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Blog Business How to Write a Business Plan Outline [Examples + Templates] 

How to Write a Business Plan Outline [Examples + Templates] 

Written by: Letícia Fonseca Aug 11, 2023

When venturing into crafting a business plan, the initial hurdle often lies in taking that first step.

So, how can you evade those prolonged hours of staring at a blank page? Initiate your journey with the aid of a business plan outline.

As with any endeavor, an outline serves as the beacon of clarity, illuminating the path to confront even the most formidable tasks. This holds particularly true when composing pivotal documents vital to your triumph, much like a business plan.

Nonetheless, I understand the enormity of a business plan’s scope, which might make the task of outlining it seem daunting. This is precisely why I’ve compiled all the requisite information to facilitate the creation of a business plan outline. No need to break a sweat!

And if you’re seeking further assistance, a business plan maker and readily available business plan templates can offer valuable support in shaping your comprehensive plan.

Read on for answers to all your business plan outline questions or jump ahead for some handy templates. 

Click to jump ahead:

What is a business plan outline (and why do you need one), what format should you choose for your business plan outline, what are the key components of a business plan outline.

• Business plan template examples
• Writing tips to ace your outline 

A business plan outline is the backbone of your business plan. It contains all the most important information you’ll want to expand on in your full-length plan. 

Think of it this way: your outline is a frame for your plan. It provides a high-level idea of what the final plan should look like, what it will include and how all the information will be organized. 

Why would you do this extra step? Beyond saving you from blank page syndrome, an outline ensures you don’t leave any essential information out of your plan — you can see all the most important points at a glance and quickly identify any content gaps. 

It also serves as a writing guide. Once you know all the sections you want in your plan, you just need to expand on them. Suddenly, you’re “filling in the blanks” as opposed to writing a plan from scratch!

Incidentally, using a business plan template like this one gives you a running head start, too: 

Perhaps most importantly, a business plan outline keeps you focused on the essential parts of your document. (Not to mention what matters most to stakeholders and investors.)  With an outline, you’ll spend less time worrying about structure or organization and more time perfecting the actual content of your document. 

If you’re looking for more general advice, you can read about  how to create a business plan here . But if you’re working on outlining your plan, stick with me.

Return to Table of Contents

Most business plans fit into one of two formats. 

The format you choose largely depends on three factors: (1) the stage of your business, (2) if you’re presenting the plan to investors and (3) what you want to achieve with your business plan. 

Let’s have a closer look at these two formats and why you might choose one over the other.

Traditional format

Traditional business plans  are typically long, detailed documents. In many cases, they take up to 50-60 pages, but it’s not uncommon to see plans spanning 100+ pages. 

Traditional plans are long because they cover  every aspect  of your business. They leave nothing out. You’ll find a traditional business plan template with sections like executive summary, company description, target market, market analysis, marketing plan, financial plan, and more. Basically: the more information the merrier.

This business plan template isn’t of a traditional format, but you could expand it into one by duplicating pages:

Due to their high level of detail, traditional formats are the best way to sell your business. They show you’re reliable and have a clear vision for your business’s future. 

If you’re planning on presenting your plan to investors and stakeholders, you’ll want to go with a traditional plan format. The more information you include, the fewer doubts and questions you’ll get when you present your plan, so don’t hold back. 

Traditional business plans require more detailed outlines before drafting since there’s a lot of information to cover. You’ll want to list all the sections and include bullet points describing what each section should cover. 

It’s also a good idea to include all external resources and visuals in your outline, so you don’t have to gather them later. 

Lean format

Lean business plan formats are high level and quick to write. They’re often only one or two pages. Similar to a  business plan infographic , they’re scannable and quick to digest, like this template: 

This format is often referred to as a “startup” format due to (you guessed it!) many startups using it. 

Lean business plans require less detailed outlines. You can include high-level sections and a few lines in each section covering the basics. Since the final plan will only be a page or two, you don’t need to over prepare. Nor will you need a ton of external resources. 

Lean plans don’t answer all the questions investors and stakeholders may ask, so if you go this route, make sure it’s the right choice for your business . Companies not yet ready to present to investors will typically use a lean/startup business plan format to get their rough plan on paper and share it internally with their management team. 

Here’s another example of a lean business plan format in the form of a financial plan: 

Your business plan outline should include all the following sections. The level of detail you choose to go into will depend on your intentions for your plan (sharing with stakeholders vs. internal use), but you’ll want every section to be clear and to the point. 

1. Executive summary

The executive summary gives a high-level description of your company, product or service. This section should include a mission statement, your company description, your business’s primary goal, and the problem it aims to solve. You’ll want to state how your business can solve the problem and briefly explain what makes you stand out (your competitive advantage).

Having an executive summary is essential to selling your business to stakeholders , so it should be as clear and concise as possible. Summarize your business in a few sentences in a way that will hook the reader (or audience) and get them invested in what you have to say next. In other words, this is your elevator pitch.

2. Product and services description

This is where you should go into more detail about your product or service. Your product is the heart of your business, so it’s essential this section is easy to grasp. After all, if people don’t know what you’re selling, you’ll have a hard time keeping them engaged!

Expand on your description in the executive summary, going into detail about the problem your customers face and how your product/service will solve it. If you have various products or services, go through all of them in equal detail. 

3. Target market and/or Market analysis

A market analysis is crucial for placing your business in a larger context and showing investors you know your industry. This section should include market research on your prospective customer demographic including location, age range, goals and motivations. 

You can even  include detailed customer personas  as a visual aid — these are especially useful if you have several target demographics. You want to showcase your knowledge of your customer, who exactly you’re selling to and how you can fulfill their needs.

Be sure to include information on the overall target market for your product, including direct and indirect competitors and how your industry is performing. If your competitors have strengths you want to mimic or weaknesses you want to exploit, this is the place to record that information. 

4. Organization and management

You can think of this as a “meet the team” section — this is where you should go into depth on your business’s structure from management to legal and HR. If there are people bringing unique skills or experience to the table (I’m sure there are!), you should highlight them in this section. 

The goal here is to showcase why your team is the best to run your business. Investors want to know you’re unified, organized and reliable. This is also a potential opportunity to bring more humanity to your business plan and showcase the faces behind the ideas and product. 

5. Marketing and sales

Now that you’ve introduced your product and team, you need to explain how you’re going to sell it. Give a detailed explanation of your sales and marketing strategy, including pricing, timelines for launching your product and advertising.

This is a major section of your plan and can even live as a separate document for your marketing and sales teams. Here are some  marketing plan templates to help you get started .

Make sure you have research or analysis to back up your decisions — if you want to do paid ads on LinkedIn to advertise your product, include a brief explanation as to why that is the best channel for your business. 

6. Financial projections and funding request

The end of your plan is where you’ll look to the future and how you think your business will perform financially. Your financial plan should include results from your income statement, balance sheet and cash flow projections. 

State your funding requirements and what you need to realize the business. Be extremely clear about how you plan to use the funding and when you expect investors will see returns.

If you aren’t presenting to potential investors, you can skip this part, but it’s something to keep in mind should you seek funding in the future. Covering financial projections and the previous five components is essential at the stage of business formation to ensure everything goes smoothly moving forward.

7. Appendix

Any extra visual aids, receipts, paperwork or charts will live here. Anything that may be relevant to your plan should be included as reference e.g. your cash flow statement (or other financial statements). You can format your appendix in whatever way you think is best — as long as it’s easy for readers to find what they’re looking for, you’ve done your job!

Typically, the best way to start your outline is to list all these high-level sections. Then, you can add bullet points outlining what will go in each section and the resources you’ll need to write them. This should give you a solid starting point for your full-length plan.

Business plan outline templates

Looking for a shortcut? Our  business plan templates  are basically outlines in a box! 

While your outline likely won’t go into as much detail, these templates are great examples of how to organize your sections.

Traditional format templates

A strong template can turn your long, dense business plan into an engaging, easy-to-read document. There are lots to choose from, but here are just a few ideas to inspire you… 

You can duplicate pages and use these styles for a traditional outline, or start with a lean outline as you build your business plan out over time:

Lean format templates

For lean format outlines, a simpler ‘ mind map ’ style is a good bet. With this style, you can get ideas down fast and quickly turn them into one or two-page plans. Plus, because they’re shorter, they’re easy to share with your team.

Writing tips to ace your business plan outline

Business plans are complex documents, so if you’re still not sure how to write your outline, don’t worry! Here are some helpful tips to keep in mind when drafting your business plan outline:

• Ask yourself why you’re writing an outline. Having a clear goal for your outline can help keep you on track as you write. Everything you include in your plan should contribute to your goal. If it doesn’t, it probably doesn’t need to be in there.
• Keep it clear and concise. Whether you’re writing a traditional or lean format business plan, your outline should be easy to understand. Choose your words wisely and avoid unnecessary preambles or padding language. The faster you get to the point, the easier your plan will be to read.
• Add visual aids. No one likes reading huge walls of text! Make room in your outline for visuals, data and charts. This keeps your audience engaged and helps those who are more visual learners. Psst,  infographics  are great for this.
• Make it collaborative. Have someone (or several someones) look it over before finalizing your outline. If you have an established marketing / sales / finance team, have them look it over too. Getting feedback at the outline stage can help you avoid rewrites and wasted time down the line.

If this is your first time writing a business plan outline, don’t be too hard on yourself. You might not get it 100% right on the first try, but with these tips and the key components listed above, you’ll have a strong foundation. Remember, done is better than perfect. 

Create a winning business plan by starting with a detailed, actionable outline

The best way to learn is by doing. So go ahead, get started on your business plan outline. As you develop your plan, you’ll no doubt learn more about your business and what’s important for success along the way. 

A clean, compelling template is a great way to get a head start on your outline. After all, the sections are already separated and defined for you! 

Explore Venngage’s business plan templates  for one that suits your needs. Many are free to use and there are premium templates available for a small monthly fee. Happy outlining!

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Sales | How To

How to Write a Business Proposal (+ Template & Examples)

Published February 27, 2023

Published Feb 27, 2023

REVIEWED BY: Jess Pingrey

WRITTEN BY: Bianca Caballero

This article is part of a larger series on Sales Management .

Free Business Proposal Template

• 1 Determine Sales Proposal Requirements
• 2 Gather Necessary Information
• 3 Design Your Proposed Solution
• 4 Calculate Pricing
• 5 Draft Your Proposal
• 6 Edit Your Proposal Draft
• 7 Send Your Proposal
• 8 Follow Up With Your Recipient
• 9 Best Practices in Writing Sales Proposals
• 10 Bottom Line

A business proposal is a document sent to a prospective client that outlines a firm’s product or service offerings. It also explains how you will provide a solution, the cost, timeline, and qualifying information, such as your background and prior work experience. In this article, we outline eight steps for how to create a business proposal, offer a free proposal template, and provide best practices for writing proposals.

Creating a sales proposal can feel tedious, especially if you’re drafting it from scratch each time. We’ve created a free template that you can use as a resource for your sales proposal.

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Free Sales Business Proposal Template

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💡 Quick Tip:

Use ClickUp for free to see your entire sales funnel in one place.

• ✓ Free forever, unlimited users
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• ✓ Create presentations, lead forms, and contracts
• ✓ Professional workspace templates

After you’ve downloaded our free template above, you can now customize it according to your business needs as you follow the steps to writing a proposal below:

1. Determine Sales Proposal Requirements

The first step in learning how to write a business proposal is knowing what needs to be included. Government agencies, public universities, and large corporations typically use requests for proposals (RFPs). These are formal solicitation requests for products or services in which the requirements are normally laid out line by line and must be followed precisely.

If you are writing a proposal for a potential customer undergoing your unique sales process , include things a decision-maker would like to see. For instance, pricing, timelines, and the proposed solution regarding quantities and the mode of product or service delivery are critical purchasing factors enclosed in the document.

Pro tip: ClickUp is a free-forever project management tool that helps teams:

• Create professional proposals
• Collaborate with shared tasks and team chat
• Assign tasks to teammates

Visit ClickUp

ClickUp project management board (Source: ClickUp )

2. Gather Necessary Information

Gathering essential information and materials for your proposal can be complex because each potential client may want different details. This could demand other personnel to get involved in pulling the documents and information needed. For instance, some may only request the price and proposed solution, while others will ask for your background story, client reference lists, and work samples to show you’re qualified.

While learning how to write a proposal for business purposes, you may have to dig around your file database for company information, employee biographies, marketing materials, and pricing sheets. Keeping all resources needed for a proposal in one place makes this process easier. Use customer relationship management (CRM) systems to track your proposal progress and acquire what’s needed to draft it in one place.

Pro tip: HubSpot is a popular CRM platform that lets you monitor opportunities using sales pipelines and store documents—all in one system. You can utilize the Sales Documents feature to store, share, and customize templates and materials you’ll need for your proposals.

HubSpot’s deals and opportunities pipeline (Source: HubSpot )

HubSpot’s Sales Documents library (Source: HubSpot )

3. Design Your Proposed Solution

Your proposed solution involves the processes, materials, product quantities, and personnel required to fulfill the offerings or address your customer’s problem statement. Additionally, it should be included in the scope of work section in the proposal. For businesses that only provide a product, such as equipment for a manufacturing plant, this step could be as easy as knowing the quantity and having a logistics plan for delivery and installment.

For more service-based businesses, such as business consultants or content development services, there will likely be more steps and deliverables to complete the work. Regardless of your business, you can use the five W’s and an H methodology to construct a proposed solution that addresses your prospect’s primary pain points:

• Who: Who will be involved, do the work, manage, and be a point of contact for the prospect?
• What: What solutions or products will be delivered, and what resources, processes, or technology will be used?
• Where: Where will work be done or delivered to?
• When: When will the work start and be completed, what are the key milestones throughout the project, and when is each deliverable expected to occur?
• Why: Why did you choose this particular solution for this customer’s needs?
• How: How will work be done, managed, and checked for high quality and customer satisfaction?

For example, a business-to-business (B2B) content writing business might be trying to address a statement of needs issued by a client: “We would like to express thought leadership on the topic of the Zero Trust Cybersecurity Framework.” In this case, the business could use the solution in this business proposal example:

The objective of this business proposal is to demonstrate how ABC Writing Agency can promote the thought leadership of Cybersecurity Corp. for the Zero Trust Security Model. We believe the best course of action is to research and copyright a branded e-book (roughly 4,000 words) regarding Zero Trust Security, the details of the solution, its benefits, and the modern-day security challenges it solves (what) with the final product completed in August 2022. (when) The e-book will use your logo and branding scheme to convey your personal grasp on the subject and thought leadership using a series of direct quotes and statistical callouts. (why)

To ensure high-quality work and client satisfaction, we will begin with an initial call to construct a detailed outline discussing the sections, style guides, tone, and to retrieve direct quotes. Following an initial draft, multiple rounds of edits will take place between Cybersecurity Corp. and ABC Writing Agency to develop a final draft. (how)

The project will be led by our senior editor, Collin Buchanan, and content manager, Jake Cunningham, who comes from the world of cybersecurity. Our team will utilize and manage freelancers experienced in writing e-books on technical topics to research and copyright the asset. (who) All work will be completed by us virtually and delivered via Google Docs. (where)

4. Calculate Pricing

Once you know how you’ll provide your product or service, the next step in writing a proposal is formulating the costs to specify in the document’s pricing section. This is one of the toughest steps because of all the factors that need to be considered, such as product cost and other expenses. That’s why it is critical to accurately communicate your costs to avoid losing a deal for overcharging—or worse—winning a deal with significantly underestimated costs.

As you price everything, you can either do a flat fee, hourly rate, per-unit charge, or some combination of the three. Sometimes, it’s best to work backward by establishing your desired probability first in the form of a percent like 20% profit or a flat dollar amount such as $10,000 above the work cost.

For example, you want to make a 20% profit on the work for an equipment installation job for a manufacturing business, and you’re pricing using a flat fee. You’ve itemized the costs as the following:

• 1 x $80,000 manufacturing equipment = $80,000
• 3 installation/delivery employees x 5 hours x $32 per hour = $480 wages
• $480 employee wages x 7% employer payroll tax = $33.6 payroll tax
• $480 employee wages x 20% benefits and workers’ compensation = $96 benefits and compensation
• $200 for the delivery truck and gas = $200 for delivery costs

When you add all the itemized expenses, the total cost for this installation job will be around $80,809. To get the total, you need to charge this customer to meet your desired profitability, and multiply it by 20% to get $16,162. Add that to your total cost ($80,809 + $16,162), and $96,971 is the flat fee you will charge for the installation job.

Pro tip: Struggling to visualize your pricing process? Try using these seven free estimate templates . Designed for various business types, these templates allow you to outline and itemize the costs of providing work to share with your customers to help win more deals easily.

5. Draft Your Proposal

Now that you know your proposal requirements, have gathered the necessary information, determined the proposed solution, and calculated pricing, you are ready to draft the document. Following along with our free template, your draft will consist of the following elements:

The title page leans more toward showing the professionalism of your business than providing information. There should be a specific title establishing the purpose, such as “ABC Writing Agency Proposal for Cybersecurity Corp. to Promote Thought Leadership on Zero Trust Security.”

Also, be sure to indicate who the proposal was prepared for in terms of the decision-making person and their company name. Add your logo to the front and the contact information for the primary point of contact for your business so they can contact you with further questions.

Table of Contents

Use a table of contents to break down each part of the proposal for business so they can easily navigate through it. Because of the digital age we live in, we recommend linking your table of contents electronically to each associated section. That way, those reading your proposal can go to any part of the document by clicking on the table of contents.

Executive Summary

The executive summary takes everything in your proposal and compresses it into one paragraph. Essentially, if a reader reads this section, they should be able to grasp the general idea of your solution. Here’s a business proposal example using the content writing example above:

With over 10 years of experience in writing high-quality marketing assets, we are eager to assist Cybersecurity Corp in its endeavor to promote thought leadership on Zero Trust Security. We plan to achieve this by writing a comprehensive e-book using engaging copy, stat callouts, and direct quotes from your leaders to help associate the security framework with your brand.

Company Background

Here’s your time to talk about your inception story, mission statement , founding purpose, and company history. You can also provide biographies and professional pictures of your company founders, leaders, and key personnel that might be involved in the work you provide.

This is also the time to express your unique selling proposition . In other words, addressing the question “why choose us” over competitors. Lastly, if you’ve had any recognition or won any company awards, this is the section to highlight those successes.

Scope of Work

This section correlates with creating your proposed solution in step three as you present it in an actionable business plan. Describe the work that will be completed and the tangible deliverables associated with it.

In this small business proposal example, we see how a content writing business might construct a scope of work:

We will provide content writing services to create predetermined marketing assets for Cybersecurity Corp. This includes researching online data for usable information, interviewing subject matter experts (SMEs) for additional insights and quotes, copywriting drafts, inserting callouts, and making edits per revision requests made by Cybersecurity Corp. Deliverables for the scope of work above include:

• 1 x outline developed by ABC Writing Agency and approved by Cybersecurity Corp.
• 1 x drafted e-book (max. 4,000 words) delivered by Google Doc

No matter how long your scope of work is, it’s crucial to avoid industry or technical jargon that the general audience may not understand. Take the time to review the scope of work and translate any statements that may be misunderstood or confusing.

Be sure to indicate how long you expect it to take to complete the entire scope of work. It’s also a good idea to provide estimates for each milestone or individual deliverable you set. Whenever possible, present the information visually to help your reader absorb it better. Below is a sales proposal timeline example for a sales consulting business and its milestones.

Pricing or Price Estimate

For this section, take the price calculation you did in step four and present it to the potential customer. While you should itemize it to show where the price comes from, avoid adding your desired profitability, as that should be private to your business. Make sure it’s clear as to how each item is priced, whether that be hourly, per unit, or a flat fee.

This section should also be used to explain payment expectations, e.g., when invoices must be paid by, how much money is required upfront vs after work is completed, refund policy, and if other billable expenses can be included automatically or require client approval.

Be upfront with your estimate if you don’t know how many units you’ll need or how many hours it will take to accomplish your business offering. Provide an explanation and an estimated range.

Conclusion, Terms & Appendix

The final sections should include additional information that could be useful to your prospective client. A conclusion should express your gratitude for the opportunity and explain the next steps to move forward. Terms (or terms and conditions) can be added in a proposal or in the service agreement to cover legal aspects of a working contract, like contract dispute policies, confidentiality, rules on subcontracting, etc.

The appendix is optional but would utilize visuals or supplemental documents to enrich your proposal. For instance, you might include links to sample work, a client reference list, or a catalog of options for materials or software vendors from which the client can choose.

6. Edit Your Proposal Draft

Once you have completed the first draft of your proposal, run it by multiple departments to ensure it is comprehensive and accurate. Some things to consider as you review it for potential revisions:

• Has strong readability: The proposal uses appropriate style, tone, and structured sentences to create a clean flow of information understood by the specific reader.
• Avoids grammar and technical errors: The proposal avoids punctuation, spelling, or other errors related to proper writing mechanics.
• Addresses requirements: The proposal contains all the information and sections required to meet the reader’s or customer’s needs and objectives.

Use editing tools such as Grammarly to evaluate your business proposal writing for enhanced quality. Grammarly lets users upload text into a system to check for grammar and spelling mistakes as well as for engagement and readability of content. There’s also a plagiarism check feature to evaluate the text to billions of pages online. You can even adjust style preferences when subscribing to Grammarly Business to ensure it meets all your goals.

Grammarly Business’ in-line writing suggestion (Source: Grammarly Business )

Pro tip: Use graphic design tools like Canva to give your sales proposal the professional touch it needs. Canva is a user-friendly platform with thousands of free templates for presentations, marketing materials, social media posts, and proposals for business. Users of all design skill levels can easily turn regular copies into visual masterpieces.

Canva’s sales proposal templates (Source: Canva )

7. Send Your Proposal

Now that your proposal is drafted, edited, and has the aesthetics it needs, it’s time to send the document for review. More formal submissions for RFPs may require that you submit them in person, electronically, or both, so review those provisions carefully before sending them in.

Some sales plans incorporate unsolicited proposals to new leads to present problems they didn’t know existed with viable solutions they could offer. In these cases, they use the proposal to get their foot in the door and create sales opportunities.

When taking this course of action, it’s important to add context to the unsolicited proposal. For instance, in a sales email , briefly introduce yourself, your business, and what services you provide. Furthermore, indicate why you wanted to send a proposal to them specifically and let them know they can reach out if they wish to discuss it further.

8. Follow Up With Your Recipient

Even after you send a proposal, the process is not over. Make time to follow up to confirm the contact received the proposal and see if they have any questions. Because of the proposals’ details, there are usually other clarification steps in the procurement process, such as interviews, client meetings , or sales presentations before work begins.

We recommend using a customer relationship management (CRM) system with task management capabilities to ensure sales reps don’t forget to reach out to a prospect after a proposal is initially sent. A CRM like Pipedrive lets you design and assign tasks to team members from within a project. You can also create projects that are linked to open or won deals.

Pipedrive’s project and task management feature (Source: Pipedrive )

Best Practices in Writing Sales Proposals

Now that you know the steps in how to write a business proposal, there are a few tips you can practice and maintain to produce thoughtful and effective proposals.

Keep It Simple

When learning how to make a business proposal, remember to write short, simple sentences. While there is no strict rule on the business proposal format or length, make sure it is straightforward and easy to understand. Avoid loading it with too much business jargon and fancy words. Instead, strike the sweet spot between conveying essential information and ensuring anyone who reads it can understand it.

Outline Major Sections & Pertinent Information

The first thing to do when learning how to do a business proposal is to outline all the major sections of your document. This should also include all the pertinent information that you want to get across. The business proposal outline will help you stay focused on the main points of the document and keep your ideas from drifting away.

Add Data & Visuals

Capture your prospect’s attention by including quantitative data and figures highlighting your offerings and the value of your company. For example, you can show your month-on-month sales trends as proof of your stellar performance. Adding visual elements like charts and graphs can also help make your proposal more engaging.

Increase Credibility With Social Proof

Assert your company’s credibility. Many prospects won’t readily believe your claims about your business and are most likely to trust the word of their own peers and other customers. To help build your credibility and gain their trust, include social proof, such as reviews and testimonials from your own customers.

Use a Call to Action (CTA)

After the prospect reads your proposal, direct them to the next step. Use a call to action with a verb that defines what they should do to act on their interest in your proposal. Examples of CTAs are “Subscribe today” or “Download this guide now.” You can also use a CTA with a no-obligation statement like “Sign up, it’s free” for prospects who perceive risks in taking action.

Another excellent idea when adding CTAs is to create a sense of urgency to make your prospect feel that now is the best time to subscribe to your service. Some people are motivated to do something right away for fear of missing out (FOMO). That said, phrases like “Limited-time offer” and “On sale now for 20% off” can trigger action from prospects.

Stay True to Your Brand

Each company has a different brand voice and personality. Staying true to your business brand is a great way to stand out among your competitors. For instance, if your company sells baby clothes, it is best to use language that parents with babies can relate to, like “cute and cuddly” or “snug and comfy.” Use a more formal tone of voice in your proposal if you are selling office wear.

Bottom Line

Many business owners and sales managers would like to standardize their proposal-writing system. However, it can be tricky to address the unique needs of every solicited and unsolicited opportunity to get the correct information in order and present their proposed solutions. Our how-to sales proposal examples and free template will help you streamline your bidding process to win more deals.

About the Author

Find Bianca On LinkedIn

Bianca Caballero

Bianca Caballero is a subject matter expert at Fit Small Business who covers Sales and Customer service topics. Prior to working at FSB, she was in field sales and territory management. When she launched her career as a writer, she worked with companies from the US, Australia, and China. At present, she uses her 12+ years of writing experience to provide FSB readers with the best answers to their questions.

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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.

• How To Write A Business Proposal

Acrobat for business | 10-Minute read

Business proposal template: how to write a proposal in 7 steps.

Create a well-structured proposal to win new clients and business.

Explore Adobe Acrobat for business

JUMP TO SECTION

1. Research and outline

2. Title and table of contents

3. Executive summary

4. Problem and solution

5. Milestone and budget

6. Conclusion

7. business proposal edits

What is a business proposal?

A business proposal is a written offer of a product or service most commonly sent to prospective customers. Moreover, they can also be presented to existing customers, such as when a company tries to upsell an additional product or service.

How your proposal is written can be the difference between winning or losing a client. A poorly designed proposal overcomplicates the solution, excludes customer details and needs, disregards grammar and style, and prevents you from advancing your company’s goals.

A good proposal should always answer these key questions:

• Who are you? What does your company do?
• What problems are your prospective customers facing?
• What solution does your company offer to solve the problem?
• How will your company successfully implement the solution?
• How much money, time, and other resources will be required to implement the solution?

Answering these questions sets expectations upfront for the customer and holds a business accountable for its outlined products and services.

How to write a business proposal.

Business proposals can vary in formatting, but all should have the essential elements: title page, table of contents, details on your company’s why in the executive summary, a problem or need statement, a proposed solution, qualifications, a timeline, pricing, billing, legal information, clarification of terms and conditions, and the acceptance section where your potential buyer can sign the document.

Before composing your proposal, ensure that you have a comprehensive understanding of a business proposal template. If you need additional details, consider setting up an initial meeting or phone call to gain insight into what the client wants from a prospective vendor. If the business has shared an RFP with you, thoroughly review the document. After your research is complete, you can create your business proposal. The key steps to begin writing the proposal are detailed below.

1. Research and outline your business proposal.

Building a business proposal is a highly structured process, which means that an outline is essential. Before creating your outline, ensure you have completed your research and are well prepared and informed about your client. You likely know what you want to do to expand your business already — make sure you have case studies, pertinent data, and compelling examples of how your proposal will benefit your client.

While learning about your client, you may discover graphics, images, or other details you want to document for your research. Consider a tool such as a free scanner app that lets you scan any content item into a PDF and incorporate them into your proposal outline.

When you are ready to create your outline, note that the process can be as simple as making a one-or two-page document, with bullet points breaking key areas into quick summaries that you can expand into sections. You can use steps 2–6 here as the framework for your outline. You can even build out the entire document in a PDF editor , where you can drop pages and add PDF comments to your proposal on the fly.

2. Build the title and table of contents.

The title — the introduction to your proposal — is the first step in getting eyes on your work. Especially if the proposal is unsolicited, you must excite your audience and assure them that your solution will solve their pain points. Creating a strong, solid titlepage gives a prospective client an idea of the value proposition and the information contained within the proposal.

A good title includes a good tagline. A tagline represents your company’s values — it doesn’t represent an individual product. The tagline must be short enough to catch your reader’s attention but long enough to represent what your business has to offer. Focus on positive words and use simple terminology. Consider these examples in response toa website redesign proposal:

Poor taglines

• Website Project for Company XYZ
• Making a Better Website for Company XYZ

Good taglines

• Next-Gen Web Experience through Strategic Redesign
• Reimagining Digital Realms from Canvas to Concept

From sales proposals to marketing proposals, the table of contents provides clues to your audience about what you’re selling and how it benefits them. It is also a significant part of your proposal since most of your readers will be C-level executives who will most likely scan through it. The table of contents not only helps readers reference where different sections start and end, but it can also provide additional small summaries of each section — the options are up to you.

3. Write your executive summary.

The executive summary functions as an introduction to your reader. In some ways, it’s like a 1–2 page cover letter — a concise introduction and summary of your proposal.

A good executive summary will:

• Introduce your company (especially if the proposal is unsolicited)
• Present an overview of your business goals and objectives
• Discuss your expertise with a summary of 1–2 previous similar projects
• Summarize your main selling points
• Lay out the future path for your company and highlight notable milestones
• Explain how the proposal you’re writing is the first step on that path

You’re talking to decision makers and potential customers, so make sure your writing is snappy with an optimistic, confident tone and reels your audience in as much as possible. If you’ve previously worked with well-known and respected companies, include their names within the summary to help highlight your achievements. To complete your summary, clearly define what your audience can expect in the following sections of the proposal.

4. Explain the problem statement and solution.

Problem, solution, qualifications — these three words are the mantra of this section. A good problem statement shows that you have completed your research and learned about their needs instead of sharing a generic company pitch. It also identifies a problem the prospect didn’t know they had — and how you can solve it. The problem statement plus the solution equals a happy client excited to work with you.

At the same time, you must demonstrate your expertise through qualifications. If your company or business is certified and has a track record of success solving this particular problem, showcase it. If you need additional capabilities to achieve your needs, identify them in detail. At the end of this section, your target audience should walk away confident you can meet any client’s needs.

If you are working on a request for proposal, it’s not about just understanding the RFP meaning — it’s about making sure you include all the pertaining details of your project:

• An introduction to your company and background information on the project
• The project goals and scope of services needed
• A deadline for receiving bids
• A timeline for when you expect to select a winning proposal
• Which specific elements you would like included in the proposal
• Any challenges you’d like the contractors to solve
• Your estimated budget range for the project

5. List deliverables, milestones, and budgets.

After you outline project details, identify specific deliverables this proposal will produce. For instance, if you propose to open a new branch of your business in a new region, identify all the steps that will happen in that process, what they’ll cost, and the timeline.

Milestones encompass goals and define checkpoints and phases within a project. Unlike deadlines, which can point to specific, smaller tasks, milestones are part of the project’s overall picture. Milestones are also an integral part of budgeting, as they help show how far a project has come and if additional milestones need to be readjusted. Deliverables may also be impacted by budget or milestone updates, as deliverables result from completing a milestone.

6. Craft the conclusion and appendix.

The conclusion of your proposal is where you will leave the prospect with their last impression of you. For a confident conclusion:

• Summarize the main points of your proposal
• Reiterate your business’s strengths and product benefits
• Emphasize how taking action with your proposal benefits the prospective customer
• Create a strong call to action that conveys a sense of urgency and what to do next, such as calling a salesperson or using a contact form to discover more information

You can also add an appendix that contains reference materials, definitions, methodology, and other relevant items. No matter what software tool you use to create your appendix, you can print to PDF using your print function and save your file as a PDF document.

7. Edit and professionally polish your proposal.

While a proposal can be a formal document, it doesn’t have to be stodgy. A winning business proposal is bolstered by solid writing and elegant design: eye-catching headings, free from typos, outlined time frames, a detailed scope of work, and payment schedules that a client can expect if they accept.

As a final polishing step, ensure your proposal doesn’t contain sensitive information that shouldn’t be shared. For instance, perhaps you are referencing part of a project completed for another client. If necessary, you can redact PDF free of charge using online tools, which help protect details and maintain consistent formatting.

Whether creating a Request for Proposal, a solicited proposal, or a series of case studies, Acrobat Pro gives you the tools to design beautiful and eye-catching proposals — and you don’t even have to start from scratch. There are dozens of free business proposal templates available to start working from, and Acrobat makes it easy to add graphics, images, and creative formatting to your proposal.

Plus, if you’re sharing your proposal digitally, you can easily add graphs, pricing tables, links, and attachments to enhance the overall experience for readers. Hyperlink your table of contents throughout the document, and you can send readers to supplementary documents elsewhere.

Creating a compelling proposal and tidy cover page with Adobe Acrobat for business is only a template away. With helpful guides and tutorials, you’ll soon have a business proposal to grow and enhance your business.

Types of business proposals.

Before deciding how to structure your proposal, you should understand the type of template most appropriate for the situation. While different types of proposals exist across industries, they usually fall into one of three business proposal template categories: unsolicited, informally solicited, or formally solicited.

Unsolicited business proposal.

An unsolicited business proposal template is used when you want to approach prospective customers with a proposal — although they didn’t request one — in hopes of securing them as customers. These proposals are more generic and act like a cold email or marketing brochure. This type of business proposal is created without understanding the potential customer and their requirements. You can design a personalized solution based on each buyer’s needs by conducting market research and identifying customer pain points.

Informally solicited business proposal.

An informally solicited business proposal template is used when no official request has been made for a proposal. Unlike official requests that contain much more detail, informally solicited proposals stem from spontaneous, informal conversations with a client or vendor. You might write one of these proposals if a prospective buyer is interested in analyzing your products or services and asks for a business proposal. With these requests, prospective buyers will not usually ask for competing proposals. This proposal type will require you to spend significant time on additional research.

Formally solicited business proposal.

A formally solicited business proposal template is used for an official business proposal request. With this type of proposal, you will be given most (if not all) of the information required to understand a prospective buyer’s needs. All you have to do is write the proposal for the buyer so that they can analyze it, and you can start the sales process.

Formally solicited proposals are typically written in response to published requirements from the business searching for proposals. These proposals will be created in response to a public posting asking for proposals and submitted as indicated by the proposing client. These clients are likely looking through multiple proposals to try and find the best fit. You must address every specific ask within the proposal while demonstrating how your company can solve the client’s problem better than all the others.

Why write a business proposal?

Business proposals are significant for new businesses looking to expand. Whether you’re an established small business pitching clients or crafting a business proposal for investors to help you grow, this document can help you with everything from securing funding to expanding an existing project.

A business proposal is a document that helps you:

• Document realistic plans and projections
• Attract new clients and new business
• Bring in investors for funding
• Outline additional structure for growth
• Identify strengths and weaknesses of your current business model
• Showcase new pricing models and other relevant metrics

Tips for writing a business proposal.

If a business proposal document seems helpful to you, follow these tips for creating your own:

• Create an outline. Make sure your proposal includes all the elements you need to explain why a company should want to hire you. Even if you feel you have a lot of ground to cover, keep your message simple. An outline will help you structure the flow of your presentation.
• Stick to your brand. The entire proposal should reflect your company and your brand. Modify your business proposal template as needed for content and design, showcasing how you differ from other companies.
• Review your content. Your proposal should be clear, concise, and direct. Potential clients may not have time to review your proposal in detail, so make sure your messaging is transparent. Check for content flow, spelling, and grammar to ensure your proposal is presented as the professional you are.
• Include graphics and data. Visual elements are the best way to capture someone’s attention. Incorporate enough graphics to make your proposal intriguing while complimenting each section. Use data to incorporate client interaction and make your message more convincing.
• Include video elements. If you deliver your proposal electronically, consider adding video elements for additional interaction. A personalized video may be considered for portions of your proposal that require further detail. Additionally, video enhances the learning experience and may benefit an existing customer’s understanding of your proposal more than from reading words on a page.
• Include customer testimonials. Prospective customers like to know what other customers have learned from working with you. Include a few customer stories and testimonials that help tell your story and promote your brand.
• Make the process easy. Your proposal should be clear to understand, interesting to read, and actionable — include a call to action so your prospects don’t have to wonder what to do next. Include all necessary contact information if they have questions. If you distribute the proposal digitally, incorporate e-signatures to keep the conversation moving once they want to sign.

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Use This Simple Business Plan Outline to Organize Your Plan

12 min. read

Updated April 10, 2024

When starting a business, having a well-thought-out business plan prepared is necessary for success . It helps guide your strategy and prepares you to overcome the obstacles and risks associated with entrepreneurship. In short, a business plan makes you more likely to succeed.

However, like everything in business, starting is often the hardest part. What information do you need? How in-depth should each section be? How should the plan be structured?

All good questions that you can answer by following this business plan outline. 

• What is a business plan outline?

A business plan outline is similar to most business plan templates . It lists the common sections that all business plans should include.

A traditional business plan typically includes an executive summary, an overview of your products and services, thorough market research, a competitive analysis, a marketing and sales strategy, operational and company details, financial projections, and an appendix. 

• Why is a business plan outline important?

Starting with a business plan outline helps ensure that you’re including all of the necessary information for a complete business plan. 

But, depending on what you intend to do with your plan, you may not need all of this information right away. If you’re going to speak with investors or pursue funding, then yes, you’ll need to include everything from this outline.

But, if you’re using your plan to test an idea or help run your business, you may want to opt for a one-page plan . This is a simpler and faster method that is designed to be updated and used day-to-day. 

If you’re unsure of which plan is right for you, check out our guide explaining the differences and use cases for each plan type . 

• 10 key sections in a standard business plan outline

No matter the type of business plan you create, these are the ten basic sections you should include. Be sure to download your free business plan template to start drafting your own plan as you work through this outline.

1. Executive summary

While it may appear first, it’s best to write your executive summary last. It’s a brief section that highlights the high-level points you’ve made elsewhere in your business plan.

Summarize the problem you are solving for customers, your solution, the target market, your team that’s building the business, and financial forecast highlights. Keep things as brief as possible and entice your audience to learn more about your company. 

Keep in mind, this is the first impression your plan and business will make. After looking over your executive summary, your reader is either going to throw your business plan away or keep reading. So make sure you spend the time to get it just right.

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2. Products and services

Start the products and services section of your business plan by describing the problem you are solving for your customer. Next, describe how you solve that problem with your product or service. 

If you’ve already made some headway selling your solution, detail that progress here—this is called “traction”. You can also describe any intellectual property or patents that you have if that’s an important part of your business.

3. Market analysis 

You need to know your target market —the types of customers you are looking for—and how it’s changing.

Use the market analysis section of your business plan to discuss the size of your market—how many potential customers exist for your business—and if your potential customers can be segmented into different groups, such as age groups or some other demographic.

4. Competition

Describe your competition in this section. If you don’t have any direct competitors, describe what your customers currently do to solve the problem that your product fixes. 

If you have direct competition, detail what your strengths and weaknesses are in comparison, and how you’ll differentiate from what is already available. 

5. Marketing and sales

Use this business plan section to outline your marketing and sales plan —how you’ll reach your target customers and what the process will be for selling to them.

You’ll want to cover your market position, marketing activities, sales channels, and your pricing strategy. This will likely evolve over time, but it’s best to include anything that clearly details how you will sell and promote your products and services. 

6. Operations

What’s included in the operations section really depends on the type of business you are planning for. If your business has a physical location or other facilities, you’ll want to describe them here. If your business relies heavily on technology or specific equipment or tools, you should describe that technology or equipment here.

You can also use this section to describe your supply chain if that’s an important aspect of your business. 

7. Milestones and metrics

In a business, milestones are important goals that you are setting for your business. They may be important launch dates, or a timeline of when you’ll get regulatory approval—if that’s something you need for your business. Use this section of your plan to describe those milestones and the roadmap you are planning to follow.

You can also describe important metrics for your business, such as the number of sales leads you expect to get each month or the percentage of leads that will become customers.

8. Company overview and team

The company and team section of your plan is an overview of who you are.

It should describe the organization of your business, and the key members of the management team. It should also provide any historical background about your business. For example, you’ll describe when your company was founded, who the owners are, what state your company is registered in and where you do business, and when/if your company was incorporated.

Be sure to include summaries of your key team members’ backgrounds and experience—these should act like brief resumes—and describe their functions with the company. You should also include any professional gaps you intend to fill with new employees.

9. Financial plan and forecasts

Your financial plan should include a sales forecast, profit and loss, cash flow projections, and balance sheet, along with a brief description of the assumptions you’re making with your projections.

If you are raising money or taking out loans, you should highlight the money you need to launch the business. This part should also include a use of funds report—basically an overview of how the funding will be used in business operations. 

And while it’s not required, it may be wise to briefly mention your exit strategy . This doesn’t need to be overly detailed, just a general idea of how you may eventually want to exit your business. 

10. Appendix

The end of your business plan should include any additional information to back up specific elements of your plan. More detailed financial statements, resumes for your management team, patent documentation, credit histories, marketing examples, etc. 

• Detailed business plan outline

If you’re looking for greater insight into what goes into specific planning sections, check out the following outline for a business plan. It can help you develop a detailed business plan or provide guidance as to what may be missing from your current plan. 

Keep in mind that every business plan will look a bit different because every business is unique. After all, business planning is to help you be more successful, so focus on the sections that are most beneficial to your business and skip the sections that aren’t useful or don’t apply. 

To help, we’ve marked sections that are truly optional with an *.

Executive summary

Company purpose / mission statement.

A very brief description of what your business does and/or what its mission is.

Problem We Solve

A summary of the problem you are solving and an identifiable need in the market you are filling.

Our Solution

A description of the product or service you will provide to solve the problem.

Target Market

A defined customer base who will most likely purchase the product or service.

Briefly describe who is behind the business.

Financial Summary

A short overview of revenue goals and profitability timeline.

If you’ve already started selling your product or service, highlight important initial details here.

Funding Needed*

If you are raising money for your business, describe how much capital you need.

Products & Services

Problem worth solving.

A thorough description of the problem or pain points you intend to solve for your customer base. 

A thorough description of your proposed product or service that alleviates the problem for your customer base.

Describe any initial evidence that your customers are excited to spend money on your solution. Initial sales or signed contracts are good signs.

Intellectual Property/Patents*

If this is important for your business, outline it here.

Regulatory Requirements*

If government approval is required for your business, explain the details and timeline.

Future Products and Services*

What products and services might you offer in the future once your initial products and services are successful?

Market Size & Segments

How many potential customers do you have and what potential groups of customers are separated by specific characteristics?

Market Trends*

How consumers in your target market tend to act including purchasing habits, financial trends, and any other relevant factors.

Market Growth*

The perceived potential increase or decrease in the size of your target market.

Industry Analysis*

If your industry is changing or adjusting over time, describe those changes.

Key Customers*

If your business relies on certain important customers, describe who they are here.

Future Markets*

A snapshot of the potential market based on the last few sections and how your business strategy works within it.

Competition 

Current alternatives.

A list of potential competitors. Identifying the competition isn’t always obvious and it may take some digging on your part.

Our Advantages

The strategic advantage(s) that makes your target market more likely to choose you over the competition. 

Barriers to Entry*

If there’s anything that makes it more difficult for other people to start competing with you, describe those barriers.

Marketing & Sales

Market positioning.

Where do your products or services fit into the market? Are you the low-price leader or the premium option?

Unique value proposition*

What’s special about your offering that makes your customers want to choose it over the competition.

Marketing Plan

An outline of your marketing and advertising strategy including costs, advertising channels, and goals.

How do you sell your product or service? Self-serve or with a team of sales representatives?

Pricing Strategy*

Describe your pricing and how it compares to alternatives in the market.

Distribution*

Describe how your product gets in front of customers. Are you selling in stores and online? Which retailers?

SWOT Analysis*

Strengths, weaknesses, opportunities, and threats.

Location & Facilities

If you have a physical presence, describe where and what it is.

What technology is crucial for your business success?

Equipment & Tools

If special equipment or tools are needed for your business, describe them here.

Sourcing and fulfillment*

If you purchase your products or parts for your products from somewhere else, describe that sourcing and supply chain.

Partners and Resources*

If you have key partners that you work with to make your business a success, describe who they are and what services or products they provide.

Milestones and metrics

A detailed roadmap of specific goals and objectives you plan to achieve will help you manage and steer your business.

Key metrics

Performance measurements that help you gauge the overall performance and health of your business.

Company overview and team

Organizational structure.

An overview of the legal structure of your business. 

Company history and ownership

A summary of your company’s history and how it relates to planning your business.

Management team

The team that is starting or running your business and why they are uniquely qualified to make the business a success.

Management team gaps

Key positions that your business will need to fill to make it successful.

Financial plan and forecast

Projected profit and loss.

How much money you will bring in by selling products and/or services and how much profit you will make or lose after accounting for costs and expenses.

Projected cash flow

How and when cash moves in and out of your business. This also includes your overall cash position.

Projected balance sheet

Expected balances for business assets, liabilities, and equity.

Use of funds

If you are raising money either through loans or investment, explain how funds will be used. This is typically meant to be shared with investors or lenders.

Exit strategy

A brief explanation of how you intend to eventually exit from your business. This could include selling the business, going public, transitioning the business to a family member/employee, etc.

A repository for any additional information, including charts and graphs, to support your business plan.

Business plan outline FAQ

How do you organize your business plan?

There’s no real established order to business plans, aside from keeping the Executive Summary at the top. As long as you have all of the main business plan components, then the order should reflect your goals. 

If this is meant solely for your personal use, lay it out as a roadmap with similar sections grouped together for easy reference. If you’re pitching this to potential investors, lead with the stronger sections to emphasize the pitch. Then if you’re unsure of what order makes sense, then just stick to the outline in this article.

Should you include tables and charts in your business plan?

Every business plan should include bar charts and pie charts to illustrate the numbers. It’s a simple way for you, your team, and investors to visualize and digest complex financial information.

Cash flow is the single most important numerical analysis in a business plan, and a standard cash flow statement or table should never be missing. Most standard business plans also include a sales forecast and income statement (also called profit and loss), and a balance sheet.

How long should your business plan be?

There’s no perfect length for a business plan. A traditional business plan can be anywhere from 10 to 50 pages long depending on how much detail you include in each section. However, as we said before unless you intend to pursue funding, you likely don’t need a lengthy business plan at first.

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.

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20 free proposal templates to ace your pitch

In my vast experience of convincing people to do things they're initially sure they don't want to do, I've picked up a trick or two—namely, that no matter how exceptional and transformative your product may be, if your proposal doesn't articulate its value, you might as well fold it into a paper airplane and throw it out a window.

Impactful proposals require structure, which is where a proposal template comes in. It's the strategic framework that turns your pitch into the corporate equivalent of standing outside someone's house with a boombox over your head—except instead of blasting Peter Gabriel, you're serenading prospects with solutions to their pain points.

Here, in a burst of generosity characteristic of neither me nor most of the business industry, I'll share 20 free proposal templates and show you how to use them to showcase your unique offerings.

Table of contents:

What is a proposal?

A proposal is a persuasive document used to convince someone to buy into your project, idea, or business opportunity. It outlines what you plan to do, how you plan to do it, when you plan to do it, and how much it will cost.

A proposal is the first—and sometimes only—shot to make an impression. It's your opportunity to prove that you understand a potential client's underlying needs and showcase why you're the best choice for the job. A well-crafted proposal can mean the difference between popping Champagne and crying into your takeout.

There are two types of business proposals:

Solicited proposals are submitted in response to a formal client request for proposal (or RFP) and have specific requirements issued by the client.

Unsolicited proposals , sometimes called proactive proposals, are offered to a prospect independent of a request, usually following discussions about their business needs.

Proposals come in all shapes and sizes, from a quick email pitch to a 100-page grant proposal with a budget the size of a small country's GDP. The key is choosing the right level of detail for your audience and objectives. 

If responding to an RFP from a big company, you should roll out the red carpet with videos, case studies, client testimonials—the works. For a small business owner you've been nurturing for months, a short but compelling proposal focused on key benefits and next steps is likely all you'll need.

At the end of the day, a solid proposal should convince your reader that you understand their problems and have the solutions to fix them.

How to choose the right proposal template for your needs

Different objectives call for a different approach and, thus, a different template. The one you choose should align with your needs and requirements to fit your project like a glove (or at least like a comfortably loose mitten). 

Follow these steps to get started:

Next, consider who's sitting across the table from you. A contract proposal for legal professionals will differ vastly from a storyboard proposal aimed at creatives. The template should speak their language and cater to their expectations. 

Lastly, consider your desired outcome or what you're after. Are you looking to win a contract, forge a partnership, or charm the coins out of investors' pockets? Your template should have all the necessary details to prompt a reaction more positive than the one I get when I say I'm a writer at a family gathering.

Free business proposal templates for any industry

Crafting polished proposals is key to winning new clients and growing your business. But who has the time to start from scratch every time? These business proposal example templates have got you covered. Clients and customers will be so impressed with your beautifully crafted proposal that they won't even realize how little effort it actually took.

Project proposal template

A project proposal outlines the details of a specific project, including an executive summary, objectives, scope, timeline, and costs, submitted for approval or funding. It's essentially a wishlist of how you plan to spend someone else's money.

Best used for: Securing funding or approval for a project

Who should use it: Project managers, business owners, entrepreneurs, non-profit organizations

Business proposal template

A business proposal is a comprehensive offer from a business to a prospective client detailing how the business can meet the client's needs and the benefits of choosing its services or products.

Best used for: Securing funding from investors, attracting new clients, or partnering with other businesses

Who should use it: Business owners, entrepreneurs, sales professionals

Job proposal template

A job proposal helps freelancers pitch their services effectively to potential clients. It emphasizes understanding client needs and providing a breakdown of project costs, which improves pitch quality and increases the chances of securing valuable client partnerships.

Best used for: Securing freelance work

Who should use it: Freelancers of all types, including writers, designers, developers, and more

Proposal letter template

Best used for: Concisely presenting a proposal to a potential client or partner

Who should use it: Business owners, sales professionals, freelancers

Contract proposal template

A contract proposal is a formal offer detailing the terms and conditions under which a party will perform services or deliver goods to another party. It's the prenup of the business world.

Note: always run such contracts by your legal team to ensure they align with your interests and comply with relevant laws.

Best used for: Securing a contract with a client or partner

Who should use it: Business owners, sales professionals, lawyers

Event proposal template

An event proposal is a detailed plan submitted to stakeholders outlining the concept, logistics, budget, and expected outcomes of a proposed event. It's the party planner's battle strategy, where success is measured not in conquests but in compliments and clinking glasses.

Best used for: Securing funding or approval for an event

Who should use it: Event planners, non-profit organizations, businesses

Content marketing proposal template

Best used for: Securing a content marketing contract with a client

Who should use it: Content marketers, freelancers, agencies

Proposal planning template

A proposal plan is a structured document that outlines the approach, resources, and timeline for accomplishing a specific goal or project. It's essentially admitting you need a plan to make your plan. It's plans all the way down.

Best used for: Ensuring that a proposal is well organized, persuasive, and complete

Who should use it: Anyone who writes proposals, including business owners, sales professionals, freelancers, and non-profit organizations

Research proposal template

A research proposal is a systematic plan proposing a research project, typically including the research objectives, methodology, timeline, and estimated budget—the "hold my beer" for academics.

Best used for: Securing funding or approval for a research project

Who should use it: Researchers, academics, students

Budget proposal template

Best used for: Securing funding or approval for a budget

Who should use it: Project managers, event planners, business owners

SEO proposal template

Best used for: Securing an SEO contract with a client

Who should use it: SEO professionals, freelancers, agencies

Web design proposal template

A web design proposal outlines the scope, design, functionality, and cost of a website developed for a client. It essentially helps navigate the journey from "Hey, I need a website" to "Wow, this is exactly what I envisioned!"

Best used for: Securing a web design contract with a client

Who should use it: Web designers, freelancers, agencies

Sponsorship proposal template

A sponsorship proposal seeks financial or in-kind support from a sponsor, detailing the benefits the sponsor will receive in return. It's like asking someone to pay for your party and, in return, they get their name on all the balloons. It's a win-win, especially if you like balloons.

Best used for: Securing sponsorships for an event or initiative

Who should use it: Event planners, business owners, and non-profits

Social media marketing proposal template

Best used for: Securing a social media marketing contract with a client

Who should use it: Social media marketers, freelancers, agencies

Consulting proposal template

A consulting proposal is a document in which a consultant outlines the services they offer to solve a client's problems, including methodology, timeline, and pricing. It's for the Mary Poppins of the business world, swooping in with a bag of tricks to fix everything from their sales strategy to their coffee machine.

Best used for: Securing a consulting contract with a client

Who should use it: Consultants, freelancers, agencies

Service proposal template

Best used for: Securing a service contract with a client

Who should use it: Freelancers, agencies, businesses

Sales proposal template

​​A sales proposal helps sales professionals present their products effectively and establish credibility with potential clients by showcasing the company's background and client testimonials.

Best used for: Closing sales deals

Who should use it: Sales professionals

Grant proposal template

A grant proposal is a written request for funding submitted to an organization or government agency, detailing the purpose, plan, and budget of the project needing support. It's like Kickstarter but with more footnotes.

Best used for: Securing funding for a project from a grant-making organization

Who should use it: Non-profit organizations, researchers, academics

Storyboard proposal template

A storyboard proposal is used to visualize and plan a project and is typically a visual representation of the project's key steps, milestones, and deliverables. It's like drawing a treasure map for your project, except the treasure is just meeting your deadlines and hopefully not walking the plank.

Best used for: Securing approval for a storyboard or selling a storyboard to a client

Who should use it: Project managers, business owners, designers

Partnership proposal template

Best used for: Establishing a mutually beneficial partnership

Who should use it: Business owners, sales professionals, non-profit organizations

Tips for optimizing a proposal template for your business

When it comes to proposal templates, you need to make them work for you, not the other way around. The template is just a jumping-off point. To combat its genericness, it's essential to add your own razzle-dazzle. Here are a few tips to make any old template sizzle.

Tailor content to suit the specific project

When you begin to write a business proposal, the first thing to consider is your audience. Who are you trying to woo, and what will make them open their wallets?

Here's how to do some sleuthing to identify your target reader and customize your pitch to their needs:

Do your research: Check out the client's website and social media profiles. See what they're posting about and what their customers are saying. Look for any public RFPs or project briefs. The more you understand their business and goals, the better you can position your proposal.

Tailoring your content isn't just about fitting in—it's about fitting so well they can't imagine going with anyone else.

Add visual elements and branding

Long before our brains got rewired to crave the instant gratification of flashy screens and endless scrolling, our ancestors were also suckers for a good visual. There's nothing quite like an eye-catching graph, chart, or image to break up blocks of text and drive a point home.

Photos: Throw in some photos of your smiling face, your product in action, stacks of money, or whatever is relevant and helps tell your story. Just be sure any visuals are high quality and actually add value. And please, no cheesy stock photos of overly enthusiastic business people engaging in unnatural acts of corporate glee.

Infographics: If you have data or statistics to share, turn them into slick infographics. Those colorful, bite-sized bits of visual information are like catnip for proposal readers. But keep your infographics clear and concise. Cramming too much text or too many numbers onto one can make people's eyes glaze over faster than a hot donut.

Company branding: Spice up your proposal format with your company's colors, logo, and fonts—whatever matches your branding. This helps build brand recognition and makes your proposal look more professional. But don't go overboard, or it'll seem like you're overcompensating.

Using visuals and branding in your proposal helps bring it to life, giving readers an instant visual understanding of your company and offer, all while flexing your expertise. And that can only help your chances of getting to yes.

Choose the right language and tone

When choosing the language and tone for your proposal, you have to walk a fine line. Aim for that sweet spot where you sound like a polished pro, but not so much that people think you're actually a robot in a skin suit.

Use balanced language: Avoid stiff, formal language as much as overly casual speak. Expressions like "enclosed herewith, please find" sound pompous, while "wanna" and "gonna" are too laid-back. Simple, straightforward language is the way to go.

Engage your reader: Talk to your reader like you would a colleague or client. Let your passion shine through in a genuine, unforced way. Demonstrate your enthusiasm for the project without the aggressive, frantic energy of someone selling blenders on infomercials at 3 a.m.

Keep promises realistic: While you want to highlight the benefits and potential wins of choosing you, don't make promises you can't keep or claims you can't back up. Share relevant case studies, statistics, and data to build a persuasive yet realistic argument. Your readers will appreciate your honesty and see you as a trustworthy partner.

Meticulously proofread: With the language and tone set, be sure to proofread carefully. Double-check for any spelling, grammar, or punctuation errors that can undermine your credibility and the professionalism of your proposal. Nothing screams "I wrote this in the parking lot" like a typo.

Highlight your unique selling proposition and social proof

You've got to convince your clients you're better than all the other yahoos vying for their business, and the best way to do that is by showing off what makes you uniquely qualified to solve their problems.

Framing your unique selling proposition (USP) in a way that benefits the customer is vital because it makes your offering more relatable and appealing, directly addressing the customer's needs or pain points.

For instance, a company might boast, "Our team has 103 years of collective experience." That's a hefty number, and one can't help but picture a team of Gandalfs shuffling papers and nodding sagely. Yet, without context, it's just a number, as emotionally stirring as announcing you've collected 103 pieces of lint from your dryer.

Instead of just humblebragging about your gazillion years of experience, tell prospects how it benefits them: "Our team's 103 years of collective experience means we spot problems before they arise, we don't waste time upskilling, and, like workplace MacGyvers, we're ready to turn a paperclip and a stick of gum into a solution."

Provide solid evidence that you've done this kind of work before. Share details of similar successful projects, along with social proof like testimonials or case studies from happy clients. Mention any awards or the time you got mentioned in the paper for something other than that misunderstanding about the "borrowed" traffic cone. The more you can demonstrate your experience and expertise, the more credibility you'll build.

Include a strong call to action

At the risk of stating the obvious, which I understand is a cherished tradition in the world of business proposals, one must not, under any circumstances, let a proposal fizzle out at the end without calling out next steps. It's like leaving a high-five hanging—it's awkward and, honestly, a little sad. Give your proposal the kind of finale that has confetti cannons and at least one person in the background slow-clapping until everyone joins in.

Remember, ending a business proposal without a call to action is like forgetting to say "Bingo!" when you've got five in a row—it's a missed opportunity that could cost you more than just mild embarrassment at the senior center. Don't let a weak ending undermine an otherwise slam-dunk proposal. A strong finish could be the difference between a lost opportunity and your next big client.

Proposal template next steps

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Allisa Boulette

Based in New England, Allisa is a content marketer and small business owner who hopes to make the internet a more interesting place than she found it. When she’s not working, you can find her lying very still not doing anything.

• Sales & business development
• Small business

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How to Write a Business Proposal Outline

Quickly writing business proposals is key to winning new deals … but properly aggregating all the content from subject matter experts (SMEs) is often a time-consuming and frustrating task.

Fortunately, creating an effective business proposal outline can give you and your SMEs the structure needed to respond to requests for proposals (RFPs) in the shortest time possible.

Download The Formula for Creating Winning RFP Responses to get an in-depth explanation on how to create revenue-generating proposals.

So, how exactly do you create an effective business proposal outline?

3 things you need to know to create successful business proposal outlines

1.    what a business proposal outline is and isn’t.

It’s important not to confuse a business proposal with a business plan. The goal of the former is to win a sale, while the goal of the latter is to create a strategy for achieving a business objective or overcoming a challenge.

A business proposal outline provides the framework in which SMEs and proposal writers can add content with the goal of creating an RFP response that wins business.

2.    Why start with an outline?

The purpose of creating a business proposal outline is to add structure to the too-often chaotic process of gathering content to create a winning proposal.

According to Ian Linton , global copywriter and author, “By drawing an outline for your business proposal, you prepare a framework for including all the important messages in your proposal. Your outline should cover the messages you feel will convince the customer to select your product or service.”

By developing a framework that covers your key messaging strategy, you accomplish two things.

First, you make life easier for your SMEs. While we need SMEs to answer technical questions and provide expertise when creating a business proposal, we can’t expect them to be experts in the art of persuasion.

By clearly outlining your expectations, you help ensure they will provide the information you need to successfully win over prospects … without your having to ask for additional information and clarification.

Second, you make life easier for your proposal writer. By presenting all the proposal content they need in a structured format, you help them focus on using the information to craft a compelling narrative — rather than spending hours organizing information from various sources.

3.     What a business proposal outline should include

The outline of your business proposal should cover each section you want to include in the final proposal, as well as what information you want that section to convey.

While every proposal is unique and you should include and remove sections based on the information you receive in the RFP, most outlines should include the following:

Executive summary

This is probably the most important section of your business proposal. Your prospects are busy, and many of them will only read this section … unless you can convince them to read more.

It’s important to approach your executive summary as your proposal’s hook. This is likely your only chance to get your prospect’s attention and convince them the rest of the proposal is worth reading.

You can learn a lot about how to approach the executive summary by learning how journalists approach leads. Leads are the intro to a news article, and journalists understand that it’s crucial to write this part effectively if they want readers to finish the story.

According to Hannah Bloch , a digital editor for international news at NPR, the purpose of the lead “is to make the reader want to stay and spend some precious time with whatever you’ve written. It sets the tone and pace and direction for everything that follows. It is the puzzle piece on which the rest of the story depends.”

For tips on how to create leads that hook your reader and have them begging to read more, invest in a copy of “ Great Leads: The Six Easiest Ways to Start Any Sales Message .” This book takes the journalistic concept of leads and shows exactly how to apply it in a sales context.

The about us section is one of the most difficult sections to write effectively. Your prospects read this section to learn about your organization and decide whether you fit their goals and values.

But here’s the thing: Your prospects don’t actually care about you.

It’s not your fault. It’s just the way people are wired.

Mark Hunter , sales consultant and speaker, put it best:

“Unless you’re somebody famous or unless you have a product everyone has to have, I hate to break the news to you, but your prospect couldn’t care less.

“What does this mean to you?

“It means you need to quit sending out stupid emails or leaving pathetic voicemails that extoll who you are and how great your company is. Your prospects simply don’t care!”

So, does this mean you can skip the about us section? Unfortunately, no.

Writing this section plays an important role in building rapport and trust with your prospects, but you have to navigate it carefully to avoid losing your reader’s interest.

Fortunately, several companies have already successfully overcome this challenge, and we can learn from their examples. Check out this list of 15 companies and experts who understand how to write engaging about us or about me content. (Note: This list covers about me and about us pages for websites, but the principals and lessons apply equally well to proposals.)

This is where you detail the key dates and milestones your prospects can look forward to should they become customers.

This is key to setting the appropriate expectations. Make sure the dates aren’t so far in the future that they cause your prospects to think you move too slowly, but also aren’t so ambitious that your team has to scramble to keep your promises.

References and case studies

References and case studies are critical to convincing your prospects they want to do business with your organization. While they expect you and your team to say great things about your company, they expect your customers’ assessments to be more accurate.

According to Content Marketing Institute :

“We look for and act on (even if subconsciously) social proof in all areas our life — including how we behave and the purchasing decisions we make online.

“It doesn’t matter if that social proof comes from friends or strangers. What matters is that we’re seeing evidence from our peers — in this context, other consumers — that the decision we’re about to make is the right one.”

To see examples of well-crafted case studies, check out a few that we’ve put together. (We may be biased about the whole “well-crafted” thing.)

Ready to move beyond the outline?

Creating an effective business proposal outline sets the foundation for a successful proposal, but your work isn’t quite done yet.

As RFP360’s sales director, Pat is responsible for implementing strategic growth initiatives, mentoring sales staff, and driving revenue. Before joining RFP360, he led the sales team for a growing tech firm as they launched their North American presence and new go-to-market strategies. When he’s not working or chasing down his one-and-a-half-year-old and three-and-a-half-year-old children, he enjoys golfing and watching live music.

• AI RFP software: Build or buy?
• Understanding AI RFP software
• Responsive expands AI leadership with new platform capabilities

Graham McConnell

Graham lives in the B2B marketing space. He dabbles in writing, usually about digital marketing, but has other interests like the Portland Trail Blazers, the Portland Timbers, sci-fi films, video games and of course, response management.

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• Business Proposal Outline: 8 Elements to Include in Your Plan
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A ccording to research from the RAIN Group, you’ll likely need to speak with a prospect at least eight times before they convert to a paying client. One of those touchpoints involves developing and sending a business proposal that outlines how your product or service can help solve this potential client’s pain points. Our guide goes through what a business proposal is, why they’re important, and each component of this vital document.

What Is a Business Proposal?

A business proposal is a document that small business owners like yourself submit to business prospects to show how your company will serve the prospect. Business proposals can be either unsolicited or solicited – the former is essentially a cold call, and the latter follows a conversation with a clearly interested lead. Both types of proposals should follow the same approximate business proposal outline.

Why Do You Need Business Proposals?

Whereas an ordinary consumer can just walk into a store and pick up whatever items they need, B2B client relationships are more complicated, and business proposals help to demystify them. For example, if a small business approaches your advertising firm for help exposing their brand to a certain segment, then saying “we’ll advertise to that segment” tells the prospect next to nothing. A business proposal fills in all the gaps.

Namely, a business proposal outlines how you’ll do what you do. In the advertising example above, a business proposal might outline the ad types implemented, the ad budget required, the duration of the ad campaign, your client reporting commitments, and more. Later in this article, you can find a basic business proposal outline that you can adapt to fit the needs of any client no matter your industry.

Business Proposal vs. Business Plan

Before you look more closely at business proposal outlines, you should make sure you understand that business proposals and business plans are not one and the same. The two terms are commonly conflated, but a business plan’s scope is far broader than just sales.

A business plan outlines how your whole company will function so that investors and lenders can decide whether to fund your business. A business proposal, as described above, is only pertinent to sales prospects, and you’ll need to develop a different business proposal for every prospect. A business plan, on the other hand, remains relatively constant as you pass it among potential funding sources.

Business Proposal Outline

A rough business proposal outline is as follows:

• Identify the prospect your problem wants to solve.
• Discuss relevant solutions that your company offers.
• Share your qualifications.
• Share your prices or estimate for service.

The above is just the broad order in which you should present your proposal. A more organized and compelling business proposal outline that follows the above structure might look as follows:

1. Executive Summary

The executive summary briefly tells your prospect about the solution you’ll offer in your business proposal and why it stands out from other solutions. In just a paragraph or two, this section gives an overview of your company's services and explains the problems that these services solve. The goal of this section is to give your prospect a general idea of your proposal before getting into the specifics.

2. Problem Statement

After your executive summary, describe your prospect’s problem in a few paragraphs. Although doing so might seem like telling your prospect something they already know, it instead shows the prospect that you’ve listened to them and thoroughly considered their situation. It also sets you up to deftly walk the prospect through your solution.

3. Services Proposed

Once you’ve briefly described your proposal and outlined the prospect’s pain points, get into how you’ll solve these problems. Start by naming all the relevant services that your company offers, then get into the details of each service. For example, don’t just say “media outreach” – detail to whom you’ll reach out, which channels you’ll use to reach out, and how often you’ll do so.

4. Service Timeline

After you detail how you’ll meet the prospect’s needs, present a timeline for doing so. This timeline should include dates for major milestones such as campaign launches and ends, deliverables, and reports. You should also indicate what each of your deliverables will comprise when crafting this business proposal section.

5. Qualifications

Anyone can propose a way to solve a problem, but only so many people have the skills and connections to actually solve the problem. That’s why sharing your qualifications is as important as explaining your solution.

In the qualifications section of your business proposal, you should discuss your company’s background. You should also share company case studies, success stories, awards, and accreditations, but try to avoid sharing personal awards and accreditations unless you think doing so is absolutely necessary. Choose what you present to best build trust with your prospect and increase your chances of making the sale.

No business proposal outline is complete without a pricing section – after all, no matter how passionate you are about your work, you do have to get paid. A fee table is likely your best route for sharing your prices since it breaks down your costs by service.

You can also offer several pricing packages and add discounts for additional services as you add more services to higher-tier packages. This structure can make prospects more likely to hire you for services they might otherwise decline.

7. Terms and Conditions

All proposals should end with a terms and conditions section. In this section, you can include terms such as:

• A confidentiality agreement
• A non-disclosure agreement
• A payment amount that the prospect must make to initiate services
• A proposal or services cancellation policy, if applicable
• A firm statement of the date range for which your service agreement will apply
• An expiration date for how long the prices in the business proposal outline are relevant

Additional Business Proposal Considerations

In addition to the above business proposal outline, keep the following in mind as you create business proposals:

• Cater each proposal to each client.
• Develop a buyer persona that you’ll compare and contrast with your prospect.
• Know why you’re sending the proposal, whether to see a sales call through to its logical end or establish your brand with a newer prospect.

For more on these business proposal considerations, read the SmartBiz Loans Blog How to Write Compelling Business Proposals to Win More Clients .

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How to Write a Budget Proposal (+ Free Template)

Published: May 29, 2024

The first time I was assigned to write a budget proposal, I stared anxiously at a blank spreadsheet, wondering where to begin. What was a budget proposal supposed to include? Was there a specific structure to follow? How could I ensure it met all the necessary criteria?

My early attempts at writing a proposal taught me the challenges of building a convincing plan that turns rough ideas into fundable projects. I had to learn to align proposal details with business objectives and articulate the potential benefits in a way that resonated with stakeholders.

It was an overwhelming task at times — but with a strategic approach and a bit of guidance, my ability to synthesize financial data and communicate value gradually became second nature.

In this article, I'll guide you through how to write a simple budget proposal that delights your audience and secures funding. I’ll also provide practical tips, templates, and sample projects to streamline your planning process.

So, let’s get started.

Table of Contents

What is a budget proposal, and why is it important?

The anatomy of a budget proposal, how to create a simple budget proposal, building my own basic budget proposal, 8 budget proposal best practices.

A budget proposal outlines the financial plans for a project or initiative, detailing the expected costs and resources needed for successful completion.

Budget proposals also show potential funders or stakeholders how their money will be spent and the tangible benefits their investment will achieve.

While the content of your budget proposal will change depending on your project’s parameters and specific goals, a well-crafted plan leads to benefits like:

• Stakeholder buy-in. Providing a transparent breakdown of anticipated expenses instills confidence and trust, encouraging stakeholder support or investment.
• Efficient resource usage. Outlining a clear resource allocation plan ensures that funds are directed to the areas where they are needed most.
• Risk mitigation. Applying a risk management framework helps proactively identify potential costs and contingencies, ensuring that the project remains on track and within budget constraints.
• Project tracking. Identifying key project milestones and benchmarks promotes informed decision-making, maintaining efficient and agile progress.

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Before you begin drafting your budget proposal, it's helpful to first familiarize yourself with its key components and overarching structure.

Knowing which strategic points to emphasize — and the order in which to present them — improves your ability to create a logical and compelling argument, while also ensuring you effectively communicate your project’s feasibility.

So, let's examine five critical sections found in every effective budget proposal, drawing on the structure used in Hubspot’s Free Budget Proposal Template .

7. Build a story.

Weave in a strong storytelling narrative that provides context, explains assumptions, and addresses any potential concerns or questions. This adds depth to your proposal and helps guide readers through the document.

Pro tip: Incorporate data visualization techniques, such as graphs or infographics, to complement your narrative and enhance the clarity and persuasiveness of your budget proposal.

Don't forget to share this post!

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General election latest: Minister hangs up on Sky's Sam Coates after being told poll has predicted he'll lose his seat

A YouGov poll has predicted an enormous majority for Labour - and several big names Tories to lose their seats. One of them, Grant Shapps, hung up on our deputy political editor Sam Coates after being told live on the phone.

Monday 3 June 2024 23:00, UK

• General Election 2024

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Election news

• Bulletin: Catch up on the main news from the campaign trail
• Labour set for biggest majority in 100 years - YouGov poll
• Minister predicted to be voted out hangs up live on Sky News
• The top Tories under threat | Why this poll is a big deal | '31 days to save Tory party'
• Farage to stand at general election | Taking over as Reform leader
• Be in the audience for our election leaders event
• Live reporting by Tim Baker

Expert analysis

• Jon Craig: Grim record aside, Farage has made a canny choice
• Rob Powell: Farage U-turn is a really significant development
• Adam Boulton: 'Starmtroopers' are purging Labour

Election essentials

• Trackers: Who's leading polls? | Is PM keeping promises?
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• Read more: Who is standing down? | Key seats to watch | How to register to vote | What counts as voter ID? | Check if your constituency is changing | Your essential guide to election lingo | Sky's election night plans

We're pausing our live coverage for tonight.

Listen below to the latest Daily Podcast to catch up on the day's events.

Click to subscribe to the Sky News Daily wherever you get your podcasts

And a new episode of Politics at Jack and Sam's will be live at breakfast time tomorrow. 

👉 Tap here to follow Politics at Jack at Sam's wherever you get your podcasts 👈

By Jennifer Scott , political reporter

The Liberal Democrats will pledge free personal care to "all those who need it" as they make their social care offering on the campaign trail.

Making the announcement on Tuesday, the party will say it would help "end the hospital crisis" by enabling thousands of people ready to be discharged but stuck in hospital beds to get care, as well as help the elderly to "stay in their own homes longer".

The Lib Dems pointed to a report by Age UK that found an estimated 1.6 million people aged 65 and over had unmet care needs, and in April alone, an average of 12,772 hospital beds were being used by people who were ready to be discharged.

Leader Sir Ed Davey said: "As a carer for my disabled son, and after caring for my ill mother when I was young, care is deeply personal for me. That is why I am putting fixing the care crisis at the heart of the Liberal Democrat offer to the country at this election.

"Far too often, family carers are being left to pick up the pieces because the care system simply isn't there for them. Millions of people are going without the care they need, while thousands are stuck in hospital beds instead of being cared for in their own home or a care home.

"We cannot fix the crisis facing the NHS without fixing the crisis facing social care. The Liberal Democrats would bring in free personal care to help people live independently and with dignity, in their own homes wherever possible."

Read the full story below: 

 The front pages for tomorrow unsurprisingly focus on two things: The return of Nigel Farage as a Westminster candidate, and the polling which suggests a record defeat for the Tories.

Neither of these stories will be welcomed among Rishi Sunak's team.

Sir Keir Starmer could be heading to Downing Street with a majority of 194 seats, bigger than what Tony Blair achieved in 1997, according to the first polling projection by YouGov of the campaign.

The projection shows a historic Labour landslide, with the party getting the highest number of seats of any party at an election in history.

At the same time, the Tories are trying to boost ratings by talking about culture wars while Labour is talking about real wars in terms of what they would do for defence. And Nigel Farage has announced he's standing for Reform UK.

On the Sky News Daily, Niall Patterson talks to Sky's chief political correspondent Jon Craig about the poll and today's developments, and to Scarlett Maguire, director of the polling organisation JL Partners.

We're winding up here for the day - the clock has gone ten and we'll be off to bed soon.

Today felt like a day that could be an inflection point in the election for a number of reasons.

We had big announcements from numerous parties, and a megapoll predicting a historic result.

If you want a fuller rundown, here is today's main news:

• A YouGov poll predicted Labour will win a supermajority of 194 seats - with the Conservatives routed to just 140 MPs;
• Tory ministers are among those who could lose their seat - including the defence secretary, Grant Shapps, who hung up on our deputy political editor Sam Coates when he was told live on air ;
• As chief political correspondent Jon Craig writes, panic will be spread through Tory ranks ;
• Meanwhile, Sky election analyst Professor Michael Thrasher said Rishi Sunak has 31 days to save the Conservative Party ;
• Twelve big Conservative beasts face losing their seats - and  political correspondent  Tamara Cohen  has a despatch from one such constituency .
• Just before this poll was published, Nigel Farage announced he was standing to be an MP for Reform UK - U-turning on his previous stance of not contesting;
• As political correspondent Rob Powell says, Mr Farage doesn't just have his eye on this election but the years ahead ;
• And  political correspondent Gurpreet Narwan  says the news will send shivers down Tory spines;
• This morning, Labour  was pitching itself as the "party of defence"   as it pledged to build new nuclear submarines;
• And the Conservatives were campaigning on reforming the Equalities Act, including wanting to protect single sex toilets;
• Equalities minister Kemi Badenoch also said trans athletes may have to compete with their biological sex ;
• In slightly lighter news, the prime minister revealed his preferred Nando's order - with a surprise inclusion in the sides .
• Elsewhere, the SNP said there was no need for the UK to have a nuclear deterrent , in response to the Labour announcement;
• The Liberal Democrats sabotaged Rishi Sunak as he held a campaign event;
• Meanwhile, political correspondent Serena Barker-Singh outlined the difficulties facing Sir Keir Starmer over Jeremy Corbyn. 

Here are a couple of other stories that may interest you:

Our essential political podcast,  Politics At Jack And Sam's , is going out every week day through the election campaign to bring a short burst of everything you need to know about the day ahead as this election unfolds - here is today's edition .

Tap here to follow Politics At Jack At Sam's wherever you get your podcasts .

Today's poll suggests that in the Conservative heartlands, voters are about to turn on the governing party like never before, Tarama Cohen writes from Godalming, Surrey .

Chancellor Jeremy Hunt is running in Godalming and Ash, one of the country's most affluent areas.

Conservative since its creation, Mr Hunt's majority - on different boundaries - was down to 8,817 at tzhe 2019 election, ahead of the Liberal Democrats. YouGov's seat by seat poll predicts it could be overturned altogether. 

It could be a significant moment of election night - compared with cabinet minister Michael Portillo losing his seat in 1997.

Mortgage rates are a key issue for many voters in this commuter town, and switchers were not hard to find. 

Sam and Fi Hayward, who have three children under five, previously voted Conservative but will now back the Lib Dems.

Finance worker Sam - who's natural home is with Conservatives - will be changing who he backs, saying "different issues on our radar now we have a young family".

He is also unimpressed with the government's performance, putting it down to "general incompetence, Brexit hasn't gone their way, COVID hasn't helped". 

Fi is also switching, saying "I think it would be better for our family".

At the Godalming Delights sweet shop, new mum Felicity is also switching away from the Tories. 

"We're living on savings to pay a massive mortgage", she said, and they've taken their older child out of nursery due to the costs.

Retired teacher Jean said the impact of COVID is still on her mind - including a friend who died "while [politicians] were partying".

She's also concerned about children's mental health, a subject the Lib Dems are campaigning on.

But there was still support for the Conservatives here - and lack of enthusiasm for the alternative. 

Retired railway worker Robert Jones said: "I like Jeremy Hunt and Rishi Sunak. I like his apprenticeship scheme, my children's children need a job and all our heavy industries are going."

He was not impressed with the National Service idea - and does worry about Labour.

"Diane Abbott was in, and now she's out. The left always worry me, and the unions - although I was a union man for years - having their sway," he says.

Some voters felt Mr Hunt personally had worked hard as an MP. "He's moderate, and I'm a moderate", said Tory party member David Cooper.

But he was worried about a severe defeat. 

This corner of southwest Surrey, a constituency held by former cabinet minister Virginia Bottomley and now the chancellor, has never deserted the Tories, even at the height of New Labour. 

If the tide turns here on election night, it will be a sign the once unshakeable Blue Wall is really tumbling down.

The candidates for Godalming and Ash are:

• Graham Drage, Reform UK;
• Paul Follows, Liberal Democrats;
• Jeremy Hunt, Conservatives;
• James Walsh, Labour;
• Steve Williams, Greens.

By Jon Craig , chief political correspondent

The findings of the SkyNews/YouGov MRP poll are a disaster for the Conservatives, a worry for Labour and good news for the Lib Dems and Reform UK.

The forecast of a Tory near wipeout  will spread panic among Conservative candidates and potentially spark a fresh bout of mutiny against Rishi Sunak from the right of his party.

For Labour, the suggestion that Sir Keir Starmer is heading for a landslide even bigger than Tony Blair won in 1997 will alarm those in the party already fearing complacency.

But for the Lib Dems, the projection that Sir Ed Davey's party is heading for a result to match the heady days of Paddy Ashdown and Charles Kennedy will be a massive confidence boost.

However, the party that will be really delighted is Reform UK - already newly energised with  Nigel Farage replacing Richard Tice as leader  - who will claim that with Labour on course to win, Tory supporters can vote for them.

There will also be consternation in the Tory high command at the forecast that so many of the party's big beasts - led by Chancellor Jeremy Hunt - are at risk of losing their seat.

Mr Hunt is fighting the new constituency of Godalming and Ash - in his favour it's in a part of the affluent Surrey stockbroker belt represented by Conservative MPs since 1910.

But the cabinet minsters who are vulnerable are in seats held by Labour in the Blair and Brown years or the Liberal Democrats in the Ashdown, Kennedy or Nick Clegg years.

Read Jon's full analysis below:

By Gurpreet Narwan , political correspondent

We've just witnessed what is probably the most dramatic moment of the general election campaign so far - Nigel Farage, a figure of fear for the Tories, is entering the fray ( read more here ).

All eyes will now turn to the polls, where Reform UK is performing at around 12%.

It hasn't made any major breakthroughs so far - and this vote share will not translate into a seat.

However, speaking to Sky News after the announcement, Mr Farage was adamant the party would now ascend and win more than the 3.9 million votes UKIP took in 2015.

It was at that election that Douglas Carswell - after defecting from the Tories - won a seat for UKIP. It is in this seat that Farage is now bidding to be an MP after seven failed attempts to enter the Commons.

Clacton will be viewed as a soft target for Reform. This was a strong Leave voting area and the Conservative candidate, Giles Watling, is a Remainer.

Reform UK is polling above the national average in this seaside town - YouGov and Sky News' MRP poll puts its share here at 19.5%. But the "Farage factor" cannot be underestimated. He could really win here.

All of this will send shivers down the spines of those in Tory HQ, but Sir Keir Starmer may be rubbing his hands with glee.

Polling already suggests that Reform could cost the Tories 100 seats by splitting the right wing vote across the Red Wall and Essex. It explains why the Tories were pushing the message hard that "a vote for Reform is a vote for Labour".

Farage has turned that on its head. The election is a foregone conclusion and the Tories are too divided to be serious in opposition, he says.

Instead, given the Tories have already lost, Farage argues that a vote for the Tories is the real wasted vote.

That's his pitch to voters who he is now inviting to join his "political takeover".

It was a week ago that the government was announcing its plans to reintroduce national service - after a fashion - if they won the election.

The idea is for all 18-year-olds to volunteer at least once a month, and some to join the military for the year.

Since then, pollsters at JL Partners have asked the country for their opinions on the policy.

As part of its survey, it asked 2,013 people to check boxes against answers for which statements they agreed with.

People could tick as many boxes as they want.

Some 32% of people - a total of 651 of the 2,013 - ticked the box saying it made them feel more negative about the Tories.

Meanwhile, 23% - 467 people of the 2,013 - said it made them feel better about the Conservatives.

To break that down, that's 184 more responses that thought badly of the Conservatives after the national service announcement than thought better of it - a nine point gap.

And then 24% of people - 479 - ticked the box saying it made no difference to their views.

Some 12% - 236 - said it made them feel better about Labour, while 3% - 51 - said it made them feel worse about Sir Keir Starmer's party.

And 12% - 243 - said they did not know.

Read more about the national service announcement below.

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