. He or she could also travel further afield and coordinate lessons with a science instructor. The history of the Dust Bowl will gain new life from the scientific insight a biology or earth sciences instructor brings, while the science teacher's students will better understand soil science, erosion, and air currents due to the context provided by their study of Dust Bowl history.

• Following our Dust Bowl example, a science instructor's lesson on meteorology and air currents could lead to a predictive study of where students expect dust might have blown during the 1930s. The students might then share this information with their history teacher and determine the accuracy of their predictions.
• When embarking upon an interdisciplinary unit, ensure you coordinate assessment tools as well as lesson plans. Our imaginary science teacher and history instructor would need to be in communication with each other to determine how well their instruction was translating into important learning outcomes.

• Approaching the same subject from different angles helps students view concepts in a broader context. Instead of seeing that invertebrate report in isolation, they will understand it as a way to put broader research and writing skills into practice.
• Students who feel more confident in one subject than another gain the advantage of recognizing the links between their area of confidence and the skills they've previously found challenging. [14] X Trustworthy Source Association for Supervision and Curriculum Development Nonprofit organization providing innovative, effective educational resources for educators designed to support student achievement Go to source

Sample Documents

Expert Q&A

• Be aware of specific state and district guidelines for the subject matter you intend to write about in a unit. Thanks Helpful 0 Not Helpful 0
• Gather lists of resources that you can add to each time you present this unit. Thanks Helpful 0 Not Helpful 0
• Remember that the best resource is people. Talk to those who have created units before, or who might be experts in a field of study you want to create in a unit. Thanks Helpful 0 Not Helpful 0

• You must have the resources for the activities before you begin planning the lessons you choose. Thanks Helpful 5 Not Helpful 0
• You must stick to a timeline to complete a unit. Thanks Helpful 5 Not Helpful 0
• You must be aware of teaching standards as well as subject matter standards. Thanks Helpful 6 Not Helpful 2

You Might Also Like

• ↑ http://www.ascd.org/publications/books/109051/chapters/[email protected]
• ↑ https://iris.peabody.vanderbilt.edu/module/cnm/cresource/q4/p15/
• ↑ https://cte.smu.edu.sg/approach-teaching/integrated-design/lesson-planning
• ↑ https://drexel.edu/soe/resources/student-teaching/advice/how-to-write-a-lesson-plan/
• ↑ César de León, M.Ed.. Educational Leadership Consultant. Expert Interview. 11 November 2020.
• ↑ https://www.cmu.edu/teaching/assessment/basics/formative-summative.html
• ↑ https://iris.peabody.vanderbilt.edu/module/cnm/cresource/q1/p04/#content

About This Article

Before you write a unit plan, start by writing clear goals for what you want your students to get from the unit. Then go online to get a standard unit planning template, which can help you work through a plan to meet those goals. One thing you’ll need to do is look at the learning standards for your state, and figure out in your plan which lessons should address which standards. You’ll also want to outline the major concepts to be covered and decide how much time you can spend on each concept, given the unit's time frame. For more information on how to write a unit plan, including for an interdisciplinary unit, scroll down! Did this summary help you? Yes No

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Maneuvering the Middle

Student-Centered Math Lessons

How to Create a Unit Plan

Unit plans are one of those things that we often consider nice to have if the district provides it.  Unfortunately, not all districts provide this, especially with the frequent change in standards.  Today, I am sharing how to create a unit plan that is both useful and practical for you and your students.

Benefits of Creating a Unit Plan

• Content gets adequate time upfront
• Gives direction for planning time
• Prevents standards from being left off or forgotten
• Plan for spiraling in content
• Clear direction for assessments
• Provides a varied approach to activities and teaching strategies

What Does a Unit Plan Consist of?

• Mathematical practices or process standards
• Scope and sequence of what is taught each day
• Teaching strategies and models to be incorporated
• Assessments

Keeping Unit Plans Practical

Planning is time-consuming ; I think we are all aware of that.  It seems that a unit plan is just more work on top of actual lesson plans, but I really like to think of this as front-loading the work.

What is the difference between watching a cooking show and actually cooking?  It’s the prep work.  You rarely see Rachael Ray or The Pioneer Woman chop anything.  The ingredients are all set out and ready to go.  When I cook, it looks much different.  I am reading the recipe, trying to grab the ingredients, and realizing that it takes much longer to chop all of the vegetables than I have allotted.  Frequently, I am missing a spice and improvising.  Why?  Well, I haven’t given myself enough time to prep.  Everyone is usually hungry and irritable as I am willing the food to cook faster.

A unit plan is like cutting the veggies, measuring the portions, and preheating the oven.  It makes for the actual lesson planning to be faster and more efficient.  However, don’t go over board and spend too much time on this unit plan.  Keep it practical, by going through the process I outline below.  Some official education articles will extend unit plans to include additional pieces, but we all know that there are only so many hours in a day. Let’s keep it real.

How To Create a Unit Plan

Sometimes school districts will provide a detailed unit plan, but other times they provide something more vague, like the title of a unit and the number of days you have to teach the content within the unit.  I have found unit plans to be incredibly effective in maximizing my planning and scaffolding the learning for my students.

1. Break Down the Standards

I like to begin with the standards and break down the various skills and concepts.  Some districts require these to be written as “I Can” statements and used as daily objectives. Even if you are not required to have them, it’s a great idea to post them and share the daily objective with your students throughout the lesson.  The idea here is to pinpoint what students should be able to do at the end of the unit.

2. Determine a Summative Assessment

Whether you enjoy giving performance tasks or a written test, determine which way you will assess students.  Once you have determined the type of assessment, it is a good idea to write the questions or task.  Obviously, this is sometimes impractical.   I would love to say that this happened before each unit, but the reality is that it was always a goal.  When I did, I was always pleased and more prepared to teach the unit.

If you can’t muster getting a test together at this phase in unit planning, it would be beneficial to have an idea of the types of questions you would like to use or to have looked at an example test or released assessment. In Texas, they release the state exam every few years.

The main point here is that by understanding what the assessment will look like, you as the teacher will be able to better prepare your students.  You may be familiar with the lesson planning framework, Understanding By Design , to which this is the core concept.

3.  Scaffold the skills from basic to complex

At this point, I grab a calendar and a pencil and begin putting skills on paper.  Consider what skills have been learned in prior years and where gaps may exist, so that you can place emphasis and additional time on those areas.  Make note of lessons that may be more difficult so that you allow adequate opportunities for students to become familiar with the content.  I also include summative and formative assessments on the calendar.

4.  Incorporate Mathematical Practices

At this point, I really like to look at the different objectives and skills and brainstorm how I can incorporate the mathematical practices (in Texas we call them process standards) through activities.  This might mean stations where students are analyzing for the error or a lab on constructing triangles.

Tip- I really love incorporating one flex day per unit if possible.  If not, many teachers shoot for one flex day per month.  This helps when an unexpected assembly occurs and the schedule is thrown off or when a concept is really a struggle and you need more time.  It allows you to have a little breathing room and gives permission to take the time necessary without ruining the plan.

If this all seems overwhelming, then you can easily pick and choose a few of the things mentioned and work towards incorporating those.  If you are short on time, you might be interested in my middle school math curriculum units which incorporate the things mentioned in the post.

Free Digital Math Activities

Digital Activities for 6th - 8th grade Math & Algebra 1 interactive | easy-to-use with Google Slides | self-grading Google Forms exit ticket

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Reader interactions, 25 comments.

June 14, 2016 at 8:35 am

Hi! Am designing my own unit plans for algebra1 , 2 and precalculus .. Was wondering if u had any valuable input for anynof those.. Thanx

June 17, 2016 at 8:22 pm

Wow, you have quite the task Arshia! The best thing I would recommend at that level is taking the vertical alignment between the three into strong consideration and making sure that Algebra 1 gets a strong foundation.

June 26, 2016 at 10:07 pm

Hi Noelle, This gives me an AWESOME insight in a very simplistic checklist style of planning units! I am in my final year and about to graduate from Teaching and I really wish I was shown something simple like this from the beginning!

I am open to some tips and advice about general teaching. Have you anything you wish you knew back in college/University??

Kind thanks and Regards Becc

June 27, 2016 at 5:48 am

Oh, I am so glad this post was helpful! Congratulations on such an accomplishment! Keep reading and thinking about your future classroom and students. I think I wish I had been less idealistic in my planning and more concrete with those procedures and routines. Stay consistent and students will respect that and know what you expect. Best of luck!

July 3, 2016 at 10:25 pm

I love your Unit plan template. Where can I find it?

July 6, 2016 at 5:48 am

Hi Melissa! The unit template is a very simple calendar format. I include the pacing guides in my math units and year-long curriculums. At this time I don’t have a template available for other subjects, but I will add that to my to-do list. 🙂 Thanks!

July 15, 2016 at 6:16 pm

I would also love a copy of the blank unit planning template!! I love this simple idea of unit planing!! It’s going to my year easier!!

October 6, 2017 at 1:12 pm

Do you have a template for this unit plan you have here? If you do where can I find it? I am a new teacher. I am teaching 8th grade science and have yet to figure out a good way to plan ahead. I am really struggling. I thought about trying this unit plan!

Thanks! Mica

October 9, 2017 at 5:16 am

Hi Mica! I don’t at this time, but I can for sure add that to my to do list. Thanks!

July 17, 2016 at 11:28 pm

I would love a blank copy of this template! Please let me know if you make it available 🙂 I teach 6th grade ELA.

July 18, 2016 at 11:28 pm

Hi Brittany! I keep getting this question, and hope to get to it eventually. Its a super busy time of year, but I will do my best!

July 30, 2016 at 10:30 am

Same! I’d love to see it in your TPT store!

June 23, 2017 at 11:57 am

Me too, please!

July 29, 2017 at 2:25 pm

August 8, 2016 at 3:20 pm

I was just looking for the 6th grade Endless Bundle but its CCSS! Do you have one for TEKS? I’m in Texas and my district doesn’t like us to use CCSS material.

August 11, 2016 at 7:15 am

Hi Beth! Thanks for the question. At this time it is aligned to CCSS, but has a huge overlap with TEKS. The main difference are the personal financial literacy standards. If you have more questions, please feel free to email me or contact me on the site and I can provide more specifics. Thanks!

June 26, 2017 at 11:58 am

WOW! This is very helpful. I wish I read this while reach ELA for 6th, 7th, and 8th. This will help me streamline my lessons for my upcoming year.

July 1, 2017 at 2:46 pm

Thanks so much, Danielle!

July 29, 2017 at 2:15 pm

Do you have a template you use for unit planning? I am need of one!!!

August 11, 2017 at 5:19 am

Not at this time, but its a great idea!

June 7, 2018 at 10:33 pm

Do you share your Unit Plan with your students?

June 22, 2018 at 10:38 am

Since my unit plan can change based on the needs of my students or a variety of other reasons, I don’t share my unit plan with my student. I do share when we have quizzes and when the summative assessment is.

July 9, 2018 at 6:28 pm

do you have this calendar available for purchase?

March 15, 2024 at 10:10 am

Hi, Melissa – I don’t, but I used Powerpoint and tables. Very doable!

November 11, 2018 at 9:10 pm

A thousand thank yous!!! You are a God-send! I am in my second from the final class to receive my master’s degree in special education and become licensed to teach. This will be such a help.

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New apartments for ranch where ‘Dallas’ TV show was once filmed are coming soon

Construction on the third phase is expected to start in october. it’s part of a plan to build single-family homes and apartments on what used to be part of the ranch..

By Nick Wooten

6:00 AM on Jun 26, 2024 CDT

Apartment developer Trammell Crow Residential will soon finish its first units and could begin work on a third phase of construction in its rental community at Frisco’s historic Brinkmann Ranch , where the first season of Dallas was filmed.

The first units of Crow Residential’s first and second phases of apartments will be completed in September. The phases will be finished next year, a company representative said.

Related: North Texas developer acquires 1,100 acres west of Celina

The first phase will include 508 units over a dozen three-story apartment buildings. Crow Residential also plans for 89 rental units in two- and three-story townhouse buildings in the second phase. The apartments’ rent will likely range from around $1,500 to $3,500. The townhomes will likely range from $2,600 to more than $5,000 a month.

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The Dallas-based firm now plans to build an additional 355 units across eight buildings at the corner of Coit Road and Eldorado Parkway on what was once part of the famed ranch.

Estimated construction costs are $64.1 million , according to a filing last week with the Texas Department of Licensing and Regulation. Plano-based Hensley Lamkin Rachel Inc. was listed as the architect. Details in these state filings are preliminary and subject to change.

Crow Residential aims to start the project late this year, but it may be pushed into next year, a spokesperson said. Filings show construction is expected to be complete by October 2026.

The Frisco Planning and Zoning Commission approved open space and site plans for the apartments during a May meeting. Zoning Commission members are expected to discuss the project again at a future meeting before giving recommendations to the Frisco City Council, Community Impact reports.

City documents refer to the development as Alexan Frisco. Crow Residential’s Alexan apartments are marketed as “unique, upscale communities.”

Brinkmann Ranch once included more than 5,000 acres at Preston Road and Main Street in the heart of Frisco. It was previously owned by oilman, entrepreneur and former NFL star Cloyce Box. Dallas businessman Baxter Brinkmann eventually purchased the property following Box’s death in 1993.

In the 1970s, parts of the ranch were used to film the first season of the Dallas television series.

After the initial episodes, the fictional Ewing family found a new home — what’s now called Southfork Ranch in Parker. That property was used for the remainder of the series.

In 2020, Plano-based Landon Development acquired 637 acres of the Brinkmann Ranch on the west side of Coit Road. It was one of the largest vacant tracts in Frisco. Landon Development bought the property for a $1 billion development of 4,700 houses and apartments , the Dallas Morning News previously reported.

Crow Residential bought more than 100 acres zoned to allow for 2,300 rental units. It’s unclear if and when future phases will be built.

The apartment community would be the latest in a series of projects on Brinkmann Ranch. This includes a 58,000-square-foot Tom Thumb grocery store that anchors the Lexington Village shopping center as well as other retail and housing developments.

Nick Wooten . Nick is a real estate reporter for the Dallas Morning News. He previously worked as a digital investigative reporter at 11Alive, Atlanta's NBC affiliate. He's produced award-winning state politics coverage and feature reporting at Georgia newspapers. Nick is a graduate of Mercer University in Macon, Georgia.