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How to write a business plan (with template)

We all know that as a product manager you’re also the CEO of the product. While you own the product backlog, you’re also responsible for expanding the product and adding new features to increase value for users and the business. Whether you work in a start-up or are a PM in a large organization, creating a business plan is crucial before pitching in any new idea.

What is a business plan?

A business plan is a comprehensive document that outlines the problem, the solution, market outreach possibilities, potential threats, a clear goal, and a measurable return on investment with a year-on-year growth strategy.

Significance of a business plan

All product organizations have started seeing the importance of a business plan before approving a new product idea. A good business plan has numerous benefits, the most fundamental being an opportunity to think through the idea before investing time and resources.

The following are the key traits of a good business plan.

Clarity of vision

Taking the time to write down an idea can bring greater clarity to your vision. It allows you to better understand the problem at hand and reveal all possible solutions. This is because writing forces you to slow down and think everything through, resulting in a more evident thought process.

Strategic guidance

When creating a business plan, including financial projections and forecasts is useful. This helps develop a strategic plan by considering marketing strategies, launch plans, development costs, and expected return on investment. However, conducting proper research and due diligence is crucial to ensure that the predictions are as accurate as possible. This process can lead to gaining more insights, taking necessary steps beforehand, and fostering collaboration.

Risk management

A business plan is crucial as it allows you to identify potential risks beforehand. As part of creating a business plan, conducting a competitor analysis, identifying your target market, performing a SWOT analysis (focusing on strengths, weaknesses, opportunities, and threats), and determining your unique selling points is essential. By analyzing these factors, you can gain valuable insights into potential risks and market trends and create an effective risk management plan to ensure success.

Operational planning

While creating a business plan, it becomes essential to forecast, plan milestones, and produce a roadmap. This involves looking into the development timeline, launch plan, and marketing strategies. By doing so, you can outline an operational plan and calculate the resources required to complete the project within a specified deadline. Measuring the rollout plan and determining the appropriate launch plan is crucial.

Measurable objectives and milestones

In addition to a roadmap and milestones, it’s essential to provide critical metrics to measure success. This will help product teams clearly understand the overall roadmap and milestones and ensure that the key results are defined to determine if the product is successful.

Components of a business plan

The business plan will look different for different products depending on the business, product area, and other factors. Still, a few common elements must be a part of each business plan.

Problem statement

Defining the problem in the right way is the most crucial thing. While defining the problem, always consider backing up the claims by data. Use surveys and user testimonies to construct the problem statement in the most relatable manner:

Solution description / mission statement

When presenting a solution, it’s important to avoid using technical jargon and instead describe it in a way that’s easy to understand for anyone, regardless of their technical background. If specific technical details need to be included, put them in an appendix for those who want to read more.

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Creating a clear mission statement outlining what you aim to achieve with your solution is also essential. Avoid using vague language and be as specific and straightforward as possible. The more specific your goal, the better.

Market analysis

This section requires a comprehensive and detailed analysis of various aspects crucial to any product’s success in the market. The four main areas addressed are product-market fit , target customers, total market share, and unique selling proposition (USP).

Product-market fit is about identifying the gap that exists in the market and how your product can bridge that gap.

Defining target customers includes understanding their demographics, behavior, preferences, and needs. It’s also essential to identify any secondary customer base that can be targeted, which can help expand the product’s reach and appeal:

Total market share, or the total available market, refers to the overall revenue opportunity available for a product or service if 100 percent market share is achieved. It gives a clear idea of the scope of expansion for the product after launch.

Unique selling proposition (USP) is a critical aspect of any product’s success that defines why customers should choose your product over others. It’s what sets your product apart from the competition and makes it stand out. Identifying and promoting your USP can help to differentiate your product and create a sense of confidence among sponsors.

Competitor analysis

When analyzing competitors, people tend only to consider direct competitors. However, a great product stands out by taking customers away from even indirect competitors. For example, TikTok and Reels are taking up viewership time that Netflix and other streaming services previously held. Therefore, Netflix’s competitors are not limited to other streaming services but include other platforms providing quick and engaging content:

Projection and forecast

Creating a comprehensive and effective business plan, including a detailed projection of operational costs and a sales and revenue generation forecast is crucial. You can enhance the plan by providing a summarized version of the roadmap and revenue plan and giving sponsors a quick overview of the expected development time, launch dates, and other essential details. Doing so can ensure that your business plan is constructive and comprehensive, in turn laying out a clear path to success.

This is a section of the business plan where you can finally reveal your expectations towards the sponsor or the investors. You have established a business model and the effect of your product. Now, it’s time to be clear and specific about the investment required to reach the goal, including the expected time frame.

The aim is to clearly outline the expected returns so that any potential sponsor or investor can decide whether the opportunity aligns with their goals. This is a mutually beneficial partnership; you can establish a foundation for a good relationship with transparency.

Business plan template

Here’s a one-pager template for a business plan that suits most products:

Here you can find the full PPT template for the business plan, including all the components.

Final thoughts

A business plan is a crucial document that outlines the entire product lifecycle from inception to launch. It aims to align stakeholders, minimize uncertainties, and increase the likelihood of product success in the market. Effective business plans are those that demonstrate a compelling opportunity backed by thorough research and a clear strategy for execution and growth.

These templates can make your next pitch easier!

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The article provides a good starting point for anyone who is looking to write a business plan. It covers the essential components of a business plan and offers some helpful tips on how to write a clear and concise plan.

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How to Write a Business Plan, Step by Step

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What is a business plan?

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

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

ZenBusiness

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

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

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

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

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

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

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

Your business’s registered name.

Address of your business location .

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

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

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

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

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

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

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

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

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

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

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

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

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

Licenses and permits.

Equipment leases.

Bank statements.

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

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

How much do you need?

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

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

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

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

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

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

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The Ultimate Guide to Product Planning

• Table of Contents

What is Product Planning?

Product planning is not one meeting or a one-time activity.

• 7 Strategic Phases of the Product Planning Process

Infographic

• Getting Others Involved in Product Planning

Being Inclusive Without Surrendering Control

Product planning for lone wolves.

• A Good Product Planning Strategy
• A Product Planning Workbook
• Download Book

Product planning is a complex term to define due to its broadness. It involves so many different aspects of a product manager’s job. It’s probably a much more significant portion of your role as a PM than you might realize.

Product planning involves all of the internally focused decisions, steps, and tasks necessary to develop a successful product. In other words, it involves everything you must do that affects the product itself. By contrast, go-to-market planning involves all external-facing steps to introduce and market your product to the public.

Let’s compare some examples from a product plan and a go-to-market plan to understand better how we see both functions.

Product Plan:

• What features should we prioritize for the product’s development?
• How will we determine the price points for our product?
• Which vendors will we work with for manufacturing?
• What will be our revenue targets, our goals for new-customer adoption?
• Are there other metrics that we can track to determine the product’s level of success?

Go-to-Market Plan:

• What email campaigns will we develop to inform prospects about our new product?
• Which pieces of marketing collateral should we create for this product launch?
• How and when will we train our sales force on selling the new product?
• Should we develop limited-time promotions to boost early purchases?
• What PR campaigns will we roll out to increase industry awareness before launch?

A common misconception among product owners is thinking of “product planning” as just an activity, something they do once in the early stage of a product’s development. They might hold a single meeting with their stakeholders to help decide, for example, what significant themes to prioritize, their target customers, and basic pricing structure. From there, they jump straight into execution mode—never revisiting any of these big-picture strategic decisions.

But the realities on the ground might change. The changes emphasize the importance of not viewing product planning as a one-time step. Product planning remains a significant strategic component of the process itself.

One great thing about incorporating product planning as an ongoing part of your role in creating a new framework. When alterations are needed, this allows you to change your initial planning. 

Managing planning changes

Let’s say you acquire new demographic data about your primary user persona. Planning changes when a customer survey reveals new and counterintuitive information about which features to prioritize in your next release. The product team may need to bring in a recent stakeholder with insights your team hasn’t previously considered. All of these scenarios might demand revisiting the decisions you and your team made in your early-stage product planning sessions.

However, changing some of these agreed-upon priorities and decisions midway through your development can feel uncomfortable. That’s why it’s essential to adjust your organization’s mindset, understanding that product planning never actually ends.

While no two products follow the same path, there are some standard stages that nearly all traverse . From the initial spark to the final sunset, here’s what you can expect.

Product Concept Development

Product concept development is the fun part. Coming up with ideas, identifying pain points and problems to be solved, imagining the delight and satisfaction your product can bring. It’s the phase for optimism and possibility.

When there’s enough support for an idea, it’s time to validate it during product discovery , making sure this concept is legit with further exploration and investigation. These learnings and concept reviews help refine the idea.

Competitive Analysis

Chances are, you’re not the first one to come up with this fantastic idea, so it’s time to see what else is out there. If you’re late to the game and others are already executing, it’s an opportunity to see where they’re falling short and what parts of the market they’ve already locked up.

The output of this activity reveals whether you’re truly breaking new ground or merely aiming to be a disruptor. With a firm grip on the competitive landscape , you’ll know what you’re up against if you decide to move forward.

Market Research

Qualitative and quantitative research helps the business get their arms around the real opportunity. How many people will want your product? How much is a solution worth to them?

By identifying the total addressable market , the team can decide whether they think it’s worth it to invest some technical resources and start making it a reality. You’ll also lay the groundwork for mapping out your go-to-market strategy down the line.

Minimum Viable Product Development

Building an MVP lets you put something in front of prospects that’s more tangible than a slick landing page or slide deck. It’s the best test yet as to whether your concept resonates with users and addresses the pain points and problems that sparked your initial idea.

Coming up with the “minimum” part of the MVP also kicks off the first—of many—times you must prioritize what matters most. Using a framework makes this easier and removes some of the subjectivity for making those calls.

The reaction to your MVP and subsequent iterations of the product set the stage for your initial release.

Product Launch

Your big idea has grown into an actual product, and now it’s time to unleash it upon the world with a thoughtful product launch . Product marketing will be fully engaged as they A/B test landing pages, marketing slogans, and price points to maximize the initial buzz of a new release.

When you pull back the curtain, the product positioning and channels to promote the launch are all part of the plan. Meanwhile, the analysts comb through the data and feedback, kicking off another round of learning.

Product Lifecycle Maintenance

Now a mature product, it’s all about the product roadmap  and iterative releases addressing problems. This adds incremental value and expands the market. Planning will focus on themes as the business aims to reach its strategic goals and set new ones once they’re achieved.

The product li f ecycle stage spans the product’s rapid growth period. Moreover, the product will hopefully take many years to reach its conclusion. SWOT analysis and similar introspective exercises reveal what must happen to shore things up and chart a course for ongoing success. New functions and target markets may emerge, building on the success of each release.

Product Sunsetting

Most products eventually reach a point of diminishing returns. There’s limited upside in investing additional product development resources or marketing spending as customers move on to the next generation of solutions (or see their original problems fade away).

Figuring out the plan for a product sounds like something that people with “product” in their title should handle. Their job is to manage the product, after all. But crafting a plan without including other key colleagues is a recipe for disaster. Let’s think about what can go wrong.

You don’t have all the facts

Product managers know a lot about their products, their target market, and their customers. But they don’t know everything, and acknowledging that from the get-go is a wise approach.

The product development team members know much more about how the product gets built and how difficult or easy additions and changes might be. What seems trivial might be tricky thanks to dependencies or untended technical debt , while projects that seem like enormous undertakings may not require as much work as you’d imagined.

Both sales and marketing have a unique view into how the market receives the product. Moreover, they can identify which prospects and customers have to say. While the product team’s customer research may reveal some, responses to sales pitches and marketing campaigns are also insightful.

Customer support and operations bring their own experiences to the table since they’re more acutely aware of problem areas with the product or related logistics. And, of course, executive-level stakeholders have their priorities and strategic imperatives to satisfy, which may be related to investor concerns or mergers and acquisitions activity above the product team’s pay grade.

You’re creating an uphill battle for building alignment

People involved in the process are inevitably more comfortable with the outcome. Even if they don’t get their way on every issue, their first-hand experience witnessing and participating in the plan’s development means they’ll know the rationale for each decision.

Otherwise, the product team will spend countless hours addressing “what about this?” types of concerns after the fact while trying to generate support and buy-in. Opening product planning up to these individuals avoids this cycle and the related drama.

Product teams can facilitate a transparent, cooperative planning environment by gathering the right team, communicating the expectations for the exercise, and presenting everyone with the same supporting evidence . The process should result in a plan addressing all the burning issues that everyone can get behind.

Knowing how important it is to include executives, sales, marketing, operations, support, and product development in product planning, it’s natural to worry about managing all these stakeholders . You want their opinions, input, and buy-in, but ultimately you’re the one who must drive the process and corral all those voices into an intelligent, understandable plan.

First, ensure the highest-ranking person in the room doesn’t try to take over. Product should always lead these activities, a neutral party serving as a facilitator. If an executive has concerns, let them air them—ideally in private before the group session begins—reiterate that this is a collaborative process.

Next, be sure to state the goals for this exercise upfront. The emphasis here is on making customers happy, so focus on personas and user stories that focus on external users rather than internal wants and needs.

Third, actually make the process collaborative. Use prioritization frameworks and other methods that give everyone a turn to vote, score, or otherwise chime in. Give every suggestion a fair hearing, even if you’re ready to dismiss it out of hand, creating an open and welcoming atmosphere.

That said, this doesn’t mean ideas should get a free pass. Press stakeholders for details, context, and a sound rationale. Not just for you, but everyone participating. These arguments should be solid enough to win over the entire room, not just you or the boss.

Finally, be sure to base decisions on reality. That’s why you have product development there! They can usually come up with a quick level of effort and explain why something that seems minor is big (and why something that seems like a massive undertaking isn’t that tough).

Because product managers talk to everyone, they’re the best ringleaders for these activities because they have a holistic view. Offer up that context when needed to explain any tough calls and soothe ruffled egos.

Not every organization has a product team. Sometimes it’s just you. But that doesn’t mean you’re on your own to create a product plan all by yourself.

When you’re the only product manager in the place, it’s even more important to involve others in the process. You’re already likely suffering from a case of impostor syndrome , spending chunks of time explaining to coworkers what product management does with no other internal examples to reference.

Your boss is probably in marketing or technology and doesn’t comprehend the full scope of what product planning entails, skimping on the areas outside their comfort zone. And your plate is overloaded with tasks that need delegation.

However, you can turn your unicorn status into a weapon for good by breaking down silos . Since you don’t have a product team to rely on, pull representatives from different teams for planning exercises, welcoming their expertise and perspectives.

This alignment lays the groundwork for slow, deliberate consensus building while also burnishing your internal reputation and credibility. When people see you working closely with different parts of the business and sharing what you’ve learned, they’ll be more confident that your plan represents an amalgamation of internal viewpoints and priorities and not just your particular vision for the future.

Product planning is a never-ending part of product management and weaves into everything we do as product managers to develop products successfully. How should the product planning portion of our role look? Whom should we involve, and when? And should we schedule product planning?

Here are a few steps to help you craft your own product planning culture.

1. Create an organizational culture that views product planning as an ongoing process.

This will require a significant shift in thinking for most companies, but it’s worth the effort.

You don’t want to change your core mission every other week, of course. But you also shouldn’t feel beholden to a set of strategic plans from a single meeting held months earlier. Just because you called that your “product planning meeting” and everyone agreed on those decisions back then doesn’t mean the decisions remain final. 

When you can persuade your core team, stakeholders, and organization in general that product planning must be ongoing, leaving open the ability to change direction or priorities when the facts demand it, you will ultimately be in a much better position to deliver more successful products.

2. Establish a culture of frequent communication throughout the product development process — not merely in the few meetings you’ve scheduled.

Suppose you encourage your organization to adjust its thinking and understand that product planning might require a shift in priority when the strategic realities call for it. In that case, you will want to communicate more often with your team—and encourage more communication from them as well.

Because your early-stage decisions are more malleable, you might change your plan at various stages throughout the process. Knowing they can suggest changes if they have the data or insights to support them, colleagues might also want to propose updates to your strategic plan. For these reasons, you will want to communicate more frequently across your organization to make sure everyone knows about any updates or additions to your goals.

However, this might take the form of additional, short update meetings. You may also benefit from using a product roadmap tool that automatically alerts relevant teams and individuals when you’ve updated the roadmap.

3. Summarize your research with conclusions and key takeaways — don’t data dump.

Pollsters and other political researchers often use the term “top sheet” when referring to the front page of a technical and usually equation- or graph-heavy report. It’s a handy summary of what’s inside that report. Usually just a few bullets any layperson can understand, such as “42% of respondents said they are concerned or highly concerned about.”

As a product manager suggesting strategic plans or goals for your product or proposing strategic changes as part of ongoing product planning, you’ll want to back up those modifications with data. But that doesn’t mean merely dumping volumes of research onto your team and expecting them to reach those conclusions for themselves.

A good product manager summarizes the data. They present what amounts to a top sheet that clearly and quickly demonstrates support for your ideas. This top sheet might be the data points you’re pulling from a relevant industry report. In other cases, it could be a few key quotes from customers taken from surveys or interviews. The point is to pull out the relevant information from your research. The data can help you make your point without making others sift through the raw data. 

However, you will still need to provide that raw data at times. Simply presenting conclusions without the supporting research falls short as well. You must know both.

4. Include product planning ceremonies to make sure everyone on the team is up-to-date and can weigh in.

Following the steps outlined so far avoids one of the most common pitfalls a product manager can fall into: surprising stakeholders with information about the product’s development they had no idea was taking place.

Large ceremonial update meetings can be risky in an environment where the product team doesn’t communicate regularly or share all strategic updates. Some participants may feel blindsided because they’re hearing items under discussion for the first time.

But when you’re treating product planning as a part of the process and informing the team all along the way of any updates and changes, you can introduce product planning ceremonies—meetings, perhaps quarterly—to discuss the product’s current state and any big-picture strategic updates to your plan.

These product planning ceremonies can also be an excellent time for you and your team to discuss any open-loop strategic questions—such as priorities or plans to consider changing that haven’t yet come up for discussion.

The point here is that, because you’ve shifted your company’s way of thinking, discussing a possible tweak to your product plan in a quarterly meeting like this won’t feel like a bombshell that flies in the face of decisions made months ago. It instead will be treated the way it deserves—as an item that, based on new information, evidence or insights, deserves another look as it may lead to a better product—all part of stakeholder management and analysis .

5. Set a reasonable time horizon for your plan

Before Agile became mainstream, it wasn’t unusual to see product roadmaps extending years into the future. There was always a big asterisk that things might change. The further out you looked, organizations had every incentive to set a long-range plan and execute against it.

But iterative development, shorter cycles, and embracing continuous learning make a lengthy time horizon incompatible. That results in reacting to feedback and opportunities. While hardware companies tend to look a year-plus into the future, most software companies are now limiting their roadmaps to an average of nine months out .

Product teams don’t need to reinvent the wheel when it comes to product planning. There are plenty of playbooks and best practices to leverage, streamlining the process while ensuring nothing important gets overlooked.

To help you kick things off, here is a template from ProductPlan. The workbook covers all the bases and can jumpstart your next product planning journey.

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Business Plan Template for Product

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting a new product-based business can be both thrilling and overwhelming. As an entrepreneur or business owner, you need a solid roadmap to guide you through the entire process, from conceptualization to execution. Look no further than ClickUp's Business Plan Template for Product!

This comprehensive template empowers you to:

• Define your product's unique value proposition and competitive advantage
• Identify and analyze your target market to ensure you're reaching the right customers
• Develop effective marketing strategies to maximize product exposure and drive sales
• Create accurate financial projections to secure funding and monitor business growth
• Craft a robust business strategy that sets you up for long-term success

With ClickUp's Business Plan Template for Product, you'll have everything you need to launch and manage your product-based business with confidence. Get started today and turn your vision into a thriving reality!

Business Plan Template for Product Benefits

A business plan template for a product can provide numerous benefits to entrepreneurs or business owners, including:

• Streamlining the process of creating a comprehensive business plan
• Ensuring a clear and concise articulation of the product's value proposition
• Guiding the identification and understanding of the target market
• Helping to develop effective marketing strategies to reach and engage customers
• Facilitating the creation of realistic and accurate financial projections
• Assisting in the development of a solid business strategy for successful product launch and management
• Providing a framework for evaluating and adjusting business goals and objectives as needed

Main Elements of Product Business Plan Template

ClickUp's Business Plan Template for Product is the ultimate tool for entrepreneurs and business owners to effectively plan and manage their product-based business. Here are the main elements of this template:

• Custom Statuses: Keep track of the progress of each section of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Utilize the Reference, Approved, and Section custom fields to provide additional context to your business plan and easily categorize and filter information.
• Custom Views: Access different views such as Topics, Status, Timeline, Business Plan, and Getting Started Guide to visualize and organize your business plan in a way that suits your needs.
• Collaboration and Organization: Collaborate with your team in real-time, set due dates, assign tasks, and attach files to each section of your business plan.
• Document Creation: Use ClickUp's powerful Docs feature to write and format your business plan directly within the template, ensuring everything is in one place for easy access and editing.

How To Use Business Plan Template for Product

Are you ready to launch your new product and need a solid business plan to guide you through the process? Look no further than ClickUp's Business Plan Template for Product. Follow these five steps to create a comprehensive business plan that sets you up for success.

1. Define your product and target market

The first step in creating your business plan is to clearly define your product and identify your target market. What problem does your product solve? Who are your ideal customers? Conduct market research to gather insights and create buyer personas to guide your marketing efforts.

Use the Docs feature in ClickUp to outline your product's unique features and benefits, and create a section dedicated to your target market.

2. Analyze the competition

To stand out in the market, you need to understand your competition. Research similar products and identify their strengths and weaknesses. This analysis will help you position your product effectively and identify opportunities for differentiation.

Use the Table view in ClickUp to create a competitive analysis, listing key competitors, their products, and their unique selling propositions.

3. Develop a marketing strategy

Now that you have a clear understanding of your product and competition, it's time to develop a marketing strategy. Determine the channels and tactics you will use to reach your target market. Will you focus on digital marketing, social media, or traditional advertising? Outline your pricing strategy, distribution channels, and promotional activities.

Utilize the Calendar view in ClickUp to create a marketing timeline and schedule key milestones and campaigns.

4. Outline your financial projections

A solid business plan includes financial projections that demonstrate the viability of your product. Estimate your revenue streams, costs, and expenses. Consider factors such as production costs, marketing expenses, and pricing strategy. Create a sales forecast based on market research and industry trends.

Use custom fields in ClickUp to track and calculate financial projections, such as revenue, costs, and profit margins.

5. Set goals and milestones

To keep your business plan on track, set clear goals and milestones. Define specific, measurable, achievable, relevant, and time-bound (SMART) objectives. Break down your goals into smaller milestones to track progress and ensure accountability.

Use Goals in ClickUp to set and track your business plan objectives and align them with your team's tasks and projects.

By following these five steps and using ClickUp's Business Plan Template for Product, you'll have a comprehensive and actionable business plan that will guide you towards success. Start planning today and watch your product thrive in the market.

Get Started with ClickUp’s Business Plan Template for Product

Entrepreneurs and business owners can use the ClickUp Business Plan Template for Product to effectively plan and manage their product-based business.

First, hit "Add Template" to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you'd like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan for your product:

• Use the Topics View to outline and organize different sections of your business plan, such as value proposition, target market, marketing strategies, and financial projections.
• The Status View will help you track the progress of each section of your business plan, with statuses like Complete, In Progress, Needs Revision, and To Do.
• Utilize the Timeline View to set deadlines and milestones for completing different sections of your business plan.
• The Business Plan View provides a holistic overview of your entire business plan, allowing you to easily navigate and review all sections.
• Use the Getting Started Guide View to provide step-by-step instructions and guidance for implementing your business plan.

To further customize your business plan template, you can utilize the following custom fields:

• Reference: Add references or links to external resources that support your business plan.
• Approved: Indicate whether each section of your business plan has been approved or not.
• Section: Categorize each section of your business plan based on its topic or theme.

By following these steps and utilizing the different views and custom fields, you can create a comprehensive and well-structured business plan for your product-based business.

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How to Write the Business Plan Products and Services Section

Get tips on writing the products and services part of your business plan

• The Products and Services Section
• What to Include
• Tips on Writing the Section

The products and services section of your business plan is more than just a list of what your business is going to provide. This section of your business plan should include details about how you'll price products and services, how you'll fulfill orders, and other details that investors need to hear before you can get funding . Learn more below.

Key Takeaways

• Business plans include details about products and services you'll offer, including exactly how you plan to market, sell, and deliver on customer orders.
• The best business plans are clear and concise.
• The products and services section of your plan should show off why your product or service is needed.
• The products and services section should also convey the expertise and experience you have to succeed.

Why You Need a Products and Services Section in a Business Plan

The business plan products and services section is the centerpiece of your plan. While other sections of your business plan are important, the products and services section is the essence of your business and the point around which every other part of the business plan is built .

What to Include in a Products and Services Section

The products and services section of your business plan outlines your product or service, why it's needed by your market, and how it will compete with other businesses selling the same or similar products and services.

Your products and services section should include a description of the products or services you are offering or plan to offer (including future products or services). You should explain how your products and services will be priced and a comparison of the products or services your competitors offer in relation to yours.

You should also include the sales literature you plan to use. Detail your marketing materials, and clarify the role your website will play in your sales efforts.

The products and services section will include a paragraph or so on how orders from your customers will be processed or fulfilled, as well as any needs you have to create or deliver your products, such as up-to-date computer equipment. If your process depends on intellectual property or legal issues, such as trademarks , then those need to be addressed.

Tips on Writing the Products and Services Section

This section of your business plan should excite those you're hoping will fund your business or work with you. To that end, here are a few tips to create a products and services section that appeals to the reader.

Indicate Why Your Product or Service Is Needed

Especially if you're venturing into a new concept or invention, or a place where there is no current market, you need to explain the need for your product or service.

Highlight the Features of Your Product or Service

A crucial part of business success is the ability to set yourself apart from other businesses that sell the same or similar products and services. What features, such as price point or level of service, do you offer that are unique to you?

Focus on Benefits

Unique features are important, but even more vital is how those features provide value to consumers. Translate your features (i.e., faster or cheaper) into benefits (i.e., get it now or save money). The goal is to highlight how your product or service will fix a problem or improve a client or customer's life.

Be Clear and Concise

Don't let your business plan get bogged down in too much description and information. Use bullets or numbered lists to quickly and easily highlight important information.

Show Off Expertise, Experience, and Accolades

You not only want to describe your products and services but also share why you're the best person to provide them. Include anything in your education or experience that makes you an expert in this business. If you have testimonials, awards, or endorsements, share those. Finally, if you've applied for a patent, copyright, or trademark, include that as well.

Be the Expert, But Use Layman's Terms

You should know your product, service, and industry well, but don't expect your potential funders and partners to have the same level of knowledge. Assume the reader doesn't know as much as you when you explain what you're offering.

Avoid acronyms and jargon when outlining your products and services.

Indicate What's Special About Your Products or Services

Will you be offering a special guarantee or refund policy? Do you have a quicker or more unique way of delivering your product or service? 

Speak to Your Customer

While you don't want to write an advertorial, you do want to be customer-oriented when you write your products and services section.

Examples of a Products and Services Section

The Small Business Administration offers business plan examples that you can draw from to help guide your writing. Here's an example of a products section for someone creating "Wooden Grain Toys."

Wooden Grain Toys will sell wooden toys made from solid hardwoods (maple, beech, birch, cherry, and oak) and steel rivets. The toys are handcrafted and designed for small children to easily use. Our line currently includes the following nine models:

• All-Purpose Pick-Up Truck w/movable doors and tailgate
• Dump Truck w/functioning dumping mechanism and box
• Biplane (two-seater) w/movable propeller
• Steam engine with coal tender - additional cars available separately: caboose, flat car w/logs, box car, tank car, coal car
• Flat-Bed Truck w/logs

Wooden Grain Toys will offer its products for the following prices:

• All-Purpose Pick-Up Truck w/movable doors and tailgate - $25
• Dump Truck w/functioning dumping mechanism and box - $30
• Biplane (two-seater) w/movable propeller - $20
• Additional train cars (single car) - $5
• Additional train cars (three cars) - $12
• City Bus - $12
• Tow Truck - $18
• Flat-Bed Truck w/logs - $35
• Sports Car - $20
• Sedan - $20

What Is Product and Service in a Business Plan?

A products and services section of a business plan clarifies exactly what your business will produce , how much it'll sell for, and other details along those lines.

What Are Examples of Products and Services?

A product or service can be anything a business creates to turn a profit. Some businesses have both products and services. For example, a restaurant's services include cooking for and serving customers. The restaurant's products are the dishes and drinks it creates.

Product Plan: What is it & How to Create it the Right Way?

“A goal without a  plan  is just a wish.”

Launching a new product is tough. How tough you ask? Well, according to Harvard Business School professor Clayton Christensen, there are over 30,000 new products introduced every year, out of which, a whopping 95 percent fail. Yep, it’s a bloodbath out there.

If you think you can bring a new product to the market without a plan in place, good luck! Planning plays a key role in whether your product is going to be a raving success of a heartbreaking failure. This is where a good project plan comes in.

Smart product managers know that it’s foolish to rely on memory to plan, execute, and deliver a project on time, especially when many of these projects can take months and even years to finish. Having all project deliverables, tactics, and tasks documented helps managers keep their team organized and focussed in order to maximize their chances of a successful launch.

Before we talk about how to write a product plan and what things to include in your roadmap, let us first briefly explore what a product plan really is. Read on…

What is a Product Plan? (Definition)

A product plan, also known as a product roadmap, is a broad overview of the upcoming product, its timelines, budget, resources, tasks, and much more.

The product plan describes what the product team is set out to build, the reason for building the product, and by when the product is ready for launch. If the product is already launched, roadmaps are used as a way of listing out features and updates that will be rolling out in the future.

More than a “to-do list”, a product plan acts as a guide for product managers and all the stakeholders involved, keeping them in the loop with development and managing expectations.

It acts as a strategic tool, keeping you focused on your objectives and product timeline while at the same time, improves communication between stakeholders. Product plans are usually used by software companies and organizations that develop technological products.

Why Creating a Product Plan is Important?

According to research by KPMG, an unbelievable  70%  of organizations have suffered at least one project failure in the prior 12 months and 50% of respondents indicated that their project failed to consistently achieve what they set out to achieve.

While there can be many reasons for product failures, a common issue is the lack of preparation before a product’s execution.

“Every minute you spend in planning saves 10 minutes in execution; this gives you a 1,000 percent return on energy!”  ― Brian Tracy

When the development team is not clear on the goals and objectives behind a product, what needs to be developed and delivered, who needs to do what, they are simply waiting for a disaster to happen.

This is why product managers often rely on documentation like product plans to make sure every stakeholder is onboard with the product objectives and are clear on their roles and responsibilities to make it a success. A formal document, describing precisely what needs to be done and by when helps keep everyone accountable and helps avoid any ambiguity.

All in all, a product plan:

• Describes what the product entails so that all stakeholders know exactly what is expected of them and what the final product should look like.
• Keeps everyone on the development team accountable.
• Provides a roadmap that product managers can use to allocate tasks, responsibilities, and budget accordingly.
• Keeps the team focused on product goals and protects them from straying away from what is expected.
• Ensures proper utilization of resources and keep things under budget.

Having a plan in place is really crucial to stay on top of product development and coordinate the efforts of all stakeholders.

Communicating deliverables, action steps, timetables, task ownership are more need to be planned before product development begins. Here are some of the key benefits of creating a product plan:

1. Gives your Team a Sense of Direction

When product managers make a plan, it kicks off the product development process and gives the entire team some instructions to follow and refer to. By assigning them tasks and responsibilities, managers give the entire team a sense of direction and roadmap to follow and oblige.  ‍

Read more:   What is a Product Requirements Document & How to Create One ?

2. Keeps Everyone Accountable

During the planning phase, all team members are assigned roles and responsibilities. The clearer you define these responsibilities, the better you can keep people accountable for success or failure.

3. Proper Resource Allocation

Product failure can lead to a wastage of time, effort, and a lot of money for the organization. Product planning suggests teams consider the necessary resources needed to finish a project.

The planning phase is the correct time to brainstorm and allocate resources in order to ensure the smooth execution of the development process.

4. Forecasts Problems

When you plan, you not only plan for success but also a failure. Anticipating product limitations, possible roadblocks, and challenges is one of the most important points to keep in mind while planning.

Your project is bound to face challenges at different levels of development. Being ready and having a contingency plan in place before the problem occurs gives a much-needed confidence boost to the development team. It relieves pressure off of the team as well as stakeholders.

5. Take it to the Finish Line

Finishing projects is more difficult than starting them. When you have a clearly defined endpoint, you are more likely to visualize success and reach for it with all your might, without getting sidetracked.

Planning ensures that managers, as well as team members, are well equipped to take the product to the finish line.

Read more:  Product Development Process: Definition & Key Stages!

How to Create a Product Plan? Follow these Steps!

Now that you know what a product plan really is, it’s time to deep dive into the elements of a product plan.

Step 1. Define the Why

Understanding the what and why of the product is the first step to designing a plan. When you clearly know what you need from a product, you are better able to explain it in your document, and as a result, better explain it to team members and stakeholders.

Why you are building the product? How does it benefit the organizational goals? What are the features and functionalities that need to be developed for the product?

Additionally, you can include product differentiators that make the product stand out from the competition. All such questions need to be clear in your mind before you start documenting a product plan.

Step 2. Specify What You Need

The next step in product planning is gathering requirements and documenting them. If you don’t know where to start, begin by collaborating with your sales and customer reps as they are the ones who interact with your target customer on a regular basis.

Note down customer expectations, pain points, commonly asked features, and add them to your upcoming product. You can also carry out a customer survey, engage directly with your users to find out their likes and dislikes in your current product offering, and devise a plan accordingly.

Step 3: Assign Responsibilities

Once you know why you are building and what you need to build, the next step in product planning is to assign roles and responsibilities. You can include each person’s full name, position, department, and the part they will play in making the product a success.

Making people aware of what is expected of them in terms of commitment keeps them more accountable and sincere in their work. Moreover, carefully assigning tasks is crucial to remove all confusion and ambiguity during the development phase.

Step 4: Add Any Limitations

The team working on the product should be made aware of all the challenges they could face in the future. They should also be equipped with the necessary resources and knowledge to navigate such challenges without getting off-track from their mission. Preparing for trouble is the best thing you can do to ensure development.

Step 5. Assign a Timeframe

Without a timeframe, your product could take too long to come to the market. Keep the team accountable by assigning a specific timeframe for every product milestone.

Step 6. Share Your Product Plan

Once done creating, you need to share the product plan with your team and stakeholders. Sharing your product plan helps to gain support from upper management while at the same time increasing

team participation from the get-go. Use a collaboration tool like Bit to create product roadmaps as they can help you bring all relevant stakeholders under one roof and get team feedback and suggestions.

Create a Collaborative Product Plan with Bit

Ready to create your product plan document? Well, we have got the perfect tool for you!

Bit.ai is a new age online document collaboration tool that helps anyone create awesome product plan documents, product requirements documents, instruction manuals, and other company documents in minutes. Bit is the dream tool to help teams transform the planning process, by making it interactive and collaborative.

Simply create a workspace, add your team members, and start creating your workplace documents like product plans quickly! You can further share these documents with external clients, partners, agencies, etc., and get detailed insights on how they interacted with your documents! Cool, right?

Here are some key reasons to use Bit to create product roadmaps or planning documents:

• Collaborate with teammates in real-time and create plan product roadmap together.
• Get management feedback in real-time using @mentions and highlight features as every document comes with its separate comment stream.
• Create, share, and store documents related to the product in one place without going back and forth to your cloud storage services.
• Bit has a plethora of amazing templates to kickstart your work.
• Content management capabilities allow teams to store their PDFs, videos, images, charts, and more inside one platform for easy access. Say goodbye to Google Drive and Dropbox!
• Bit documents are nothing like you have ever seen. Create interactive docs and embed Airtable blocks, Google spreadsheets, PDFs, video tutorials, Typeform surveys- basically anything with a link inside your document.

Final Words

A product plan is a product manager’s favorite tool as it cuts their work in half by guiding the team to success without much involvement from the manager. Once created, product plans document work on their own as they lead the product team through every challenge and keeps them accountable for their actions.

It communicates product goals with internal and external stakeholders, keeping the entire product lifecycle transparent and productive. Product plans are not a guarantee for product success but they are a step in the right direction.

Note that the product plan is a living document that needs to be adjusted and improved upon as the situation demands.

This is why document collaboration tools like Bit are perfect for creating such documents as you can edit any document in real-time and make changes as your company demands. So, what are you waiting for? Start creating your product plan documents today, with a little help from Bit.ai! Good luck!

Further reads:

• How To Create Product Launch Marketing Documentation?
• Product-Market Fit: What is it & How to Achieve it?
• What is Product Adoption & How to do it Right?
• How to Create an Agile Product Roadmap?
• What is an Implementation Plan & How to Create One?
• How to Create a Procurement Management Plan: Step by Step Guide
• How to Create a Strategic Process Improvement Plan?
• Software Product Development: Definition, Types, Methodologies & Process!

Process Improvement Plan: What is it & How to Create It? (Steps Included)

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What Is a Business Plan?

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

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

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

Key Takeaways

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

Investopedia / Ryan Oakley

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

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

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

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

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

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

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

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

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

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

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

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

2 Types of Business Plans

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

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

Why Do Business Plans Fail?

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

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

What Does a Lean Startup Business Plan Include?

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

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

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

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

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

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

• 3 years ago

Have you ever wondered how to write a business plan step by step? Mike Andes, told us: 

This guide will help you write a business plan to impress investors.

Throughout this process, we’ll get information from Mike Andes, who started Augusta Lawn Care Services when he was 12 and turned it into a franchise with over 90 locations. He has gone on to help others learn how to write business plans and start businesses.  He knows a thing or two about writing  business plans!

We’ll start by discussing the definition of a business plan. Then we’ll discuss how to come up with the idea, how to do the market research, and then the important elements in the business plan format. Keep reading to start your journey!

What Is a Business Plan?

A business plan is simply a road map of what you are trying to achieve with your business and how you will go about achieving it. It should cover all elements of your business including: 

• Finding customers
• Plans for developing a team
•  Competition
• Legal structures
• Key milestones you are pursuing

If you aren’t quite ready to create a business plan, consider starting by reading our business startup guide .

Get a Business Idea

Before you can write a business plan, you have to have a business idea. You may see a problem that needs to be solved and have an idea how to solve it, or you might start by evaluating your interests and skills. 

Mike told us, “The three things I suggest asking yourself when thinking about starting a business are:

• What am I good at?
• What would I enjoy doing?
• What can I get paid for?”

If all three of these questions don’t lead to at least one common answer, it will probably be a much harder road to success. Either there is not much market for it, you won’t be good at it, or you won’t enjoy doing it. 

As Mike told us, “There’s enough stress starting and running a business that if you don’t like it or aren’t good at it, it’s hard to succeed.”

If you’d like to hear more about Mike’s approach to starting a business, check out our YouTube video

Conduct Market Analysis

Market analysis is focused on establishing if there is a target market for your products and services, how large the target market is, and identifying the demographics of people or businesses that would be interested in the product or service. The goal here is to establish how much money your business concept can make.

Product and Service Demand

A search engine is your best friend when trying to figure out if there is demand for your products and services. Personally, I love using presearch.org because it lets you directly search on a ton of different platforms including Google, Youtube, Twitter, and more. Check out the screenshot for the full list of search options.

With quick web searches, you can find out how many competitors you have, look through their reviews, and see if there are common complaints about the competitors. Bad reviews are a great place to find opportunities to offer better products or services. 

If there are no similar products or services, you may have stumbled upon something new, or there may just be no demand for it. To find out, go talk to your most honest friend about the idea and see what they think. If they tell you it’s dumb or stare at you vacantly, there’s probably no market for it.

You can also conduct a survey through social media to get public opinion on your idea. Using Facebook Business Manager , you could get a feel for who would be interested in your product or service.

 I ran a quick test of how many people between 18-65  you could reach in the U.S. during a week. It returned an estimated 700-2,000 for the total number of leads, which is enough to do a fairly accurate statistical analysis.

Identify Demographics of Target Market

Depending on what type of business you want to run, your target market will be different. The narrower the demographic, the fewer potential customers you’ll have. If you did a survey, you’ll be able to use that data to help define your target audience. Some considerations you’ll want to consider are:

• Other Interests
• Marital Status
• Do they have kids?

Once you have this information, it can help you narrow down your options for location and help define your marketing further. One resource that Mike recommended using is the Census Bureau’s Quick Facts Map . He told us,  

“It helps you quickly evaluate what the best areas are for your business to be located.”

How to Write a Business Plan

Now that you’ve developed your idea a little and established there is a market for it, you can begin writing a business plan. Getting started is easier with the business plan template we created for you to download. I strongly recommend using it as it is updated to make it easier to create an action plan. 

Each of the following should be a section of your business plan:

• Business Plan Cover Page
• Table of Contents
• Executive Summary
• Company Description
• Description of Products and Services

SWOT Analysis

• Competitor Data
• Competitive Analysis
• Marketing Expenses Strategy 

Pricing Strategy

• Distribution Channel Assessment
• Operational Plan
• Management and Organizational Strategy
• Financial Statements and/or Financial Projections

We’ll look into each of these. Don’t forget to download our free business plan template (mentioned just above) so you can follow along as we go. 

How to Write a Business Plan Step 1. Create a Cover Page

The first thing investors will see is the cover page for your business plan. Make sure it looks professional. A great cover page shows that you think about first impressions.

A good business plan should have the following elements on a cover page:

• Professionally designed logo
• Company name
• Mission or Vision Statement
• Contact Info

Basically, think of a cover page for your business plan like a giant business card. It is meant to capture people’s attention but be quickly processed.

How to Write a Business Plan Step 2. Create a Table of Contents

Most people are busy enough that they don’t have a lot of time. Providing a table of contents makes it easy for them to find the pages of your plan that are meaningful to them.

A table of contents will be immediately after the cover page, but you can include it after the executive summary. Including the table of contents immediately after the executive summary will help investors know what section of your business plan they want to review more thoroughly.

Check out Canva’s article about creating a  table of contents . It has a ton of great information about creating easy access to each section of your business plan. Just remember that you’ll want to use different strategies for digital and hard copy business plans.

How to Write a Business Plan Step 3. Write an Executive Summary

An executive summary is where your business plan should catch the readers interest.  It doesn’t need to be long, but should be quick and easy to read.

Mike told us,

How long should an executive summary bein an informal business plan?

For casual use, an executive summary should be similar to an elevator pitch, no more than 150-160 words, just enough to get them interested and wanting more. Indeed has a great article on elevator pitches .  This can also be used for the content of emails to get readers’ attention.

It consists of three basic parts:

• An introduction to you and your business.
• What your business is about.
• A call to action

Example of an informal executive summary 

One of the best elevator pitches I’ve used is:

So far that pitch has achieved a 100% success rate in getting partnerships for the business.

What should I include in an executive summary for investors?

Investors are going to need a more detailed executive summary if you want to secure financing or sell equity. The executive summary should be a brief overview of your entire business plan and include:

• Introduction of yourself and company.
• An origin story (Recognition of a problem and how you came to solution)
• An introduction to your products or services.
• Your unique value proposition. Make sure to include intellectual property.
• Where you are in the business life cycle
• Request and why you need it.

Successful business plan examples

The owner of Urbanity told us he spent 2 months writing a 75-page business plan and received a $250,000 loan from the bank when he was 23. Make your business plan as detailed as possible when looking for financing. We’ve provided a template to help you prepare the portions of a business plan that banks expect.

Here’s the interview with the owner of Urbanity:

When to write an executive summary?

Even though the summary is near the beginning of a business plan, you should write it after you complete the rest of a business plan. You can’t talk about revenue, profits, and expected expenditures if you haven’t done the market research and created a financial plan.

What mistakes do people make when writing an executive summary?

Business owners commonly go into too much detail about the following items in an executive summary:

• Marketing and sales processes
• Financial statements
• Organizational structure
• Market analysis

These are things that people will want to know later, but they don’t hook the reader. They won’t spark interest in your small business, but they’ll close the deal.

How to Write a Business Plan Step 4. Company Description

Every business plan should include a company description. A great business plan will include the following elements while describing the company:

• Mission statement
• Philosophy and vision
• Company goals

Target market

• Legal structure

Let’s take a look at what each section includes in a good business plan.

Mission Statement

A mission statement is a brief explanation of why you started the company and what the company’s main focus is. It should be no more than one or two sentences. Check out HubSpot’s article 27 Inspiring Mission Statement for a great read on informative and inspiring mission and vision statements. 

Company Philosophy and Vision

The company philosophy is what drives your company. You’ll normally hear them called core values.  These are the building blocks that make your company different. You want to communicate your values to customers, business owners, and investors as often as possible to build a company culture, but make sure to back them up.

What makes your company different?

Each company is different. Your new business should rise above the standard company lines of honesty, integrity, fun, innovation, and community when communicating your business values. The standard answers are corporate jargon and lack authenticity. 

Examples of core values

One of my clients decided to add a core values page to their website. As a tech company they emphasized the values:

•  Prioritize communication.
•  Never stop learning.
•  Be transparent.
•  Start small and grow incrementally.

These values communicate how the owner and the rest of the company operate. They also show a value proposition and competitive advantage because they specifically focus on delivering business value from the start. These values also genuinely show what the company is about and customers recognize the sincerity. Indeed has a great blog about how to identify your core values .

What is a vision statement?

A vision statement communicate the long lasting change a business pursues. The vision helps investors and customers understand what your company is trying to accomplish. The vision statement goes beyond a mission statement to provide something meaningful to the community, customer’s lives, or even the world.

Example vision statements

The Alzheimer’s Association is a great example of a vision statement:

A world without Alzheimer’s Disease and other dementia.

It clearly tells how they want to change the world. A world without Alzheimers might be unachievable, but that means they always have room for improvement.

Business Goals

You have to measure success against goals for a business plan to be meaningful. A business plan helps guide a company similar to how your GPS provides a road map to your favorite travel destination. A goal to make as much money as possible is not inspirational and sounds greedy.

Sure, business owners want to increase their profits and improve customer service, but they need to present an overview of what they consider success. The goals should help everyone prioritize their work.

How far in advance should a business plan?

Business planning should be done at least one year in advance, but many banks and investors prefer three to five year business plans. Longer plans show investors that the management team  understands the market and knows the business is operating in a constantly shifting market. In addition, a plan helps businesses to adjust to changes because they have already considered how to handle them.

Example of great business goals

My all time-favorite long-term company goals are included in Tesla’s Master Plan, Part Deux . These goals were written in 2016 and drive the company’s decisions through 2026. They are the reason that investors are so forgiving when Elon Musk continually fails to meet his quarterly and annual goals.

If the progress aligns with the business plan investors are likely to continue to believe in the company. Just make sure the goals are reasonable or you’ll be discredited (unless you’re Elon Musk).

You did target market research before creating a business plan. Now it’s time to add it to the plan so others understand what your ideal customer looks like. As a new business owner, you may not be considered an expert in your field yet, so document everything. Make sure the references you use are from respectable sources. 

Use information from the specific lender when you are applying for lending. Most lenders provide industry research reports and using their data can strengthen the position of your business plan.

A small business plan should include a section on the external environment. Understanding the industry is crucial because we don’t plan a business in a vacuum. Make sure to research the industry trends, competitors, and forecasts. I personally prefer IBIS World for my business research. Make sure to answer questions like:

• What is the industry outlook long-term and short-term?
• How will your business take advantage of projected industry changes and trends?
• What might happen to your competitors and how will your business successfully compete?

Industry resources

Some helpful resources to help you establish more about your industry are:

• Trade Associations
• Federal Reserve
• Bureau of Labor Statistics

Legal Structure

There are five basic types of legal structures that most people will utilize:

• Sole proprietorships
• Limited Liability Companies (LLC)

Partnerships

Corporations.

• Franchises.

Each business structure has their pros and cons. An LLC is the most common legal structure due to its protection of personal assets and ease of setting up. Make sure to specify how ownership is divided and what roles each owner plays when you have more than one business owner.

You’ll have to decide which structure is best for you, but we’ve gathered information on each to make it easier.

Sole Proprietorship

A sole proprietorship is the easiest legal structure to set up but doesn’t protect the owner’s personal assets from legal issues. That means if something goes wrong, you could lose both your company and your home.

To start a sole proprietorship, fill out a special tax form called a  Schedule C . Sole proprietors can also join the American Independent Business Alliance .

Limited Liability Company (LLC)

An LLC is the most common business structure used in the United States because an LLC protects the owner’s personal assets. It’s similar to partnerships and corporations, but can be a single-member LLC in most states. An LLC requires a document called an operating agreement.

Each state has different requirements. Here’s a link to find your state’s requirements . Delaware and Nevada are common states to file an LLC because they are really business-friendly. Here’s a blog on the top 10 states to get an LLC.

Partnerships are typically for legal firms. If you choose to use a partnership choose a Limited Liability Partnership. Alternatively, you can just use an LLC.

Corporations are typically for massive organizations. Corporations have taxes on both corporate and income tax so unless you plan on selling stock, you are better off considering an LLC with S-Corp status . Investopedia has good information corporations here .

There are several opportunities to purchase successful franchises. TopFranchise.com has a list of companies in a variety of industries that offer franchise opportunities. This makes it where an entrepreneur can benefit from the reputation of an established business that has already worked out many of the kinks of starting from scratch.

How to Write a Business Plan Step 5. Products and Services

This section of the business plan should focus on what you sell, how you source it, and how you sell it. You should include:

• Unique features that differentiate your business products from competitors
• Intellectual property
• Your supply chain
• Cost and pricing structure 

Questions to answer about your products and services

Mike gave us a list  of the most important questions to answer about your product and services:

• How will you be selling the product? (in person, ecommerce, wholesale, direct to consumer)?
• How do you let them know they need a product?
• How do you communicate the message?
• How will you do transactions?
• How much will you be selling it for?
• How many do you think you’ll sell and why?

Make sure to use the worksheet on our business plan template .

How to Write a Business Plan Step 6. Sales and Marketing Plan

The marketing and sales plan is focused on the strategy to bring awareness to your company and guides how you will get the product to the consumer.  It should contain the following sections:

SWOT Analysis stands for strengths, weaknesses, opportunities, and threats. Not only do you want to identify them, but you also want to document how the business plans to deal with them.

Business owners need to do a thorough job documenting how their service or product stacks up against the competition.

If proper research isn’t done, investors will be able to tell that the owner hasn’t researched the competition and is less likely to believe that the team can protect its service from threats by the more well-established competition. This is one of the most common parts of a presentation that trips up business owners presenting on Shark Tank .

SWOT Examples

Examples of strengths and weaknesses could be things like the lack of cash flow, intellectual property ownership, high costs of suppliers, and customers’ expectations on shipping times.

Opportunities could be ways to capitalize on your strengths or improve your weaknesses, but may also be gaps in the industry. This includes:

• Adding offerings that fit with your current small business
• Increase sales to current customers
• Reducing costs through bulk ordering
• Finding ways to reduce inventory
•  And other areas you can improve

Threats will normally come from outside of the company but could also be things like losing a key member of the team. Threats normally come from competition, regulations, taxes, and unforeseen events.

The management team should use the SWOT analysis to guide other areas of business planning, but it absolutely has to be done before a business owner starts marketing. 

Include Competitor Data in Your Business Plan

When you plan a business, taking into consideration the strengths and weaknesses of the competition is key to navigating the field. Providing an overview of your competition and where they are headed shows that you are invested in understanding the industry.

For smaller businesses, you’ll want to search both the company and the owners names to see what they are working on. For publicly held corporations, you can find their quarterly and annual reports on the SEC website .

What another business plans to do can impact your business. Make sure to include things that might make it attractive for bigger companies to outsource to a small business.

Marketing Strategy

The marketing and sales part of business plans should be focused on how you are going to make potential customers aware of your business and then sell to them.

If you haven’t already included it, Mike recommends:

“They’ll want to know about Demographics, ages, and wealth of your target market.”

Make sure to include the Total addressable market .  The term refers to the value if you captured 100% of the market.

Advertising Strategy

You’ll explain what formats of advertising you’ll be using. Some possibilities are:

• Online: Facebook and Google are the big names to work with here.
• Print : Print can be used to reach broad groups or targeted markets. Check out this for tips .
• Radio : iHeartMedia is one of the best ways to advertise on the radio
• Cable television : High priced, hard to measure ROI, but here’s an explanation of the process
• Billboards: Attracting customers with billboards can be beneficial in high traffic areas.

You’ll want to define how you’ll be using each including frequency, duration, and cost. If you have the materials already created, including pictures or links to the marketing to show creative assets.

Mike told us “Most businesses are marketing digitally now due to Covid, but that’s not always the right answer.”

Make sure the marketing strategy will help team members or external marketing agencies stay within the brand guidelines .

This section of a business plan should be focused on pricing. There are a ton of pricing strategies that may work for different business plans. Which one will work for you depends on what kind of a business you run.

Some common pricing strategies are:

• Value-based pricing – Commonly used with home buying and selling or other products that are status symbols.
• Skimming pricing – Commonly seen in video game consoles, price starts off high to recoup expenses quickly, then reduces over time.
• Competition-based pricing – Pricing based on competitors’ pricing is commonly seen at gas stations.
• Freemium services –  Commonly used for software, where there is a free plan, then purchase options for more functionality.

HubSpot has a great calculator and blog on pricing strategies.

Beyond explaining what strategy your business plans to use, you should include references for how you came to this pricing strategy and how it will impact your cash flow.

Distribution Plan

This part of a business plan is focused on how the product or service is going to go through the supply chain. These may include multiple divisions or multiple companies. Make sure to include any parts of the workflow that are automated so investors can see where cost savings are expected and when.

Supply Chain Examples

For instance, lawn care companies  would need to cover aspects such as:

• Suppliers for lawn care equipment and tools
• Any chemicals or treatments needed
• Repair parts for sprinkler systems
• Vehicles to transport equipment and employees
• Insurance to protect the company vehicles and people.

Examples of Supply Chains

These are fairly flat supply chains compared to something like a clothing designer where the clothes would go through multiple vendors. A clothing company might have the following supply chain:

• Raw materials
• Shipping of raw materials
• Converting of raw materials to thread
• Shipping thread to produce garments
• Garment producer
• Shipping to company
• Company storage
• Shipping to retail stores

There have been advances such as print on demand that eliminate many of these steps. If you are designing completely custom clothing, all of this would need to be planned to keep from having business disruptions.

The main thing to include in the business plan is the list of suppliers, the path the supply chain follows, the time from order to the customer’s home, and the costs associated with each step of the process.

According to BizPlanReview , a business plan without this information is likely to get rejected because they have failed to research the key elements necessary to make sales to the customer.

How to Write a Business Plan Step 7. Company Organization and Operational Plan

This part of the business plan is focused on how the business model will function while serving customers.  The business plan should provide an overview of  how the team will manage the following aspects:

Quality Control

• Legal environment

Let’s look at each for some insight.

Production has already been discussed in previous sections so I won’t go into it much. When writing a business plan for investors, try to avoid repetition as it creates a more simple business plan.

If the organizational plan will be used by the team as an overview of how to perform the best services for the customer, then redundancy makes more sense as it communicates what is important to the business.

Quality control policies help to keep the team focused on how to verify that the company adheres to the business plan and meets or exceeds customer expectations.

Quality control can be anything from a standard that says “all labels on shirts can be no more than 1/16″ off center” to a defined checklist of steps that should be performed and filled out for every customer.

There are a variety of organizations that help define quality control including:

• International Organization for Standardization – Quality standards for energy, technology, food, production environments, and cybersecurity
• AICPA – Standard defined for accounting.
• The Joint Commission – Healthcare
• ASHRAE – HVAC best practices

You can find lists of the organizations that contribute most to the government regulation of industries on Open Secrets . Research what the leaders in your field are doing. Follow their example and implement it in your quality control plan.

For location, you should use information from the market research to establish where the location will be. Make sure to include the following in the location documentation.

• The size of your location
• The type of building (retail, industrial, commercial, etc.)
• Zoning restrictions – Urban Wire has a good map on how zoning works in each state
• Accessibility – Does it meet ADA requirements?
• Costs including rent, maintenance, utilities, insurance and any buildout or remodeling costs
• Utilities – b.e.f. has a good energy calculator .

Legal Environment

The legal requirement section is focused on defining how to meet the legal requirements for your industry. A good business plan should include all of the following:

• Any licenses and/or permits that are needed and whether you’ve obtained them
• Any trademarks, copyrights, or patents that you have or are in the process of applying for
• The insurance coverage your business requires and how much it costs
• Any environmental, health, or workplace regulations affecting your business
• Any special regulations affecting your industry
• Bonding requirements, if applicable

Your local SBA office can help you establish requirements in your area. I strongly recommend using them. They are a great resource.

Your business plan should include a plan for company organization and hiring. While you may be the only person with the company right now, down the road you’ll need more people. Make sure to consider and document the answers to the following questions:

• What is the current leadership structure and what will it look like in the future?
• What types of employees will you have? Are there any licensing or educational requirements?
• How many employees will you need?
• Will you ever hire freelancers or independent contractors?
• What is each position’s job description?
• What is the pay structure (hourly, salaried, base plus commission, etc.)?
• How do you plan to find qualified employees and contractors?

One of the most crucial parts of a business plan is the organizational chart. This simply shows the positions the company will need, who is in charge of them and the relationship of each of them. It will look similar to this:

Our small business plan template has a much more in-depth organizational chart you can edit to include when you include the organizational chart in your business plan.

How to Write a Business Plan Step 8. Financial Statements 

No business plan is complete without financial statements or financial projections. The business plan format will be different based on whether you are writing a business plan to expand a business or a startup business plan. Let’s dig deeper into each.

Provide All Financial Income from an Existing Business

An existing business should use their past financial documents including the income statement, balance sheet, and cash flow statement to find trends to estimate the next 3-5 years.

You can create easy trendlines in excel to predict future revenue, profit and loss, cash flow, and other changes in year-over-year performance. This will show your expected performance assuming business continues as normal.

If you are seeking an investment, then the business is probably not going to continue as normal. Depending on the financial plan and the purpose of getting financing, adjustments may be needed to the following:

• Higher Revenue if expanding business
• Lower Cost of Goods Sold if purchasing inventory with bulk discounts
• Adding interest if utilizing financing (not equity deal)
• Changes in expenses
• Addition of financing information to the cash flow statement
• Changes in Earnings per Share on the balance sheet

Financial modeling is a challenging subject, but there are plenty of low-cost courses on the subject. If you need help planning your business financial documentation take some time to watch some of them.

Make it a point to document how you calculated all the changes to the income statement, balance sheet, and cash flow statement in your business plan so that key team members or investors can verify your research.

Financial Projections For A Startup Business Plan

Unlike an existing business, a startup doesn’t have previous success to model its future performance. In this scenario, you need to focus on how to make a business plan realistic through the use of industry research and averages.

Mike gave the following advice in his interview:

Financial Forecasting Mistakes

One of the things a lot of inexperienced people use is the argument, “If I get one percent of the market, it is worth $100 million.” If you use this, investors are likely to file the document under bad business plan examples.

Let’s use custom t-shirts as an example.

Credence Research estimated in 2018 there were 11,334,800,000 custom t-shirts sold for a total of $206.12 Billion, with a 6% compound annual growth rate.

With that data,  you can calculate that the industry will grow to $270 Billion in 2023 and that the average shirt sold creates $18.18 in revenue.

Combine that with an IBIS World estimate of 11,094 custom screen printers and that means even if you become an average seller, you’ll get .009% of the market.

Here’s a table for easier viewing of that information.

The point here is to make sure your business proposal examples make sense.

You’ll need to know industry averages such as cost of customer acquisition, revenue per customer, the average cost of goods sold, and admin costs to be able to create accurate estimates.

Our simple business plan templates walk you through most of these processes. If you follow them you’ll have a good idea of how to write a business proposal.

How to Write a Business Plan Step 9. Business Plan Example of Funding Requests

What is a business plan without a plan on how to obtain funding?

The Small Business Administration has an example for a pizza restaurant that theoretically needed nearly $20k to make it through their first month.

In our video, How to Start a $500K/Year T-Shirt Business (Pt. 1 ), Sanford Booth told us he needed about $200,000 to start his franchise and broke even after 4 months.

Freshbooks estimates it takes on average 2-3 years for a business to be profitable, which means the fictitious pizza company from the SBA could need up to $330k to make it through that time and still pay their bills for their home and pizza shop.

Not every business needs that much to start, but realistically it’s a good idea to assume that you need a fairly large cushion.

Ways to get funding for a small business

There are a variety of ways to cover this. the most common are:

• Bootstrapping – Using your savings without external funding.
• Taking out debt – loans, credit cards
• Equity, Seed Funding – Ownership of a percentage of the company in exchange for current funds
• Crowdsourcing – Promising a good for funding to create the product

Keep reading for more tips on how to write a business plan.

How funding will be used

When asking for business financing make sure to include:

• How much to get started?
• What is the minimum viable product and how soon can you make money?
• How will the money be spent?

Mike emphasized two aspects that should be included in every plan, 

How to Write a Business Plan Resources

Here are some links to a business plan sample and business plan outline. 

• Sample plan

It’s also helpful to follow some of the leading influencers in the business plan writing community. Here’s a list:

• Wise Plans –  Shares a lot of information on starting businesses and is a business plan writing company.
• Optimus Business Plans –  Another business plan writing company.
• Venture Capital – A venture capital thread that can help give you ideas.

How to Write a Business Plan: What’s Next?

We hope this guide about how to write a simple business plan step by step has been helpful. We’ve covered:

• The definition of a business plan
• Coming up with a business idea
• Performing market research
• The critical components of a business plan
• An example business plan

In addition, we provided you with a simple business plan template to assist you in the process of writing your startup business plan. The startup business plan template also includes a business model template that will be the key to your success.

Don’t forget to check out the rest of our business hub .

Have you written a business plan before? How did it impact your ability to achieve your goals?

Brandon Boushy

Brandon Boushy lives to improve people’s lives by helping them become successful entrepreneurs. His journey started nearly 30 years ago. He consistently excelled at everything he did, but preferred to make the rules rather than follow him. His exploration of self and knowledge has helped him to get an engineering degree, MBA, and countless certifications. When freelancing and rideshare came onto the scene, he recognized the opportunity to play by his own rules. Since 2017, he has helped businesses across all industries achieve more with his research, writing, and marketing strategies. Since 2021, he has been the Lead Writer for UpFlip where he has published over 170 articles on small business success.

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

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Products & Services Section in a Business Plan (+ Examples)

• March 21, 2024
• Business Plan , How to Write

In this blog post, we’ll guide you through writing the products and services section of your business plan. We’ll cover how to describe what you’re selling and why it’s important in your business plan.

Whether you’re launching a new startup or creating a business plan for an existing business, this section is crucial for showing the value you bring to customers. Let’s get started!

Why do we include them in a business plan?

The products and services section of a business plan is more than just a list of what a company sells; it’s a vital narrative that tells the story of the business’s core offerings and their significance to the market.

This section is paramount for readers (especially potential investors) to grasp the essence of what the business is about, the unique problems it solves, or the specific needs it addresses.

A meticulously crafted products and services segment does much more than describe offerings. Indeed, it lays the groundwork for comprehensive marketing strategies , informs operational planning, and financial projections.

Moreover, understanding the business’s offerings in depth enables stakeholders to envision the company’s value proposition and competitive edge.

Where should you include them?

In a business plan, the Products and Services section is typically included within the business overview section.

This allows you to first introduce the business model and what it offers to customers. Only after this you can provide more details of the products and services.

The Products and Services section should clearly detail what you are selling, highlight the unique value proposition . It should also ideally explain how it meets the needs of your target market if it isn’t obvious. T

What to include: 2 Examples

Begin with a clear, engaging description of each product or service you offer. For services, describe the process, customer experience, and outcome. For products, discuss the materials, technology, and any unique features.

Services example: a Cryotherapy business plan

Products example: a Brewery business plan

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550+ Business Plan Examples to Launch Your Business

Need help writing your business plan? Explore over 550 industry-specific business plan examples for inspiration.

Find your business plan example

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• View All 25

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• Architecture
• Construction
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• Education Products

Business plan template: There's an easier way to get your business plan done.

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• View All 60

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• Bed and Breakfast

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• Equipment Rental

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Technology Business Plans

• Apps & Software
• Communication Technology

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• Airline, Taxi & Shuttle
• View All 62

View all sample business plans

Example business plan format

Before you start exploring our library of business plan examples, it's worth taking the time to understand the traditional business plan format . You'll find that the plans in this library and most investor-approved business plans will include the following sections:

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally only one to two pages. You should also plan to write this section last after you've written your full business plan.

Your executive summary should include a summary of the problem you are solving, a description of your product or service, an overview of your target market, a brief description of your team, a summary of your financials, and your funding requirements (if you are raising money).

Products & services

The products & services chapter of your business plan is where the real meat of your plan lives. It includes information about the problem that you're solving, your solution, and any traction that proves that it truly meets the need you identified.

This is your chance to explain why you're in business and that people care about what you offer. It needs to go beyond a simple product or service description and get to the heart of why your business works and benefits your customers.

Market analysis

Conducting a market analysis ensures that you fully understand the market that you're entering and who you'll be selling to. This section is where you will showcase all of the information about your potential customers. You'll cover your target market as well as information about the growth of your market and your industry. Focus on outlining why the market you're entering is viable and creating a realistic persona for your ideal customer base.

Competition

Part of defining your opportunity is determining what your competitive advantage may be. To do this effectively you need to get to know your competitors just as well as your target customers. Every business will have competition, if you don't then you're either in a very young industry or there's a good reason no one is pursuing this specific venture.

To succeed, you want to be sure you know who your competitors are, how they operate, necessary financial benchmarks, and how you're business will be positioned. Start by identifying who your competitors are or will be during your market research. Then leverage competitive analysis tools like the competitive matrix and positioning map to solidify where your business stands in relation to the competition.

Marketing & sales

The marketing and sales plan section of your business plan details how you plan to reach your target market segments. You'll address how you plan on selling to those target markets, what your pricing plan is, and what types of activities and partnerships you need to make your business a success.

The operations section covers the day-to-day workflows for your business to deliver your product or service. What's included here fully depends on the type of business. Typically you can expect to add details on your business location, sourcing and fulfillment, use of technology, and any partnerships or agreements that are in place.

Milestones & metrics

The milestones section is where you lay out strategic milestones to reach your business goals.

A good milestone clearly lays out the parameters of the task at hand and sets expectations for its execution. You'll want to include a description of the task, a proposed due date, who is responsible, and eventually a budget that's attached. You don't need extensive project planning in this section, just key milestones that you want to hit and when you plan to hit them.

You should also discuss key metrics, which are the numbers you will track to determine your success. Some common data points worth tracking include conversion rates, customer acquisition costs, profit, etc.

Company & team

Use this section to describe your current team and who you need to hire. If you intend to pursue funding, you'll need to highlight the relevant experience of your team members. Basically, this is where you prove that this is the right team to successfully start and grow the business. You will also need to provide a quick overview of your legal structure and history if you're already up and running.

Financial projections

Your financial plan should include a sales and revenue forecast, profit and loss statement, cash flow statement, and a balance sheet. You may not have established financials of any kind at this stage. Not to worry, rather than getting all of the details ironed out, focus on making projections and strategic forecasts for your business. You can always update your financial statements as you begin operations and start bringing in actual accounting data.

Now, if you intend to pitch to investors or submit a loan application, you'll also need a "use of funds" report in this section. This outlines how you intend to leverage any funding for your business and how much you're looking to acquire. Like the rest of your financials, this can always be updated later on.

The appendix isn't a required element of your business plan. However, it is a useful place to add any charts, tables, definitions, legal notes, or other critical information that supports your plan. These are often lengthier or out-of-place information that simply didn't work naturally into the structure of your plan. You'll notice that in these business plan examples, the appendix mainly includes extended financial statements.

Types of business plans explained

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. To get the most out of your plan, it's best to find a format that suits your needs. Here are a few common business plan types worth considering.

Traditional business plan

The tried-and-true traditional business plan is a formal document meant to be used for external purposes. Typically this is the type of plan you'll need when applying for funding or pitching to investors. It can also be used when training or hiring employees, working with vendors, or in any other situation where the full details of your business must be understood by another individual.

Business model canvas

The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

The structure ditches a linear format in favor of a cell-based template. It encourages you to build connections between every element of your business. It's faster to write out and update, and much easier for you, your team, and anyone else to visualize your business operations.

One-page business plan

The true middle ground between the business model canvas and a traditional business plan is the one-page business plan . This format is a simplified version of the traditional plan that focuses on the core aspects of your business.

By starting with a one-page plan , you give yourself a minimal document to build from. You'll typically stick with bullet points and single sentences making it much easier to elaborate or expand sections into a longer-form business plan.

Growth planning

Growth planning is more than a specific type of business plan. It's a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, forecast, review, and refine based on your performance.

It holds all of the benefits of the single-page plan, including the potential to complete it in as little as 27 minutes . However, it's even easier to convert into a more detailed plan thanks to how heavily it's tied to your financials. The overall goal of growth planning isn't to just produce documents that you use once and shelve. Instead, the growth planning process helps you build a healthier company that thrives in times of growth and remain stable through times of crisis.

It's faster, keeps your plan concise, and ensures that your plan is always up-to-date.

Download a free sample business plan template

Ready to start writing your own plan but aren't sure where to start? Download our free business plan template that's been updated for 2024.

This simple, modern, investor-approved business plan template is designed to make planning easy. It's a proven format that has helped over 1 million businesses write business plans for bank loans, funding pitches, business expansion, and even business sales. It includes additional instructions for how to write each section and is formatted to be SBA-lender approved. All you need to do is fill in the blanks.

How to use an example business plan to help you write your own

How do you know what elements need to be included in your business plan, especially if you've never written one before? Looking at examples can help you visualize what a full, traditional plan looks like, so you know what you're aiming for before you get started. Here's how to get the most out of a sample business plan.

Choose a business plan example from a similar type of company

You don't need to find an example business plan that's an exact fit for your business. Your business location, target market, and even your particular product or service may not match up exactly with the plans in our gallery. But, you don't need an exact match for it to be helpful. Instead, look for a plan that's related to the type of business you're starting.

For example, if you want to start a vegetarian restaurant, a plan for a steakhouse can be a great match. While the specifics of your actual startup will differ, the elements you'd want to include in your restaurant's business plan are likely to be very similar.

Use a business plan example as a guide

Every startup and small business is unique, so you'll want to avoid copying an example business plan word for word. It just won't be as helpful, since each business is unique. You want your plan to be a useful tool for starting a business —and getting funding if you need it.

One of the key benefits of writing a business plan is simply going through the process. When you sit down to write, you'll naturally think through important pieces, like your startup costs, your target market , and any market analysis or research you'll need to do to be successful.

You'll also look at where you stand among your competition (and everyone has competition), and lay out your goals and the milestones you'll need to meet. Looking at an example business plan's financials section can be helpful because you can see what should be included, but take them with a grain of salt. Don't assume that financial projections for a sample company will fit your own small business.

If you're looking for more resources to help you get started, our business planning guide is a good place to start. You can also download our free business plan template .

Think of business planning as a process, instead of a document

Think about business planning as something you do often , rather than a document you create once and never look at again. If you take the time to write a plan that really fits your own company, it will be a better, more useful tool to grow your business. It should also make it easier to share your vision and strategy so everyone on your team is on the same page.

Adjust your plan regularly to use it as a business management tool

Keep in mind that businesses that use their plan as a management tool to help run their business grow 30 percent faster than those businesses that don't. For that to be true for your company, you'll think of a part of your business planning process as tracking your actual results against your financial forecast on a regular basis.

If things are going well, your plan will help you think about how you can re-invest in your business. If you find that you're not meeting goals, you might need to adjust your budgets or your sales forecast. Either way, tracking your progress compared to your plan can help you adjust quickly when you identify challenges and opportunities—it's one of the most powerful things you can do to grow your business.

Prepare to pitch your business

If you're planning to pitch your business to investors or seek out any funding, you'll need a pitch deck to accompany your business plan. A pitch deck is designed to inform people about your business. You want your pitch deck to be short and easy to follow, so it's best to keep your presentation under 20 slides.

Your pitch deck and pitch presentation are likely some of the first things that an investor will see to learn more about your company. So, you need to be informative and pique their interest. Luckily, just like you can leverage an example business plan template to write your plan, we also have a gallery of over 50 pitch decks for you to reference.

With this gallery, you have the option to view specific industry pitches or get inspired by real-world pitch deck examples.

Ready to get started?

Now that you know how to use an example business plan to help you write a plan for your business, it's time to find the right one.

Use the search bar below to get started and find the right match for your business idea.

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How to describe your product and service in a business plan like a pro

It’s deceiving.

You’d think that this part of a business plan does exactly what it says on the tin–describe your product & service offering– right ?

And yes, you are partially right. 

But there’s a very specific way in which this description should be written to make sure that your business has the best chance of succeeding – in real life and under the eagle eye of a potential backer (if you’re preparing a business plan for external financing purposes).

Keep reading to find out the secret sauce to writing a winning product and service description:

WHAT is the Product and Service Description in a Business Plan?

This business plan section is also known as:

• Product and/or Service Overview

HOW Do You Write a Product and Service Description in a Business Plan?

So, what should a good product/service overview contain?

Here are some items to consider including into this section:

1.     Portfolio:

The range of products and/or services that a business offers to potential and current customers.

2.     Features and benefits (value proposition):

Explain what the product/service does and how it works.

3.     Problem and solution (value proposition cont.):

The problem(s) the product or service solves. Every business needs to solve a problem that its customers face. Explain what the problem is and how the product or service solves it.

4.     Innovation:

If the company is doing something new and different, explain why the world needs the innovation.

5.     Proprietary advantages:

Any proprietary features that contribute to a competitive advantage. This could include: intellectual property (e.g., copyright, trademark, patent filings, trade secret), exclusive agreements with suppliers or vendors, exclusive licenses (e.g., for a product, service or technology), company’s own research and development activities.

6.     Development stage:

Current stage of development of the product / service (e.g., idea, development, testing, prototype, already on the market).

7.     Product life-cycle:

Estimate the life span of the product or service.

Specify whether the product or service under consideration is a short-lived fad or has a long-term potential.

8.     Future:

Mention plans for changes and new additions to the current portfolio of products / services.

Describe any plans to move into new markets in the future (e.g., serving different types or sizes of customers, industries, geographic areas).

Make your best guess at when the business will be ready to address these markets and what it needs to do first to be ready.

9.     Limitations:

If applicable, explain any risks or limitations associated with the product (e.g., liability issues like guarantees or returns), along with any legal advice received regarding these issues.

10.  Visual aids:

Use photos, images, diagrams and other graphics to help the reader visualize and learn about the products / services.

If the business is tackling several distinct problems through different products / services, describe the solutions individually .

However, for a large line of products / services, there is no need to list each one, just identifying the general categories will suffice.

How LONG Is the Product and Service Chapter of a Business Plan?

This part of a business plan can be very short, just a couple of paragraphs, or it can spread over multiple pages, depending on how many products/services you offer and how much explanation they require.

If your products or services are particularly complex , technical , innovative , or proprietary , you will want to provide more information and spend considerable time describing them.

This is especially true if you are seeking funding for a new product or service, particularly one that is not immediately understandable to the business plan readers, and if potential funders are likely to be motivated by the specifics.

In any case, when describing a product or service, provide just enough information to paint a clear picture of what it is and does . A brief explanation of what you will be making, selling or doing is appropriate here.

Excessive detail makes this section cumbersome for a reader to wade through. Reserve detailed descriptions (e.g., production processes) for the Appendix.

In any case, it is a good idea to first summarize the value proposition of each product or service into a one short sentence, and only then continue with a more detailed description of the product or service.

If any images or graphics are available that would contribute to the understanding of the product or service, the writers of a business plan should use them.

Otherwise, include any product or service details , such as technical specifications, drawings, photos, patent documents and other support information, in the Appendix section of the business plan document.

TOP 4 TIPS for Writing a Product and Service Overview

Tip #1: features v. benefits.

Don’t just list the features of the product / service.

Instead, describe the specific benefits it will offer to customers – from their perspective.

Make it clear what your customers will gain through buying your product or service. Include information about the specific benefits of your product or service – from your customers’ perspective.

Features are not the same thing as benefits. And you need to understand both.

Confused? Let’s clarify:

What Is the Difference Between Features and Benefits?

Tip #2: problem v. solution.

If at all possible, present the information in the Problem >> Solution format.

Start by describing the key problem that your customers have, immediately followed by the solution with which you will address this need for your target market.

Tip #3: Competitive Advantage

You should also comment on your ability to meet consumers’ key problems or unmet needs in a way that brings your product or service advantages over the competition.

For example:

• If you have a common business, such as a restaurant:

Explain why your customers need your particular restaurant. Do you offer lower prices? More convenient hours? A better location? A different concept, such as a vegan ice-cream pop up store? A specialty that is not otherwise available in your area, such as a Peruvian ceviche or Hungarian goulash?

• If your company is doing something new and innovative :

What is it about the existing solutions that is subpar? Maybe you are improving on a mediocre product category, such as creating better medical uniforms for healthcare workers (e.g., more flattering cut, trendy designs, sustainable materials). Or perhaps your new blockchain solution has the potential to entirely eliminate the middle-men in an entire industry.

Although the subject of competitive advantage regarding the business as a whole will be fully explored in the Market and Competitor Analysis part of a business plan, it is advisable to touch on it here also – in the context of the company’s products and service.

Tip #4: Validating the Problem and Solution

Speaking of which, when you are doing market research and analysis for your business plan, remember to validate the problem and solution your product or service is addressing.

There is a plethora of minor issues out there that people are perfectly fine with just tolerating. To build a solid business, though, you need a problem that a sufficient number of people are motivated to solve. That is, that they recognize it as a problem that’s worth paying you to solve. Even if they didn’t realize it was solvable until they were presented with your solution.

So, how do you get evidence that prospects are willing to pay for your solution?

Validation of Problem

Describe what you’ve done so far to confirm that the problem you are focused on is a real problem for your customers.

• Existing Business:

For an established business, this is probably just a matter of recapping your success in the marketplace. Your customers have already voted with their wallets.

• New Business:

For a startup, it is important to survey and have conversations with as many potential customers as possible about where they are having problems, how they solve them today, and validate that they are interested enough in addressing those problems to pay for a good solution.

Validation of Solution

Describe how you have tested your ideas with existing or potential customers to confirm that there is a good market for the products or services you plan to offer. Summarize the positive customer feedback or market traction that you have achieved with your solution so far.

For an established business, the answers probably lie in your paying customer base – their existence itself, combined with their repeat business, word-of-mouth referrals, follow-up customer surveys, and other indicators of customer satisfaction.

For a new business, you can start validating your solution immediately by trying it out with potential customers, even informally or at no charge, to get their opinion. If your product or service does not exist yet, talk to prospects about what you plan to offer and measure their feedback.

In summary, this section should answer the million dollar question:

What makes you think that people will buy, be satisfied with, and recommend your products or services?

Related Questions

What are products and services.

Products and services are items that businesses offer for sale to a market. While services are intangible, meaning that they do not exist in a physical form, products are of tangible nature, in other words – you can touch them.

What is a Product Line?

Product line is a group of related products that are all produced or sold by one entity and typically marketed under one brand name.

What is a Service Line?

Service line is a group of related services that are all produced or sold by one entity and typically marketed under one brand name.

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Production Plan in Business Plan: A Comprehensive Guide to Success

Last Updated:  

February 26, 2024

In any business venture, a solid production plan is crucial for success. A production plan serves as a roadmap that outlines the steps, resources, and strategies required to manufacture products or deliver services efficiently. By carefully crafting a production plan within a business plan, entrepreneurs can ensure optimal utilisation of resources, timely delivery, cost efficiency, and customer satisfaction. In this article, we will delve into the intricacies of creating an effective production plan in a business plan , exploring its key components, strategies, and the importance of aligning it with overall business objectives .

Key Takeaways on Production Plans in Business Planning

• A production plan : a detailed outline that guides efficient product manufacturing or service delivery.
• Importance of a production plan : provides a roadmap for operations, optimises resource utilisation, and aligns with customer demand.
• Key components : demand forecasting, capacity planning, inventory management, resource allocation, and quality assurance.
• Strategies : lean manufacturing, JIT inventory, automation and technology integration, supplier relationship management, and continuous improvement.
• Benefits of a well-executed production plan : improved efficiency, reduced costs, enhanced product quality, and increased profitability.

What is a Production Plan?

A production Seamless Searches plan is a detailed outline that specifies the processes, resources, timelines, and strategies required to convert raw materials into finished goods or deliver services. It serves as a blueprint for the entire production cycle, guiding decision-making and resource allocation. The production plan considers factors such as demand forecasting, capacity planning, inventory management, and quality assurance to ensure efficient operations and optimal customer satisfaction.

Why is a Production Plan Important in a Business Plan?

The inclusion of a production plan in a business plan is vital for several reasons. First and foremost, it provides a clear roadmap for business operations, helping entrepreneurs and managers make informed decisions related to production processes. A well-developed production plan ensures that resources are utilised efficiently, minimising wastage and optimising productivity.

Additionally, a production plan allows businesses to align their production capabilities with customer demand. By forecasting market trends and analysing customer needs, businesses can develop a production plan that caters to current and future demands, thus avoiding overstocking or understocking situations.

Furthermore, a production plan helps businesses enhance their competitive advantage. By implementing strategies such as lean manufacturing and automation, companies can streamline their production processes, reduce costs, improve product quality, and ultimately outperform competitors.

Key Components of a Production Plan

To create an effective production plan, it is crucial to consider several key components. These components work together to ensure efficient operations and successful fulfilment of customer demands. Let's explore each component in detail.

Demand Forecasting

Demand forecasting is a critical aspect of production planning. By analysing historical data, market trends, and customer behaviour, businesses can predict future demand for their products or services. Accurate demand forecasting allows companies to optimise inventory levels, plan production capacity, and ensure timely delivery to customers.

One approach to demand forecasting is quantitative analysis, which involves analysing historical sales data to identify patterns and make predictions. Another approach is qualitative analysis, which incorporates market research, customer surveys, and expert opinions to gauge demand fluctuations. By combining both methods, businesses can develop a robust demand forecast, minimising the risk of underproduction or overproduction. Utilising a free notion template for demand forecasting can further streamline this process, allowing businesses to organise and analyse both quantitative and qualitative data efficiently in one centralised location.

Capacity Planning

Capacity planning involves determining the optimal production capacity required to meet projected demand. This includes assessing the production capabilities of existing resources, such as machinery, equipment, and labour, and identifying any gaps that need to be addressed. By conducting a thorough capacity analysis, businesses can ensure that their production capacity aligns with customer demand, avoiding bottlenecks or excess capacity.

An effective capacity plan takes into account factors such as production cycle times, labour availability, equipment maintenance, and production lead times. It helps businesses allocate resources efficiently, minimise production delays, and maintain a consistent level of output to meet customer expectations.

Inventory Management

Efficient inventory management is crucial for a successful production plan. It involves balancing the cost of holding inventory with the risk of stockouts. By maintaining optimal inventory levels, businesses can reduce carrying costs while ensuring that sufficient stock is available to fulfil customer orders.

Inventory management techniques, such as the Economic Order Quantity (EOQ) model and Just-in-Time (JIT) inventory system, help businesses strike the right balance between inventory investment and customer demand. These methods consider factors such as order frequency, lead time, and carrying costs to optimise inventory levels and minimise the risk of excess or insufficient stock.

Resource Allocation

Resource allocation plays a pivotal role in a production plan. It involves assigning available resources, such as labour, materials, and equipment, to specific production tasks or projects. Effective resource allocation ensures that resources are utilised optimally, avoiding underutilisation or overutilisation.

To allocate resources efficiently, businesses must consider factors such as skill requirements, resource availability, project timelines, and cost constraints. By conducting a thorough resource analysis and implementing resource allocation strategies, businesses can streamline production processes, minimise bottlenecks, and maximise productivity.

Quality Assurance

Maintaining high-quality standards is essential for any production plan. Quality assurance involves implementing measures to monitor and control the quality of products or services throughout the production process. By adhering to quality standards and conducting regular inspections, businesses can minimise defects, ensure customer satisfaction, and build a positive brand reputation.

Quality assurance techniques, such as Total Quality Management (TQM) and Six Sigma , help businesses identify and rectify any quality-related issues. These methodologies involve continuous monitoring, process improvement, and employee training to enhance product quality and overall operational efficiency.

In addition to the core components of a production plan, it's also important for businesses to consider the broader aspects of their business strategy, including marketing and advertising. Understanding the costs and returns of different marketing approaches is crucial for comprehensive business planning. For instance, direct response advertising costs can vary significantly, but they offer the advantage of measurable responses from potential customers. This type of advertising can be a valuable strategy for businesses looking to directly engage with their target audience and track the effectiveness of their marketing efforts.

Strategies for Developing an Effective Production Plan

Developing an effective production plan requires implementing various strategies and best practices. By incorporating these strategies into the production planning process, businesses can optimise operations and drive success. Let's explore some key strategies in detail.

Lean Manufacturing

Lean manufacturing is a systematic Seamless Searches approach aimed at eliminating waste and improving efficiency in production processes. It emphasises the concept of continuous improvement and focuses on creating value for the customer while minimising non-value-added activities.

By adopting lean manufacturing principles, such as just-in-time production, standardised work processes, and visual management, businesses can streamline operations, reduce lead times, and eliminate unnecessary costs. Lean manufacturing not only improves productivity but also enhances product quality and customer satisfaction.

Just-in-Time (JIT) Inventory

Just-in-Time (JIT) inventory is a strategy that aims to minimise inventory levels by receiving goods or materials just when they are needed for production. This strategy eliminates the need for excess inventory storage, reducing carrying costs and the risk of obsolete inventory.

By implementing a JIT inventory system, businesses can optimise cash flow, reduce storage space requirements, and improve overall supply chain efficiency. However, it requires robust coordination with suppliers, accurate demand forecasting, and efficient logistics management to ensure timely delivery of materials.

Automation and Technology Integration

Automation and technology integration play a crucial role in modern production planning. By leveraging technology, businesses can streamline processes, enhance productivity, and reduce human error. Automation can be implemented in various aspects of production, including material handling, assembly, testing, and quality control.

Continuous Improvement

Continuous improvement is a fundamental principle of effective production planning. It involves regularly evaluating production processes, identifying areas for improvement, and implementing changes to enhance efficiency and quality.

By fostering a culture of continuous improvement, businesses can drive innovation, optimise resource utilisation, and stay ahead of competitors. Techniques such as Kaizen, Six Sigma, and value stream mapping can help businesses identify inefficiencies, eliminate waste, and streamline production workflows.

Frequently Asked Questions (FAQs)

What is the role of a production plan in business planning.

A1: A production plan plays a crucial role in business planning by providing a roadmap for efficient production processes. It helps align production capabilities with customer demand, optimise resource utilisation, and ensure timely delivery of products or services.

How does a production plan affect overall business profitability?

A2: A well-developed production plan can significantly impact business profitability. By optimising production processes, reducing costs, and enhancing product quality, businesses can improve their profit margins and gain a competitive edge in the market.

What are the common challenges faced in production planning?

A3: Production planning can present various challenges, such as inaccurate demand forecasting, capacity constraints, supply chain disruptions, and quality control issues. Overcoming these challenges requires robust planning, effective communication, and the implementation of appropriate strategies and technologies.

What is the difference between short-term and long-term production planning?

A4: Short-term production planning focuses on immediate production requirements, such as daily or weekly schedules. Long-term production planning, on the other hand, involves strategic decisions related to capacity expansion, technology investments, and market expansion, spanning months or even years.

How can a production plan be adjusted to accommodate changes in demand?

A5: To accommodate changes in demand, businesses can adopt flexible production strategies such as agile manufacturing or dynamic scheduling. These approaches allow for quick adjustments to production levels, resource allocation, and inventory management based on fluctuating customer demand.

In conclusion, a well-crafted production plan is essential for business success. By incorporating a production plan into a comprehensive business plan, entrepreneurs can optimise resource utilisation, meet customer demands, enhance product quality, and drive profitability. Through effective demand forecasting, capacity planning, inventory management, resource allocation, and quality assurance, businesses can streamline production processes and gain a competitive edge in the market.

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Published: April 26, 2024

You can gain an edge against your competitors when you understand the importance of competitive intelligence in your business plan.

What is a competitive intelligence strategy? Think of it as the research, review, and analysis done in service of helping your company enhance its offerings, capabilities, and marketing programs, with the aim of gaining an advantage to better compete in the marketplace. Putting a competitive intelligence strategy in place can enable business leaders and firms to gain deeper visibility into the competitive landscape and marketplace. It can also empower them to leverage learnings and insights from these efforts to build more effective business or promotions strategies and help increase their odds of successfully going toe-to-toe with competing firms.

“Staying abreast of what’s happening in the marketplace and what competitors are doing is only becoming more important these days,” says Josh Levetan, co-founder of home theater and automation integrator LV Pros . “As fast as things are changing out there, it helps to keep one eye out for how product and service trends are evolving. Of course, at bare minimum, you also need to stay up to date on how customer preferences are changing, too, if you want to maximize your odds of staying a profitable business.”

In other words, building a competitive intelligence strategy and investing in competitor intelligence efforts can help stay on top of how your industry is shaping up and evolving, helping you to gain a competitive advantage. Let’s take a closer look at how you can utilize these practices to help differentiate your company and grow your market share.

What Is Competitive Intelligence?

The term competitive intelligence describes your capacity to collect, analyze, and leverage actionable data and insights on competitors, clients, and market forces or other business attributes that can help your company create competitive advantage. It’s a crucial compass to watch when making strategic decisions, as it provides you with details into competitive landscapes and analysis of industry trends, as well as rivals’ market shares, product features, and marketing strategies. The term "competitive intelligence" generally describes research done on the marketplace, competitors, industry dynamics, products, and other areas of interest with an eye towards boosting your ability to compete.

The Importance of Competitive Intelligence in Business

The practice of implementing a competitive intelligence strategy is important because, as you set about building your business , you aren’t doing so in a vacuum. Rather, a host of competitors, emerging trends and market conditions can impact your organizational effectiveness as well. That’s why gathering strategic competitive intelligence and collecting and analyzing data on rivals’ activities can be critical. Doing so not only allows you to better comprehend the market landscape in which you’re playing. It can also allow you to:

• Understand market dynamics and trends
• Identify emerging opportunities and challenges
• Compare and contrast your efforts with those of competitors
• Pinpoint new opportunities and new audiences to serve
• Make more informed business decisions

“It pays to keep your eyes and ears open to see what’s going on out there,” notes Levetan, who says that doing so doesn’t have to necessarily be a difficult or time-consuming activity to pursue, either.

“From attending trade shows to see what products and solutions are on the rise to tuning into free online webinars that partners provide, it helps to always be learning. Even going to local networking events and discussing what marketing strategies are working with other small-business owners or polling customers to get their thoughts can provide helpful ideas and insights.”

Key Components of Competitive Insights

As part of your efforts to gather and analyze competitor intelligence, you’ll want to stay attuned to several variables. Doing so can not only help you better plan ahead and design winning business strategies. It can also help you maximize efforts to establish and maintain competitive advantage. For example, you’ll want to implement solutions such as:

Customer Analysis

Leveraging tools such as polls, surveys, and market research can help you better understand customers’ wants, needs, and pain points. So too can feedback and social media commentary help you better tune in to what’s driving clients’ business decisions. In effect, listening to your customers is a core aspect of the practice of gathering strategic competitive analysis. Insights gained through these efforts should inform the shape of products, services, and marketing campaigns to enhance targeting and client impressions.

Product Analysis

It’s not only important to monitor your present-day product development efforts to ensure that they’re aligned with current market conditions and customer needs. You’ll also want to gather competitive insights that can help you future-proof your company by offering a better understanding of where the market is trending. Performing a product analysis can give you a better sense of how your offerings stack up against the competition’s – and where room for improvement and innovation, or opportunity to target different audiences and markets, exists.

“As fast as things are changing out there, it helps to keep one eye out for how product and service trends are evolving. You also need to stay up to date on how customer preferences are changing, too, if you want to maximize your odds of staying a profitable business.” —Josh Levetan, co-founder, LV Pros 

Industry Analysis

No effort at assembling competitor intelligence is complete without running a full industry analysis either. Doing so provides a comprehensive look at sector dynamics, key players in any given space, and the relationships and regulations that govern the market. Insights gained here should provide a better sense of where opportunities and challenges exist – and how to craft your business models, strategic investments, and operating plans accordingly.

Market Analysis

Running an analysis on the marketplace also helps you identify emerging market trends , better target customers, and make strategic decisions that support the growth of your business and its market share. As part of these efforts, you can gain deeper insights into how the industry may evolve going forward, and you can adapt your company’s strategies and solutions in turn to match. 

Applying Competitive Intelligence in Business Planning

It’s one thing to institute a competitive intelligence strategy, another to bring all the research and analysis that you’ve been running together to create actionable impact. On the bright side, leveraging competitor intelligence to shape business, product, and marketing strategy doesn’t have to be difficult when you actively apply learnings in context. You can more effectively address complex competitive environments and future-proof against economic or geopolitical uncertainty when you incorporate research and analysis into your strategic planning process.

Developing Effective Marketing Strategies

Via a combination of surveys, polling, and both actively listening to customers and monitoring rivals’ promotional efforts, you can enhance your marketing strategies. Likewise, implementing an ever-growing suite of customer relationship management and data management tools and solutions can provide helpful learnings and insights that can better inform the shape of promotional programs. In other words, by applying market research and market intelligence to stay better attuned to industry trends and customer expectations, you can design marketing and advertising campaigns to better resonate and connect. The most successful firms seamlessly interweave market research and competitive intelligence programs with business processes to know what outreach strategies to deploy and when, as well as how to present and package them – and which specific channels through which to deliver them. A variety of free and paid online tools can help you gain and leverage deeper insights into the marketplace to create promotional programs that better resonate with target demographics.

Enhancing Sales Strategies and Performance

Armed with a competitive intelligence strategy, you’ll gain greater visibility into the shape of competitive environments and be able to make better strategic decisions about how to position and promote your offerings. In effect, selling solutions to your customers becomes much easier when you understand their wants and needs, and are more intimately aware of the day-to-day challenges they face. Competitor intelligence efforts, tools, and platforms of varying kinds (including both free and paid solutions) can give you clearer visibility into how to better target prospects and package your products and services to sell. Likewise, data management and predictive technology platforms can also provide you with a better sense as to what solutions your customers may be interested in going forward – even if customers aren’t actively aware of these needs currently themselves.

Supporting Strategic Decision-Making

Nowadays, it’s more important than ever to be gathering, analyzing, and distilling data-driven insights into actionable strategic solutions. That means having to institute data collection, analysis, and visualization tools into business processes up and down the board, with every customer or market interaction your business engages in a potential source of insight. Conducting regular analysis of competitor intelligence can help you distill information into actionable insights, and proactively adapt your business strategies. Engaging in these practices not only helps you become more agile in terms of planning for or responding to shifts in the marketplace, it can also enable you to more rapidly build a competitive edge.

Challenges and Considerations in Competitive Intelligence

It’s critical that you leverage trusted, standardized, and accurate sources of data when making decisions. Likewise, it’s just as important that you make a point to boost your organization’s data literacy rates and learn to ask smarter questions, as information isn’t particularly useful from a strategic standpoint unless it’s applied in proper context. There are also legal and ethical concerns to be aware of, as well as privacy-related laws and issues. Overall, it pays to remember: details and fact-checking efforts matter when it comes to operating in a world of data-driven decision-making.

“You’ve got to get your facts straight and be sure you’re not operating off flawed data or assumptions,” says Levetan. “That typically means having to dig deeper into any given trend or theory to see if there’s a root cause or concern behind it. These days, it’s important to not take anything at face value without doing more research. Hopefully when you’re considering testing out a new marketing strategy or business theory, you’re starting out small and prototyping ideas cost-efficiently, too.”

Leveraging Competitive Insights for Market Fragmentation

Competing and winning in an increasingly more fragmented marketplace  can require business owners and operators to think more strategically and stay better attuned to competitor intelligence. By designing and implementing a smart competitive intelligence strategy across your full range of operations, you can make your business more flexible and adaptable, and stay more in tune with changing times and trends. 

“If there’s one constant in the world of business, it’s that things can and will change – and often change quite frequently,” says Levetan. “The more informed and aware you are, the better equipped to deal with whatever the future brings that you’ll typically be.”

Photo: Getty Images

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Elon musk visits china as tesla seeks self-driving technology rollout.

Tesla debuted the most autonomous version of its Autopilot software four years ago, but has yet to make it available in China, its second-largest market. Local rivals have been seeking an advantage by rolling out similar software.

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Biden administration abandons plan to ban menthol cigarettes, citing 'feedback'

Yuki Noguchi

Menthol cigarettes are popular among Black and Latino smokers, and a Biden administration official cited civil rights as a reason the ban is being dropped. Mario Tama/Getty Images hide caption

Menthol cigarettes are popular among Black and Latino smokers, and a Biden administration official cited civil rights as a reason the ban is being dropped.

The Biden administration indefinitely delayed implementing a long-awaited ban on menthol tobacco products, outraging anti-smoking advocates who say the White House is prioritizing politics over public health.

Controversy, especially within the Black community, is one reason Health and Human Services Secretary Xavier Becerra alluded to as rationale for dropping the proposed ban. In a statement, Becerra said the rule elicited "an immense amount of feedback, including from various elements of the civil rights and criminal justice movement," adding that resolving the issues "will take considerably more time."

The original ban on menthol cigarettes was proposed over two years ago, after extensive research on the effects of the minty flavoring.

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The fight over banning menthol cigarettes has a long history steeped in race.

Many public health advocacy groups expressed dismay, arguing that the debate over public health was resolved decades ago.

"This decision prioritizes politics over lives, especially Black lives," said Yolanda Richardson, President and CEO of the Campaign for Tobacco-Free Kids, in a statement. "It is especially disturbing to see the administration parrot the false claims of the tobacco industry about support from the civil rights community."

"The administration's inaction is enabling the tobacco industry to continue aggressively marketing these products and attracting and addicting new users," said Nancy Brown, CEO of the American Heart Association, in a statement.

Menthol makes up over a third of the US tobacco sales, but is disproportionately marketed in Black communities, as well as among women and LGBTQ populations. As many as 85% of Black smokers smoke menthol cigarettes – a health risk that also explains why lung cancer rates run highest in that community. So the issue of banning menthol cigarettes – or curtailing access to them – has divided the Black community.

Some civil rights leaders, most notably Rev. Al Sharpton, have received backing from the tobacco industry and have argued that a ban on menthol cigarettes would lead to more over-policing of Black communities.

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Exxonmobil unveils thailand 2024 business plan.

• Catering to diverse needs with Mobil 1 ™ and Mobil Super ™
• Celebrate Mobil 1 ™ 50th Anniversary – The living proof of trust from consumers and motorsports partners worldwide

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4/4 From left to right: Manoch Munjitjuntra, director of ExxonMobil Marketing (Thailand) Limited and lubricant sales manager, Suda Ninvoraskul, managing director, Dr. Taweesak Bunluesin, public and government affairs manager, ExxonMobil Limited.

April 24th, 2024, Bangkok – ExxonMobil Marketing (Thailand) Limited  revealed its 2024 business plan for Thailand under the theme, “ Unrivaled quality, Journey with confidence, ” levering on the strength of “Quality Wins with Mobil™ lubricants, while offering Mobil Super™ to fulfill diverse consumer needs. This year, the company targeted 10% growth for its flagship product, Mobil 1™.

Today, there are more than 20 million personal vehicles on the roads of Thailand,1 ranging from personal cars for daily commutes to pickup trucks for heavy loads. Engine oil is a key element that enables the cars’ engines to function consistently. Therefore, good engine oil must effectively protect the engines, enhance their performance, extend lifespan, and improve fuel economy to enable all vehicles to function as intended in transporting goods and people.

Quality Wins – Mobil ™ ’s Vision and DNA

Manoch Munjitjuntra, director of ExxonMobil Marketing (Thailand) Limited and lubricant sales manager , said, “Mobil™ has been in Thailand for over 90 years. The word ‘quality’ is not just a standard but our way of work. Our commitment to ‘ Quality Wins ’ shows in every product we deliver. This year, under the theme, “ Unrivaled quality, Journey with confidence, ” we want to be the top-of-mind brand regarding quality and innovation. Customers can trust our products, which have proven successful.”

Driving Ultimate Performance with Mobil 1™ and Extending Proven Protection with Mobil Super™ 2

“With our commitment to quality and innovation, we applied the technology used in Mobil 1™ to the production of Mobil Super™ as well. While Mobil 1™ serves the drivers of high-performance cars, Mobil Super™ serves those who want to protect their engines from heavy usage, such as pickup trucks and SUVs. As part of our customer base expansion plan in 2024, we plan to utilize our products’ highlights to capture more customers.”

“We are targeting 10% growth for our flagship products, Mobil 1™, and expanding Mobil Super™ customer base through the network of more than 700 auto part shops and 1,400 car maintenance workshops and lubes centers, including Mobil 1 Center, B-Quik, and Auto1 network. We planned to add 30-50 service locations this year to become more accessible to our customers,” said Manoch

50 Years of Mobil 1 ™ Success is Proof of World-Class Innovation and Quality.

Mobil 1™ is the first full synthetic engine oil introduced in 1974. From then on, it continues to be widely recognized as the leader in the engine oil industry. Various leading racing teams, including Oracle Red Bull Racing, Porsche Racing, Red Bull KTM Factory Racing, and high-performance carmaker partners like Porsche, have trusted this flagship product.

Mobil™ is committed to developing future products to support modern engine technologies, electric vehicles, and the automotive industry.

“For 50 years, we have believed that ‘Quality Wins’ and ‘Quality’ are the driving forces that propel us to develop the best possible oil for our customers. We continue to maintain our quality standard and innovate for the future,” said Manoch

For special promotions, additional information, or inquiries, please visit http://www.mobil.co.th

For more information, please contact Public and Government Affairs Email : [email protected] 

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Now's the time for Elon Musk to reveal his Tesla rescue plan — if he has one

• We're about to find out if Elon Musk has a plan to save Tesla.
• The EV maker is expected to report a 40% profit drop on Tuesday after a bruising year.
• Demand is falling, competition is rising, and a push to make robotaxis is worrying some investors.

If Elon Musk has a secret rescue plan for Tesla hidden away, now would be a great time to show it to the world.

On Tuesday, the company is due to report first-quarter earnings for Tesla after a decisively brutal year so far that's left his electric vehicle maker looking like a shell of its former self.

Since the start of the year, Tesla's share price has been in freefall, sliding more than 40%, leaving it worth about $460 billion. Musk's own fortune has suffered a $61 billion drop too, though he's still the world's fourth-richest person.

Tesla is facing a host of problems.

Demand for electric vehicles has seemingly been vaporized, with deliveries of Tesla's vehicles plummeting hard and fast. This month, Tesla said it delivered about 387,000 vehicles in the first three months of the year, marking a 20% decline from the previous quarter.

As a result, Tesla is expected to report a 40% profit drop on Tuesday, per Bloomberg , as well as its first revenue drop in four years. Last week, it emerged that it was laying off more than 10% of its staff globally as it adjusts to this new reality.

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After the job cuts were announced last week, Wedbush analyst Dan Ives said Wall Street needed to know the " rationale for the cost-cutting , the strategy going forward, product roadmap, and an overall vision from Musk" on its investor call.

More price cuts

The demand issue has been particularly prominent in one of Tesla's most important growth markets, China. Musk has engaged in a high-risk price war in the country with local rivals such as BYD as they win more buyers with cheaper — and, some say, better — vehicles.

Just this weekend, Tesla slashed the prices of its Model 3 and Model Y vehicles in China that previously sold for 245,900 yuan ($33,900) and 263,900 yuan ($36,500) respectively. It also cut prices in the US and Europe too.

Those cuts look like a significant move to boost sales after a punishing year for Tesla. But they might not be enough to stop a full-blown car crash.

Investors have grown skeptical of Musk's wider strategy to fulfill his ambition of popularizing electric vehicles for the mass market, which would see Tesla hitting an extraordinary sales goal of 20 million EVs per year by 2030 .

In part, it's because Musk's promises of delivering a mass-market car significantly cheaper than Tesla's current offerings look less certain than ever.

Robotaxi dreams

As recently as November, there had been suggestions that Tesla planned to build a sub-$30,000 car at its Berlin factory , but a Reuters report this month said Tesla plans to pivot the focus of its small-vehicle platform to robotaxis instead.

Though Musk — who has planned a big robotaxi event for August — denied the report , the emphasis on driverless cars has left people close to the company feeling "unsettled by the changes the CEO wants to push through," Bloomberg reported.

Autonomous driving has been a long-standing interest for Musk, but scaling such technology has proven challenging for the wider industry. General Motors' autonomous unit paused operations in November over regulator concerns after a collision, for instance.

To top it all off, Tesla is voluntarily recalling all the near-4,000 Cybertrucks it's so far produced over a fault with their accelerators, the US National Highway Traffic Safety Administration said.

For most CEOs, these issues would be plenty to keep them awake at night. But Musk also faces several other distractions in the face of a big legal battle over his Tesla compensation package , retaining advertisers at X, as well as making headway in the AI industry with Grok.

Will Musk prioritize Tesla over everything else? We're about to find out.

Watch: What happens when Elon Musk moves markets with a tweet

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