Business Plan Template For A Startup Business
Business Plan Template For A Startup Business
Business Plan Template For A Startup Business
A startup business plan serves several purposes. It can help convince investors or lenders to finance your
business. It can persuade partners or key employees to join your company. Most importantly, it serves as a
roadmap guiding the launch and growth of your new business.
Writing a business plan is an opportunity to carefully think through every step of starting your company so you
can prepare for success. This is your chance to discover any weaknesses in your business idea, identify
opportunities you may not have considered, and plan how you will deal with challenges that are likely to arise. Be
honest with yourself as you work through your business plan. Don’t gloss over potential problems; instead, figure
out solutions.
A good business plan is clear and concise. A person outside of your industry should be able to understand it.
Avoid overusing industry jargon or terminology.
Most of the time involved in writing your plan should be spent researching and thinking. Make sure to document
your research, including the sources of any information you include.
Avoid making unsubstantiated claims or sweeping statements. Investors, lenders and others reading your plan will
want to see realistic projections and expect your assumptions to be supported with facts.
This template includes instructions for each section of the business plan, followed by corresponding fillable
worksheet/s.
The last section in the instructions, “Refining Your Plan,” explains ways you may need to modify your plan for
specific purposes, such as getting a bank loan, or for specific industries, such as retail.
Proofread your completed plan (or have someone proofread it for you) to make sure it’s free of spelling and
grammatical errors and that all figures are accurate.
Business Plan
[Insert Date]
Company name
Street address 1
Street address 2
City, state, ZIP
Business phone
Website URL
Email address
2
Confidentiality Agreement
Upon request, the undersigned reader will immediately return this document to
_.
_
Signature
_
Name (typed or printed)
_
Date
3
Table of Contents
4
I. Instructions: Executive Summary
The Executive Summary is the most important part of your business plan. Often, it’s the only part that a
prospective investor or lender reads before deciding whether or not to read the rest of your plan. It should
convey your enthusiasm for your business idea and get readers excited about it, too.
Write your Executive Summary LAST, after you have completed the rest of the business plan. That way, you’ll
have thought through all the elements of your startup and be prepared to summarize them.
After reading the Executive Summary, readers should have a basic understanding of your business, should be
excited about its potential, and should be interested enough to read further.
After you’ve completed your business plan, come back to this section to write your executive summary on
the next page.
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Executive Summary
(Write after you’ve completed the rest of the business plan.)
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II. Instructions: Company Description
This section explains the basic elements of your business. Include each of the below:
3. Company goals
Specify your long- and short-term goals as well as any milestones or benchmarks you will use to measure
your progress. For instance, if one of your goals is to open a second location, milestones might include
reaching a specific sales volume or signing contracts with a certain number of clients in the new market.
4. Target market
You will cover this in-depth in the Marketing Plan section. Here, briefly explain who your target
customers are.
5. Industry
Describe your industry and what makes your business competitive: Is the industry growing, mature or
stable? What is the industry outlook long-term and short-term? How will your business take advantage of
projected industry changes and trends? What might happen to your competitors and how will your
business successfully compete?
6. Legal structure
a. Is your business a sole proprietorship, LLC, partnership or corporation? Why did you choose this
particular form of business?
b. If there is more than one owner, explain how ownership is divided. If you have investors, explain
the percentage of shares they own. This information is important to investors and lenders.
After reading the Company Description, the reader should have a basic understanding of your business’s mission
and vision, goals, target market, competitive landscape and legal structure.
Use the Company Description worksheet on the next page to help you complete this section.
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Company Description Worksheet
Business Name
Company Mission
Statement
Company
Philosophy/
Values
Company Vision
1.
3.
Target Market
1.
Industry/ 2.
Competitors
3.
Legal Structure/
Ownership
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III. Instructions: Products & Services
This section expands on the basic information about your products and services included in the Executive
Summary and Company Description. Here are some items to consider:
1. Your company’s products and/or services: What do you sell, and how is it manufactured or
provided? Include details of relationships with suppliers, manufacturers and/or partners that are
essential to delivering the product or service to customers.
2. The problem the product or service solves: Every business needs to solve a problem that its
customers face. Explain what the problem is and how your product or service solves it. What are its
benefits, features and unique selling proposition? Yours won’t be the only solution (every business has
competitors), but you need to explain why your solution is better than the others, targets a customer
base your competitors are ignoring, or has some other characteristic that gives it a competitive edge.
3. Any proprietary features that give you a competitive advantage: Do you have a patent on
your product or a patent pending? Do you have exclusive agreements with suppliers or vendors to
sell a product or service that none of your competitors sell? Do you have the license for a product,
technology or service that’s in high demand and/or short supply?
4. How you will price your product or service: Describe the pricing, fee, subscription or leasing
structure of your product or service. How does your product or service fit into the competitive
landscape in terms of pricing—are you on the low end, mid-range or high end? How will that pricing
strategy help you attract customers? What is your projected profit margin?
Include any product or service details, such as technical specifications, drawings, photos, patent documents and
other support information, in the Appendices.
After reading the Products & Services section, the reader should have a clear understanding of what your business
does, what problem it solves for customers, and the unique selling proposition that makes it competitive.
Use the Product and Service Description Worksheet on the next page to help you complete this section.
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Product & Service Description Worksheet
Business
Name
Product/
Service Idea
Special
Benefits
Unique
Features
Limits and
Liabilities
Production
and Delivery
Suppliers
Intellectual
Property
Special
Permits
Product/
Service
Description
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IV. Instructions: Marketing Plan
This section provides details on your industry, the competitive landscape, your target market and how you will
market your business to those customers.
1. Market research
There are two kinds of research: primary and secondary. Primary market research is information you gather
yourself. This could include going online or driving around town to identify competitors; interviewing or surveying
people who fit the profile of your target customers; or doing traffic counts at a retail location you’re considering.
Secondary market research is information from sources such as trade organizations and journals, magazines and
newspapers, Census data and demographic profiles. You can find this information online, at libraries, from
chambers of commerce, from vendors who sell to your industry or from government agencies.
2. Barriers to entry
What barriers to entry does your startup face, and how do you plan to overcome them? Barriers to entry might
include:
Once your business surmounts the barriers to entry you mentioned, what additional threats might it face? Explain
how the following could affect your startup:
Use the SWOT Analysis Worksheet on the next page to identify your company’s weaknesses and potential threats, as well
as its strengths and the potential opportunities you plan to exploit.
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SWOT Analysis Worksheet
Brand/ Marketing
Staff/HR
Finance
Operations/
Management
Market
Can any of your strengths help with improving your weaknesses or combating your threats? If
so, please describe how below.
Based on the information above, what are your immediate goals/next steps?
Based on the information above, what are your long-term goals/next steps?
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4. Product/service features and benefits
Describe all of your products or services, being sure to focus on the customer’s point of view. For each product
or service:
In this section, explain any after-sale services you plan to provide, such as:
5. Target customer
Describe your target customer. (This is also known as the ideal customer or buyer persona.)
You may have more than one target customer group. For instance, if you sell a product to consumers through
distributors, such as retailers, you have at least two kinds of target customers: the distributors (businesses) and
the end users (consumers).
Identify your target customer groups, and create a demographic profile for each group that includes:
For consumers:
• Age • Income
• Gender • Occupation
• Location • Education level
For businesses:
• Industry • Stage in business (startup, growing, mature)
• Location • Annual sales
• Size
6. Key competitors
One of the biggest mistakes you can make in a business plan is to claim you have “no competition.” Every business
has competitors. Your plan must show that you’ve identified yours and understand how to differentiate your
business. This section should:
List key companies that compete with you (including names and locations), products that compete with yours
and/or services that compete with yours. Do they compete across the board, or just for specific products, for
certain customers or in certain geographic areas?
Also include indirect competitors. For instance, if you’re opening a restaurant that relies on consumers’
discretionary spending, then bars and nightclubs are indirect competitors.
Use the Competitor Data Collection Plan on the next page to brainstorm ways you can collect information about
competitors in each category.
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Competitor Data Collection Plan
Price
Benefits/Features
Size/profitability
Market strategy
Once you’ve identified your major competitors, use the Competitive Analysis Worksheet on the next page to compare your
business to theirs.
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Competitive Analysis Worksheet
For each factor listed in the first column, assess whether you think it’s a strength or a weakness (S or W) for your
business and for your competitors. Then rank how important each factor is to your target customer on a scale of
1 to 5 (1 = very important; 5 = not very important). Use this information to explain your competitive advantages
and disadvantages.
Competitor Importance to
FACTOR Me Competitor B Competitor C
A Customer
Products
Price
Quality
Selection
Service
Reliability
Stability
Expertise
Company
Reputation
Location
Appearance
Sales Method
Credit Policies
Advertising
Image
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7. Positioning/Niche
Now that you’ve assessed your industry, product/service, customers and competition, you should have a clear
understanding of your business’s niche (your unique segment of the market) as well as your positioning (how you
want to present your company to customers). Explain these in a short paragraph.
In this section, explain the marketing and advertising tactics you plan to use.
Which media will you advertise in, why and how often?
What design elements will you use to market your business? (This includes your logo, signage and interior design.)
Explain how they’ll support your brand.
9. Promotional budget
How much do you plan to spend on the marketing and advertising outreach above:
Use the Marketing Expenses Strategy Chart on the next page to help figure out the cost of reaching different target
markets.
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Marketing Expenses Strategy Chart
One-Time
Expenses
Monthly or Annual
Expenses
Labor Costs
Download the Annual Marketing Budget Template. Using the information you’ve gathered, create your annual
marketing budget.
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10. Pricing
You explained pricing briefly in the “Products & Services” section; now it’s time to go into more detail. How do
you plan to set prices? Keep in mind that few small businesses can compete on price without hurting their profit
margins. Instead of offering the lowest price, it’s better to go with an average price and compete on quality and
service.
Use the Pricing Strategy Worksheet on the next page to help with your pricing.
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Pricing Strategy Worksheet
Business Name
Which of the following pricing strategies will you employ? Circle one.
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11. Location or proposed location
If you have a location picked out, explain why you believe this is a good location for your startup.
If you haven’t chosen a location yet, explain what you’ll be looking for in a location and why, including:
Focus on the location of your building, not the physical building itself. You’ll discuss that later, in the Operations
section.
What methods of distribution will you use to sell your products and/or services? These may include:
• Retail
• Direct sales
• Ecommerce
• Wholesale
• Inside sales force
• Outside sales representatives
• OEMs
If you have any strategic partnerships or key distributor relationships that will be a factor in your success, explain
them here.
If you haven’t yet finalized your distribution channels, use the Distribution Channel Assessment Worksheet on the next page
to assess the pros and cons of each distribution channel you are considering.
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Distribution Channel Assessment Worksheet
Distribution Channel 1 Distribution Channel 2 Distribution Channel 3
Ease of Entry
Geographic
Proximity
Costs
Competitors’
Positions
Management
Experience
Staffing
Capabilities
Marketing
Needs
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13. 12-month sales forecast
Download the Sales Forecast spreadsheet and use it to create a month-by-month sales projection.
If you’ve already made some sales, you can use those as a basis for your projections. If, like most startups, you
haven’t sold anything yet, you’ll need to create estimates based on your market research, your proposed
marketing strategies and your industry data.
Create two forecasts: a “best guess” scenario (what you really expect) and a “worst case” scenario (one you’re
confident you can reach no matter what).
Keep notes on the research and assumptions that go into developing these sales forecasts. Financing sources will
want to know what you based the numbers on.
After reading the Marketing Plan section, the reader should understand who your target customers are, how you
plan to market to them, what sales and distribution channels you will use, and how you will position your
product/service relative to the competition.
A SCORE mentor can help you complete your Marketing Plan tailored for your business. Find a SCORE mentor.
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V. Instructions: Operational Plan
This section explains the daily operation of your business, including its location, equipment, personnel and
processes.
1. Production
How will you will produce your product or deliver your service? Describe your production methods, the
equipment you’ll use and how much it will cost to produce what you sell.
2. Quality control
How will you maintain consistency? Describe the quality control procedures you’ll use.
3. Location
Where is your business located? You briefly touched on this in the Company Overview. In this section, expand on
that information with details such as:
4. Legal environment
What type of legal environment will your business operate in? How are you prepared to handle legal
requirements? Include details such as:
g. Any licenses and/or permits that are needed and whether you’ve obtained them
h. Any trademarks, copyrights or patents that you have or are in the process of applying for
i. The insurance coverage your business requires and how much it costs
j. Any environmental, health or workplace regulations affecting your business
k. Any special regulations affecting your industry
l. Bonding requirements, if applicable
5. Personnel
What type of personnel will your business need? Explain details such as:
Download the Job Analysis Worksheet and use it to help you answer the questions above.
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6. Inventory
If your business requires inventory, explain:
• What kind of inventory will you keep on hand (raw materials, supplies, finished products)?
• What will be the average value of inventory (in other words, how much are you investing in inventory)?
• What rate of inventory turnover do you expect? How does this compare to industry averages?
• Will you need more inventory than normal during certain seasons? (For instance, a retailer might need
additional inventory for the holiday shopping season.)
• What is your lead time for ordering inventory?
7. Suppliers
List your key suppliers, including:
8. Credit policies
If you plan to sell to customers on credit, explain:
After reading the Operational Plan section, the reader should understand how your business will operate on a
day-to-day basis.
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VI. Instructions: Management & Organization
This section should give readers an understanding of the people behind your business, their roles and
responsibilities, and their prior experience. If you’re using your business plan to get financing, know that investors
and lenders carefully assess whether you have a qualified management team.
1. Biographies
Include brief biographies of the owner/s and key employees. Include resumes in the Appendix. Here,
summarize your experience and those of your key employees in a few paragraphs per person. Focus on
the prior experience and skills that have prepared your team to succeed in this business. If anyone has
previous experience starting and growing a business, explain this in detail.
2. Gaps
Explain how you plan to fill in any gaps in management and/or experience. For instance, if you lack
financial know-how, will you hire a CFO or retain an accountant? If you don’t have sales skills, will you
hire an in-house sales manager or use outside sales reps?
3. Advisors
List the members of your professional/advisory support team, including:
a. Attorney
b. Accountant
c. Board of directors
d. Advisory board
e. Insurance agent
f. Consultants
g. Banker
h. Mentors and other advisors
If they have experience or specializations that will increase your chances of success, explain. For instance, does
your mentor have experience launching and growing a similar business?
4. Organization Chart
Develop and include an organization chart. This should include both roles that you’ve already filled and
roles you plan to fill in the future.
After reading the Management & Organization section, the reader should feel confident that you have a qualified
team leading your business.
Use the Management Worksheet and Organization Chart on the next two pages to highlight your management team.
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Management Worksheet
Bio/s
Gaps in
Management or
Experience
Advisors
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Organization Chart
TITLE
TITLE
TITLE TITLE
TITLE TITLE
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VII. Instructions: Startup Expenses & Capitalization
In this section, detail the expenses involved in opening for business and how much capital you’ll need. (Do not
include ongoing expenses after your business opens; those are listed in the Financial Plan.) Estimating startup
expenses as accurately as possible helps you gather enough startup capital.
1. Start-Up Expenses
Download and complete the Start-Up Expenses template. In working on this Business Plan, you should
already have gathered most, if not all, of the information you need. In the body of this section, be sure to
explain all of the assumptions behind the figures. How did you come up with these expenses? If you’ve
secured or expect to secure loans, explain the source/s, amount/s and terms. If you’ve secured or expect
to secure investors, explain how much each investor will contribute and what percentage of ownership
each receives in return.
Be sure to include extra capital for unexpected expenses. Opening a new business almost always ends up
costing more than expected, and you need to be prepared. List this figure in the Start-Up Expenses
template under “Reserve for Contingencies.” How much should you set aside for contingencies? You can
talk to other business owners in your industry to get a ballpark figure. If you can’t come up with a figure
this way, a good rule of thumb is to set aside 20% to 25% of your total startup costs for contingencies.
After reading the Startup Expenses & Capitalization section, the reader should know how much money is needed
to start the business and how well capitalized you are.
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VIII. Instructions: Financial Plan
Your financial plan is perhaps the most important element of your business plan. Lenders and investors will review
it in detail. Developing your financial plan helps you set financial goals for your startup and assess its financing
needs. Include the following:
Be sure to explain the assumptions behind the numbers in your P&L. Keep detailed notes about how you
came up with these figures; you may need this information to answer questions from potential financing
sources.
Download the 12-Month Cash Flow Statement and use it to create your projections.
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6. Break-even calculation
The break-even analysis projects the sales volume you need in order to cover your costs. In other words,
when will the business break even? Download the Break-Even Analysis template and, using your profit and
loss projections, enter your expected fixed and variable costs. Adjust the categories to reflect your own
business.
You can even create a couple of different break-even analyses for different scenarios. For example, your
payroll costs will vary depending on whether you hire full-time employees or use independent
contractors. Creating different break-even analyses can help you determine the best option.
7. Use of capital
If you’re using the business plan to seek financing from lenders or investors, provide a breakdown of how
you will the capital and what results you expect. For example, perhaps you will use the money to buy new
equipment and expect that to double your production capacity.
After reading the Financial Plan section, the reader should understand the assumptions behind your financial
projections and be able to judge whether these projections are realistic.
A SCORE mentor can help you complete your Financial Plan tailored for your business. Find a SCORE mentor.
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IX. Instructions: Appendices
Don’t slow your readers down by cluttering your business plan with supporting documents, such as contracts or
licenses. Instead, put these documents in the Appendices, and refer to them in the body of the plan so readers can
find them if needed.
Below are some elements many business owners include in their Appendices.
You can also include any other materials that will give readers a fuller picture of your business or support the
projections and assumptions you make in your plan. For instance, you might want to include photos of your
proposed location, illustrations or photos of a product you are patenting, or charts showing the projected growth
of your market.
After reviewing the Appendices, the reader should feel satisfied that the assumptions throughout the plan are
backed up by documentation and evidence.
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WRITING FORMAT Of
BUSINESS PLAN COMPETITION
EXECUTIVE SUMMARY
BAB I COMPANY DESCRIPTION
1.1 Company mission statement
1.2 Company philosophy and vision
1.3 Company goals
1.4 Target market
1.5 Industry
1.6 Legal structure
BAB II PRODUCT & SERVICES
BAB III MARKETING PLAN
3.1 Market research
3.2 Barriers to entry
3.3 Threats and opportunities
3.4 Product/service features and benefits
3.5 Target customer
3.6 Key competitors
3.7 Positioning/Niche
3.8 How you will market your product/service
3.9 Promotional budget
3.10 Pricing
3.11 Location or proposed location
3.12 Distribution channels
3.13 12-month sales forecast
BAB IV OPERATIONAL PLAN
4.1 Production
4.2 Quality control
4.3 Location
4.4 Legal environment
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4.5 Personnel
4.6 Inventory
4.7 Suppliers
4.8 Credit policies
BAB V MANAGEMENT AND ORGANIZATION
5.1 Biographies
5.2 Gaps
5.3 Advisors
5.4 Organization Chart
BAB VI STARTUP EXPENSES & CAPITALIZATION
6.1 Start-Up Expenses
6.2 Opening Day Balance Sheet
6.3 Personal Financial Statement
BAB VII FINANCIAL PLAN
7.1 12-month profit & loss projection
7.2 Optional: 3-year profit & loss projection
7.3 Cash flow projection
7.4 Optional: 3-year cash flow statement
7.5 Projected balance sheet
7.6 Break-even calculation
7.7 Use of capital
APPENDICES
*Proposal typed using MS Word, 1.5 spacing, Font Times New Roman 12 point (content) 14 (Title)
with a margin of 4 cm left, right, top and bottom 3 cm.
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