starting my business plan

How to make a business plan

Table of Contents

How to make a good business plan: step-by-step guide.

A business plan is a strategic roadmap used to navigate the challenging journey of entrepreneurship. It's the foundation upon which you build a successful business.

A well-crafted business plan can help you define your vision, clarify your goals, and identify potential problems before they arise.

But where do you start? How do you create a business plan that sets you up for success?

This article will explore the step-by-step process of creating a comprehensive business plan.

What is a business plan?

A business plan is a formal document that outlines a business's objectives, strategies, and operational procedures. It typically includes the following information about a company:

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

A business plan serves as a roadmap for a company's success and provides a blueprint for its growth and development. It helps entrepreneurs and business owners organize their ideas, evaluate the feasibility, and identify potential challenges and opportunities.

As well as serving as a guide for business owners, a business plan can attract investors and secure funding. It demonstrates the company's understanding of the market, its ability to generate revenue and profits, and its strategy for managing risks and achieving success.

Business plan vs. business model canvas

A business plan may seem similar to a business model canvas, but each document serves a different purpose.

A business model canvas is a high-level overview that helps entrepreneurs and business owners quickly test and iterate their ideas. It is often a one-page document that briefly outlines the following:

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

On the other hand, a Business Plan Template provides a more in-depth analysis of a company's strategy and operations. It is typically a lengthy document and requires significant time and effort to develop.

A business model shouldn’t replace a business plan, and vice versa. Business owners should lay the foundations and visually capture the most important information with a Business Model Canvas Template . Because this is a fast and efficient way to communicate a business idea, a business model canvas is a good starting point before developing a more comprehensive business plan.

A business plan can aim to secure funding from investors or lenders, while a business model canvas communicates a business idea to potential customers or partners.

Why is a business plan important?

A business plan is crucial for any entrepreneur or business owner wanting to increase their chances of success.

Here are some of the many benefits of having a thorough business plan.

Helps to define the business goals and objectives

A business plan encourages you to think critically about your goals and objectives. Doing so lets you clearly understand what you want to achieve and how you plan to get there.

A well-defined set of goals, objectives, and key results also provides a sense of direction and purpose, which helps keep business owners focused and motivated.

Guides decision-making

A business plan requires you to consider different scenarios and potential problems that may arise in your business. This awareness allows you to devise strategies to deal with these issues and avoid pitfalls.

With a clear plan, entrepreneurs can make informed decisions aligning with their overall business goals and objectives. This helps reduce the risk of making costly mistakes and ensures they make decisions with long-term success in mind.

Attracts investors and secures funding

Investors and lenders often require a business plan before considering investing in your business. A document that outlines the company's goals, objectives, and financial forecasts can help instill confidence in potential investors and lenders.

A well-written business plan demonstrates that you have thoroughly thought through your business idea and have a solid plan for success.

Identifies potential challenges and risks

A business plan requires entrepreneurs to consider potential challenges and risks that could impact their business. For example:

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

By identifying these potential challenges, entrepreneurs can develop strategies to mitigate risks and overcome challenges. This can reduce the likelihood of costly mistakes and ensure the business is well-positioned to take on any challenges.

Provides a basis for measuring success

A business plan serves as a framework for measuring success by providing clear goals and financial projections . Entrepreneurs can regularly refer to the original business plan as a benchmark to measure progress. By comparing the current business position to initial forecasts, business owners can answer questions such as:

Are we where we want to be at this point?

Did we achieve our goals?

If not, why not, and what do we need to do?

After assessing whether the business is meeting its objectives or falling short, business owners can adjust their strategies as needed.

How to make a business plan step by step

The steps below will guide you through the process of creating a business plan and what key components you need to include.

1. Create an executive summary

Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.

Keep your executive summary concise and clear with the Executive Summary Template . The simple design helps readers understand the crux of your business plan without reading the entire document.

2. Write your company description

Provide a detailed explanation of your company. Include information on what your company does, the mission statement, and your vision for the future.

Provide additional background information on the history of your company, the founders, and any notable achievements or milestones.

3. Conduct a market analysis

Conduct an in-depth analysis of your industry, competitors, and target market. This is best done with a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. Next, identify your target market's needs, demographics, and behaviors.

Use the Competitive Analysis Template to brainstorm answers to simple questions like:

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

These questions should give you valuable insights into the current market and where your business stands.

4. Describe your products and services

Provide detailed information about your products and services. This includes pricing information, product features, and any unique selling points.

Use the Product/Market Fit Template to explain how your products meet the needs of your target market. Describe what sets them apart from the competition.

5. Design a marketing and sales strategy

Outline how you plan to promote and sell your products. Your marketing strategy and sales strategy should include information about your:

Pricing strategy

Advertising and promotional tactics

Sales channels

The Go to Market Strategy Template is a great way to visually map how you plan to launch your product or service in a new or existing market.

6. Determine budget and financial projections

Document detailed information on your business’ finances. Describe the current financial position of the company and how you expect the finances to play out.

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

Define how your company is structured and who will be responsible for each aspect of the business. Use the Business Organizational Chart Template to visually map the company’s teams, roles, and hierarchy.

As well as the organization and management structure, discuss the legal structure of your business. Clarify whether your business is a corporation, partnership, sole proprietorship, or LLC.

8. Make an action plan

At this point in your business plan, you’ve described what you’re aiming for. But how are you going to get there? The Action Plan Template describes the following steps to move your business plan forward. Outline the next steps you plan to take to bring your business plan to fruition.

Types of business plans

Several types of business plans cater to different purposes and stages of a company's lifecycle. Here are some of the most common types of business plans.

Startup business plan

A startup business plan is typically an entrepreneur's first business plan. This document helps entrepreneurs articulate their business idea when starting a new business.

Not sure how to make a business plan for a startup? It’s pretty similar to a regular business plan, except the primary purpose of a startup business plan is to convince investors to provide funding for the business. A startup business plan also outlines the potential target market, product/service offering, marketing plan, and financial projections.

Strategic business plan

A strategic business plan is a long-term plan that outlines a company's overall strategy, objectives, and tactics. This type of strategic plan focuses on the big picture and helps business owners set goals and priorities and measure progress.

The primary purpose of a strategic business plan is to provide direction and guidance to the company's management team and stakeholders. The plan typically covers a period of three to five years.

Operational business plan

An operational business plan is a detailed document that outlines the day-to-day operations of a business. It focuses on the specific activities and processes required to run the business, such as:

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

The primary purpose of an operational business plan is to ensure that the business runs efficiently and effectively. It helps business owners manage their resources, track their performance, and identify areas for improvement.

Growth-business plan

A growth-business plan is a strategic plan that outlines how a company plans to expand its business. It helps business owners identify new market opportunities and increase revenue and profitability. The primary purpose of a growth-business plan is to provide a roadmap for the company's expansion and growth.

The 3 Horizons of Growth Template is a great tool to identify new areas of growth. This framework categorizes growth opportunities into three categories: Horizon 1 (core business), Horizon 2 (emerging business), and Horizon 3 (potential business).

One-page business plan

A one-page business plan is a condensed version of a full business plan that focuses on the most critical aspects of a business. It’s a great tool for entrepreneurs who want to quickly communicate their business idea to potential investors, partners, or employees.

A one-page business plan typically includes sections such as business concept, value proposition, revenue streams, and cost structure.

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

A template can help you organize your thoughts and effectively communicate your business ideas and strategies. Starting with a template can also save you time and effort when formatting your plan.

Miro’s extensive library of customizable templates includes all the necessary sections for a comprehensive business plan. With our templates, you can confidently present your business plans to stakeholders and investors.

Be practical

Avoid overestimating revenue projections or underestimating expenses. Your business plan should be grounded in practical realities like your budget, resources, and capabilities.

Be specific

Provide as much detail as possible in your business plan. A specific plan is easier to execute because it provides clear guidance on what needs to be done and how. Without specific details, your plan may be too broad or vague, making it difficult to know where to start or how to measure success.

Be thorough with your research

Conduct thorough research to fully understand the market, your competitors, and your target audience . By conducting thorough research, you can identify potential risks and challenges your business may face and develop strategies to mitigate them.

Get input from others

It can be easy to become overly focused on your vision and ideas, leading to tunnel vision and a lack of objectivity. By seeking input from others, you can identify potential opportunities you may have overlooked.

Review and revise regularly

A business plan is a living document. You should update it regularly to reflect market, industry, and business changes. Set aside time for regular reviews and revisions to ensure your plan remains relevant and effective.

Create a winning business plan to chart your path to success

Starting or growing a business can be challenging, but it doesn't have to be. Whether you're a seasoned entrepreneur or just starting, a well-written business plan can make or break your business’ success.

The purpose of a business plan is more than just to secure funding and attract investors. It also serves as a roadmap for achieving your business goals and realizing your vision. With the right mindset, tools, and strategies, you can develop a visually appealing, persuasive business plan.

Ready to make an effective business plan that works for you? Check out our library of ready-made strategy and planning templates and chart your path to success.

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How to Start a Small Business in 10 Steps

Learn how to start a small business from scratch with expert guidance. Get essential tips and steps for launching your dream journey successfully.

Brett Grossfeld

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Do you have a killer idea that you think would be perfect for launching a small business? If you believe what you see on TikTok, becoming an entrepreneur is just about as easy as posting a 30-second video. But in the real world, launching a small business can be a bit more challenging.

Starting a small business may seem daunting, but if you ask those same business owners if it’s worth the risk — few would trade the opportunity to shape their own destiny.

But where to start? Thankfully, you don’t need to have everything figured out before going out on your own. Successful small business owners are constantly learning from their mistakes — and improving their ideas and dreams along the way.

If you’re ready to take the leap and become a small business owner, keep reading.

Here’s what you’ll learn:

What is a small business, how much does it cost to start a small business, how to start a small business in 10 steps, what do you need to start a small business, start small — but think big.

Small businesses are generally defined by the U.S. Small Business Administration (SBA) as independent operations having fewer than 200 employees. And the majority of small businesses in the United States have fewer than five employees, according to the U.S. Census Bureau . 

But the number — or lack — of employees doesn’t necessarily define a “small business.” A business’s size can also be determined by the number of sales, the range of individual business locations, and other factors.

Along with size requirements, the SBA considers a company to be small if it’s:

• Independently owned and operated
• Not dominant in its field
• Physically located and operated in the U.S. (or a U.S. territory)

If your company meets the SBA’s definition of a small business, many government programs offer resources and local assistance for you to turn your dreams into reality.

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If you’re skilled in a certain trade — say, bookkeeping — you can launch a business with almost no money . But if your idea needs to be fleshed out and developed by researchers, scientists, and engineers, your startup costs can run into the hundreds of thousands of dollars and beyond. But most startup costs fall somewhere in the middle. 

Factors that influence cost

A sole proprietor working from home is going to have very different startup costs than a Silicon Valley startup flush with venture capital funds. But it doesn’t matter if you have $1,000 or $1 million to launch your small business — you’ll need to have a budget.

Are you moving the clutter out of your garage to make room for a desk? Or are you going to hire an architect to remodel a warehouse space in a trendy neighborhood? Obviously, both businesses are going to have wildly different expenses.

Think about your budget and what you can afford to get started. And it’s good to assume that unexpected expenses will pop up along the way — especially in your first year of business.

What kinds of costs to expect

The SBA has a worksheet that will help you calculate typical expenses for a small business, including one-time expenses such as:

• Rent : This includes security deposit, first month’s rent and utilities. If you’re working from home, you can deduct a percentage of your rent or mortgage on your taxes .
• Improvement costs: Anything that you might spend on your physical place of business to make it suitable for work.
• Inventory : If you’re selling a product, you’ll need goods to keep up with customer demand.
• Employees : This includes payroll, payroll taxes, and health insurance.
• Professional services: Accountants, lawyers, and consultants will all need to be paid
• Supplies : Think office supplies, such as paper and pencils, and operating supplies, like computers and printers.
• Marketing: Business cards, stationery, flyers, and advertising all fall under this category.
• Miscellaneous : This includes licenses, permits, legal fees, signage, technology, and accounting software. Everything else — liability insurance, repairs, maintenance, and dues.

The most difficult part of starting a small business is committing to your vision. It’s easier if you break down the process into small, achievable goals. Here are 10 steps that will get you on your way:

1. Do your research

If you don’t do basic market research before you launch your business, you may be down for the count before you even get started. Ask neighbors, friends, and even your barista if they would be interested in your product or service — and ask how much they’d be willing to pay for it. 

Conduct competitor research, local and global searches, and even offer surveys to consumers to see what the need versus want ratio is. 

2. Write a business plan

A business plan is your roadmap; it helps guide you as you start and grow your company. If you need capital to get started, most investors will want to review a business plan before they commit to any financing. 

To organize your ideas, download and fill out a business plan template . A well-written business plan provides clarity, confirms the math, and helps you establish goals so your business has the best chance of success.

3. Choose a business name

Finding the perfect brand name is a vital step in launching a new business. But hiring a professional naming company doesn’t come cheap — it can cost as much as $100,000 , according to Fast Company. 

If that’s outside your budget, there are countless AI-powered business name generators available online, and Fiverr has entrepreneurs who will help brainstorm business names for three figures or less.

4. Decide on your location

Take a look at the taxes, zoning laws, and regulations in your location. You may find that operating your business in a different location could offer financial advantages. Review the fees, costs, and tax benefits of each state to see which location makes the most sense for your business . A strategic move may put you ahead of the game before you even open the doors.

5. Get your finances in order

Startup costs discourage many would-be entrepreneurs, but the reality is that many successful businesses got started with little more than a vision, discipline, and hard work. However, if you really need cash for that newly opened business bank account, here are four ways of getting that money:

• Self-funding: If you have the means, you may use your own earnings to kickstart your business or see out financial counsel to work it into your budget.
• Outside investors: For a stake in your company, relatives or venture capitalists may be willing to invest in your business.
• Small business loans: If you want to keep full ownership of your business, a small business loan may be the way to go.
• Crowdfunding: If you’re feeling creative and confident, try sites such as Kickstarter or GoFundMe to generate capital.

6. Take care of the legal stuff

Register your business in the state where it was formed — and make sure that you’re set up to pay state income and unemployment tax. Review whether your local municipality requires filing for a license or permit to operate your business. 

To satisfy Uncle Sam, apply for an EIN from the IRS . Confirm that no one else is using your business name by contacting your state filing office or online database. Some business structures require using a doing business as (DBA) name, and you may be required to open a business bank account.

7. Develop a marketing plan

Once you have a terrific name for your company locked down, you’ll want to create an online presence for your business. Be consistent on your social media channels , ideally creating accounts on the channels — meeting them online where they are. 

Develop a website that’s intuitive and filled with all the information your customers need. Your marketing may also include advertising campaigns and public relations.

8. Set up your CRM software

To enhance your marketing efforts and grow your small business, try customer relationship management ( CRM) for Small Business . This will be your solution for storing and managing prospect and customer information such as contact information, accounts, leads, and sales opportunities — all in one single source of truth. 

With Salesforce’s Starter Suite , you can start in minutes and easily manage your marketing, sales, and customer service as your business scales.

9. Launch your product or service

Congratulations: You’ve done all the hard work and you’re ready to introduce your product to the world. Make sure to announce your launch on social media — and consider throwing a media-friendly bash to celebrate.

10. Keep your customers happy

When you use CRM software, you can keep track and personalize support for all your customers. And happy customers are good for business — 80% of them say the experience a company provides is just as important as its products or services .

The United States has more than 33 million small businesses, according to the U.S. Chamber of Commerce , and that number represents 99.9% of all U.S. businesses. And most of those small businesses started the same way — with an entrepreneur and an idea. But it takes more than just a dream to launch a small business.

So, where to start?

It’s time to take some notes. First, start outlining your business plan. If you’re stuck, ask yourself these four questions when developing your plan :

• Goals : What do you need to accomplish to achieve your vision?
• Methods : What are the steps you need to follow to get you there?
• Measurements : How will you determine when each objective has been met?
• Obstacles : What could throw you off course along the way?

Once you’ve written a business plan and are feeling confident, you’re ready to establish:

A name for your business

A great business name should succinctly identify your company and its audience. Brainstorm and get feedback from friends, family, and potential customers. And before you fall in love with your new company name, make sure that an established business in your industry isn’t already using that name.

A location for your business

Choosing where to conduct business is one of the most important decisions you can make for your small business. While staying close to home may be your first instinct, a change of venue may prove to be financially advantageous.

A business structure

For tax purposes and protection of personal assets, you need to choose a business structure that offers the right balance of legal protections and benefits. Common business structures include sole proprietorship, partnership, limited liability company (LLC), corporation, and cooperative.

A legal presence

If you want personal liability protection, legal protection, and tax benefits for your company, you’ll need to register your business with state and local governments.

Federal and state tax ID numbers

Your Employer Identification Number (EIN) works like a personal Social Security number, but for your business. You need an EIN to pay state and federal taxes for your company.

Licenses and permits

Whether your business needs to apply — and pay for — licenses and permits depends on your business activities, location, and government rules. Review regulations from city, state, and federal agencies.

A business bank account

Opening up a bank account exclusively for business use will help keep your personal finances separate, making life easier at tax time. There are several banks that will allow you to open a business checking account with a zero balance, but traditionally banks will require an opening deposit of anywhere from $1,000 to $25,000.

Start-up funds

Even if you open a business checking account with a zero balance, you’re going to want to have some funds to cover basic operating expenses. The SBA offers guidance on obtaining funding for your small business, including loans, grants, and investors.

Starting a new business may feel like a gamble, but business insurance will help you cover your bet. The right insurance policy will help protect you against accidents, natural disasters, and lawsuits.

You should also consider:

Customer relationship management

A CRM platform keeps your customer data organized and provides the foundation to build connected customer experiences (that can be made even better through artificial intelligence). Starting with a suite of sales, service, marketing, and commerce tools is easy.

Invoice and billing software

While it is possible to keep track of your financial records on a traditional paper ledger, modern invoice and billing software makes the process much, much easier.

A graphic designer

A well-designed logo can make or break a business. The Nike “swoosh” was created by a graphic design student — and the $35 Nike initially spent paid for itself many times over.

Many small businesses exist with just a presence on social media, but having a professionally designed website adds legitimacy to your business.

Marketing experts

Like graphic design, marketing expenses are costs that many small business owners initially want to avoid. But strategically investing in a marketing campaign can be a boon for a small business that wants to make noise in a crowded marketplace.

A Human Resources department

Once your business grows to a certain size, it’s time to create a human resources (HR) department — or, at least, to hire an HR professional. This professional can focus on things such as labor law compliance, employee recruitment, employee engagement and development, and compensation and benefits management while you manage your business.

An assistant

For most small businesses starting out, hiring an assistant to perform administrative and clerical duties is something of a luxury. If your budget is tight, consider a virtual assistant .

What are some popular small business ideas?

If you have a unique idea for a small business, great. But some of the best small business ideas build on your strengths and experience. What do you love to do? What lights you up when you are helping the community? Do you have a pull to do something more?

What are the odds that my small business will succeed?

Starting a small business is no guarantee of success. Approximately 80% of small businesses survive their first year, according to the Bureau of Labor Statistics. The survival rate decreases to 50% after five years and 30% after 10 years.

What are some Fortune 500 companies that started small?

Not all big companies started with millions of dollars in venture capital. Some of America’s biggest brand names had far more modest beginnings . Apple famously got started in a Silicon Valley garage, while Mattel was building dollhouse furniture from picture frame scraps in its early days.

What are the most business-friendly states?

Before setting up shop in New York or California, consider launching your small business in North Dakota, Indiana, Arkansas, South Dakota, or North Carolina. These states offer the best conditions to start a business , according to Forbes Advisor.

What can I deduct for my small business at tax time?

(Almost) everyone knows that you can deduct entertainment and travel expenses as a small business owner. But you can also deduct software subscriptions, office furniture, and interest on small business loans, according to NerdWallet .

Taking the leap to start your own small business is just the first step on your entrepreneurial path. But you’re in good company. Nearly half of all U.S. employees are employed by a small business — and more than 80% of those small businesses are solo ventures , according to Forbes Advisor. There’s no better time than the present to start turning your dreams into reality.

Want to grow your new small business? Sign up for a Salesforce free trial .

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Brett Grossfeld is a Product Marketing Manager supporting Salesforce's CRM, data, and AI tools. He's written for multiple websites across various industries and interests, including tech, wellness, and modern customer experiences.

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

May 24, 2021

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?

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Step #1. Learn about the food truck industry

Step #2. generate food truck ideas, step #3. how much does it cost to start a food truck business, step #4. figure business operating costs, step #5. write a food truck business plan, step #6. determine financing options, step #7. obtain licenses and permits, step #8. buy your truck, step #9. secure your suppliers.

• Step #10. Streamline the process

Step #11: Build your food truck business/brand

Are you ready to start a food truck business, how to start a food truck business.

• Learn About the Food Truck Industry
• Choose Your Food Truck Concept
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• Plan for Business Operating Costs
• Write a Food Truck Business Plan
• Get Food Truck Financing
• Obtain Licenses and Permits
• Buy Your Truck
• Purchase a POS System
• Streamline the Process
• Build Your Food Truck Business/Brand

How much do food trucks make a year?

Are food trucks profitable.

• Overhead: 25%
• Profit: 20%[/su_quote]

How do I price my food truck menu?

• Actual Food Cost / Food Cost Percentage=Customer Price
• (Choose a Value between 3.33 and 5) x Actual Food Costs=Customer Price

Other startup costs

How to start a food truck business with no money

What licenses are needed to start a food truck?

• Business License –This depends on the city/county/state where you work and is based on the type of service you provide, whether events, catering, etc. In addition to licensing fees, a percentage of the revenue may also go to the government agency, so be sure to factor this into your budget.
• Employer Identification Number – You need this in order to start legally paying employees, withholding taxes, etc.
• Business Permits – This is usually issued by local municipalities. These can change over time, so be sure to review this annually so you understand what is required in the way of food truck permits.
• Vehicle Licensing – Make sure the person driving the food truck is appropriately licensed and insured for that particular vehicle. Find out if you need a commercial driver's license in order to drive the food truck (this is often related to the size/length/weight of the truck.)
• Food Handler's Permit – This may require you and your employees to take a Food Safety Course. Often done online and fairly inexpensive, it may be necessary for truck owners and all employees to complete this in order to comply with food safety requirements.
• Health Department Permit – This differs between states but is typically similar to what a restaurant requires since, technically, your food truck is a restaurant on wheels.
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• Parking Permits – If your food truck is invited to a festival or a private event, this shouldn't be an issue. But if you plan to simply park your food truck on the side of the road, you'll need to do your homework about local parking ordinances in your area.

Where should I park my food truck?

What types of food trucks are there?

Step #10. Streamline the process  

Should my food truck have a pos system.

Why do food trucks fail?

520 Candle Company Names (for 2024)

Candle company names are one of the core ways people recognize a candle brand. That’s why you have to find the best candle business names for your candle business.

There are two main naming conventions you need to think about when you start your own candle company:

• Candle business name ideas
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[su_note note_color="#dbeafc"] We’ll discuss both of these types of candle company names to help you find an idea that works for you. You can jump to any of the sections by clicking the links below.

50 Candle Business Name Ideas

50 candle company name ideas, 48 luxury candle business names, 50 catchy names for candle business, 46 unique candle business names, 78 names for candle businesses, 52 unique candle names, 46 funny candle company names, 50 scent name ideas, 50 scented candle names.

• What to Do After Choosing a Candle Company Name [/su_note]

Create a name that sets you apart and is something you’ll want to stick with for the long haul. There are many different types of names you can go with, but your candle business name should be true to your shop and what your offering is. What do you want people to think of when they hear your name?

1. Wick-edly Scent-sational 2. Whispering Wick 3. Glow and Behold Candles 4. Moonbeam & Ember 5. Wax Poetic Candles 6. The Fragrant Alchemist 7. Bright and Bubbly Candles 8. Candlelight Sanctuary 9. Flicker of Joy Candles 10. Enchanted Aroma 11. Scent-sational Serenity Candles 12. Glow Getter Candles 13. A Scentsational Journey 14. Waxing Euphoria Candles 15. Wildflower Glow Co. 16. Flame and Fortune Candles 17. Kissed by Fragrance 18. Twinkle in Time Candles 19. The Gilded Wick 20. Gleeful Glow Candles 21. The Cozy Candle Co. 22. Waxen Whimsy Candles 23. Flame & Fortune 24. Blissful Beams Candles 25. The Luminous Muse

26. Flame Frolics Candles 27. Waxing Poetic 28. Candlelit Capers Candles 29. Scentual Escape 30. Waxen Whoopee Candles 31. Mystic Bazaar 32. Lustrous Laughs Candles 33. Whisper of Aroma 34. Soothing Smiles Candles 35. Emberglow Lights 36. Dazzling Delights Candles 37. Moonlight & Jasmine 38. Twilight Titters Candles 39. Serene Flame 40. Luminary Larks Candles 41. The Unforgettable Flame 42. Radiant Revels Candles 43. The Scentualist 44. Luminous Larks Candles 45. Candleabra Tales 46. Wick Winks Candles 47. Bliss & Bloom 48. Gleaming Guffaws Candles 49. Enchanted Fireside 50. Wick Wit

Pro Tip: Make sure your candle business name sounds appealing and memorable. You want your customers to remember where to go when they need more fabulous scents.

Short or long, your name should tell the story of what your shop offers, who you are, where you’re from, or what kind of experience customers will have when they shop with you. Online or brick and mortar, your name is the first thing they’ll see and hopefully something they’ll remember.

1. Candle Sense 2. Glistening Glow Candle Creations 3. Wax and Relax 4. Waxen Wonderlands Candle Co. 5. Candle Magic 6. Flame Fables Candles 7. Glow and Grow 8. Illuminated Illusions Co. 9. Candle Delight 10. Luminous Lullabies Candles 11. Spark and Scent 12. Wick Wonders Candle Co. 13. Wax Art

14. Glistening Gardens Candles 15. Candle Lab 16. Candlelit Canopies Candles 17. Glow Time 18. Waxen Waterfalls Candles 19. Wax and Glow 20. Lustrous Lagoons Candles 21. Candle Dream 22. Twilight Truffles Candles 23. Spark and Splendor 24. Glowing Groves Candles 25. Wax Appeal

Pro Tip: Your business name will last the length of the business, unless you decide to change your DBA (doing business as name) or update your brand entirely. Make sure you love your name. Don’t settle for “okay”—you should love it!

Luxury candle business names can bring you high-end, bougie buyers who are willing to spend more money because your shop has the “wow factor.”

Consider some of these luxurious candle business name ideas perfect for selling expensive aromatherapy candles, scented candles, or even beeswax candles.

1. Aroma Path 2. Ember & Co. 3. Glow & Co. 4. Gilded Wick Candle Co. 5. Aroma Bloom 6. Moonlight Sonata 7. Zenith Candles 8. Amethyst Flame 9. Glow Haven 10. Silk & Sillage 11. Spark & Scent 12. Emberlight Alchemy 13. Lumena Ignite 14. Velvet Wick 15. Scent Fusion 16. Moonstone Muse 17. Pheroma Memento 18. Whispering Embers 19. Flame Fest 20. Starlight Sanctuary 21. Petal Glow 22. Opulent Glow 23. Scent Sation 24. Golden Nectar

25. Luxe Light 26. Clandestine Embers 27. Flame Bright 28. Seraph's Sconce 29. Zodiac Flames 30. Damask & Dusk Candle Co. 31. Glow Makers 32. Emberlit Soiree 33. Moonstone Candles 34. Whispers of Oud 35. Celestial Scents 36. Gilded Alchemy 37. Eco Flame 38. Starlit Lace Candle Co. 39. Glow & Grow 40. Velvet & Ember 41. Pure Illuminate 42. Luminous Indigo 43. Gilded Haven 44. Seraphim's Ember 45. Luxe Luminance Candle Co. 46. Enchanted Candle Company 47. Custom Candles by Coco 48. The Candle Maker

Pro Tip: Who is your target customer? A good luxury candle business name can help you to target a higher-paying demographic. It’s more appealing to those who have the money to spend. Regardless of whether you will have an Etsy store, Shopify site, or brick-and-mortar store, you need to identify your target customer before you finalize a name.

Make your candle business name sticky…so buyers come back time and again. Using catchy phrases or sayings can really help keep your name top of mind.

1. Wick’d Wonders Candles 2. Soy Much Fun Soy Wax Candles 3. Radiant Flames 4. Waxing Poetic 5. Fabulous Flame Candle Co. 6. Flick Candles 7. Aromatic Artistry 8. The Flickering Flamingo 9. The Illuminated Co. 10. Scentsational Shenanigans 11. Soothing Scentsations 12. Litty & Witty Candles 13. The Candle Connoisseur 14. The Wacky Wickery 15. Illuminated Atelier 16. Candle Capers 17. Candle Conservatory 18. Grin & Glow Candles 19. Illuminated Gallery 20. Laughing Flames Candle Company 21. Candle Emporium Co. 22. Flame On, Funny Bone 23. Candle Artisan Co. 24. The Illuminaughty 25. Illuminated Haven

26. Scents & Sensibility 27. Heavenly Candle Co 28. Wickid Good Scents 29. Scented Studio Co. 30. Wax On, Wax Off 31. Candle Artistry Studio 32. The Melty Misfits Candle Company 33. Illuminated Studio Candles 34. Wickology 101 35. The Scented Atelier 36. Wax Flame Candy Candle 37. Candleabracadabra 38. Illuminated Boutique 39. Sniff & Giggle Candle Co. 40. Candle Emporium Studio 41. Wick It or Quit It Candle Company 42. Illuminated Suite 43. Glow-rious Meetings 44. Scented Emporium Candle Company 45. The Illuminating Co. 46. Scent-sational Humor 47. Lights All the Way Candle Co. 48. Waxing Lyrical 49. Cute Candles, Inc. 50. Love & Life Candles

Pro Tip: What’s your favorite commercial? Is it funny and catchy? It’s obviously memorable! The catchier the name, the better. You want to be remembered—just like that commercial that came to mind for you—even if a customer has lost your web address, can’t find an emailed receipt, and no longer has their candle jar.

What differentiates you from your competitors? Use those identifying factors when selecting your unique business name. You don’t want to sound like everyone else—you want your business name to be descriptive of who you are.

1. Candlelight Glow 2. Candle With Care 3. The Wick & Flame 4. Light My Fire 5. Waxing Poetic 6. Melt Your Heart 7. Sisters’ Soap & Candle Co. 8. Illuminate Creations 9. Glow and Tell Candle Company 10. Scentimental Memories 11. Candle in the Wind 12. Flaming Inspirations 13. Spark Joy Candle Company 14. The Candle Cove 15. Candle Crush 16. The Candle Lab 17. Glow Getter 18. Luminous Expressions 19. Scent From Heaven 20. The Candle Parlour 21. Candle Me Crazy 22. Flicker & Flame Candle Company 23. Ember & Muse

24. The Candle Bar 25. Flicker & Fable 26. The Aromatic Hearth 27. The Hushed Flame 28. The Candle Aisle 29. The Wax Alchemist Candle Company 30. The Candle Cottage 31. Cozy Flicker Co. 32. The Wickery 33. The Candle Conjurer 34. The Candelier 35. The Wandering Wick 36. Scented Wick 37. Flickering Folklore Candle Company 38. Whispers of Flame 39. Candlelight Concoctions 40. The Wickery Embers 41. The Wick Weaver 42. The Flickering Phoenix 43. Aromasmith & Co. 44. Emberlight Alchemy Candle Company 45. My Gentle Glow 46. Sillage Muse

Pro Tip: This is one time when you don’t want to follow the crowd. Be unique so you aren’t battling over a URL and 50 other eCommerce sites with a similar name.

Candle company names can be one or more words, and if you’re in doubt, add the word Candles , Company , or Shop to the end, and Bam! you have a business name!

1. Wick & Whimsy 2. Ember & Oak Co. 3. Radiant Flames 4. Luminescence Atelier 5. The Candle Collective 6. Candlemaker Scents & Pours 7. Wick & Wander Shop 8. The Candle Connoisseur 9. The Wax Emporium 10. Candle Artisan 11. The Gilded Flame Co. 12. The Illuminated Atelier 13. Moonlit Glow LLC 14. The Scented Salon 15. Whisper & Wisp Atelier 16. The Candle Artistry Co. 17. Cinder & Co. 18. The Candle Emporium Co. 19. The Flickering Muse Shop 20. Illuminated Haven Candle Co. 21. The Dancing Ember Atelier 22. The Scented Atelier 23. Nocturne Lumens Shop 24. The Candle Emporium Studio 25. The Alchemist's Candle Co. 26. The Scented Workshop 27. The Glimmering Grotto Shop 28. The Candle Conservatory StudioEmberlight 29. Apothecary Co. 30. The Scented Emporium Candle Company 31. Candlewick & Co. 32. Primitive Candle Company 33. The Flickering Lantern Emporium 34. Pure Light Candle Studios 35. Moonlit Muse Atelier 36. Fragrant Jewels Candle Company 37. The Candle Whisperer, LLC 38. Heaven Scent 39. Aurora Lumens Atelier

40. KC Candle Company 41. The Dancing Flame Emporium 42. Candleberry Studios 43. Candlewick & Whisper Shop 44. Darling Candles 45. Luminescence Alchemy Atelier 46. Enchanted Candle Atelier 47. The Glimmering Path 48. Homefront Candles House 49. Candle in the Wind Emporium 50. Berry Candles 51. Light My Fire, LLC 52. Decorative Candles 53. Scent of a Woman Atelier 54. Flaming Candle Co 55. Burn, Baby Burn Company 56. Country Candle Company 57. Rainbow Earth Gifts 58. Flame of Love Co. 59. None of Your Beeswax 60. Scents and Sensibility Atelier 61. Luxury Candles Co 62. Fire and Ice Co. 63. Scents Illuminated Candle Company 64. Scent From Heaven Atelier 65. Glorious Candles 66. Wick It Shop 67. The Candle Guy 68. Firefly Co. 69. Warwick Candles 70. Candle Magic, LLC 71. Ceremony Dreams Co. 72. Scent of the Sea Atelier 73. Fire Starter Co. 74. Candle Therapy, LLC 75. Wick and Mortar Shop 76. Mickey’s Creative Candles 77. Candleberry Candle Company 78. San Francisco Candle Making Collective

Pro Tip: Are you an LLC, S-Corp, or Sole Proprietorship? If you are an incorporation, you can include that in your name. For example, [Your Candle Business Name], LLC.

If you’d want to eat it, make it, or serve it, it’s likely a good name for a candle. Especially if it’s a dessert, drink, or fruit-scented candle.

1. Almond Bark Chocolate 2. Bergamot Delight 3. Blueberries and Whipped Cream 4. Brown Sugar Sizzle 5. Buttercream Sausage 6. Toasted Campfire 7. Caramel Coffee Cookie 8. Musky Cedarwood 9. Chamomile Snooze 10. Chocolate Chip Pancakes 11. Clementine Orange Zest 12. Clove Spice Warmth 13. Cotton Candy Fantasy 14. Cucumber Melon Splash 15. Fig and Olive 16. Frangipani Tropical Flower 17. Just Cut Suburban Lawn 18. Gardenia White Blossom 19. Ginger Lime Fizz 20. Green Tea Jasmine 21. Hyacinth Spring Breeze 22. Key Lime Pie 23. Kiwi Strawberry Smoothie 24. Fragrant Jewels, Heaven Scent 25. Lavender Lemonade Relax 26. Macaron Sweet Treat

27. Magnolia Pink Petal 28. Marshmallow Vanilla Fluff 29. Mint Chocolate Chip 30. Mistletoe Holiday Cheer 31. Nutmeg Spice Cake 32. Oatmeal Double Raisin Cookie 33. Orange Blossom Citrus + Sea Salt 34. Patchouli Earth 35. Peach Cobbler Yum 36. Peony Floral Bouquet 37. Pina Colada Vacation 38. Plum Wine Sangria 39. Popcorn Movie Night 40. Rain Fresh Clean 41. Red Velvet Cupcake 42. Salted Caramel Swirl 43. Smoky Quartz Crystal 44. Sunflower Sunny Day 45. Toasted Marshmallow Cozy 46. Toffee Nut Crunch 47. Vanilla Orchid Exotic 48. Vetiver Woody Aroma 49. Violet Purple Passion 50. Waffle Breakfast Time 51. Walnut Brownie Delish 52. The Woodland Homestead

Pro Tip: Name your candle scents something fun and unique. If you’re an online retailer, the customer will rely on your naming conventions to decide if they’ll like the smell of the candle. So, be unique and descriptive!

Customers will appreciate your sense of humor and know they can expect good-natured customer service when you use a funny candle company name.

1. Wickety Wacky Wonders 2. Light My Fire 3. Scents So Silly, They're Snort-Worthy 4. The Aromatherapy Absurdity Co. 5. The Illuminated Improbability Shop 6. Hilarity & Hygge, LLC 7. Wick-edly Good Scents Atelier 8. The Scents of Wit 9. Sniff & Giggles Galore 10. Flame on, Funny Bone! 11. The Snicker & Sizzle Shop 12. Punny Sentiments 13. Aromas Gone Wild 14. The Wick-edly Creative Waxers 15. Flame On, Fun On! 16. The Candle Cauldron 17. Scents So Silly, They're Scandalous 18. The Illuminating Insanity Atelier 19. Scents That Make You Chuckle 20. The Giggle & Glow Glow-Up Co. 21. Punny Wick Emporium 22. Wick-edly Weird Waxes 23. Scented Silliness Galore Shop

24. Aromas of Absurdity Atelier 25. Burnt Out Candles 26. Scent-sational Candles 27. Candle-icious 28. Wax-tastic Candles 29. Flame Game 30. Candle-ry of the Odd 31. Wick-er Man Company 32. Wick-edly Good Candles 33. Waxing Philosophical 34. Waxing Lyrical Candles 35. Scentsational Silliness, LLC 36. The Humerus Fragrance Co. 37. The Light Chuckle Atelier 38. Scentsational Shenanigans Shop 39. Of Laughters and Illumination 40. You Light Me Up 41. Candle in the Sky 42. Scentsational Wickers 43. The Chuckle Wax 44. Sniff Me Good 45. The Wick-ed Atelier 46. The OG Candle Brand

Pro Tip: Humor is memorable and humor sells. Whether you’re naming your candle business or your candle scents, humor is almost always a good way to go.

Scent names can evoke tastes and smells for the buyer. Make it heavenly and delicious. Something you’d maybe want to eat, but definitely want to smell!

1. Cinnamon Swirl 2. Pumpkin Spice Latte 3. Caramel Apple 4. Cranberry Bliss 5. Peppermint Mocha 6. Gingerbread House 7. Winter Wonderland 8. Sugar Plum Fairy 9. Frosty the Snowman 10. Mistletoe Kisses 11. Candy Lane 12. Sleigh Ride 13. Fireside Chat 14. Warm and Cozy 15. Chestnuts Roasting 16. Mulled Wine 17. Spiced Cider 18. Hot Cocoa 19. Vanilla Bean 20. Lavender Fields 21. Tea Rose Garden 22. Jasmine Dreams 23. Sandalwood Serenade 24. Citrus Grove 25. Ocean Breeze

26. Rainforest Retreat 27. Mountain Air 28. Desert Oasis 29. Tropical Paradise 30. Island Escape 31. Crispy Autumn Leaves 32. Harvest Moon 33. Pumpkin Patch 34. Apple Orchard in Fall 35. Crisp Fall Air 36. Maple Butter and Syrup 37. Cedarwood Forest 38. Pine Needle Forest 39. Eucalyptus-y Mint 40. Peppermint Twist 41. Lemon Verbena 42. Grapefruit Grove 43. Cherry Blossom Farm 44. Magnolia Bloom 45. Honeysuckle Heaven 46. Wildflower Meadow 47. Butterfly Garden 48. Hummingbird Haven 49. Dragonfly Dreams 50. Ladybug Lane

Pro Tip: Most candles are scented, and scents need names to sell. Be creative and imagine what visuals and scents a person might imagine when they read your names.

Your candle labels will need to specify what scent you're selling. Think of feeling-invoking scents that will make your customers want to buy them as gifts or a treat for themselves.

1. Winter Wonderland 2. Cozy Cabin 3. Pumpkin Spiced Chai 4. Lavender Dreams 5. Appley Pear Orchard 6. Caramel Popcorn 7. Ocean Breeze 8. Decadent Chocolate Cake 9. Lemonade Stand 10. Woody Fire 11. Cotton Candy 12. Gingerbread House 13. Rose, No Thorns 14. Banana Bread 15. Tropical Vacation 16. Vanilla and Cream 17. Fresh Laundry 18. Mulled Wine 19. Birthday Cake and Sprinkles 20. Hazelnut Coffee Shop 21. Autumn Leaves with Clove 22. Strawberry Shortcake 23. Rainforest and Fern 24. Maple Syrup and Brown Sugar 25. Cucumber Melon Mint

26. Snickerdoodle Cookie 27. Cherry Blossom Spring 28. Hot Chocolate with Marshmallows 29. Sunflowers and Honey 30. Campfire and S’mores 31. Juicy Peach Cobbler 32. Soothing Jasmine Tea 33. Warm Cinnamon Roll 34. Honeycomb Summer 35. Sandalwood and Vanilla 36. Sweet Blueberry Muffin 37. Refreshing Eucalyptus and Mint 38. Apple Pie Crust 39. Luscious Lilac 40. Tropical Coconut Lime 41. Cozy Oatmeal Cookie 42. Gardenia and Jasmine 43. Cranberry Orange Spice 44. Almond Biscotti 45. Lemongrass and Basil 46. Pumpkin Pie Delight 47. Vanilla Orchid 48. Spicy Ginger Ale 49. Sugar Plum Fairy 50. Earl Grey AM

Pro Tip: Naming candles after food is always a hit because people can imagine what they will taste and smell like.

What to Do After Choosing a Candle Company Name

After you choose a candle company name, you’ll want to make sure it’s available according to the:

• Secretary of State website
• United States Patent and Trademark Office (USPTO)
• A domain name
• Social media accounts

As long as the candle company names you are considering are available across the board, you are good to register your candle business name and start your business.

What candle business name ideas appeal to you?

How to Come Up With a Business Name (2024)

Step 1. Understand the ROI of a name

• Domain value
• Other branding elements
• Setting the tone of the business

Budget for a domain name

Domain providers

Understand secondary branding elements.

• Font of text
• Colors used in logo and text

• Adobe Spark logo creator
• Printful Logo Maker
• Free Logo Design

Customer Service

Step 2. create a brand name tone, what makes a good business name.

• Check if the business name idea is available.
• Make the brand name unique.
• Create a catchy business name.
• Make your business name easy to say and spell.
• Name using good Search Engine Optimization (SEO) practices

Are the business names you want available?

• Domain availability, which we discussed previously.
• National: USPTO  
• Global: World IP Portal
• Your local office for registering business names. Just search "where do I get my DBA in (Insert Location)".

Step 3. Make your brand name unique

Create a catchy business name.

• Find names that create cool acronyms, like Men's Apparel Guild in California. They hold the MAGIC Trade Shows for the apparel industry.
• Combine two words like Lee did Urban and City.
• Include words that relate to something that is a long-standing pop culture reference. For instance, a car dealership called Hot Wheels might be associated with toy cars (or stolen goods). It makes a good example, but a bad name.

Make your business name easy to say and spell

Use good seo practices when naming your business.

SEO best practices for all businesses:

• Use evergreen names : Terms that don’t go out of fashion, e.g. furniture, clothing.
• Use commonly searched terms : Include top searches for your industry. Use Google Trends to find them. For instance, “lawn care” is a commonly searched term for people who need yard work done. 
• 32 Character Maximum : Keep your name under 32 characters so it will fit in the tab at the top of Google Chrome. Safari is slightly more at 35 visible characters.

SEO best practices that might apply to your business:

• Location : If you only serve the local community, it makes sense to name a business something like Las Vegas Plumbing, but if you are eCommerce it doesn’t.
• Trending Topics: Most businesses should avoid these, but Spirit Halloween is an example of a business with which it makes sense to include the trending topic “Halloween” because it's a popup store for Halloween.

Step 4. How to come up with a good business name

Brainstorm a lot of names, try upflip's name generator.

Why is our business name generator the best?

• It provides more names than other name generators. (We strive to be the only place you go to research any aspect of starting or running a business.)
• It shows you a variety of fonts, colors, and sizes to cover all the aspects of brand identity.
• You can customize the color, size, and text directly in the browser once you find the ones you like.
• It's free. You've got to love that.
• It connects you directly to NameCheap to buy your domain.
• We partnered with Trademark Factory to help our users get trademarked properly and make sure your intellectual property is protected.

Step 5. Trademark your business name

• Your business information
• What you want to trademark
• Which industry codes (the industry codes are the trickiest part) the trademark should apply to. The site to apply is my.USPTO.gov .
• Paying a fee based on the number of trademarks you are applying for.
• They will verify that your request is eligible for a trademark.
• If the name is not already being used in a commercial application, you'll have to wait until it is on a product that is capable of being sold. I used screenshots of a website to prove it when I applied.
• Multiple conversations to make sure you provide the right information to the USPTO.
• Proving you are using the trademark for commercial purposes. This can be just a screenshot of the product being sold.
• Trademark will be approved or denied.

Now You Have a Business Name

nice work https://binarychemist.com/

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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Questions to ask before starting a business

What are your strengths and weaknesses.

Your strengths and weaknesses will impact how effectively you operate as an entrepreneur. If you aren’t aware of what they are, then you’ll struggle to identify opportunities and problems before it’s too late.

Have you talked to the right people?

Don’t go into business alone. No, you don’t need to find a partner, but it’s worth chatting with people you trust to see how they respond to your idea and gather any advice they may have before starting.

Why are you starting a business?

Your reasons for starting a business will impact how likely you are to see it through. When the going gets tough, if you don’t have a firm reason for why you’re doing this, then you’ll struggle to keep going.

How much will it cost to start?

The cost of starting a business varies depending on the type, your location, and many other factors. The important thing is that you don’t just guess and actually budget and forecast your expenses beforehand.

Do you have a good business idea?

A good business idea is something that people want, and that solves a problem in their lives. If you’re unsure that your business does that, then you need to get out and validate it with potential customers.

Who are your competitors?

No business lacks competition. You need to know who they are, what they offer, and anything else that tells you how to position your business to be competitive.

Should you quit your job?

It can be tempting to go all in on a business idea immediately. However, entrepreneurship is hard and risky, and it may not be the wisest choice to cut your primary source of income. To know if it is the right time, you need to determine when your business will be profitable and sustainable.

How will you make money?

The business model is surprisingly overlooked by many business owners. They get caught up in the idea and the allure of entrepreneurship but fail to determine how they will make money. Don’t reinvent the wheel and explore some common options to see what fits your business.

12 steps to start your business

1. What to do before starting a business

Why are you starting a business? What does it take to be successful? Could you start with a side hustle? Let’s help you answer these and other vital questions before setting up your business.

2. Find the right business idea

Once you know why you want to start a business, it’s time to find your idea. Learn what it takes to develop a good idea and explore our curated lists of potential business ideas that may be a good fit.

3. Validate your business idea

How do you know if your business idea will work? By testing it out and verifying that you’re solving a real problem for real people. Here’s what you should do after coming up with your business idea.

4. Conduct market research

Who are your customers? Who are your competitors? What does the industry look like? Will you be able to successfully enter this market? These are necessary questions to answer through a bit of research.

5. Select your business model

How will you make money? This is answered with your business model, which covers how your costs, revenue streams, and customer expectations work together. And you don’t have to start from scratch—check out these common types of business models.

6. Price your products and services

What are your customers willing to pay? It’s difficult to know when starting out, but don’t let that stop you. Learn how to set initial prices and compare common pricing models that may work for your business.

7. Write your business plan

You need a business plan before starting a business. This isn’t about checking a box but improving your understanding of what it takes to run a successful business.

8. Make your business legal

Before setting up shop, you must check all the necessary legal boxes. Don’t worry about spending hours researching—we’ve compiled the most common legal requirements.

9. Set up your finances

You need a firm grasp of your startup costs and funding needs. Which requires you to forecast your sales, expenses, and cash flow. That may sound daunting, but we’ve broken it down into steps to follow and even cover setting up accounting and payroll systems.

10. Choose a business location

Will you be selling online? Running a traditional brick-and-mortar location? Maybe a bit of both? You need to consider where and how you’ll sell your products. Explore what to look for in a physical retail location and how to make a splash online.

11. Put together your team

Learn when it’s the right time to hire, what makes a good employee, and how to successfully grow your team. Even if you’re running a business solo, you should know how your team will grow.

12. Market your business

Learn the basics of creating a small business marketing plan, including what to prepare beforehand and how to track the impact of your marketing efforts.

Tips to start your business

Looking for additional guidance to help get your business off the ground? We’ve rounded up our favorite tips and resources from entrepreneurial experts to do just that.

Start stronger by writing a quick business plan

Start a business FAQ

What are the basic steps to start a business?

To start a business, you’ll need to:

• Identify and validate your business idea
• Conduct market research
• Select a business model and pricing strategy
• Write a business plan and financial plan
• Select your business structure
• Register your business
• Obtain licenses and permits
• Select an online or physical location
• Start building your team if necessary
• Promote your business

How much money do you usually need to start a business?

The amount of money needed to start a business varies greatly depending on the type and scale of the business. It could range from a few hundred dollars for a home-based service business to several thousand or even millions for a manufacturing or tech startup. 

You must carefully consider and forecast your startup costs and cash flow to fully understand how much money you need to start.

What should I do first when starting a business?

The first step in starting a business is identifying a viable business idea and conducting market research to understand the demand, competition, and potential challenges. Additionally, it’s worth self-reflection to determine if you want to jump into entrepreneurship.

What do I need to start my first business?

At a minimum, you’ll need a business idea, a business plan, capital, a legal structure, a registered business name, necessary licenses and permits, a business bank account, and an accounting system.

How can I start a business with no money?

Starting a business with no money can be challenging but not impossible. You can consider service-based businesses that require minimal upfront costs. You can also minimize your upfront investment by starting your business as a side hustle while retaining a full or part-time job.

What 3 things make a business successful?

A clear and compelling value proposition, a strong understanding of the market and customers, and effective management and operations are three key elements that contribute to business success.

How can I start a simple business?

Starting a simple business often involves offering a service based on your skills or interests. This could be anything from pet sitting to graphic design. The key steps include identifying your service, understanding your market, setting prices, and promoting your business.

How do I start a beginner business?

As a beginner, start with a business idea that aligns with your skills and passions. Conduct market research, write a one-page business plan, and test if your idea resonates with your target customers. Start small, learn from the experience, and gradually grow your business.

How to start a business with only $100?

With only $100, consider a service-based or online business that requires minimal startup costs. This could be a consulting service, online tutoring, freelance writing, or selling handmade products. Use social media and free online tools for marketing and management to keep costs low.

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How to Start a Business: A Comprehensive Guide and Essential Steps

Building an effective business launch plan

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Conducting Market Research

Crafting a business plan, reviewing funding options, understanding legal requirements, implementing marketing strategies, how much does it cost to start a business, what should i do before starting a business, what types of funding are available to start a business, do you need to write a business plan, the bottom line.

Starting a business in the United States involves a number of different steps, spanning legal considerations, market research, creating a business plan, securing funding, and developing a marketing strategy. It also entails decisions around a business’s location, structure, name, taxation, and registration.

This article covers the key steps involved in starting a business, as well as important aspects of the process for entrepreneurs to consider.

Key Takeaways

• Entrepreneurs seeking to develop their own business should start by conducting market research to understand their industry space and competition, and to target customers.
• The next step is to write a comprehensive business plan, outlining the company’s structure, vision, and strategy. Potential funders and partners may want to review the business plan in advance of signing any agreements.
• Securing funding is crucial in launching a business. Funding can come in the form of grants, loans, venture capital, or crowdfunded money; entrepreneurs may also opt to self-fund instead of or in combination with any of these avenues.
• Choosing a location and business structure can have many implications for legal aspects of business ownership, such as taxation, registration, and permitting, so it’s important to fully understand the regulations and requirements for the jurisdiction in which the business will operate. 
• Another key aspect of launching a new business is having a strategic marketing plan that addresses the specifics of the business, industry, and target market.

Before starting a business, entrepreneurs should conduct market research to determine their target audience, competition, and market trends. 

The U.S. Small Business Administration (SBA) recommends researching demographic data around potential customers to understand a given consumer base and reduce business risk. It also breaks down common market considerations as follows:

• Demand : Do people want or need this product or service?
• Market size : How many people might be interested?
• Economic indicators : These include income, employment rate, and spending habits of potential customers.
• Location : Where are the target market and the business located?
• Market saturation : How competitive is the business space, and how many similar offerings exist?
• Pricing : What might a customer be willing to pay?

Market research should also include an analysis of the competition (including their strengths and weaknesses compared to those of the proposed business), market opportunities and barriers to entry, industry trends, and competitors’ market share .

There are various methods for conducting market research, and the usefulness of different sources and methodologies will depend on the nature of the industry and potential business. Data can come from a variety of sources: statistical agencies, economic and financial institutions, and industry sources, as well as direct consumer research through focus groups, interviews, surveys, or questionnaires.

A comprehensive business plan is like a blueprint for a business. It will help lay the foundation for business development and can assist in decision making, day-to-day operations, and growth. 

Potential investors or business partners may want to review and assess a business plan in advance of agreeing to work together. Financial institutions often request business plans as part of an application for a loan or other forms of capital. 

Business plans will differ according to the needs and nature of the company and only need to include what makes sense for the business in question. As such, they can vary in length and structure depending on their intended purpose. 

Business plans can generally be divided into two formats: traditional business plans and lean startup business plans. The latter is typically more useful for businesses that will need to adjust their planning quickly and frequently, as they are shorter and provide a higher-level overview of the company.

The process of funding a business can be as unique as the business itself—that is, it will depend on the needs and vision of the business and the current financial situation of the business owner. 

The first step in seeking funding is to calculate how much it will cost to start the business. Estimate startup costs by identifying a list of expenses and putting a number to each of them through research and requesting quotes. The SBA has a startup costs calculator for small businesses that includes common types of business expenses. 

From there, an entrepreneur will need to determine how to secure the required funding. Common funding methods include:

• Self-funding , also known as bootstrapping  
• Seeking funding from investors, also known as venture capital  
• Raising money by crowdfunding
• Securing a business loan
• Winning a business grant

Each method will hold advantages and disadvantages depending on the situation of the business. It’s important to consider the obligations associated with any avenue of funding. For example, investors generally provide funding in exchange for a degree of ownership or control in the company, whereas self-funding may allow business owners to maintain complete control (albeit while taking on all of the risk). 

The availability of funding sources is another potential consideration. Unlike loans, grants do not have to be paid back—however, as a result, they are a highly competitive form of business funding. The federal government also does not provide grants for the purposes of starting or growing a business, although private organizations may. On the other hand, the SBA guarantees several categories of loans to support small business owners in accessing capital that may not be available through traditional lenders.

Whichever funding method (or methods) an entrepreneur decides to pursue, it’s essential to evaluate in detail how the funding will be used and lay out a future financial plan for the business, including sales projections and loan repayments , as applicable.  

Legally, businesses operating in the U.S. are subject to regulations and requirements under many jurisdictions, across local, county, state, and federal levels. Legal business requirements are often tied to the location and structure of the business, which then determine obligations around taxation, business IDs, registration, and permits.

Choosing a Business Location

The location—that is, the neighborhood, city, and state—in which a business operates will have an impact on many different aspects of running the business, such as the applicable taxes, zoning laws (for brick-and-mortar, or physical locations), and regulations.

A business needs to be registered in a certain location; this location then determines the taxes, licenses, and permits required. Other factors to consider when choosing a location might include:

• Human factors : Such as the target audience for your business, and preferences of business owners and partners around convenience, knowledge of the area, and commuting distance
• Regulations and restrictions : Concerning applicable jurisdictions or government agencies, including zoning laws
• Regionally specific expenses : Such as average salaries (including required minimum wages), property or rental prices, insurance rates, utilities, and government fees and licensing
• The tax and financial environment : Including income tax, sales tax, corporate tax, and property tax, or the availability of tax credits, incentives, or loan programs

Picking a Business Structure

The structure of a business should reflect the desired number of owners, liability characteristics, and tax status. Because these have legal and tax compliance implications , it’s important to fully understand and choose a business structure carefully and, if necessary, consult a business counselor, lawyer, and/or accountant.

Common business structures include:

• Sole proprietorship : An unincorporated business that has just one owner, who pays personal income tax on profits
• Partnership : Options include a limited partnership (LP) or a limited liability partnership (LLP)
• Limited liability company (LLC) : A business structure that protects its owners from personal responsibility for its debts or liabilities
• Corporation : Options include a C corp , S corp , B corp , closed corporation , or nonprofit

Getting a Tax ID Number

A tax ID number is like a Social Security number for a business. Whether or not a state and/or federal tax ID number is required for any given business will depend on the nature of the business, as well as the location in which the business is registered.

If a business is required to pay state taxes (such as income taxes and employment taxes), then a state tax ID will be necessary. The process and requirements around state tax IDs vary by state and can be found on individual states’ official websites. In some situations, state tax IDs can also be used for other purposes, such as protecting sole proprietors against identity theft.

A federal tax ID, also known as an employer identification number (EIN) , is required if a business:

• Operates as a corporation or partnership
• Pays federal taxes
• Wants to open a business bank account
• Applies for federal business licenses and permits
• Files employment, excise, alcohol, tobacco, or firearms tax returns

There are further situations in which a business might need a federal tax ID number, specific to income taxation, certain types of pension plans, and working with certain types of organizations. Business owners can check with the Internal Revenue Service (IRS) about whether they need an EIN.

Registering a Business

Registration of a business will depend on its location and business structure, and can look quite different depending on the nature and size of the business. 

For example, small businesses may not require any steps beyond registering their business name with local and state governments, and business owners whose business name is their own legal name might not need to register at all. However, registration can include personal liability protection as well as legal and tax benefits, so it can be beneficial even if it’s not strictly required. 

Most LLCs, corporations, partnerships, and nonprofits are required to register at the state level and will require a registered agent to file on their behalf. Determining which state to register with can depend on factors such as:

• Whether the business has a physical presence in the state
• If the business often conducts in-person client meetings in the state
• If a large portion of business revenue comes from the state
• Whether the business has employees working in the state

If a business operates in more than one state, it may need to file for foreign qualification in other states in which it conducts business. In this case, the business would register in the state in which it was formed (this would be considered the domestic state), and file for foreign qualification in any additional states.

Some businesses may decide to register with the federal government if they are seeking tax-exempt status or trademark protection, but federal registration is not required for many businesses.

Overall registration requirements, costs, and documentation will vary depending on the governing jurisdictions and business structure.

Obtaining Permits

Filing for the applicable government licenses and permits will depend on the industry and nature of the business, and might include submitting an application to a federal agency, state, county, and/or city. The SBA lists federally regulated business activities alongside the corresponding license-issuing agency, while state, county, and city regulations can be found on the official government websites for each region.

Every business should have a marketing plan that outlines an overall strategy and the day-to-day tactics used to execute it. A successful marketing plan will lay out tactics for how to connect with customers and convince them to buy what the company is selling. 

Marketing plans will vary according to the specifics of the industry , target market, and business, but they should aim to include descriptions of and strategies around the following:

• A target customer : Including market size, demographics, traits, and relevant trends
• Unique value propositions or business differentiators : Essentially, an overview of the company’s competitive advantage with regard to employees, certifications, or offerings
• A sales and marketing plan : Including methods, channels, and a customer’s journey through interacting with the business
• Goals : Should cover different aspects of the marketing and sales strategy, such as social media follower growth, public relations opportunities, or sales targets
• An execution plan : Should detail tactics and break down higher-level goals into specific actions
• A budget : Detailing how much different marketing projects and activities will cost

The startup costs for any given business will vary greatly depending on the industry, business activity, and product or service offering. Home-based online businesses will usually cost less than those that require an office setting to meet with customers. The estimated cost can be calculated by first identifying a list of expenses and then researching and requesting quotes for each one. Use the SBA’s startup costs calculator for common types of expenses associated with starting a small business.

Entrepreneurs seeking to start their own business should fully research and understand all the legal and funding considerations involved, conduct market research, and create marketing and business plans. They will also need to secure any necessary permits, licenses, funding, and business bank accounts.

Startup capital can come in the form of loans, grants, crowdfunding, venture capital, or self-funding. Note that the federal government does not provide grant funding for the purposes of starting a business, although private sources do.

Business plans are comprehensive documents that lay out the most important information about a business. They are important references for the growth, development, and decision-making processes of a business, and financial institutions as well as potential investors and partners generally request to review them in advance of agreeing to provide funding or work together.

Starting a business is no easy feat, but research and preparation can help smooth the way. Having a firm understanding of the target market, competition, industry, business goals, business structure, funding requirements, tax and operating regulations, and marketing strategy, and conducting research and consulting experts where necessary, are all things that entrepreneurs can do to set themselves up for success.

U.S. Small Business Administration. “ Market Research and Competitive Analysis .”

U.S. Small Business Administration. “ Write Your Business Plan .”

U.S. Small Business Administration. “ Loans .”

U.S. Small Business Administration. “ Fund Your Business .”

U.S. Small Business Administration. “ Pick Your Business Location .”

U.S. Small Business Administration. “ Choose a Business Structure .”

U.S. Small Business Administration. “ Get Federal and State Tax ID Numbers .”

Internal Revenue Service. “ Do You Need an EIN? ”

U.S. Small Business Administration. “ Register Your Business .”

U.S. Small Business Administration. “ Apply for Licenses and Permits .”

U.S. Small Business Administration. “ Marketing and Sales .”

U.S. Small Business Administration. “ Grants .”

• How to Start a Business: A Comprehensive Guide and Essential Steps 1 of 25
• How to Do Market Research, Types, and Example 2 of 25
• Marketing Strategy: What It Is, How It Works, and How to Create One 3 of 25
• Marketing in Business: Strategies and Types Explained 4 of 25
• What Is a Marketing Plan? Types and How to Write One 5 of 25
• Business Development: Definition, Strategies, Steps & Skills 6 of 25
• Business Plan: What It Is, What's Included, and How to Write One 7 of 25
• Small Business Development Center (SBDC): Meaning, Types, Impact 8 of 25
• How to Write a Business Plan for a Loan 9 of 25
• Business Startup Costs: It’s in the Details 10 of 25
• Startup Capital Definition, Types, and Risks 11 of 25
• Bootstrapping Definition, Strategies, and Pros/Cons 12 of 25
• Crowdfunding: What It Is, How It Works, and Popular Websites 13 of 25
• Starting a Business with No Money: How to Begin 14 of 25
• A Comprehensive Guide to Establishing Business Credit 15 of 25
• Equity Financing: What It Is, How It Works, Pros and Cons 16 of 25
• Best Startup Business Loans for May 2024 17 of 25
• Sole Proprietorship: What It Is, Pros and Cons, and Differences From an LLC 18 of 25
• Partnership: Definition, How It Works, Taxation, and Types 19 of 25
• What Is an LLC? Limited Liability Company Structure and Benefits Defined 20 of 25
• Corporation: What It Is and How To Form One 21 of 25
• Starting a Small Business: Your Complete How-to Guide 22 of 25
• Starting an Online Business: A Step-by-Step Guide 23 of 25
• How to Start Your Own Bookkeeping Business: Essential Tips 24 of 25
• How to Start a Successful Dropshipping Business: A Comprehensive Guide 25 of 25

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Step-by-Step Guide to Writing a Simple Business Plan

By Joe Weller | October 11, 2021

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A business plan is the cornerstone of any successful company, regardless of size or industry. This step-by-step guide provides information on writing a business plan for organizations at any stage, complete with free templates and expert advice. 

Included on this page, you’ll find a step-by-step guide to writing a business plan and a chart to identify which type of business plan you should write . Plus, find information on how a business plan can help grow a business and expert tips on writing one .

What Is a Business Plan?

A business plan is a document that communicates a company’s goals and ambitions, along with the timeline, finances, and methods needed to achieve them. Additionally, it may include a mission statement and details about the specific products or services offered.

A business plan can highlight varying time periods, depending on the stage of your company and its goals. That said, a typical business plan will include the following benchmarks:

• Product goals and deadlines for each month
• Monthly financials for the first two years
• Profit and loss statements for the first three to five years
• Balance sheet projections for the first three to five years

Startups, entrepreneurs, and small businesses all create business plans to use as a guide as their new company progresses. Larger organizations may also create (and update) a business plan to keep high-level goals, financials, and timelines in check.

While you certainly need to have a formalized outline of your business’s goals and finances, creating a business plan can also help you determine a company’s viability, its profitability (including when it will first turn a profit), and how much money you will need from investors. In turn, a business plan has functional value as well: Not only does outlining goals help keep you accountable on a timeline, it can also attract investors in and of itself and, therefore, act as an effective strategy for growth.

For more information, visit our comprehensive guide to writing a strategic plan or download free strategic plan templates . This page focuses on for-profit business plans, but you can read our article with nonprofit business plan templates .

Business Plan Steps

The specific information in your business plan will vary, depending on the needs and goals of your venture, but a typical plan includes the following ordered elements:

• Executive summary
• Description of business
• Market analysis
• Competitive analysis
• Description of organizational management
• Description of product or services
• Marketing plan
• Sales strategy
• Funding details (or request for funding)
• Financial projections

If your plan is particularly long or complicated, consider adding a table of contents or an appendix for reference. For an in-depth description of each step listed above, read “ How to Write a Business Plan Step by Step ” below.

Broadly speaking, your audience includes anyone with a vested interest in your organization. They can include potential and existing investors, as well as customers, internal team members, suppliers, and vendors.

Do I Need a Simple or Detailed Plan?

Your business’s stage and intended audience dictates the level of detail your plan needs. Corporations require a thorough business plan — up to 100 pages. Small businesses or startups should have a concise plan focusing on financials and strategy.

How to Choose the Right Plan for Your Business

In order to identify which type of business plan you need to create, ask: “What do we want the plan to do?” Identify function first, and form will follow.

Use the chart below as a guide for what type of business plan to create:

Is the Order of Your Business Plan Important?

There is no set order for a business plan, with the exception of the executive summary, which should always come first. Beyond that, simply ensure that you organize the plan in a way that makes sense and flows naturally.

The Difference Between Traditional and Lean Business Plans

A traditional business plan follows the standard structure — because these plans encourage detail, they tend to require more work upfront and can run dozens of pages. A Lean business plan is less common and focuses on summarizing critical points for each section. These plans take much less work and typically run one page in length.

In general, you should use a traditional model for a legacy company, a large company, or any business that does not adhere to Lean (or another Agile method ). Use Lean if you expect the company to pivot quickly or if you already employ a Lean strategy with other business operations. Additionally, a Lean business plan can suffice if the document is for internal use only. Stick to a traditional version for investors, as they may be more sensitive to sudden changes or a high degree of built-in flexibility in the plan.

How to Write a Business Plan Step by Step

Writing a strong business plan requires research and attention to detail for each section. Below, you’ll find a 10-step guide to researching and defining each element in the plan.

Step 1: Executive Summary

The executive summary will always be the first section of your business plan. The goal is to answer the following questions:

• What is the vision and mission of the company?
• What are the company’s short- and long-term goals?

See our  roundup of executive summary examples and templates for samples. Read our executive summary guide to learn more about writing one.

Step 2: Description of Business

The goal of this section is to define the realm, scope, and intent of your venture. To do so, answer the following questions as clearly and concisely as possible:

• What business are we in?
• What does our business do?

Step 3: Market Analysis

In this section, provide evidence that you have surveyed and understand the current marketplace, and that your product or service satisfies a niche in the market. To do so, answer these questions:

• Who is our customer? 
• What does that customer value?

Step 4: Competitive Analysis

In many cases, a business plan proposes not a brand-new (or even market-disrupting) venture, but a more competitive version — whether via features, pricing, integrations, etc. — than what is currently available. In this section, answer the following questions to show that your product or service stands to outpace competitors:

• Who is the competition? 
• What do they do best? 
• What is our unique value proposition?

Step 5: Description of Organizational Management

In this section, write an overview of the team members and other key personnel who are integral to success. List roles and responsibilities, and if possible, note the hierarchy or team structure.

Step 6: Description of Products or Services

In this section, clearly define your product or service, as well as all the effort and resources that go into producing it. The strength of your product largely defines the success of your business, so it’s imperative that you take time to test and refine the product before launching into marketing, sales, or funding details.

Questions to answer in this section are as follows:

• What is the product or service?
• How do we produce it, and what resources are necessary for production?

Step 7: Marketing Plan

In this section, define the marketing strategy for your product or service. This doesn’t need to be as fleshed out as a full marketing plan , but it should answer basic questions, such as the following:

• Who is the target market (if different from existing customer base)?
• What channels will you use to reach your target market?
• What resources does your marketing strategy require, and do you have access to them?
• If possible, do you have a rough estimate of timeline and budget?
• How will you measure success?

Step 8: Sales Plan

Write an overview of the sales strategy, including the priorities of each cycle, steps to achieve these goals, and metrics for success. For the purposes of a business plan, this section does not need to be a comprehensive, in-depth sales plan , but can simply outline the high-level objectives and strategies of your sales efforts. 

Start by answering the following questions:

• What is the sales strategy?
• What are the tools and tactics you will use to achieve your goals?
• What are the potential obstacles, and how will you overcome them?
• What is the timeline for sales and turning a profit?
• What are the metrics of success?

Step 9: Funding Details (or Request for Funding)

This section is one of the most critical parts of your business plan, particularly if you are sharing it with investors. You do not need to provide a full financial plan, but you should be able to answer the following questions:

• How much capital do you currently have? How much capital do you need?
• How will you grow the team (onboarding, team structure, training and development)?
• What are your physical needs and constraints (space, equipment, etc.)?

Step 10: Financial Projections

Apart from the fundraising analysis, investors like to see thought-out financial projections for the future. As discussed earlier, depending on the scope and stage of your business, this could be anywhere from one to five years. 

While these projections won’t be exact — and will need to be somewhat flexible — you should be able to gauge the following:

• How and when will the company first generate a profit?
• How will the company maintain profit thereafter?

Business Plan Template

Download Business Plan Template

Microsoft Excel | Smartsheet

This basic business plan template has space for all the traditional elements: an executive summary, product or service details, target audience, marketing and sales strategies, etc. In the finances sections, input your baseline numbers, and the template will automatically calculate projections for sales forecasting, financial statements, and more.

For templates tailored to more specific needs, visit this business plan template roundup or download a fill-in-the-blank business plan template to make things easy. 

If you are looking for a particular template by file type, visit our pages dedicated exclusively to Microsoft Excel , Microsoft Word , and Adobe PDF business plan templates.

How to Write a Simple Business Plan

A simple business plan is a streamlined, lightweight version of the large, traditional model. As opposed to a one-page business plan , which communicates high-level information for quick overviews (such as a stakeholder presentation), a simple business plan can exceed one page.

Below are the steps for creating a generic simple business plan, which are reflected in the template below .

• Write the Executive Summary This section is the same as in the traditional business plan — simply offer an overview of what’s in the business plan, the prospect or core offering, and the short- and long-term goals of the company. 
• Add a Company Overview Document the larger company mission and vision. 
• Provide the Problem and Solution In straightforward terms, define the problem you are attempting to solve with your product or service and how your company will attempt to do it. Think of this section as the gap in the market you are attempting to close.
• Identify the Target Market Who is your company (and its products or services) attempting to reach? If possible, briefly define your buyer personas .
• Write About the Competition In this section, demonstrate your knowledge of the market by listing the current competitors and outlining your competitive advantage.
• Describe Your Product or Service Offerings Get down to brass tacks and define your product or service. What exactly are you selling?
• Outline Your Marketing Tactics Without getting into too much detail, describe your planned marketing initiatives.
• Add a Timeline and the Metrics You Will Use to Measure Success Offer a rough timeline, including milestones and key performance indicators (KPIs) that you will use to measure your progress.
• Include Your Financial Forecasts Write an overview of your financial plan that demonstrates you have done your research and adequate modeling. You can also list key assumptions that go into this forecasting. 
• Identify Your Financing Needs This section is where you will make your funding request. Based on everything in the business plan, list your proposed sources of funding, as well as how you will use it.

Simple Business Plan Template

Download Simple Business Plan Template

Microsoft Excel |  Microsoft Word | Adobe PDF  | Smartsheet

Use this simple business plan template to outline each aspect of your organization, including information about financing and opportunities to seek out further funding. This template is completely customizable to fit the needs of any business, whether it’s a startup or large company.

Read our article offering free simple business plan templates or free 30-60-90-day business plan templates to find more tailored options. You can also explore our collection of one page business templates . 

How to Write a Business Plan for a Lean Startup

A Lean startup business plan is a more Agile approach to a traditional version. The plan focuses more on activities, processes, and relationships (and maintains flexibility in all aspects), rather than on concrete deliverables and timelines.

While there is some overlap between a traditional and a Lean business plan, you can write a Lean plan by following the steps below:

• Add Your Value Proposition Take a streamlined approach to describing your product or service. What is the unique value your startup aims to deliver to customers? Make sure the team is aligned on the core offering and that you can state it in clear, simple language.
• List Your Key Partners List any other businesses you will work with to realize your vision, including external vendors, suppliers, and partners. This section demonstrates that you have thoughtfully considered the resources you can provide internally, identified areas for external assistance, and conducted research to find alternatives.
• Note the Key Activities Describe the key activities of your business, including sourcing, production, marketing, distribution channels, and customer relationships.
• Include Your Key Resources List the critical resources — including personnel, equipment, space, and intellectual property — that will enable you to deliver your unique value.
• Identify Your Customer Relationships and Channels In this section, document how you will reach and build relationships with customers. Provide a high-level map of the customer experience from start to finish, including the spaces in which you will interact with the customer (online, retail, etc.). 
• Detail Your Marketing Channels Describe the marketing methods and communication platforms you will use to identify and nurture your relationships with customers. These could be email, advertising, social media, etc.
• Explain the Cost Structure This section is especially necessary in the early stages of a business. Will you prioritize maximizing value or keeping costs low? List the foundational startup costs and how you will move toward profit over time.
• Share Your Revenue Streams Over time, how will the company make money? Include both the direct product or service purchase, as well as secondary sources of revenue, such as subscriptions, selling advertising space, fundraising, etc.

Lean Business Plan Template for Startups

Download Lean Business Plan Template for Startups

Microsoft Word | Adobe PDF

Startup leaders can use this Lean business plan template to relay the most critical information from a traditional plan. You’ll find all the sections listed above, including spaces for industry and product overviews, cost structure and sources of revenue, and key metrics, and a timeline. The template is completely customizable, so you can edit it to suit the objectives of your Lean startups.

See our wide variety of  startup business plan templates for more options.

How to Write a Business Plan for a Loan

A business plan for a loan, often called a loan proposal , includes many of the same aspects of a traditional business plan, as well as additional financial documents, such as a credit history, a loan request, and a loan repayment plan.

In addition, you may be asked to include personal and business financial statements, a form of collateral, and equity investment information.

Download free financial templates to support your business plan.

Tips for Writing a Business Plan

Outside of including all the key details in your business plan, you have several options to elevate the document for the highest chance of winning funding and other resources. Follow these tips from experts:.

• Keep It Simple: Avner Brodsky , the Co-Founder and CEO of Lezgo Limited, an online marketing company, uses the acronym KISS (keep it short and simple) as a variation on this idea. “The business plan is not a college thesis,” he says. “Just focus on providing the essential information.”
• Do Adequate Research: Michael Dean, the Co-Founder of Pool Research , encourages business leaders to “invest time in research, both internal and external (market, finance, legal etc.). Avoid being overly ambitious or presumptive. Instead, keep everything objective, balanced, and accurate.” Your plan needs to stand on its own, and you must have the data to back up any claims or forecasting you make. As Brodsky explains, “Your business needs to be grounded on the realities of the market in your chosen location. Get the most recent data from authoritative sources so that the figures are vetted by experts and are reliable.”
• Set Clear Goals: Make sure your plan includes clear, time-based goals. “Short-term goals are key to momentum growth and are especially important to identify for new businesses,” advises Dean.
• Know (and Address) Your Weaknesses: “This awareness sets you up to overcome your weak points much quicker than waiting for them to arise,” shares Dean. Brodsky recommends performing a full SWOT analysis to identify your weaknesses, too. “Your business will fare better with self-knowledge, which will help you better define the mission of your business, as well as the strategies you will choose to achieve your objectives,” he adds.
• Seek Peer or Mentor Review: “Ask for feedback on your drafts and for areas to improve,” advises Brodsky. “When your mind is filled with dreams for your business, sometimes it is an outsider who can tell you what you’re missing and will save your business from being a product of whimsy.”

Outside of these more practical tips, the language you use is also important and may make or break your business plan.

Shaun Heng, VP of Operations at Coin Market Cap , gives the following advice on the writing, “Your business plan is your sales pitch to an investor. And as with any sales pitch, you need to strike the right tone and hit a few emotional chords. This is a little tricky in a business plan, because you also need to be formal and matter-of-fact. But you can still impress by weaving in descriptive language and saying things in a more elegant way.

“A great way to do this is by expanding your vocabulary, avoiding word repetition, and using business language. Instead of saying that something ‘will bring in as many customers as possible,’ try saying ‘will garner the largest possible market segment.’ Elevate your writing with precise descriptive words and you'll impress even the busiest investor.”

Additionally, Dean recommends that you “stay consistent and concise by keeping your tone and style steady throughout, and your language clear and precise. Include only what is 100 percent necessary.”

Resources for Writing a Business Plan

While a template provides a great outline of what to include in a business plan, a live document or more robust program can provide additional functionality, visibility, and real-time updates. The U.S. Small Business Association also curates resources for writing a business plan.

Additionally, you can use business plan software to house data, attach documentation, and share information with stakeholders. Popular options include LivePlan, Enloop, BizPlanner, PlanGuru, and iPlanner.

How a Business Plan Helps to Grow Your Business

A business plan — both the exercise of creating one and the document — can grow your business by helping you to refine your product, target audience, sales plan, identify opportunities, secure funding, and build new partnerships. 

Outside of these immediate returns, writing a business plan is a useful exercise in that it forces you to research the market, which prompts you to forge your unique value proposition and identify ways to beat the competition. Doing so will also help you build (and keep you accountable to) attainable financial and product milestones. And down the line, it will serve as a welcome guide as hurdles inevitably arise.

Streamline Your Business Planning Activities with Real-Time Work Management in Smartsheet

Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change. 

The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

Discover why over 90% of Fortune 100 companies trust Smartsheet to get work done.

Starting a Business | How To

How to Start a Small Business: An Ultimate Guide

Published October 9, 2023

Published Oct 9, 2023

WRITTEN BY: Agatha Aviso

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This article is part of a larger series on Starting a Business .

Starting A Business?

• 1. Come Up With a Business Idea
• 2. Test Your Business Idea
• 3. Write a Business Plan
• 4. Acquire Funding
• 5. Choose Structure & Register
• 6. Get Business Insured
• 7. Build Team
• 8. Set Up Systems & Software

Bottom Line

Whether you’re starting a part-time business or quitting your corporate job to create your dream biz, you’ll find information in this guide to help you succeed. Throughout this article, you’ll learn how to start a small business from experts in finance, legal, marketing, human resources, software, insurance, as well as expert advice from former small business consultants.

Starting a small business involves coming up with a business idea, testing the idea, writing a business plan, acquiring funding, choosing a business structure, registering the business, getting it insured, making key hires, setting up systems, and finally, marketing and promoting it.

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As you’re starting your business, it’s wise to register it as a legal entity, like an LLC. Doing this will protect your personal assets if a lawsuit were to occur against the business. You can register your business as an LLC through an online legal service.

IncFile is an online service that handles and files the paperwork so your business can become an LLC quickly.

Start your business today with IncFile for as little as $0 plus state fees with no contracts and no hidden fees.

Should you start a business? Before coming up with a business, it’s crucial to determine if you’re ready to become a business owner and there are many things to consider. Examine the main points to consider by reading our guide on determining if you should start a business .

“Starting a business is not for everyone. Generally, starting a business, I’d say, No. 1 is to have a high pain threshold. When you first start a company, there’s lots of optimism and things are great. Happiness at first is high, then you encounter all sorts of issues and happiness will steadily decline, and then you will go through a whole world of hurt, and then eventually, if you succeed—and in most cases, you will not succeed—if you succeed then, after a long time, you will finally get back to happiness.” – Elon Musk

Step 1: Come Up With a Business Idea

All businesses start with the same first step— coming up with a business idea . When coming up with an idea for your business, consider your own skills and experiences, as well as business trends and problems or pain points your business could help address.

As you go through your day, you should write down any ideas you have. Look for problems you’re having in your own life. Can you solve that problem yourself and turn the solution into a business?

It’s also important to consider your personality when choosing a business idea:

• Would you like to work at home in silence or talk with customers in a store?
• Would you like to have a lifestyle business, which caps your income, or an eight-figure business with employees?
• Would you like to start from scratch or purchase an existing businesslike a franchise?
• Would you like to work 80-hour weeks and grow a business fast or keep a more balanced life and grow the business slowly?
• Would you like to create products and have other people sell them or sell products that other people have created?

Think about these questions to help you begin with the end in mind. Another personality-based test is to notice your energy levels when doing tasks at work and home. What tasks give you energy, and what depletes your energy? Running a business that gives you energy will be much more likely to succeed.

Business Idea Examples

Browse our list of business ideas for inspiration:

• Best Business Ideas to Make Money
• Best Business to Start
• Best Businesses to Start With Less Than $500
• Mompreneur Business Ideas
• Home-based Business Ideas
• Small Farm Business Ideas
• Low-cost Franchises
• Creative Business Ideas Started During the Pandemic

Additionally, you may want to browse “how to start a business” guides to learn more about a specific business idea:

• Restaurant or catering business
• Cleaning business
• Clothing boutique or a consignment store
• Coffee shop
• Dropshipping business
• FedEx routes
• Ghost kitchen
• Lifestyle blog
• Online store
• Online T-shirt business
• Personal training
• Retail store

Starting From Scratch vs Buying Existing vs a Franchise

One question you may have is if you should start your small business from scratch, buy an existing business, or purchase a franchise? Two things to consider are your business experience and available funds.

If you have no experience running a business or in a particular industry, buying into a franchise can increase your odds of success. When you buy into a franchise , you’re mostly learning how to run the business. If you follow the franchise formula in a well-populated area, you’re likely to succeed.

The same line of thinking applies to an existing business. Purchase an existing business, and you’ll learn how to run the business—plus receive previous customers. This combination makes the likelihood of success higher than you’d have for a brand-new franchise.

The challenge with buying a franchise or an existing business is cost. The high cost is one of the main reasons most new entrepreneurs start their business from scratch. However, keep in mind that there are dozens of franchises that cost under $25,000 .

• Buying a Franchise: How to Buy a Franchise in 8 Steps
• Financing a Franchise: 7 Best Loan Options
• 11 Franchise Marketing Tips to Grow Your Business
• 19 Best Franchises Under 10K

How Much Money Do You Need to Start?

It’s essential to know the answer to this question before starting your business. I’ve met with several people who never got their business off the ground because it required too much money. Remember, if you don’t have the capital available: Dream big, but start small.

To start some businesses, such as residential cleaning or power washing, you may only need $1,000. Use these funds to register the business, purchase supplies, get your first customers, and then, you’ll be in business.

Opening a store with a location is more costly. You’ll need at least $50,000 in funding—possibly several hundred thousand dollars. For a very small retail store, you should plan on earning at least $100,000 a year to cover overhead costs and make a nice profit.

If you need substantial debt to open your first business—over $20,000—you should seriously think about that decision. What’s the worst-case scenario? And how long will it take you to get out of debt? If possible, start part time with the business and acquire the necessary entrepreneurship skills. Or consider waiting. Save up cash, and take on as little debt as possible.

Learn More: How to Choose a Business to Start

Now that you’ve settled on an idea, it is time to really dive into the market.

Step 2: Research Your Market and Competitors

Once you have chosen your business idea, you need to test the idea to determine the likelihood that it will work. The majority of new business owners skip this step—that’s why 20–22% of small businesses fail within the first year according to the Bureau of Labor Statistics .

Don’t skip this step! You may learn valuable information that alters the type of business you start or how you implement it. All the information you collect will go into your business plan (step No. 3).

Validate Your Business Idea

Validating your business idea involves making efforts to ensure the solution you want to sell is something customers will pay for. True validation comes when someone spends their money on your product or service. However, you may not be able to figure out with certainty how well your product will do in the market until it’s created, or your business is open.

This is where research becomes crucial. Consider creating a few focus groups and surveys to gather feedback. Building an audience online is a great way to elicit feedback for your idea. Additionally, starting a crowdfunding campaign is one of the best ways to ensure your business idea is a good one.

• Evaluate your competitors. Consider your top five potential competitors and list their strengths and weaknesses. What strengths do your competitors have that you cannot beat? What weaknesses do they have that you can improve upon? If you have no competitors, that is not always a good sign. Ask yourself why there are no competitors in your area. There may be a reason. For example, the market may be too small to support your idea or people are not willing to pay for your product or service.
• Identify your target demographic. Customer research is key in deciding whether or not the business will work. There must be people willing to pay for your product or service in your area. To narrow down your customers, consider creating customer profiles for each type of customer you will have. Once you are clear on your customers, you want to determine how many of them are in your area. ReferenceUSA is a database you can use to do this research. ReferenceUSA is a powerful tool that allows you to research customers based on demographics. Tens of thousands of local libraries provide free access to ReferenceUSA.

Perform a SWOT Analysis

A SWOT (strengths, weaknesses, opportunities, threats) analysis is an exercise that helps you think critically about your business idea. SWOT analysis may reveal certain aspects of your business you have not considered—both positive and negative.

Go through each section below and list your ideas:

• Strengths: What will the business do well?
• Weaknesses: What may the business not do well?
• Opportunities: What external market opportunities are there—such as less competition and underserved segments?
• Threats: What external factors may make success difficult—such as regulations?

• Identify your competitive advantages. A SWOT analysis helps you identify your own competitive advantages. A question to ask yourself is: “What is my advantage that the competition will struggle to match? ” Is it your quality of product or service, customer service, or knowledge? This question will help you determine if you can be the best at something. Being the best in a certain area of a business makes it more likely that the business will succeed.

Research a Location

If you’re considering an office or storefront, start your research into the location now. You want to start early to make sure you can afford it. Look into potential locations to develop a rough estimate of the build-out cost (renovations) and monthly rent. The information you collect will go into your business plan and financial projections.

Once you have validated your idea, performed in-depth research, identified target demographics and possible locations, and performed competitive analysis, you are ready for the next step. So far, you have put together informal pieces of a business plan. Now, it’s time to write down information in a document as part of a formal business plan.

Step 3: Write a Business Plan

When you’re just starting your business, a business plan, along with a solid business philosophy , can help you plot your future. Additionally, a business plan is an opportunity to show why and how your business will become a success. All businesses need to create a business plan or a strategic roadmap to guide their business decisions.

The business plan contains several elements, including market analysis, competitor analysis, and financial projections. If you’re seeking funding from a bank or investor, you will need a business plan. The plan shows on paper how you will start your own business. After you open, the document keeps you focused and on track with your goals.

A typical business plan may contain over 40 pages of info about your business. You should plan on spending at least 30 hours creating a well-researched business plan. In addition to writing the plan, you will also spend time doing market research and creating financial projections.

Planning to launch a very small business such as a side business? Creating a one-page business plan might be better. With this plan, you’ll write a couple of sentences for important business concepts. It should include items such as the business model (how will it make money?) and competitive advantage (what will it do better than competitors?).

You should plan on spending around an hour to write out a one-page business plan. The simplified financial projections will be the most challenging and time-consuming. You most likely will need to do research online to get accurate income and expense estimates.

Download our one-page business plan template to start your business planning today.

One-Page Business Plan Template

Most business owners can easily do the research and write the plan. Where most have difficulty are the financial projections, which require creating several financial documents. If you don’t have a financial analysis background or interest, it’s a wise strategy to purchase business plan software that walks you through the financial projection process.

Related: 4 Types Of Business Plans (Plus Software & Writing Services)

Here are nine sections to include in your traditional business plan:

• Opening Organizational and Legal Pages: Cover page, nondisclosure agreement, and a table of contents
• Executive Summary: A summary of the entire business plan in fewer than two pages; Complete this section last
• Company Summary: Basics of the company, such as its history, location, facilities, company ownership, and competitive advantage
• Products and Services: How your business makes money (business model), the products or services it provides, and future products or services
• Market and Industry Analysis: Analysis of potential customers and industry. Include any data here about your current (or ideal) customers, business industry, and competitors
• Marketing Strategy and Implementation Summary: Discussion of marketing, sales, and pricing strategies
• Management and Organization Summary: Business ownership and operation. (If your business isn’t open yet, give a compelling reason why your background will make it a success. Include information on any managers in the business as well.)
• Financial Data and Analysis: Financial projections such as a profit and loss statement, projected cash flow, and business ratios
• Appendix: Any documents or information that doesn’t fit in the above categories goes in the appendix. You may want to include documents such as a floor plan, trademark, or marketing materials.

This might be a big undertaking for some, so there are business plan writing services you can seek help from. Alternatively, Here are some industry-specific business plan templates that can help:

• How To Write an SBA Business Plan [+Free Template]
• 4 Free Retail & Online Store Business Plans
• How to Write a Real Estate Business Plan (+ Free Template)

Learn More: How to Write a Business Plan

Step 4: Acquire Funding

Obtaining financing for your startup business may be the biggest challenge you face in your company’s infancy.

If you don’t have sufficient personal funds to start your business, you’ll need to secure additional funds. There are several funding options available for soon-to-be business owners, including several types of loans, investors, and crowdfunding.

No matter which type of startup financing your business applies for, you can increase the chances of getting a small business loan by preparing a solid business plan, improving your personal credit score , saving up personal capital, building your business’ customer base, and maintaining updated financial projections .

Family & Friends

A popular saying that many in startup financing like to say is, “You should always look to family, friends, and fools for funding before an investor or loan.” The reason is that family and friends (and fools) are the cheapest sources of capital.

The main downside of securing capital from family and friends is the potential for a damaged relationship. To avoid this, draw up an agreement that states how and when you need to pay back the funds.

A loan is a sum of money that needs to be paid back with interest. Business loan amounts can range anywhere from under $1,000 to over $1,000,000.

Just because you may qualify for a loan doesn’t mean you should use it. Start your small business with as little debt as possible. Remember, if your business were to fail, you would still need to pay off the debt you incurred, which could take several years.

Here are several different types of loans to fund your business:

• 10 Best Business Credit Cards for Startups
• 10 Best Sole Proprietorship Business Credit Cards
• 6 Best Instant Approval Business Credit Cards
• 6 Best Credit Cards for New Businesses With No Credit History
• 8 Best LLC Credit Cards
• 13 Best Small Business Credit Cards
• 6 Best Personal Loans for Business Funding
• Business Loans vs Personal Loans: Which Is Best for Your Small Business

See also: 7 Best Rollover for Business Startups (ROBS) Providers

• Home equity loan or line of credit : These loans pull equity out of your home for a loan. They are appealing because of their low-interest rate.

See also: SBA Microloans: What They Are & How to Apply

• SBA Loan Requirements
• How to Get an SBA Loan in 4 Steps
• How to Get an SBA Startup Loan in 6 Steps
• SBA Community Advantage Loan: What It Is & How to Apply
• Understanding the SBA Guarantee Fee

See also: How to Get Unsecured Startup Business Loans in 6 Steps

Find an Angel Investor

An angel investor is typically a wealthy individual who funds early-stage businesses. Investors usually want equity ownership in businesses they invest their money in. Having ownership means they will collect a percent of your profits in exchange for their investment. Read more about the pros and cons of angel investments .

Crowdfunding

Crowdfunding a small business is when you get customers to pre-order products or services. It’s a great way to raise funds before opening your business or creating a product.

Kickstarter and Indiegogo are crowdfunding platforms that assist with raising the money for your business. The cost to use the platforms is 5% of the final price raised plus payment processing fees, which are around 3%.

• Pros and Cons of Business Crowdfunding
• 11 Best Crowdfunding Sites for Small Businesses

Apply for Business Grants

Business grants are funds given to start a business that doesn’t have to be repaid. Federal, state, and local governments are common sources of grants. Many new business owners seek them, but they are hard to find.

A business grant is typically reserved for a particular type of business, such as a research-based business. Grants may also come in forms other than money, such as reduced rent to open a business in a disadvantaged area designated by a city.

• 8 Best Small Business Grants
• 8 Great Minority Small Business Grants
• 13 Best Small Business Grants for Women

Apply for Venture Capital Funding

Venture capital is private equity designed to help startups with long-term growth potential scale. In this arrangement, groups of investors pool money to fund a startup in exchange for equity. Typically, venture capitalist firms also shape the strategies of the companies, provide expertise, and make introductions. Read more about the disadvantages and advantages of venture capital funding .

Learn More: Startup Business Loans: The 7 Best Ways to Fund Your Startup

Step 5: Choose a Business Structure & Register Your Business

After acquiring funding, it is time to file the necessary legal paperwork and register your business. You want to take the steps below to comply with city, state, and federal laws. You also want to protect your personal assets if something happens in your business that results in a lawsuit. Additionally, if you have a unique business idea, you want to protect that from competitors.

The cost of registering a business varies between $40 to $500, depending on the state in which you choose to register. You can register through the state’s official business registration website. If you find the website challenging to navigate, use an online legal service such as Rocket Lawyer to assist with the process.

Registering your business is a must-do before taking on your first customer. You don’t want to start your business and not be properly prepared to deal with something like a trademark infringement or a home-based business inspection from a city official. To ensure the business registration process doesn’t become overwhelming, use our checklist to keep track of what has been accomplished and what needs to be completed.

Prepare to Register Your Business

This may only include obtaining an employment identification number (EIN), opening a business bank account, and registering the business as a legal entity in the state in which it operates.

Or registering your business can be several tasks including those above in addition to obtaining a professional business license, getting a State Taxpayer Identification Number, and passing a city health inspection. It’s best to prepare for these tasks in advance to ensure they go smoothly.

• Choose a business name. Before taking any legal steps below, you need to decide on your business name. This is important to do first because your business name will be on all of your legal documents. Know that you don’t have to stick with this name forever. If you’d like to change the public-facing name of your business, you can always file a DBA (doing business as) registration with the state in which your business is primarily located. Try our business name generator if you need help coming up with a name for your business.
• Choose a location to receive important documents. Your city or state may require certain documents to be signed and will mail them to you. Additionally, your state will mail documents to your address every year to remind you to re-register your business. It’s important to re-register on time because the late fee is often higher than the initial registration cost.
• Obtain your Employment Identification Number (EIN ). Your EIN is a federal business number provided by the Internal Revenue Service (IRS) to primarily identify your business for tax purposes. It’s free to obtain your EIN and you will use it on several documents. Many banks require an EIN before opening a business bank account.

See also: Can I Open a Business Bank Account Without an EIN?

• Open a business bank account. It’s important to open a business bank account before incurring any business expenses. This ensures you’re not mixing personal and business expenses. Many banks require a balance of at least $1,500 or they deduct a monthly fee.

Choose Your Business Structure

We recommend all businesses register as a legal entity, such as a limited liability company (LLC), S corporation, or C corporation. Registering your business as a legal entity protects your personal assets if a lawsuit were to ever occur against the business.

Research and determine the right type of legal entity for your business. While these legal entities have different pros and cons , they all achieve the vital goal of separating the business owner from personal financial liability if the business were sued or went bankrupt.

Here are the most common business structures:

• Sole proprietor: If you don’t register your business, this is the default business structure. Typically, only very low liability businesses should stay a sole proprietor, such as a beginner graphic designer or tutor.
• Partnership: Similar to a sole proprietor, except a partnership has two or more owners.
• LLC and LLP (legal entity) : This is similar to that of a sole proprietor, except it provides personal asset protection in the event of a lawsuit or business bankruptcy. An LLP (limited liability partnership) is for multiple partners.
• S corporation (tax status) : Elect your LLC or LLP as an S-corp to save money on taxes. Consider this structure if you are paying yourself more than $20,000 per year from the business.
• C corporation (legal entity) : This business structure provides several benefits, including transferable shares and perpetual existence. You’ll likely need to work with an attorney before forming a C-corp to create the needed documents.

Here is a snapshot of the different business structures you can consider and their key advantages and disadvantages.

Register Your Business With the State

Now that you’ve done the research and chosen your business’ legal entity, it’s time to submit the entity registration to the state it’s operating in. You can do this on your own by navigating to your state government’s business registration website. Or you can use an online legal service to assist you in the process. Additionally, if your business has a sales tax, you’ll want to obtain a state sales tax identification number (STIN).

Get State Licenses & Local Permits

Depending on your type of business, you may need a professional license issued by the state or a local permit. Additionally, if you work from home and receive customers or employees, you may need to obtain a work-from-home license.

• State professional licenses are typically for businesses that may pose a public health risk. Each state may require different professions to obtain a professional license.
• Local license and permit requirements vary by state; however, typically, before opening a physical location you’ll need a local building inspection to ensure the facility is safe for the public.
• A home-based business license is needed if you’re accepting employees and customers or creating products from your home. This license is to ensure the business isn’t causing a public health risk. However, Most businesses that operate from a home won’t need a license.

Secure Your Intellectual Property

Although it’s not necessary to start your business, you may want to register a trademark, copyright, or patent. A trademark ensures no other business uses your logo, business name, or tagline. A copyright gives you increased legal protection over your creative work. A patent ensures no one can take your product idea.

• Trademark Costs: DIY Registration vs Online Service vs Lawyer
• How Much Does a Patent Cost? The Beginner’s Guide

Step 6: Get Your Business Insured

Business insurance is a form of protection small business owners can buy to safeguard their personal or business assets. Getting the appropriate coverage for your operations protects your assets by covering customer lawsuits, property damage, and other perils so the costs following a disaster don’t put you out of business.

Most businesses deal with third parties who may claim your business caused their property damage, bodily harm, or financial loss. Different types of business insurance cover these accusations by paying the associated costs.

Certain small business insurance policies are considered fundamental because they protect against risks that most business owners face. General liability is a good example of this because it covers claims that your business is responsible for someone else’s damages. Many business owners also get commercial property insurance because it pays for damages to their property.

Common Types of Small Business Insurance Policies

How to get business insurance.

Small business owners can get business insurance online through brokers or directly from carriers. To get the appropriate coverage for your business, it’s important to first assess your risks and then to find providers who offer coverage that protects against them.

• 6 Best Small Business Insurance Companies
• 6 Ways To Save Money on Business Insurance

Because no business is immune to general liability claims, getting coverage should be a standard business practice. However, cash-strapped small business owners who are looking for inexpensive general liability insurance should remember that price shouldn’t be the only consideration. Smart business owners evaluate coverage limits, additional fees, and the carrier’s reputation as well.

Step 7: Build Your Business Team

After taking care of the necessary legal steps to get your business registered and protected, it is now time to make key hires. Your first employees will be vital to the success of your business. Additionally, many new business owners overlook the importance of hires outside of the business such as a bookkeeper, attorneys, and mentors.

Connect With a Business Attorney

A business attorney may help you form your new business, create custom forms or contracts, and provide legal advice. Even if you won’t need an attorney for these activities, it’s wise to connect with one before a legal matter occurs in your business. You don’t want the stress of interviewing business attorneys after your company has been served.

Meet With a No-cost Business Adviser

The federal and state government funds several organizations that provide no-cost business consulting and mentoring. The SBDC has over 5,000 consultants across the United States that provide no-cost consulting in a variety of business areas. These consultants typically have advanced education or experience owning a business.

SCORE Advisers are volunteers who typically have previously owned a business. They serve as mentors to business owners. A SCORE Adviser can be a great asset to your business, especially if they have experience in your industry.

Hire Your First Employee

Hiring great employees is the key to growing your business. A thoughtful hiring process includes well-written job descriptions, effective recruitment ads, and strong interview processes, all of which should promote your values and culture and adhere to fair labor practices.

Many first-time business owners find employees online these days —through job boards , LinkedIn , Facebook, and Instagram. You will likely hire your first employee through word-of-mouth or from one of your family members or friends .

• How to Hire Employees
• How to Create a New Hire Checklist [+ Free Template]
• 10 Best Startup Hiring Tips for Finding Top Candidates
• Hiring Bias: 13 Unfair Prejudices & How to Avoid Them
• New Employee Onboarding Best Practices: Steps & Checklist

Hire a Bookkeeper or Accountant

If you’re starting a part-time business, you can likely track your income and expenses with software such as QuickBooks Online. However, if you have a full-time business with multiple products and services and have several expenses to track, you may want to hire a professional.

Many new business owners are unsure if they should hire a bookkeeper or accountant, but most people starting a small business only need a bookkeeper . If you need complicated financial statements or business tax advice, it’s wise to hire a certified public accountant (CPA).

Step 8: Set Up Your Business Systems & Software

As you organize your business, you will find yourself creating systems to manage repeatable tasks and ultimately increase profits . You’ll often find software to assist with the tasks.

Below you’ll find two lists—one with processes and systems that almost all new small businesses will need to implement. The second list includes several systems and software that—if they apply to you—are highly recommended.

Must-have Systems & Software

• Payment processing: You’ll need this to accept credit card payments . Sign up with a merchant service provider before setting this up.
• Bookkeeping: This is how you track income and expenses. If you are managing it yourself, you’ll need accounting software . If not managing yourself, consider hiring a virtual bookkeeper .
• Payroll processing: If you have employees, you’ll use this system to pay them. To make the process easier, consider payroll processing software .
• Business tax payments: It’s a best practice to make business tax payments to the IRS quarterly so you don’t have a large tax bill at the end of the year. Aside from tax software , you can often use your accounting and payroll software to submit early tax payments.
• Business phone number: You’ll want to secure a business phone number so that you can separate personal calls from business calls. You can get a virtual phone line for free or for a small fee .
• Branded business email address: You don’t want potential customers to email a “@gmail,” “@yahoo,” or another alternative. It looks unprofessional. Get a business email that ends with “@yourcompanyname” so that it looks more professional . Google Workspace provides this for $6 a month.

Additional Systems & Software to Consider

• Business website: If potential customers are typing your business name into the search engines, you need a business website . You can set one up yourself and pay around $15 a month. Here are small business website examples you can use for inspiration.
• Sell online: Expand your products’ or services’ reach by selling to customers online . You can build an ecommerce website or use a platform such as Amazon , Facebook Shop , Instagram , or Etsy .
• Customer management: If you have dozens of customers (or more), you’ll need customer relationship management (CRM) software . This software helps you keep track of customer information such as previous communications and contact info.
• Appointment scheduling: Don’t schedule appointments by hand (unless you want to). Use free appointment scheduling software to store your appointments in the cloud. Also, allow clients to schedule online without communicating with you.
• Work from home: COVID-19 is forcing and encouraging many people to work from home for the first time. Set up your home office and manage it so that you can keep up productivity and enjoy your working environment.
• Take video calls: Video meetings and calls have skyrocketed since the pandemic arrived. Give your clients the option to meet through video conferencing software .

Overwhelmed? Don’t be. Free business software helps your company save money and become efficient. You can use free business tools to do accounting, accept payments, and pay employees.

If you’re starting a business, going with free business tools is a great way to keep operating expenses at a minimum. Free business tools are a low-risk test as you figure out the best systems and software for you. If you like them, keep them and possibly expand their features with a paid version. If you don’t like them, stop using the software with no added costs to your business.

Step 9: Market Your Business

Your last step to starting your business is to get customers. You’ll use your marketing strategy to get your new business in front of potential customers.

There are a lot of strategies you can implement to get your business noticed. Don’t get overwhelmed! Remember, you don’t have to implement—and pay for—all of these strategies. A few done well will get your business enough customers to make it a success.

Before diving headfirst into any of the marketing strategies, take time to write a marketing plan . Think through and plan out how you want to market your business. In your plan, outline your brand, such as the logo, colors, font, and tagline.

At a minimum, you’ll want to create business cards to hand out to potential customers and vendors or while networking. Other marketing materials to consider are brochures , flyers , cards , and branded apparel. Many new business owners make the mistake of relying too much on online marketing. Don’t overlook the effectiveness of having physical business marketing materials in someone’s home.

Market Online

• Social media marketing : Connect with your customers where they are spending their time online. Don’t try to grow a following on all social media platforms. Choose one and spend the majority of your time growing your account there.
• Email marketing : Stay in touch with past customers by sending them valuable or entertaining emails . Don’t make your emails all about sales and discounts. You’ll lose subscribers.
• Content marketing : Create and distribute articles, videos, case studies, and other forms of online content created to attract leads, create brand awareness, move prospects through the buying journey, or convert them to customers.
• Google My Business (GMB) listing : This listing is free for all businesses looking for local customers. Many marketers are calling GMB the new small business “homepage.” It’s what customers see on Google before your website when they search for your business.
• Online directories : It’s likely your business can be on several online directories such as Yelp and Yellow Pages . Consider any industry-specific directories as well.

Network With Local Businesses

When you first open, explore networking groups available for local businesses. It’s always a good idea to meet and network with other business owners. Word-of-mouth recommendations and referrals may lead to some of your first customers.

Related: 8 Business Networking Statistics to Generate New Opportunities

Pay for Advertising

You may want to pay to get your business in front of ideal customers. This paid marketing can give your brand recognition a jump-start. You can pay for advertising online or through traditional advertising channels.

• Search engine ads : Pay to get your business at the top of Google or Microsoft . Typically, you will pay every time an interested searcher clicks on your ad. The cost of the click will depend on the number of businesses competing for the ad space.
• Social media ads : Get your social media ad in front of both followers and nonfollowers. Ad cost depends on the competitiveness of the audience you’re targeting.
• Online directory leads: Depending on the directory, you can pay for higher rankings or leads. Yelp provides both options.
• Direct mail : Create cards or brochures and send them to homes of potential customers near your business.
• Radio ads : This type of advertising is an excellent option if your business appeals to an audience in a broad industry such as retail or home improvement.
• Billboards : The cost of a billboard varies depending on location. Pay anywhere from $250 per month for a rural area to over $15,000 per month in a larger market.

Media Package

You want local media to know about your new business. Local media prefers information about your business submitted to them in a press release. A press release is a summary and story of your business. You also want to include owner headshots and photos of the business in the press kit . It’s important to include a hook, which is a way to present your business that creates interest so that the business journalist will cover the opening of your startup.

Learn More: 11 Strategies to Market a New Business

How to Start a Small Business Frequently Asked Questions (FAQs)

Click through the questions below to get answers to some of your most frequently asked starting a small business questions.

How can I start a small business with no money?

A business can be started with no money, but it is not recommended. You aren’t required to spend money to register your business. When you don’t register, it is called a sole proprietorship. The problem with not registering is that your personal assets are at risk. For example, if you’re starting a lawn care business and something costly gets destroyed at a customer’s property, that customer can sue you for damages, and your personal assets are at risk.

What is the easiest business to start up?

The easiest business to start is one that relies on your expertise. People pay you for your expertise because you know more than they do. For example, if you are a social media manager for a business, you can take your social media marketing expertise and charge local businesses to manage their accounts.

There is little cost to this type of business because your time and expertise are the product.

How much does it cost to start a small business?

Starting a business does not need to cost a lot of money. If you’re providing a service like resume writing, the only cost is registering the business in your state. As you add additional components to your business like a website, accounting software, and a branded email address, your business costs will increase. For example, adding a low-cost website is another $100 or more per year. A branded email address will cost another $100 or more per year.

If you’re feeling overwhelmed with all the tasks to start your business, don’t stress! Starting a business is a marathon, not a sprint. Be patient. Give yourself time to absorb and understand the above steps.

“The truth is, success is a process—you can ask anybody who’s been successful.” – Oprah Winfrey

Be proud that you’re learning and trying to figure out this messy world of starting a business. Make your next move today: What micro-step are you taking today to make your idea a reality?

About the Author

Find Agatha On LinkedIn

Agatha Aviso

Agatha Aviso is a retail software expert writer at Fit Small Business. She specializes in evaluating ecommerce and retail software features that help small businesses grow. She has evaluated dozens of the top software for retail SMBs. Agatha has more than 10 years of experience writing online content for both small business owners as well as the marketing industry. She also served as a content strategist and digital marketing manager for many entrepreneurs.

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How to Start a Business in 15 Steps

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1. Find the right opportunity

2. write a business plan, 3. choose a business structure, 4. get a federal tax id, 5. apply for licenses and permits, 6. open a business bank account, 7. understand your startup financing options, 8. get a business credit card, 9. choose the right accounting software, 10. prepare to pay your taxes, 11. protect yourself with business insurance, 12. establish your online presence, 13. set up a payments system, 14. hire employees, 15. get financing to grow your business.

Starting a business takes research, smarts and self-confidence — and a measure of fearlessness. You may already be asking yourself: How can I start my own business with no money? What's the right equipment? Am I getting the best advice?

Here are the essential steps on how to start a business, from choosing the right business idea, creating a solid business plan and structuring your company to opening a business bank account and choosing the right accounting software.

» MORE: 5 steps to turn your side gig into a full-fledged business

ZenBusiness

What business should you start? It depends on your expertise, plus how much time and money you’re able to invest. Some small-business ideas can be launched from home with little overhead, and e-commerce and remote businesses have become increasingly common in the wake of the COVID-19 pandemic.

As you narrow your scope, you also want to be sure that your idea can actually make money . If you’re not sure what kind of business you want to run, use these lists to get the wheels turning:

50 best small-business ideas.

The 23 most profitable business ideas .

40 startup ideas to try .

16 e-commerce business ideas.

40 home business ideas to explore .

44 online business ideas you can start now .

Looking for tools to help grow your business?

Tell us where you're at in your business journey, and we'll direct you to the experience that fits.

on NerdWallet's secure site

A strong business plan can help you prepare for every aspect of your business. Plus, you’ll need one to present to potential investors and lenders. This document should include details of the products or services you plan to offer, how you plan to make money, who you need on your team and more.

You’ll also want to include detailed financial projections, budgets and thorough explanations of how you plan to spend investor dollars or loans. Since cash flow projections will fluctuate as you adjust projected income and expenses, it helps to think of the plan’s financials as a living, changing document.

Ultimately, your business plan will help you chart a course for your business, anticipate potential roadblocks and work out how to overcome them — and will likely go through multiple iterations before your idea comes to fruition. Industry colleagues and accountants may be able to provide valuable feedback on how realistic your projections look and point out any overlooked costs.

How to write a business plan, step by step .

How to create a business budget .

Best business budgeting software tools .

5 tips to write a successful business plan . 

How to write a successful business plan for a loan .

The legal structure of your business can affect everything from your taxes to what you're liable for. For example, there’s no legal distinction between a sole proprietorship and its owner. Limited liability companies (LLCs) and their owners, however, are considered separate entities by law, which can provide more personal asset protection.

Talking with a tax professional can help you choose the right business structure for you. And you can change your structure as your business grows.

How to choose the right business structure .

Pros and cons of a limited liability company .

LLC vs. sole proprietorship: How to choose .

Partnership vs. corporation: How to choose .

Getting an employer identification number (EIN) is necessary for most businesses to file taxes, open bank accounts and perform other essential tasks. Even if you don’t have employees, there are benefits to getting an EIN. It’s free to apply and the online application only takes a few minutes.

How to apply for an employer identification number .

Benefits of getting an EIN (even if you don’t have to) .

In general, restaurants need health inspections and liquor licenses. Hair stylists need cosmetology licenses. Your city may require you to apply for a business license regardless of what field you’re in. And if you’re renovating a space to sell products or perform services, you may need to ask local officials for a zoning change.

Set aside time early on to find out what licenses and permits you need before you can open your doors. While you don’t typically need a lawyer to apply for a business license, they can help you navigate the process and review other documents, like lease agreements or loans, before you sign them. Industry associations, city officials who work on economic development issues and local business associations, like your Chamber of Commerce, may be able to offer advice, too.

How to get a business license .

Do you need a business license to sell online?

How to find a startup lawyer . 

How much do you need?

with Fundera by NerdWallet

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

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

Keeping your business and personal finances separate is key to managing your business finances. It’s standard bookkeeping hygiene and makes it easier to deduct business expenses come tax time. A business bank account can help, and they’re simple to set up.

Best business bank accounts . 

Best business bank accounts for freelancers .

Best free business checking accounts .

Best business bank accounts for LLCs .

Most businesses need a little capital to get started. However, the majority of business loans are not available to businesses that have been operating for less than six months, and most online lenders prefer at least a year in business. Startups should consider alternative financing options, or try to leverage other strengths of their business, such as strong credit or collateral. If your business does qualify for a loan, be sure to pay attention to interest rates, potential prepayment fees and personal liability terms.

Found Small Business Banking

Many business owners rely on their own savings to get started. You can also look into crowdfunding, personal loans, business grants and more. High-growth-potential startups may also be eligible for equity financing, which gives partial ownership, or equity, to investors in exchange for capital.

How do business loans work?

Best startup business loans.

Startup business grants .

Asset-based lending options.

Types of startup funding.

Crowdfunding for business .

Is equity financing right for your business?

Funding your business with a personal loan .

Is your to-do list overwhelming?

Business credit cards can also be used as a short-term financing solution to help you purchase necessary supplies and pay bills while cash flow is still shaky. Just be sure to spend within your limit and pay off your balance in full each month so you don’t get into a cycle of debt. Startup financing aside, business credit cards also make it easier to keep business and personal finances separate. As an added bonus, you can also earn rewards, such as cash back, on the money you spend.

Usually, you can qualify for a business credit card based on your personal credit score.

What is a business credit card?

How to get a business credit card .

Best small-business credit cards .

Best business credit cards for new businesses .

Best 0% APR business credit cards.

It’s essential that you keep records that show how much revenue you’re bringing in and how much you’re spending. Accounting software helps you track and analyze these numbers by generating reports and recording sales trends — and there are even some free options.

As your business grows, you may want to start working with a bookkeeper . This person can help ensure your records are complete and accurate, which makes it easier to file your taxes, apply for financing and more.

Best accounting software for small businesses .

Best online bookkeeping services .

Bookkeeping basics for small businesses. 

Best free accounting software .

Know these 4 business financial metrics to track performance .

You'll have some new tax responsibilities as a business owner — including, potentially, the need to pay taxes throughout the year, not just during tax season. But you'll probably discover some new tax breaks , too.

Filing taxes can be complex, especially as a small-business owner. Developing a relationship with a tax professional early on can help set you up for success, and they can be a trusted adviser to your business later on.

A tax guide for small-business owners.

Self-employment tax, explained.

Best tax software for small businesses .

How estimated quarterly taxes work .

How to find the right tax advisor for your business .

It's important to protect your business and your personal assets, and business insurance exists to do just that. NerdWallet recommends that every business carry general liability insurance in case of legal claims.

You may also need insurance to comply with a contract, like to set up a booth at an event or work as a subcontractor on a larger project.

Best small-business insurance providers .

How much does business insurance cost?

What is general liability insurance?

What is a business owner’s policy (BOP)?

An online presence is critical for almost every business — especially if you want to sell products online. Setting up a website and social media profiles early on, even if they’re simple, can help you start developing relationships with potential customers right away.

Here’s what you need to know to start your business website:

How to build an e-commerce website .

The ultimate guide to small-business marketing .

The best ways to promote your business on social media .

6 Instagram tips for small-business owners .

8 best e-commerce website builders for small businesses .

The do’s and don’ts of using Facebook to drive business sales .

5 best places to advertise your business online .

If your business takes credit and debit cards, you'll likely need a payment processor and point-of-sale (POS) system. Lots of POS system providers double as processing companies, which can make the decision-making process simple. Remember to consider upfront hardware costs for card readers or POS registers, monthly POS software fees and processing fees. Online payments typically have higher processing fees than in-person payments, so be sure to consider the full range of fees when choosing your provider.

How to accept credit card payments.

What is credit card processing and how does it work?

Cheapest credit card processing companies.

Best point-of-sale (POS) systems .

Best credit card processing companies .

Best credit card readers for small businesses .

You may not need to hire employees right away — and some small-business owners prefer to remain solopreneurs throughout the life of their business. But if you do choose to hire, you’ll probably need workers’ compensation insurance, payroll software and more. Here’s what goes into hiring your first employees.

Ready to hire your first employee? Prep with these steps .

Strategies to attract good employees.

Tips for hiring remote workers.

Strategies to help retain employees.

How to choose the right payroll software for your business .

Best payroll software for small businesses. 

What is workers’ compensation insurance?

Once you’ve been in business for six to 12 months, you may start qualifying for business loans. Financing can help your business grow and expand — by buying equipment, renovating an office or expanding your inventory, for instance — or float you through a slow season while you prepare for increased future revenue.

Here’s what you need to know about business loans, lines of credit and other financing options.

How to get a business loan .

SBA loans: What they are and how to qualify .

Equipment financing: What it is and top lenders.

Best small-business loans .

Types of business loans.

Should you grow your business? 6 questions to help you decide .

On a similar note...

BUSINESS STRATEGIES

How to start a business in 14 steps: a guide for 2024

• Amanda Bellucco Chatham
• Dec 3, 2023
• 31 min read

Get started by: Creating a website →  | Getting a domain →

In the words of Steve Jobs, “The only way to do great work is to love what you do.” Starting your own business is one step towards doing work that you love. But from forming an idea to creating a business website , there are several essential steps and questions to consider before you dive in: What problem are you solving? Who is your target audience? What differentiates your product or service from existing offerings? And, most importantly, where exactly do you begin?

This comprehensive guide will walk you through every step of the journey: brainstorming ideas, perfecting your branding, registering your business and more. Use it as your trusted roadmap on how to start a business, empowering you to navigate the exciting world of entrepreneurship with confidence.

Ready to create a business website? Start building yours today .

How to start a business

Brainstorm and refine your business idea

Conduct market and competitor research

Pick a business name

Write up a business plan

Choose a legal structure for your business

Secure business capital and funding

Register your business and make it official

Apply for tax IDs, licenses and permits

Apply for business insurance

Organize your finances

Brand your business

Create a professional business website

Market and promote your business

Build a team

01. Brainstorm and refine your business idea

You might already have a great business idea that you can’t wait to start, or maybe you’re still in the early brainstorming stages of finding your niche. If the latter applies to you, think about what you’re passionate about and what skills you possess. The best business ideas often emerge from your interests and expertise, making it easier to stay motivated and dedicated throughout the journey.

Keep in mind that there are some very real, very unavoidable small business challenges to consider. Most business ideas require money, innovation and time to yield results—some may even come with financial risks. This is true for both brick-and-mortar businesses and online business ideas . That’s why as a first step, you’ll need to refine and test your idea to make sure it’s a viable option. Here are some effective ways to kickstart your brainstorming process:

Be realistic: While it’s important to choose a business idea that’s in line with your passions, it’s also crucial that there’s market demand for your product or service. Ask yourself, is your business idea scalable? Who’s your target market ? Do you have the necessary skills and expertise?

Test your idea in the real world: This can involve anything from a focus group to a small-scale pilot test. Another strategy is to build a landing page , which can help you generate and gauge interest. If you find that your idea doesn’t pique interest, it’s time to reassess. Consider how you can refresh your idea to bring something new to the table, or how you can adapt it to more directly address consumer needs.

Define your business model: As you think about ways to make money from your idea, think about the exact business model that will help you to grow your business in a manageable way. Think: How do you want your business to look a year from now? Two years from now? Five? Is it sustainable?

Popular business ideas to get you started

Dropshipping : Dropshipping is a great low-cost business idea that lets you sell products without needing to manage your own inventory. You simply need an eCommerce website , or a specific dropshipping website and a strong marketing strategy to get started.

Print on demand (POD): Another popular way to make money online , POD involves working with suppliers that print your designs on blank items, such as t-shirts and mugs, and ship the orders on your behalf. This is an effective way to put your own spin on a retail venture and start your own online store .

Freelancing: Freelance artists , writers and creatives can jumpstart their business by creating a portfolio website and monetizing their skills. Take Berlin-based illustrator and animator Rafael Varona for inspiration—his modern, visually engaging Wix website features artwork he’s done for leading companies including Disney, Google and Porsche.

Starting a service business : Service business ideas center around selling your expertise, skills or assistance—such as tutoring, dog walking, personal training or event planning. For inspiration, take a look at Whitehead Weddings + Events . Founder Anna Katherine Whitehead has built an elegant service website that showcases work samples, package offerings and more.

Selling handmade items: If you’ve got a knack for creating homemade jewelry, artwork, décor or clothing, you have a business idea just waiting to launch. Follow the lead of businesses like Tach Clothing , whose online Wix storefront features handmade crocheted clothing inspired by vintage fashion.

Boring businesses : Don't be fooled by the way these business sound, boring means anything but. These ventures are typically businesses that offer products or services that are essential but may not have flashy or attention-grabbing qualities. Think accounting firms, insurance companies, waste management services or industrial manufacturers.

How a successful business owner turned selling handmade items into a $2M business

Six and a half years ago, Amanda Buhse was working a 9-to-5 job as a graphic designer. Her day job was exhausting so Buhse and her best friend, a nurse, decided to meet a few times a week to decompress over a glass of wine and make candles together. The hobby stuck. Buhse eventually turned those evenings melting wax and cutting wicks into a bustling business.

Now she’s the owner and chief creative officer of Coal and Canary , a Canada-based online luxury candle company. Her candles are sold all over North America and have even made it into the glamorous gift bags handed out to VIPs at the Oscar and Grammy Awards.

What started as a passionate side hustle is now a $2M business. You can read more about Amanda’s business story here .

Other business ideas to consider:

Business ideas for teens

Small town business ideas

Part-time business ideas

Scalable business ideas

Family business ideas

Craft business ideas

B2B business ideas

Rental business ideas

Beauty business ideas

Is starting a business worth it?

Yes, starting a business is worth it. Business ownership can be a profitable venture, providing financial stability and potential for growth. Moreover, for people like Amanda Buhse, it offers the opportunity to escape the confines of a 9-to-5 job that may not bring you happiness or fulfillment. By taking the leap into entrepreneurship, you can create your own path and shape your future on your own terms.

More popular business ideas to consider

How to start an online business

How to start a consulting business

How to start a fitness business

How to start a fitness clothing line

How to start a makeup line

How to start a candle business

How to start a clothing business

How to start an online boutique

How to start a t-shirt business

How to start a jewelry business

How to start a subscription box business

How to start a beauty business

How to start a photography business

How to start a food business

How to start an interior design business

How to start a rental property business

How to start a painting business

How to start a gym business

How to start a babysitting business

How to start a plumbing business

How to start a coaching business

How to start a finance business

02. Conduct market and competitor research

When your business is still in its earliest stages, doing market research is critical. This step helps you understand your target audience’s needs and preferences, allowing you to tailor your products or services accordingly. It also enables you to evaluate the competitive landscape, identify market gaps and make informed decisions. All of this increases your chances of success and mitigates risk.

When it comes to consumer behavior, there are two sets of research: primary and secondary.

Primary research: This is the direct study of your target market by researching them firsthand, such as by conducting user interviews or holding focus groups. You’ll want to define who your customers are and further segment your market by age, location, language, spending power or even stage of life (for example, college students, newlyweds or retirees).

Secondary research: This consists of gathering information from external sources. Conduct an online search or reference public agencies like the U.S. Bureau of Labor Statistics as a good starting point. Down the line, you might also find internal data just as useful. You can turn to your own sales reports and see what trends took off right under your nose.

This combination of primary and secondary research can help you create a thorough SWOT analysis , which is an insightful way to measure and evaluate your overall business outlook against your competitors. To do this, create a table with four quadrants, where you'll rank your business’ strengths, weaknesses, opportunities and threats.

Strengths: Identify the areas where your business stands out. Then, turn to your competitors and ask yourself, “How can I do what they do, but better?” Look at the products and services they offer to help you understand what attracts their customers, and use this as inspiration to improve your own business strategy and competitive advantage .

Weaknesses: Be honest with yourself here. Answer this question as directly as you can: What do customers complain about or dislike? This will let you narrow in on one topic at a time, as opposed to tackling something abstract like, “What is wrong within my company?”

Opportunities: Think about your business in terms of growth. Consider different ways to expand and tap into new spaces, like running seasonal events, taking on a green initiative or testing out trends.

Threats: Be cautious of any external factors that can affect your business in a negative way. It can range from market fluctuations to consumers who no longer express interest in your offerings.

Remember to play to your understanding of what a specific audience needs. Identifying a gap in the market, or having an idea to make an existing product is an important part of market research for starting a business.

How one entrepreneur translated her understanding of her target audience into business success

Raquel “Rocky” Harris knows a thing or two about kicking ass. She’s a five-time Muay Thai champion, Team USA gold medalist, Fight Camp trainer (that’s basically the Peloton of boxing) and, most recently, a thriving entrepreneur (see our guide on how to become an entrepreneur ). Harris now uses Wix eCommerce to sell a collection of wellness products to athletes like herself as the founder of Warm Up .

“I was making my own hand sanitizer and thought ‘Why don’t they have sanitizers that kill fungus?’” she says. “There are always breakouts in boxing gyms due to common skin infections like ringworms. Tea tree soap is anti-fungal, so I started adding it to my hand sanitizers, which eventually evolved into my sweat butters.”

She launched her first product line while training clients and creating Wix sites for her colleagues, all while moving across the country to shoot workouts for Fight Camp. You can read more about her business story here .

Is it easy to start a business?

Creating a business doesn't have to be difficult or intimidating. It can start with a simple but strong idea, like Raquel Harris' realization that hand sanitizers would be all the more useful if they killed fungus, especially in boxing rings.

Starting a business does require dedication, hard work and careful planning—there's no way around that. While it may not be easy, per se, with the right mindset, research, resources and tools like Wix, anyone can embark on the entrepreneurial journey. The rewards of building a successful business can truly be fulfilling and worthwhile.

03. Pick a business name

Feeling satisfied with your business idea? The next step is to come up with a business name that will leave a strong first impression on potential clients.

You’ll want a name that’s catchy, memorable and scalable (i.e., is still relevant even if your business expands to new locations, niches or product offerings). If you need a little nudge, Wix’s free business name generator can help you brainstorm some ideas, or you can check out these best company names for further inspiration.

You’ll also want to make sure no one else has trademarked or registered your desired business name, which you can check via the U.S. Trademark Electronic Search System or with the Office of the Secretary of State for the state in which your business is located. And, remember you’ll eventually want to build a website for your business. Because your domain name will most likely be the same as your business name, make sure your desired name is available by doing a domain name search .

Learn more:

Small business name ideas

Tech business name ideas

Craft business name ideas

Clothing brand name ideas

Consulting business names

Marketing business names

eCommerce business names

Beauty business name ideas

Fitness business name ideas

04. Write up a business plan

Another essential step when starting a business is to come up with an organized plan. At its core, a business plan is a document that serves as a roadmap for how to structure, operate and manage your new venture. It serves multiple purposes, like helping to attract investors, earning the trust of banks and outlining the cost of starting your business . You can use a business plan template to get your thoughts on paper. No matter how you get started, your business plan should include these components:

Executive summary : Give a high-level view of your business proposal or concept. If you were to make a professional elevator pitch (explaining your business in about a minute), you’d be reciting this bit aloud.

Company description: Include your company’s name, the names of your founders, your locations and your mission statement . Your mission statement should include core values, goals and your guarantee to provide clients with quality service or products. Take a look at these powerful mission statement examples to gather inspiration for your own.

Industry analysis: Provide research about your industry, such as small business trends and growth. When writing this section, think about how large your industry is and how it’s expected to evolve. You should also consider who your competitors are, and make note of their strengths and weaknesses.

Customer analysis: Describe your target audience and how you plan to reach them. Clearly state the needs of your customers and specify how your product or service will meet them.

Organization and management: Provide an overview of your business' organization and leadership, encompassing any founders, executives, board members, employees or important stakeholders. Creating a visual representation—like an organizational chart—can assist in presenting your company's structure effectively.

Service or product offerings: Create a list of your existing and upcoming products and services. If you're still developing your business idea, write a concept statement to outline your vision. Additionally, incorporate a proof of concept (POC) to showcase the viability of your idea.

Marketing and sales: Outline how your business concept actually translates into sales. Explain your marketing strategies and tactics, including plans for advertising, promotions, pricing, distribution channels and digital marketing efforts, along with planned consumer touchpoints (website, mobile app, retail store, etc.).

Financial projections: Estimate how much money will be coming in—or share any data around early sales. Investors want to see hard numbers to justify their risk. Include a sales forecast (based on industry and market trends), expenses , sunk costs , overhead costs , anticipated break-even point, expected accounts receivable, an estimated cash flow (derived from your sales forecast and expenses) and expected profits or losses.

Operational plan: Wrap up with an action plan. If you have a team, write down how each member will contribute to achieving your company’s SMART goals and objectives. Answer questions like “Is there a timeline?” and “What are the milestones you wish to accomplish?” For both, think in terms of years and quarters.

How choosing the right business model and establishing a clear business plan helped this online business succeed

Based in Oldbury, right in the heart of England, Andrew Darby, Faye Darby, Craig Pritchard and Terri Pritchard sold their first piece of jewelry in January 2019. Their story began with Wix eCommerce and a little inspiration from their spouses: “Our wives love jewelry, so we thought, ‘Let's do something mid-range and affordable. Nice pieces that last well.’"

For these new entrepreneurs, the key to starting their business off on the right foot was, in their own words, also their biggest challenge, “The biggest challenge was having a business model so to speak—or a blueprint and sticking to that blueprint. Eventually when we found our blueprint, we got ourselves out of trying to sell here, there, and everywhere.”

And for this business, it's worked. As of April 2022, Darby Pritchards had an annual returning customer rate of over 20%. Read more about how they started their business here .

Looking for a business plan for a specific business idea:

How to create a clothing line business plan

How to create a consultant business plan

How to create a photographer business plan

How to create a bookkeeping business plan

How to create a virtual assistant business plan

How to create a real estate business plan

How to create a restaurant business plan

How to create a plumbing business plan

05. Choose a legal structure for your business

While there are different flavors of legal structures, choosing which one will best serve your needs is based on multiple factors, such as how much personal liability you want to have, taxes and business registration requirements. For example, a sole proprietorship is the easiest to file, but has the most personal liability. LLCs relieve you of many personal liabilities, but can come with hefty tax payments.

A great place to start is by reviewing your options via the U.S. Small Business Administration’s business structure breakdown .

The most common types of businesses or business entities in the U.S. include:

Sole proprietorship : This refers to a business owned by one individual who assumes all of its legal responsibility. Profits and losses from the business are reported on the owner's personal income tax return, and the owner is personally liable for any debts or legal issues that may arise, which could potentially put personal assets at risk.

Partnership : In this arrangement, two or more individuals or entities share ownership, responsibilities and profits. The partnership itself does not pay income tax; instead, the profits and losses "pass through" to the partners, who report them on their individual tax returns. Each partner is personally responsible for the debts and obligations of the partnership, which could potentially expose personal assets to business-related risks.

Corporations : This is a legal entity separate from its owners (shareholders) that can conduct business and incur liabilities in its own name. Corporations are subject to corporate income tax on profits, and its shareholders are generally not personally liable for the company's debts and legal obligations. If a corporation distributes dividends to its shareholders, they must pay personal income tax on these amounts. There are different types of corporations with varying legal implications, most notably C-corps and S-corps.

Limited Liability Company (LLC) : LLCs provide the limited liability protection of a corporation while allowing for the flexibility of a partnership. In terms of taxes, an LLC can choose to be taxed as a pass-through entity, where the profits and losses "pass through" to the owners' individual tax returns, or it can elect to be taxed as a corporation.

How do you know which one is right for you? We consulted with Shylene D’Addario, VP, associate general counsel with LegalZoom. Shylene offered the following insight:

"Sole proprietorships, partnerships, corporations and LLCs are the most popular kinds of business structures, according to the IRS. But what type is best for you and why?

A sole proprietorship is best suited to a business owned by an individual or couple that doesn’t have employees or significant contracts with landlords, suppliers or subcontractors.

A business with two or more owners that hasn’t established an entity is treated as a general partnership. General partners typically share the management of the business and its profits and losses but don’t have any protection against liability for their partners’ negligence, misconduct or internal disputes.

Limited Liability Companies (LLCs) provide their owners with protection against liability for company obligations. If your LLC can’t pay its debts or is unable to meet its obligations, only the business assets—and not personal assets—are at risk in a lawsuit. This flexibility and limited liability make LLCs a popular choice for small businesses of all types.

Corporations offer their owners (called 'shareholders') the same liability protection as LLCs. Corporations tend to have somewhat more complex recordkeeping and reporting requirements than LLCs, depending on the state in which you incorporate.

If you have additional questions about what kind of entity may be right for your needs, you can learn more on our website or LegalZoom can connect you with a business lawyer who can help advise you in this process."

Start an LLC with LegalZoom.

Do your research, and compare and contrast the advantages and disadvantages of the different business structures to find the right fit for you. A business lawyer can help advise you in this process, and the IRS’ guide to business structures can assist in evaluating tax implications.

What are the differences between starting a small business and an enterprise?

Starting an enterprise and starting a small business share some similarities but they differ greatly in scale, scope and goals.

Small businesses are typically, as the name suggests, small in scale. They often serve a local or niche market and have a limited number of employees. Enterprises are generally larger in scale, often with a broader geographic reach. They may have multiple locations and serve a larger customer base. Think a small, independent toy shop in a town versus a huge brand like Toys R us.

Small businesses are often owner-operated, where the owner is actively involved in day-to-day operations. Enterprises usually have a more complex ownership structure. They generally have multiple owners, shareholders and a board of directors. The owner's involvement in day-to-day operations can be limited, especially in larger enterprises.

Small businesses tend to offer a narrow range of products or services tailored to a specific customer base. They might focus on providing personalized, local solutions. Enterprises typically have a broader scope, offering a wide range of products or services. They often aim to capture a larger share of the market or diversify their offerings.

While small businesses can grow over time, they might not have aspirations for rapid or significant expansion. The primary goal may be to maintain a steady income or lifestyle. The primary goal of an enterprise is often rapid growth and scaling. They aim to expand their operations, market presence, and profitability.

06. Secure business capital and funding

The most common cause of startup failure is lack of financing (47%), according to a recent survey. Second to that is running out of cash (44%). Clearly, it’s never too early to start thinking about finances. You’ll need both sufficient capital and reliable cash flow to get your business off the ground.

Business funding can take many forms. From applying for grants and loans to reaching out to an angel investor or setting up a fundraising campaign, there are many different strategies here. Here are a few good ways to obtain capital:

Bootstrapping : This involves dipping into your own personal finances to fund your business. In some cases, the benefits of investing your own money may outweigh the challenges of having to depend on outsiders. This allows you to retain greater control over all aspects of your company, though you may face slower growth and potential personal risk.

Crowdfunding: This is a fast and easy way to share your ideas on a wide scale, get feedback and raise money at the same time. When choosing from one of the many crowdfunding sites available, consider the fees, terms and conditions of each, as well as the kind of audience they typically draw.

Small business grants: The biggest benefit of using grant money is that you won’t have to pay it back. A good place to begin looking for grants and eligibility is on the grants for community organizations page of the U.S. Small Business Administration website. Alternatively, you can check out private institutions that offer small business grants, including FedEx and the Second Service Foundation .

Credit cards: When used responsibly, credit cards can be a viable option for funding a new business. It’s advisable to open a business credit card just for this purpose; ideally one with a 0% introductory APR period and a rewards structure so you can earn cash back, credit statements or miles. This can also be a good way to build your business credit score, as long as you make on-time payments and keep a credit utilization of under 30% . You will need strong credit to obtain other types of financing.

Startup business loan : Small businesses can apply for loans from banks and other financial institutions through their offering of business banking services. First, you should know how much you need, and you should be able to demonstrate good reasons for it. Use the financial projections of your business plan to estimate an amount and determine the type of loan you need.

Business line of credit (LOC): This is a flexible loan that behaves similar to a credit card, letting you borrow and repay funds as needed. Business LOCs often have an annual income and time-in-business requirement, but new business owners may be able apply if they’re willing to put up collateral and have a good personal credit score ( over 670 ).

Angel investors: Often, angel investors are found through mutual contacts or even family members. That said, there are hundreds of other active high-net worth individuals who seed startups with their personal money, particularly in the early stages. You can check out Golden Seeds LLC (New York City) or Tech Coast Angels (Los Angeles) as just a few examples of angel investing firms who are involved in venture capital financing.

07. Register your business and make it official

Before you take your business out into the world, you’ll need to complete all the legal and formal paperwork. If you’re establishing a business in the U.S., your location and business structure will determine the steps you’ll need to take to register a business name .

Keep in mind that, according to the SBA , the benefits of registering your business include personal liability protection, legal and trademark protection, and tax benefits—all of which are crucial to the prosperity and expansion of any entrepreneurial operation .

Meanwhile, for those who are seeking to set up a business in the UK or EU , it's essential to familiarize yourself with the different requirements and rules for registering a business , relevant certifications and VAT.

How to start a business by state

How to start a business in Utah

How to start a business in Massachusetts

How to start a business in Oregon

How to start a business in Alabama

How to start a business in Missouri

How to start a business in Illinois

How to start a business in Maryland

How to start a business in Michigan

How to start a business in Connecticut

How to start a business in South Carolina

How to start a business in Tennessee

How to start a business in Minnesota

How to start a business in New York

How to start a business in Pennsylvania

How to start a business in Virginia

How to start a business in Indiana

How to start a business in Washington state

How these co-founders managed to register their business one step at a time

For Andrea Shubert, Co-founder of Strathcona Spirits when it came to registering their new business they found the following crucial:

"Don’t start with a 'no.' We didn’t think the distillery was going to happen because of all the red tape involved, but we kept applying for permits to do this or that. When they said yes, we thought: great, let’s move on to the next thing. The idea that everything is permitted is the best place to start from and just go from there.

And when you get a 'no,' which we definitely have a few times over the last five years, we typically dust ourselves off and continue on until we find our 'yes.'"

08. Apply for tax IDs, licenses and permits

As a registered U.S. business, you’re going to need to obtain your federal and state tax ID numbers , known as your employer identification number (EIN). This is how your business is recognized by the government when it comes to paying taxes on both the state and federal levels. Furthermore, you’ll need a tax ID number to hire employees, open a bank account and apply for relevant business licenses and permits.

Check your local government site to see what types of licenses and permits you might need to apply for. If your company’s activities are regulated by a federal agency, you’ll need a license (selling alcoholic beverages or broadcasting on public radio are two examples). You can review the SBA’s list of business requirements for federal licenses and permits for more information.

Applying for an EIN is free and you can do so online with the IRS’ EIN Assistant tool . That said, tax requirements vary by state. Visit your state’s website to check whether you need to get a state tax ID number to remain compliant. You'll also need to understand which IRS forms are relevant for your business, income statement , tax return process, income tax audit process and corporate tax payments, if any.

Taxes are a major responsibility for business owners, and that responsibility can vary significantly from business to business. According to Sabrina Papini, marketing director of eCommerce and marketplaces at Avalara , "A small business owner might be subjected to various types of taxes depending on their location, industry and business activities." Papini notes that in particular, business owners may be required to pay the following:

Sales tax: If your business sells goods or services to customers within a particular jurisdiction, you might need to collect and remit sales tax. The rate and regulations can vary based on the location and type of product or service sold.

State and local taxes: Depending on your business' location, there could be additional state and local taxes beyond sales tax. These could include business privilege taxes, property taxes, local business license fees and city-specific taxes.

Excise tax: Certain industries that deal with specific goods like alcohol, tobacco, fuel or other regulated products might be subject to excise taxes. These taxes are usually included in the product's price and are paid by the manufacturer, importer or distributor.

International taxes: The company could encounter various international taxes and fees if the business engages in international commerce. These may include value-added tax (VAT), goods and services tax (GST), customs duties or tariffs. If you're a U.S. business operating overseas, or a foreign business operating from the U.S., you should also check for any double taxation liabilities.

Tax considerations should be part of your operational plan from the beginning, Papini emphasizes. "[Using] automated tools, staying informed about tax changes and seeking professional guidance when necessary are critical strategies for managing tax and staying compliant with regulations . These steps will not only help protect your business from legal issues but also contribute to its growth and success."

09. Apply for business insurance

As a new small business owner, obtaining insurance is crucial to protect your venture from unforeseen risks and potential financial liabilities. Business insurance provides a safety net that can shield your assets and help your business stay afloat in case of accidents, lawsuits or other unexpected events.

When applying for insurance, you’ll want to first assess the nature of your business and identify the specific risks it may face. This includes any potential hazards, liabilities related to your products or services, and any potential lawsuits that might arise. Next, consider the coverage types that align with your business needs, such as general liability, professional liability, casualty or property insurance, etc.

A knowledgeable insurance broker can help you navigate the complexities of insurance policies and find the best rates and coverage options that fit your unique circumstances. Some types of insurance you might need to consider include:

Workers' compensation insurance: Mandatory in most states if you have employees, this insurance covers medical expenses and lost wages for employees who suffer work-related injuries or illnesses.

General liability insurance: This provides coverage for third-party bodily injury, property damage and related legal expenses resulting from accidents on your business premises or due to your products or services.

Professional liability insurance: Also known as “errors and omissions insurance,” this policy protects against claims of professional negligence, errors or omissions that may arise from providing professional services or advice.

Property insurance: This policy covers physical assets of the business, such as buildings, equipment, inventory and furniture against damage or loss from events like fire, theft or natural disasters.

Product liability insurance: This type of policy offers coverage for claims arising from injuries or property damage caused by a defective product sold by your business.

Business interruption insurance: If your business operations are interrupted due to a covered event, such as a fire or natural disaster, this will provide compensation for lost income and ongoing expenses.

Employment practices liability insurance (EPLI): An EPLI policy provides coverage for claims related to employment practices issues, such as wrongful termination, discrimination or harassment.

10. Organize your finances

Keeping a business running smoothly demands organized, detailed financials. As you put these systems in place, you’ll want to open a business bank account and consider how you’ll handle your business accounting.

Set up a business bank account

New small businesses should set up a business bank account for several reasons. First and foremost, separating your business finances from your personal finances is crucial for maintaining accurate and organized records. A dedicated business bank account enables you to track income, expenses and profits effectively, simplifying tax preparation and financial reporting.

Additionally, having a business bank account is usually required if you want a business loan or line of credit. It builds credibility with customers, peers and potential investors, as it demonstrates a professional approach to how you operate.

To open a business bank account, you’ll typically need to provide certain documents, including your business registration paperwork, employer identification number (EIN) or Social Security number (SSN). When setting up a business bank account, you’ll want to ask questions to make sure the bank can adequately handle your business needs. Make sure you ask about account fees, transaction limits, access to credit options and integration with financial accounting software to start.

Set up an accounting system

Having a meticulous bookkeeping system in place will help set your business up for success, especially when it comes to tracking expenses, paying taxes, managing invoices or handling payroll. There are a myriad of accounting apps and software options that can help you stay organized in this area, or you can hire a certified public accountant (CPA) to manage this for you.

With Wix, you can keep your books right from within the platform, eliminating the need for additional software and streamlining your workflow. You can manage customer invoices or product inventory directly from your website dashboard, or you can employ a number of accounting and payroll app integrations, such as QuickBooks and EasyTeam .

To fine tune your process, turn to this guide on small business accounting , which covers everything from creating financial statements to planning cash flow statements to managing balance sheets and more.

11. Brand your business

Building a brand is a vital part of understanding how to start a small business and shape a corporate identity . In a nutshell, branding is about creating a consistent voice, set of values and visual identity for your company. This can include everything from logo and brand colors to your company ethos, story and personality.

Brand visuals

When building your brand visuals, there are several key elements and assets you need to create to establish a cohesive visual identity:

Logo: A well-designed logo is the cornerstone of your brand visuals. It should be versatile, memorable and easily recognizable. You can get a professional design in minutes with Wix’s free logo maker .

Color palette: Choose a set of primary and secondary colors that reflect your brand's personality and evoke the desired emotions.

Typography: Select fonts that align with your brand's tone and are easy to read across different mediums.

Imagery: Decide on the type of images or illustrations that best represent your brand. This could include photography, illustrations or graphics.

Iconography: Create a set of custom icons or symbols that can be used consistently throughout your branding materials.

Website design: Ensure that your brand visuals and colors are integrated into your site design, including buttons, banners and overall layout.

Print materials: Consider how your brand visuals will translate to print materials like business cards, brochures and packaging. Not sure how to design a business card ? The Wix Business Card Maker can help you create a professional design in just six steps.

Email: Creating a business email takes just a handful of steps, and you can get a custom business email with Wix . Develop branded templates to maintain consistency in your online communications.

Brand story

According to Sitecore’s 2022 Brand Authenticity report, 70% of consumers want brands to connect with them on a more personal level. This is where your brand story comes into play.

Building a brand story is all about creating a compelling and authentic narrative that resonates with your target audience. Yaya Aaronsohn, head of brand maker at Wix, explains further. "At its core, branding hinges on trust—think of it as a relationship between two individuals: the customer and the brand, which represents the business. Within this relationship, authenticity plays a critical role. It builds trust and creates emotional bonds. It fosters consistency, engagement and reduces reputation risks."

A well-defined brand story can help you forge an emotional connection with customers, and should touch on your:

Origin story: Share the backstory of how and why your brand was created, including the challenges and inspirations that led to its inception.

Founder's journey: If applicable, humanize the brand by sharing the founder's personal journey and connection to the business.

Brand purpose: Clearly articulate the reason your brand exists, its core mission and the problem it aims to solve for its customers.

Brand values: Identify the guiding principles and values that drive your brand's decision-making and actions.

Evolution: Address how your brand has evolved over time and demonstrate your commitment to continuous improvement.

Brand voice

Brand voice establishes a consistent tone that reflects your personality and communication style. It further helps customers relate to the face behind the brand, which can translate directly to sales.

Your brand voice should remain consistent across all channels to reinforce your identity. Some key elements to include are:

Persona: Identify how you want to be perceived by your target audience and craft a tone that supports that identity.

Language: Use language that aligns with your chosen persona, such as authoritative, knowledgeable, down to earth or humorous.

Communication strategy: Set clear communication standards for how you’ll respond to customer comments, reviews, emails or phone calls.

12. Create a professional business website

Building a strong website and setting goals for your website is an absolute must when starting a business. For most prospective customers, investors and partners, your website will be their introduction to your business. It's a vital opportunity for you to create a positive first impression of your brand.

Expert advice from Amanda Buhse, Owner and Chief Creative Officer of Coal and Canary

"Something that I always heard growing up was that you could be the smallest fish in the sea, but if you have a professional website and branding, people will take you seriously. When I sent my website to potential retailers early on, we were making seven candles at a time out of my small kitchen. I think it goes to show that when you have a professional brand, the goals and dreams that you have are limitless." (Coal and Canary now produces more than 1,0000 hand-poured candles, a day from their 10,000 square foot warehouse.)

Learning how to make a business website is simple and doable for people of all skill levels. Follow the steps outlined below to get your online presence off the ground.

Ready to launch? Build a beautiful business website or eCommerce website today.

Find a business website template

Website builders make it easy to create a professional, well-designed website with a few clicks of the mouse. Wix offers more than 800 business templates , including more than 500 online store templates , encompassing everything from finance and fashion to crafts and consulting (and beyond).

To begin, simply choose a template and customize it to meet your needs. Alternatively, you can utilize Wix’s AI website builder tool, which translates information about your design and layout preferences into a professional website tailor-made to your needs—all in a matter of minutes.

If you need more inspiration, check out the best business websites of the past year.

Customize your tools and features

With the foundation of your website up and running, it’s time to fine-tune which tools and integrations you’ll use to help run your business.

Wix offers business owners a full assortment of native software solutions and built-in features that transform your site dashboard into a one-stop-shop for day-to-day operations. You can handle transactions with Wix Payments or Wix Point of Sale (POS) ; manage incoming payments with Wix Invoices ; schedule classes, workshops and appointments with Wix Bookings ; and even sell tickets with Wix Events & Tickets .

The Wix App Market offers hundreds of other third-party integrations that can help you manage payroll, expense tracking and more.

Choose a web host and domain name

After you’ve customized your template, you’re ready to move on to the next step: flipping the switch so that your site is visible to the public. This is a two-fold process.

First, you’ll need to pick a web hosting provider. Basically, this is just a tool that stores your website’s files so that they’re viewable online. Wix is the leading web hosting platform for small businesses , and it offers free website hosting that’s protected and reliable—complete with 24/7 security monitoring and integrated SSL certificates to keep your users safe.

Once you’ve selected a web host, you’ll need to connect your registered domain name to a hosting server. It will take a matter of minutes, but rest assured that when you purchase your website domain with Wix, you’ll also gain access to domain security and full customer support.

Optimize your business website for SEO

When it comes to starting a business online, it’s essential to have some basic knowledge of search engine optimization (SEO). SEO is the process of optimizing web content to improve your site’s ranking for searches of specific keywords. Rebecca Tomasis, SEO expert for Wix Blogs, explains further. "The higher you rank in search, and the more keywords you rank for—the greater your visibility, traffic and potential for conversions or sales."

For example, if you sell organic baby items, you want to integrate exact phrases, like “eco baby products” and “natural baby toys,” into your site content. This improves your chances of showing up in search results when people type those phrases into the search bar.

You can use keyword research tools such as Google Keyword Planner, Ahrefs or Semrush (which has native integration with Wix ) to find terms to incorporate into your web content. You can also use the Wix SEO Hub as a resource for all things related to learning SEO.

Your overall SEO strategy should include the following:

Technical SEO: "Technical [SEO] involves elements such as your site speed, core web vitals, the site hierarchy and structure and navigation," Tomasis details. In other words, your website should, on a technical level, be responsive, quick to load (including on mobile) and easy for search engines to crawl. You should avoid things like dead links, duplicate content and large, slow-loading media files that can impact the user experience.

On-page optimization: Optimize your website's individual pages for the targeted keywords you’ve identified. Place the primary keyword in the page title, meta description, headings and content naturally.

High-quality content: Create high-quality, informative and engaging content that addresses the needs of your target audience. If you have a blog, well-written articles attract visitors and encourage them to spend more time on your site, signaling search engines about its relevance. "Make sure your content is helpful and answers the intent behind the search term as directly and as clearly as possible," says Tomasis. "Everything about the article—its structure, its data, its headings—should be optimized to meet the intent of the user searching."

Mobile-friendly design: Ensure your website is responsive and mobile-friendly. With the increasing number of mobile users, mobile optimization is crucial for SEO and user experience.

Local SEO: If your business serves a local audience, optimize for local SEO. Claim and optimize your Google My Business listing, ensure consistent NAP (name, address, phone) information across the web and encourage customer reviews.

13. Market and promote your business

Once you’ve launched your business and published your website, you can start building a small business marketing strategy that fuels business growth . A solid marketing strategy is essential for bringing in customers and taking your business to the next level. As Erin Shea, Senior Director of North America Marketing for VistaPrint shares, "Customers are the backbone of any successful small business and effective marketing is one of the best ways to build and sustain your community". According to Erin,

“Whether you’re engaging customers online or offline—remember that consistency is worth its weight in gold. A cohesive look to your marketing inspires confidence in your professionalism, builds credibility and strengthens customer rapport.”

Check out more of VistaPrint's 2024 marketing trends to help with your new business efforts.

Here are some of the most common marketing strategies to consider:

Paid advertising: By leveraging targeted advertisements, small businesses can reach a vast audience of potential customers who are actively searching for products or services related to their industry. Google Ads are particularly popular, letting businesses bid on relevant keywords, ensuring their ads appear prominently in search engine results. Wix users can manage Google Ad campaigns from their site dashboard, leaving one less external platform to worry about.

Social media marketing: Marketing on social media brings you massive exposure from diverse groups of people. Pick a platform that your target audience uses and maintain an active presence there. You can also implement paid social media marketing; for example, Wix users can boost sales with fully integrated Facebook and Instagram ads directly from their website builder.

Email marketing: A highly effective tactic, email marketing can promote your brand and build engagement . Using this method, you can reach customers directly, build a loyalty program and customize messages based on their individual interests. Wix users have access to a free email marketing tool with customizable templates, simple editing interface and advanced analytics.

Content marketing: This involves crafting and sharing valuable and relevant content in order to draw in your target audience. It can be done in a variety of ways, including publishing a blog, creating a podcast or making a YouTube channel. Use any of these outlets to share business updates, distribute relevant industry related news and build connections with potential customers.

Word of mouth: Positive word of mouth can give your brand's reputation and credibility a boost, increasing customer loyalty and customer acquisition. It’s a cost-effective strategy that can create a ripple effect, reaching a broader audience and generating organic growth for businesses.

Bear in mind that finding the right marketing strategy may take some time, experimentation and patience. But, Erin notes, consistency is key: "Whether you’re engaging customers online or offline, remember that consistency is worth its weight in gold. Even if you’re just starting out, try experimenting with different marketing tactics to see what works. As your sales grow, direct a greater portion of your revenue for your marketing budget and keep building.”

14. Build a team

As your business grows, it may be difficult for you to play multiple roles—which is where hiring employees and delegating tasks comes in. Even if you decide not to hire in-house staff, you may find yourself needing extra assistance from freelancers or independent contractors.

Read also: Human resources guide

When you begin the hiring process, factor in your budget, your needs and the company culture you want to portray. Creating a well-defined vision statement will help you find the right people to satisfy all of these requirements.

There are many effective ways to source talent for your team. A few ideas to get you started:

Online job platforms: Websites like Indeed, LinkedIn and Glassdoor offer job posting services where you can find potential team members.

Local job boards: Many communities have local job boards or websites where businesses can post job openings to attract candidates from the area.

College career centers: Contact career centers at local colleges and universities to connect with talented students or recent graduates seeking employment opportunities.

Networking events: Attend industry-specific business networking events or job fairs to meet potential candidates face-to-face and discuss job opportunities.

Social media: Utilize social media channels like Facebook, X (formerly Twitter) and Instagram to reach out to a broader audience and attract job seekers.

Freelance platforms: Websites like Upwork, Freelancer and Fiverr offer access to freelancers who can work on specific projects or provide specialized skills.

Industry-specific forums or groups: Join online forums or social media groups dedicated to a particular industry to discover talented professionals interested in relevant job opportunities.

How to start a business FAQ

How do you start a business as a beginner.

To start a business as a beginner, follow these essential 14 steps:

How much money do you usually need to start a business?

How do you get money to start a business, do you need a business degree to start a business, what do you need to start a business, can you start a business with no money, how to start a business online, how to start a business as a teenager, how to start a business as a student.

LegalZoom is a partner of Wix.

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How to Start a Business

9 Min Read | May 17, 2023

Doing what you love, on your own terms, while making your own income and setting your own hours . . . yep, the idea of starting your own small business sounds pretty great. Instead of job searching, you can make the most of your talents, passion and mission right away by offering people services and products through your business.

But when you start thinking about all the nitty-gritty details, your dream of starting a business can quickly feel overwhelming.

That’s okay! Take a deep breath. People start successful businesses  all the time . And if you’re willing to put in the work, you’ll be next. These six steps will show you how to take your career into your own hands by starting your own small business.

How to Start a Business in 6 Steps 

We’re going to look at six steps to start a business:

1. Determine your why . 

2. Create a business plan. 

3. Make it official.

4. plan ahead for taxes., 5. develop your brand identity and marketing plan. .

6. Remember that starting a business takes time.

1. Determine your why. 

Before we get tactical about starting a business, the first question you need to answer is,  Why am I doing this?  Think of your why  as the engine that’ll keep your small business moving forward on days when it gets hard.

Trust me, it  will  get hard. Data from the Bureau of Labor Statistics shows that about 50% of small businesses fail by their fifth year. 1  Yeah—kind of depressing. But on the other hand, that means 50% of small businesses are still successful by their fifth year.

So, what separates the owners who make it from the owners who don’t? Knowing their  why .

Bottom line: Running your own small business is a roller-coaster ride. You need to love what you’re doing (and  truly  believe in it) if you’re going to survive the ups and downs.

2. Create a business plan.

Once you have your  why , it’s time to start planning. Don’t worry—you can start small by answering these questions:

What product or service will you offer? 

As you’re creating your product or service, ask yourself:  What problem am I solving?  Successful businesses solve specific problems. Are you starting a meal prep service to help busy working professionals? Or making handcrafted baby blankets for people looking for a memorable gift? If you want to make great products and services that sell, you have to focus on making your customers’ lives better. 

What schedule will you work? 

A perk of being a business owner is having a flexible schedule, but you also need to be realistic about what’s best for your business. For example, if you’re opening a bagel shop, you probably won’t be very successful if you sleep until noon and open up in the evening. But if you’re working remotely selling handmade goods in an online Etsy shop, then go ahead and hit the snooze button. 

What’s your business budget? 

Creating a business budget  will help you avoid major financial mistakes and give you peace of mind. Chances are your business won’t make money right out of the gate, so the last thing you want is to dig yourself into a financial hole spending money you don’t have. 

How much will you charge? 

Setting the right price is critical to your overall success. Do some market research to set prices that are reasonable for your customers and still profitable for you. 

What will your policies be? 

You need policies for both standard and unexpected events—like shipping, returns and cancellations. Set these policies before launch day so you can protect yourself and your business. And make sure to communicate those policies to your customers in clear, straightforward language (whether that’s in person, on your website or through email).

Don’t beat around the bush when you’re ready to launch your business. It’s time to make this thing official! Here’s what you’ll need to do:

Get a business license.

Consider a business license your permission to “pass go.” A business license costs around $15, depending on where you live—and it makes your business official. A quick Google search for your state’s licensing information will show you how to register your business.

Choose your business entity.

Choosing your business entity is just deciding the type of business you’ll run. Here are your options:

• Sole Proprietorship:  This is a small business run by one person, and it’s simple and inexpensive to set up. You report your business financial records on your personal tax return. The downside is you  are personally liable if the business is sued. I recommend this option if your business is simple and low risk, like freelance writing or design.
• Partnership:  This is a business you start with someone else or a group of other people. As a general rule, I don’t recommend partnerships. There’s too much risk involved when your business is built on relationships with other people. 
• Limited Liability Company (LLC):  An LLC is a business that’s legally separate from you. While an LLC isn’t necessary for most small businesses, you should consider one if you have a high-liability company (like teaching horseback riding) or a lot of assets to protect.
• Corporation and S-Corporation: These are more sophisticated business structures for more established companies. If you’re planning to scale significantly,  have a conversation with a tax professional  about the right time to create a corporation or s-corporation. 

Open a business checking account.

Separate your personal and business checking accounts as soon as possible. You’ll spare yourself stress when it comes to accounting and taxes. You can list a business checking account under your name and Social Security number. For example, the account could be named: Jane Doe, DBA Jane Doe Dog Walking (DBA stands for Doing Business As). All cash flow for your business—in and out—should happen through this account.

Get start-up money.

When it comes to start-up money, here’s the most important thing you need to know: Don’t go into debt to start your business. It won’t end well! You might need to take on some extra work in the early days of your business before you launch if it helps you avoid debt. Pay with cash as you go and grow slowly. The risk of debt isn’t worth it.

You probably thought running a business sounded fun—until you realized it would actually run you. Discover the EntreLeadership System—the small-business road map that takes the guesswork out of growth.

And while we’re on the subject of money . . .

I know tax talk can bore some people to sleep, but when you’re learning how to start a small business, understanding your  tax requirements is super important, so don’t skip over it.

Just like employees, all businesses need to file annual tax returns. And as a small-business owner, you’re responsible for paying income taxes (at your own personal income tax rate) and the  self-employment tax  (a 15.3% tax that covers your share of Medicare and social security taxes). 2

Here’s where it gets a little tricky: Legally, if you expect to owe $1,000 or more in taxes in a year, you’re supposed to file and pay your taxes  throughout  the year. These are called  quarterly taxes  (or estimated taxes). I recommend setting aside 25–30% of your income from each paycheck so you won’t be blindsided by a huge tax bill when it’s time to pay up. (If you’re late on a payment, you’ll be hit with penalties each month that could go as high as 25% of your unpaid taxes. 3 Yikes.)

So, if you bring home $2,000 in net profit from your business (after expenses), you should set aside $500 to $600 of that money in a savings account created specifically to pay your taxes. That should take care of most—if not all—of your tax bill!

Another thing to note: If your small business is going to have any employees, you’re responsible for payroll taxes (aka employment taxes) on your employees’ wages.

As a general rule of thumb, be smart about what you’re doing with your money—and  don’t  try to outsmart Uncle Sam. Everything you do now can (and probably will) affect you later. Mistakes could cost you, so get yourself a  tax professional you can trust.

After you figure out your finances, it’s time to shout about your business from the mountaintops. And how do you do that? You spend time branding and marketing your business.

Work on your brand identity.

Your brand is your business’s personality. As you  develop your brand , think about the experience you want your customers to have when they interact with your business. What do you want your business to look like, feel like and sound like? How do you want people to describe your brand?­­­­

Everything—the colors on your website, the content, the design of your products and services—should reflect a consistent brand experience for your customers.

Create a marketing plan.

Marketing is simply a conversation you have with potential customers. It’s getting to know them, telling your story, and sharing what you have to offer. Here are a few basic marketing assets to create:   

• Social media accounts
• In-person events and promotions
• Free content to promote your business

Marketing doesn’t have to be expensive —it just takes intentionality and consistency. Keep in mind that people buy from people they know, like and trust. Marketing is your opportunity to get people to know, like and trust you.

6. Remember that starting a business takes time. 

Starting a business isn’t easy, and it’s hard to keep it up and running while you’re in the trenches. But here’s the thing: You don’t have to be on this journey alone. With the right training, planning and support, you can create a successful business.

For more coaching on how to run your own small business or find your career sweet spot, tune in to The Ken Coleman Show . You’ll learn practical advice that will help you discover the role you were born to play—and map out a plan to get you there!

Did you find this article helpful? Share it!

About the author

Ken Coleman

Ken Coleman is the author of the national bestselling book From Paycheck to Purpose and the #1 national bestseller The Proximity Principle. He hosts The Ken Coleman Show, a caller-driven show that helps listeners find the work they’re wired to do. Ken also co-hosts The Ramsey Show, the second-largest talk radio show in America, and makes regular appearances on Fox News and Fox Business. Through his speaking, broadcasting and syndicated columns, Ken gives people expert advice, providing strategic steps to get clear on their unique purpose and grow professionally. Learn More.

A Guide to Small Business Taxes

You know who likes paying taxes? Nobody. But we have to do it, so it's good to know what the small business tax rates are for 2020—if for no other reason than to keep the IRS off your back.

What Is the Self-Employment Tax and How Do You Calculate It?

If you’re self-employed, the IRS has a little surprise for you called the self-employment tax. It’s a 15.3% tax made up of 12.4% for Social Security and 2.9% for Medicare.

24 of My Favorite Sample Business Plans & Examples For Your Inspiration

Published: February 06, 2024

I believe that reading sample business plans is essential when writing your own.

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As you explore business plan examples from real companies and brands, it’s easier for you to learn how to write a good one.

But what does a good business plan look like? And how do you write one that’s both viable and convincing. I’ll walk you through the ideal business plan format along with some examples to help you get started.

Table of Contents

Business Plan Format

Business plan types, sample business plan templates, top business plan examples.

Ask any successful sports coach how they win so many games, and they’ll tell you they have a unique plan for every single game. To me, the same logic applies to business.

If you want to build a thriving company that can pull ahead of the competition, you need to prepare for battle before breaking into a market.

Business plans guide you along the rocky journey of growing a company. And if your business plan is compelling enough, it can also convince investors to give you funding.

With so much at stake, I’m sure you’re wondering where to begin.

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Fill out the form to get your free template.

First, you’ll want to nail down your formatting. Most business plans include the following sections.

1. Executive Summary

I’d say the executive summary is the most important section of the entire business plan. 

Why? Essentially, it's the overview or introduction, written in a way to grab readers' attention and guide them through the rest of the business plan. This is important, because a business plan can be dozens or hundreds of pages long.

There are two main elements I’d recommend including in your executive summary:

Company Description

This is the perfect space to highlight your company’s mission statement and goals, a brief overview of your history and leadership, and your top accomplishments as a business.

Tell potential investors who you are and why what you do matters. Naturally, they’re going to want to know who they’re getting into business with up front, and this is a great opportunity to showcase your impact.

Need some extra help firming up those business goals? Check out HubSpot Academy’s free course to help you set goals that matter — I’d highly recommend it

Products and Services

To piggyback off of the company description, be sure to incorporate an overview of your offerings. This doesn’t have to be extensive — just another chance to introduce your industry and overall purpose as a business.

In addition to the items above, I recommend including some information about your financial projections and competitive advantage here too.:

Keep in mind you'll cover many of these topics in more detail later on in the business plan. So, keep the executive summary clear and brief, and only include the most important takeaways.

Executive Summary Business Plan Examples

This example was created with HubSpot’s business plan template:

This executive summary is so good to me because it tells potential investors a short story while still covering all of the most important details.

Image Source

Tips for Writing Your Executive Summary

• Start with a strong introduction of your company, showcase your mission and impact, and outline the products and services you provide.
• Clearly define a problem, and explain how your product solves that problem, and show why the market needs your business.
• Be sure to highlight your value proposition, market opportunity, and growth potential.
• Keep it concise and support ideas with data.
• Customize your summary to your audience. For example, emphasize finances and return on investment for venture capitalists.

Check out our tips for writing an effective executive summary for more guidance.

2. Market Opportunity

This is where you'll detail the opportunity in the market.

The main question I’d ask myself here is this: Where is the gap in the current industry, and how will my product fill that gap?

More specifically, here’s what I’d include in this section:

• The size of the market
• Current or potential market share
• Trends in the industry and consumer behavior
• Where the gap is
• What caused the gap
• How you intend to fill it

To get a thorough understanding of the market opportunity, you'll want to conduct a TAM, SAM, and SOM analysis and perform market research on your industry.

You may also benefit from creating a SWOT analysis to get some of the insights for this section.

Market Opportunity Business Plan Example

I like this example because it uses critical data to underline the size of the potential market and what part of that market this service hopes to capture.

Tips for Writing Your Market Opportunity Section

• Focus on demand and potential for growth.
• Use market research, surveys, and industry trend data to support your market forecast and projections.
• Add a review of regulation shifts, tech advances, and consumer behavior changes.
• Refer to reliable sources.
• Showcase how your business can make the most of this opportunity.

3. Competitive Landscape

Since we’re already speaking of market share, you'll also need to create a section that shares details on who the top competitors are.

After all, your customers likely have more than one brand to choose from, and you'll want to understand exactly why they might choose one over another.

My favorite part of performing a competitive analysis is that it can help you uncover:

• Industry trends that other brands may not be utilizing
• Strengths in your competition that may be obstacles to handle
• Weaknesses in your competition that may help you develop selling points
• The unique proposition you bring to the market that may resonate with customers

Competitive Landscape Business Plan Example

I like how the competitive landscape section of this business plan below shows a clear outline of who the top competitors are.

It also highlights specific industry knowledge and the importance of location, which shows useful experience in this specific industry. 

This can help build trust in your ability to execute your business plan.

Tips for Writing Your Competitive Landscape

• Complete in-depth research, then emphasize your most important findings.
• Compare your unique selling proposition (USP) to your direct and indirect competitors.
• Show a clear and realistic plan for product and brand differentiation.
• Look for specific advantages and barriers in the competitive landscape. Then, highlight how that information could impact your business.
• Outline growth opportunities from a competitive perspective.
• Add customer feedback and insights to support your competitive analysis.

4. Target Audience

Use this section to describe who your customer segments are in detail. What is the demographic and psychographic information of your audience?

If your immediate answer is "everyone," you'll need to dig deeper. Here are some questions I’d ask myself here:

• What demographics will most likely need/buy your product or service?
• What are the psychographics of this audience? (Desires, triggering events, etc.)
• Why are your offerings valuable to them?

I’d also recommend building a buyer persona to get in the mindset of your ideal customers and be clear on why you're targeting them.

Target Audience Business Plan Example

I like the example below because it uses in-depth research to draw conclusions about audience priorities. It also analyzes how to create the right content for this audience.

Tips for Writing Your Target Audience Section

• Include details on the size and growth potential of your target audience.
• Figure out and refine the pain points for your target audience , then show why your product is a useful solution.
• Describe your targeted customer acquisition strategy in detail.
• Share anticipated challenges your business may face in acquiring customers and how you plan to address them.
• Add case studies, testimonials, and other data to support your target audience ideas.
• Remember to consider niche audiences and segments of your target audience in your business plan.

5. Marketing Strategy

Here, you'll discuss how you'll acquire new customers with your marketing strategy. I’d suggest including information:

• Your brand positioning vision and how you'll cultivate it
• The goal targets you aim to achieve
• The metrics you'll use to measure success
• The channels and distribution tactics you'll use

I think it’s helpful to have a marketing plan built out in advance to make this part of your business plan easier.

Marketing Strategy Business Plan Example

This business plan example includes the marketing strategy for the town of Gawler.

In my opinion, it really works because it offers a comprehensive picture of how they plan to use digital marketing to promote the community.

Tips for Writing Your Marketing Strategy

• Include a section about how you believe your brand vision will appeal to customers.
• Add the budget and resources you'll need to put your plan in place.
• Outline strategies for specific marketing segments.
• Connect strategies to earlier sections like target audience and competitive analysis.
• Review how your marketing strategy will scale with the growth of your business.
• Cover a range of channels and tactics to highlight your ability to adapt your plan in the face of change.

6. Key Features and Benefits

At some point in your business plan, you'll need to review the key features and benefits of your products and/or services.

Laying these out can give readers an idea of how you're positioning yourself in the market and the messaging you're likely to use. It can even help them gain better insight into your business model.

Key Features and Benefits Business Plan Example

In my opinion, the example below does a great job outlining products and services for this business, along with why these qualities will attract the audience.

Tips for Writing Your Key Features and Benefits

• Emphasize why and how your product or service offers value to customers.
• Use metrics and testimonials to support the ideas in this section.
• Talk about how your products and services have the potential to scale.
• Think about including a product roadmap.
• Focus on customer needs, and how the features and benefits you are sharing meet those needs.
• Offer proof of concept for your ideas, like case studies or pilot program feedback.
• Proofread this section carefully, and remove any jargon or complex language.

7. Pricing and Revenue

This is where you'll discuss your cost structure and various revenue streams. Your pricing strategy must be solid enough to turn a profit while staying competitive in the industry. 

For this reason, here’s what I’d might outline in this section:

• The specific pricing breakdowns per product or service
• Why your pricing is higher or lower than your competition's
• (If higher) Why customers would be willing to pay more
• (If lower) How you're able to offer your products or services at a lower cost
• When you expect to break even, what margins do you expect, etc?

Pricing and Revenue Business Plan Example

I like how this business plan example begins with an overview of the business revenue model, then shows proposed pricing for key products.

Tips for Writing Your Pricing and Revenue Section

• Get specific about your pricing strategy. Specifically, how you connect that strategy to customer needs and product value.
• If you are asking a premium price, share unique features or innovations that justify that price point.
• Show how you plan to communicate pricing to customers.
• Create an overview of every revenue stream for your business and how each stream adds to your business model as a whole.
• Share plans to develop new revenue streams in the future.
• Show how and whether pricing will vary by customer segment and how pricing aligns with marketing strategies.
• Restate your value proposition and explain how it aligns with your revenue model.

8. Financials

To me, this section is particularly informative for investors and leadership teams to figure out funding strategies, investment opportunities, and more.

 According to Forbes , you'll want to include three main things:

• Profit/Loss Statement - This answers the question of whether your business is currently profitable.
• Cash Flow Statement - This details exactly how much cash is incoming and outgoing to give insight into how much cash a business has on hand.
• Balance Sheet - This outlines assets, liabilities, and equity, which gives insight into how much a business is worth.

While some business plans might include more or less information, these are the key details I’d include in this section.

Financials Business Plan Example

This balance sheet is a great example of level of detail you’ll need to include in the financials section of your business plan.

Tips for Writing Your Financials Section

• Growth potential is important in this section too. Using your data, create a forecast of financial performance in the next three to five years.
• Include any data that supports your projections to assure investors of the credibility of your proposal.
• Add a break-even analysis to show that your business plan is financially practical. This information can also help you pivot quickly as your business grows.
• Consider adding a section that reviews potential risks and how sensitive your plan is to changes in the market.
• Triple-check all financial information in your plan for accuracy.
• Show how any proposed funding needs align with your plans for growth.

As you create your business plan, keep in mind that each of these sections will be formatted differently. Some may be in paragraph format, while others could be charts or graphs.

The formats above apply to most types of business plans. That said, the format and structure of your plan will vary by your goals for that plan. 

So, I’ve added a quick review of different business plan types. For a more detailed overview, check out this post .

1. Startups

Startup business plans are for proposing new business ideas.

If you’re planning to start a small business, preparing a business plan is crucial. The plan should include all the major factors of your business.

You can check out this guide for more detailed business plan inspiration .

2. Feasibility Studies

Feasibility business plans focus on that business's product or service. Feasibility plans are sometimes added to startup business plans. They can also be a new business plan for an already thriving organization.

3. Internal Use

You can use internal business plans to share goals, strategies, or performance updates with stakeholders. In my opinion, internal business plans are useful for alignment and building support for ambitious goals.

4. Strategic Initiatives

Another business plan that's often for sharing internally is a strategic business plan. This plan covers long-term business objectives that might not have been included in the startup business plan.

5. Business Acquisition or Repositioning

When a business is moving forward with an acquisition or repositioning, it may need extra structure and support. These types of business plans expand on a company's acquisition or repositioning strategy.

Growth sometimes just happens as a business continues operations. But more often, a business needs to create a structure with specific targets to meet set goals for expansion. This business plan type can help a business focus on short-term growth goals and align resources with those goals.

Now that you know what's included and how to format a business plan, let's review some of my favorite templates.

1. HubSpot's One-Page Business Plan

Download a free, editable one-page business plan template..

The business plan linked above was created here at HubSpot and is perfect for businesses of any size — no matter how many strategies we still have to develop.

Fields such as Company Description, Required Funding, and Implementation Timeline give this one-page business plan a framework for how to build your brand and what tasks to keep track of as you grow.

Then, as the business matures, you can expand on your original business plan with a new iteration of the above document.

Why I Like It

This one-page business plan is a fantastic choice for the new business owner who doesn’t have the time or resources to draft a full-blown business plan. It includes all the essential sections in an accessible, bullet-point-friendly format. That way, you can get the broad strokes down before honing in on the details.

2. HubSpot's Downloadable Business Plan Template

We also created a business plan template for entrepreneurs.

The template is designed as a guide and checklist for starting your own business. You’ll learn what to include in each section of your business plan and how to do it.

There’s also a list for you to check off when you finish each section of your business plan.

Strong game plans help coaches win games and help businesses rocket to the top of their industries. So if you dedicate the time and effort required to write a workable and convincing business plan, you’ll boost your chances of success and even dominance in your market.

This business plan kit is essential for the budding entrepreneur who needs a more extensive document to share with investors and other stakeholders.

It not only includes sections for your executive summary, product line, market analysis, marketing plan, and sales plan, but it also offers hands-on guidance for filling out those sections.

3. LiveFlow’s Financial Planning Template with built-in automation

This free template from LiveFlow aims to make it easy for businesses to create a financial plan and track their progress on a monthly basis.

The P&L Budget versus Actual format allows users to track their revenue, cost of sales, operating expenses, operating profit margin, net profit, and more.

The summary dashboard aggregates all of the data put into the financial plan sheet and will automatically update when changes are made.

Instead of wasting hours manually importing your data to your spreadsheet, LiveFlow can also help you to automatically connect your accounting and banking data directly to your spreadsheet, so your numbers are always up-to-date.

With the dashboard, you can view your runway, cash balance, burn rate, gross margins, and other metrics. Having a simple way to track everything in one place will make it easier to complete the financials section of your business plan.

This is a fantastic template to track performance and alignment internally and to create a dependable process for documenting financial information across the business. It’s highly versatile and beginner-friendly.

It’s especially useful if you don’t have an accountant on the team. (I always recommend you do, but for new businesses, having one might not be possible.)

4. ThoughtCo’s Sample Business Plan

One of the more financially oriented sample business plans in this list, BPlan’s free business plan template dedicates many of its pages to your business’s financial plan and financial statements.

After filling this business plan out, your company will truly understand its financial health and the steps you need to take to maintain or improve it.

I absolutely love this business plan template because of its ease-of-use and hands-on instructions (in addition to its finance-centric components). If you feel overwhelmed by the thought of writing an entire business plan, consider using this template to help you with the process.

6. Harvard Business Review’s "How to Write a Winning Business Plan"

Most sample business plans teach you what to include in your business plan, but this Harvard Business Review article will take your business plan to the next level — it teaches you the why and how behind writing a business plan.

With the guidance of Stanley Rich and Richard Gumpert, co-authors of " Business Plans That Win: Lessons From the MIT Enterprise Forum ", you'll learn how to write a convincing business plan that emphasizes the market demand for your product or service.

You’ll also learn the financial benefits investors can reap from putting money into your venture rather than trying to sell them on how great your product or service is.

This business plan guide focuses less on the individual parts of a business plan, and more on the overarching goal of writing one. For that reason, it’s one of my favorites to supplement any template you choose to use. Harvard Business Review’s guide is instrumental for both new and seasoned business owners.

7. HubSpot’s Complete Guide to Starting a Business

If you’re an entrepreneur, you know writing a business plan is one of the most challenging first steps to starting a business.

Fortunately, with HubSpot's comprehensive guide to starting a business, you'll learn how to map out all the details by understanding what to include in your business plan and why it’s important to include them. The guide also fleshes out an entire sample business plan for you.

If you need further guidance on starting a business, HubSpot's guide can teach you how to make your business legal, choose and register your business name, and fund your business. It will also give small business tax information and includes marketing, sales, and service tips.

This comprehensive guide will walk you through the process of starting a business, in addition to writing your business plan, with a high level of exactitude and detail. So if you’re in the midst of starting your business, this is an excellent guide for you.

It also offers other resources you might need, such as market analysis templates.

8. Panda Doc’s Free Business Plan Template

PandaDoc’s free business plan template is one of the more detailed and fleshed-out sample business plans on this list. It describes what you should include in each section, so you don't have to come up with everything from scratch.

Once you fill it out, you’ll fully understand your business’ nitty-gritty details and how all of its moving parts should work together to contribute to its success.

This template has two things I love: comprehensiveness and in-depth instructions. Plus, it’s synced with PandaDoc’s e-signature software so that you and other stakeholders can sign it with ease. For that reason, I especially love it for those starting a business with a partner or with a board of directors.

9. Small Business Administration Free Business Plan Template

The Small Business Administration (SBA) offers several free business plan templates that can be used to inspire your own plan.

Before you get started, you can decide what type of business plan you need — a traditional or lean start-up plan.

Then, you can review the format for both of those plans and view examples of what they might look like.

We love both of the SBA’s templates because of their versatility. You can choose between two options and use the existing content in the templates to flesh out your own plan. Plus, if needed, you can get a free business counselor to help you along the way.

I’ve compiled some completed business plan samples to help you get an idea of how to customize a plan for your business.

I chose different types of business plan ideas to expand your imagination. Some are extensive, while others are fairly simple.

Let’s take a look.

1. LiveFlow

One of the major business expenses is marketing. How you handle your marketing reflects your company’s revenue.

I included this business plan to show you how you can ensure your marketing team is aligned with your overall business plan to get results. The plan also shows you how to track even the smallest metrics of your campaigns, like ROI and payback periods instead of just focusing on big metrics like gross and revenue.

Fintech startup, LiveFlow, allows users to sync real-time data from its accounting services, payment platforms, and banks into custom reports. This eliminates the task of pulling reports together manually, saving teams time and helping automate workflows.

"Using this framework over a traditional marketing plan will help you set a profitable marketing strategy taking things like CAC, LTV, Payback period, and P&L into consideration," explains LiveFlow co-founder, Lasse Kalkar .

When it came to including marketing strategy in its business plan, LiveFlow created a separate marketing profit and loss statement (P&L) to track how well the company was doing with its marketing initiatives.

This is a great approach, allowing businesses to focus on where their marketing dollars are making the most impact. Having this information handy will enable you to build out your business plan’s marketing section with confidence. LiveFlow has shared the template here . You can test it for yourself.

2. Lula Body

Sometimes all you need is a solid mission statement and core values to guide you on how to go about everything. You do this by creating a business plan revolving around how to fulfill your statement best.

For example, Patagonia is an eco-friendly company, so their plan discusses how to make the best environmentally friendly products without causing harm.

A good mission statement  should not only resonate with consumers but should also serve as a core value compass for employees as well.

Patagonia has one of the most compelling mission statements I’ve seen:

"Together, let’s prioritise purpose over profit and protect this wondrous planet, our only home."

It reels you in from the start, and the environmentally friendly theme continues throughout the rest of the statement.

This mission goes on to explain that they are out to "Build the best product, cause no unnecessary harm, and use business to protect nature."

Their mission statement is compelling and detailed, with each section outlining how they will accomplish their goal.

4. Vesta Home Automation

This executive summary for a smart home device startup is part of a business plan created by students at Mount Royal University .

While it lacks some of the sleek visuals of the templates above, its executive summary does a great job of demonstrating how invested they are in the business.

Right away, they mention they’ve invested $200,000 into the company already, which shows investors they have skin in the game and aren’t just looking for someone else to foot the bill.

This is the kind of business plan you need when applying for business funds. It clearly illustrates the expected future of the company and how the business has been coming along over the years.

5. NALB Creative Center

This fictional business plan for an art supply store includes everything one might need in a business plan: an executive summary, a company summary, a list of services, a market analysis summary, and more.

One of its most notable sections is its market analysis summary, which includes an overview of the population growth in the business’ target geographical area, as well as a breakdown of the types of potential customers they expect to welcome at the store. 

This sort of granular insight is essential for understanding and communicating your business’s growth potential. Plus, it lays a strong foundation for creating relevant and useful buyer personas .

It’s essential to keep this information up-to-date as your market and target buyer changes. For that reason, you should carry out market research as often as possible to ensure that you’re targeting the correct audience and sharing accurate information with your investors.

Due to its comprehensiveness, it’s an excellent example to follow if you’re opening a brick-and-mortar store and need to get external funding to start your business .

6. Curriculum Companion Suites (CSS)

If you’re looking for a SaaS business plan example, look no further than this business plan for a fictional educational software company called Curriculum Companion Suites. 

Like the business plan for the NALB Creative Center, it includes plenty of information for prospective investors and other key stakeholders in the business.

One of the most notable features of this business plan is the executive summary, which includes an overview of the product, market, and mission.

The first two are essential for software companies because the product offering is so often at the forefront of the company’s strategy. Without that information being immediately available to investors and executives, then you risk writing an unfocused business plan.

It’s essential to front-load your company’s mission if it explains your "Why?" and this example does just that. In other words, why do you do what you do, and why should stakeholders care? This is an important section to include if you feel that your mission will drive interest in the business and its offerings.

7. Culina Sample Business Plan

Culina's sample business plan is an excellent example of how to lay out your business plan so that it flows naturally, engages readers, and provides the critical information investors and stakeholders need. 

You can use this template as a guide while you're gathering important information for your own business plan. You'll have a better understanding of the data and research you need to do since Culina’s plan outlines these details so flawlessly for inspiration.

8. Plum Sample Business Plan

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7 Funding Ideas to Help Start Your Business

I've had a lot of clients who are entrepreneurs. They come in excited about an idea they have for a small business and ask for advice on how to get funding to start it up. The first thing I do is tell them about my grandfather. That stops them for a minute, but it also ends up inspiring them. You see, my grandfather ran a successful small business. He was a gifted carpenter who went from teaching at a technical college to becoming the finest and most sought-after furniture maker in his city. I was proud of him for his unique skill, but also for the way he grew his business, making connections in the community and ultimately building wealth for his family. He opened doors for himself and for all of us.

I love that entrepreneurial spirit. And I recognize how important it is to our economy. Indeed,  small businesses generated 12.9 million net new jobs over the past 25 years, accounting for two out of every three jobs added to the economy, according to the Small Business Administration.

But as someone in the financial business, I also know it takes more than a good idea and a unique skill to get a small business off the ground. It takes research, planning—and yes, money—to get started.

So the second thing I may say to someone who wants to start their own business is: show me your plan. Have you researched your market? Do you know your competitors, both direct and indirect? What are the start-up costs? Will you need employees? How will you sustain your business if things get tough? Now let's say you've thought it through. You have the idea, the skill, and your plan of action. The next step is finding the cash.

Here are seven funding ideas to help start your business.

1. bootstrapping.

That means exactly what it sounds like—you fund it yourself. It turns out that over 70% of small business owners use personal savings to fund and grow their businesses, according to the U.S. Chamber of Commerce. If you've planned ahead and saved up some seed money, great. But if you're eyeing your 401(k) or other retirement fund as a source of cash, think very carefully—and consider this a last resort. An early withdrawal from a tax-deferred account before age 59½ means you'll pay a 10% penalty on top of ordinary income taxes. Plus, you could even put your retirement at risk. Make sure you understand the potential consequences.

2. Friends and family

This could be a great opportunity to involve your inner circle with your success, and they typically will be your biggest fans. In fact, 38% of startups relied on friends and family over the past five years, according to the U.S. Chamber of Commerce. But here again, a word of caution. Consider getting any financial agreements in writing. If it's a loan, spell out the terms (hopefully interest-free!) and how and when you'll pay it back. If it's an investment, consider making it clear there are no guarantees. You don't want money to tear apart your relationships.

3. SBA microloan

The U.S. Small Business Association offers a variety of loans, but most are geared toward more established small businesses. However, SBA microloans, loans of up to $50,000, could be an alternative to tapping into your IRA if you need a smaller amount for something like working capital, inventory, equipment, or a vehicle. These loans often support businesses operating in underserved communities, businesses of a certain size, or female-run businesses. SBA-backed loans offer a variety of benefits, including competitive terms and counseling and education. It's worth finding out if you qualify.

4. Business loan

An alternative to an SBA loan is a business loan from a bank. A bank loan will generally have more restrictions and will most likely require a personal guarantee. But if the terms are reasonable—and borrowing is part of your business plan—it could make sense.

5. Personal loan

If you have a strong personal credit history and low debt balances, you could be able to find a fixed-rate personal loan at a reasonable rate. But be sure to confirm you can use the loan for business. Also realize that if you miss payments or can't repay the loan, it will hurt your credit score.

6. Crowdfunding

Are you social media savvy? This could be a great way to get your idea out in the marketplace as well as get seed money. Crowdfunding platforms, like Kickstarter and GoFundMe, make it easy to launch your campaign and generate buzz about your business. But you can't just ask for the money; you may need to tell a compelling story. Plus, it could help if you can get your own network to share it far and wide. Crowdfunding typically doesn't need big donations—it needs a lot of donors!

7. Angel investor

This may well be every entrepreneur's dream, but the reality is that finding an angel investor could be unlikely as a startup. An established business may be more likely to attract funds from outside investors. Plus, having investors could mean giving up some control or ownership.

Follow your passion by being prepared.

For anyone who is talented, creative, and driven to make their small business work, I say go for it—but be prepared. Write down your business plan. Carefully consider how much funding you need and your best options for getting it. And be wary about borrowing more than you can pay back.

Last but not least, gather your own team of experts to help you. You may have the skill and the drive, but you may not have all the business expertise needed. Whether it's taxes, sales, marketing, or wherever you need help, consider finding someone who shares your passion but complements your skills. Sure, money is important to get your business off the ground. But, carefully thinking it through and having a support system could help you make it the success you envision.

Schwab has solutions for small businesses.

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The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

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Want to Be More Productive? Here's How Google Executives Structure Their Schedules These five tactics from inside Google will help you focus and protect your time.

By Jason Feifer May 16, 2024

When a Google executive is feeling unproductive, they have a secret weapon: They can call the company's in-house productivity expert for help.

Her name is Laura Mae Martin . She started in sales at Google, and was so efficient that she eventually moved into the office of the CEO, where she coaches senior executives on how to manage their time. She starts by asking executives identify their top three priorities — and then puts them to work.

"After I ask an executive I'm coaching what their top three priorities are," Martin writes in her new book, Uptime , "I pull out their printed calendar from the last few weeks. I give them a highlighter and ask them to circle every meeting, task, or individual work time that relates to those three priorities. It quickly starts to become clear whether or not time spent is lining up with priorities."

If your days often feel out of control, or if you're adding more items than you're checking off from your to-do list, you might want to run an exercise like this too.

And that's just the start.

I spoke to Martin for my podcast, Problem Solvers , where we discussed how to say identify your priorities, how to say no to things that don't match them, and how to create a "list funnel" to keep yourself on track.

You can listen to our conversation in the player above. Or read below, where I share five brief tips from her book Uptime that I found especially eye-opening.

1. How to clean up your to-do list

If your to-do list has gotten too large, Martin suggests creating a list with literally everything you believe you can or should be doing. Then, she writes:

I identify roughly a third of the things on the list that are lowest priority. Those are usually the things that have been in my brain to do for a while and keep getting carried over without getting done from list to list. Then for each of those bottom-third items I ask myself: What is the worst thing that would happen if I never do this? Is there any other way for this to get done without my doing it? Is there any way for me to half-do this and move on from it? These questions can get you thinking about how to delegate, how to streamline what you're working on, and how to cut corners where possible.

Those questions, she says, will help you decide what tasks are worth handing off to someone else, simplifying, or maybe even skipping entirely.

2. How to plan for urgent tasks

Here's a familiar problem: Your day is packed with wall-to-wall meetings, and then something urgent comes up. When are you supposed to do this urgent thing? You have two choices: You can either cancel one of your meetings, or work later into the night.

There's a better way: Put an "urgent time block" on your calendar every day. Martin explains how this works for Google Cloud CEO Thomas Kurian:

He sets it for the same time every day. This way, if urgent things come up, there is always time to fit them in without affecting the rest of his calendar. Also, his team knows that this block of time is the same every day so anyone who needs to urgently speak with him can plan their time accordingly. If nothing urgent comes up, this becomes his work time or a chance to check email. This is similar to office hours held by college professors. It's always available and always at the same time, but if no one comes to chat, it becomes work time.

Martin says that another Google executive does this — but with one notable difference. The exec doesn't tell her team when the urgent block is. That way, if nobody needs it, she can use that time for herself.

3. How to focus on bigger things

If you have something important to do, block time for it on your calendar. But sometimes, Martin writes, you should block an entire day for nothing in particular:

Don't underestimate the value of the occasional entirely unplanned day. If you have the ability to do a "no meeting" day on your schedule, take it! A day with no meetings or commitments at all is so different than a day with even one thirty-minute meeting at 2:00 p.m. For some reason, having even a single commitment feels more than thirty minutes' worth because your entire day still has to flow around it.

This, Martin writes, helps you feel "in total control of what you need to do and when you want to do it, and gets you back in touch with your natural productivity patterns."

4. How to tackle huge projects

Have a big project that can't be finished in one sitting? It's often hard to start projects like this, because they seem so daunting — and it's even harder to keep working on them day after day.

Try this, Martin writes: Stop in the middle.

When you are working on a larger, ongoing task that cannot be completed in one sitting, it usually feels right to find a natural stopping point—like the end of an email or the end of a project section. You step away at that point, and let it go until the next time you work on it, when you will start at the beginning of a new section. Ironically, that makes yet another starting point that your brain has to get over. It's as if you're starting a large task all over again. Alternatively, stopping in the middle of something makes it easier to slide back into what you were doing and start again because you already knew what you were about to do next.

Martin says she did this with her book. Instead of stopping a day's work at the end of a chapter, she'd stop in the middle of a chapter — which made it easier to pick up the next day. "If you're working on large multistep projects," she advises, "try to stop at a point when your brain already knows the next thing to do."

5. How to make your meetings more efficient

Meetings can drag on — but they don't have to! Martin suggests creating shorter meeting times, like 15-minute check-ins, which forces everyone to be more succinct and focused. "Scarcity breeds innovation," she writes.

She offers Google's "Lightening Talks" as an example:

One of my favorite activities that's common at Google is Lightning Talks , where presenters have one slide and three minutes to teach the audience something, get buy-in for their idea, practice a sales pitch, or give an update on a project. The presentations are automatically timed so that after three minutes, the next slide appears, and you're "kicked off" the stage. The audience is instructed to clap loudly when they see the next slide so presenters know it's time for them to go. It's amazing how much is communicated when the presenter knows ahead of time that they have only three minutes to make an impact. They "trim the fat" from their presentations; they make their one slide visually stimulating and compact, including only the most important elements. They have one chance to make an impact, and they make the most of it. Not to mention the audience is highly engaged because the information is succinct and they aren't being asked to listen to anything extraneous.

Now everyone's engaged, everyone's moving fast, and a lot is accomplished in a short amount of time — which you can't say for most meetings!

Entrepreneur Staff

Editor in Chief

Jason Feifer is the editor in chief of Entrepreneur magazine and host of the podcast  Problem Solvers . Outside of Entrepreneur , he is the author of the book Build For Tomorrow , which helps readers find new opportunities in times of change, and co-hosts the podcast Help Wanted , where he helps solve listeners' work problems. He also writes a newsletter  called One Thing Better, which each week gives you one better way to build a career or company you love.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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How to Start Last-Mile Delivery Business in 2024

Updated on May 15, 2024 by Alina Kostukova

The forecasts say that last-mile delivery market will reach $424,3 billion by 2030 . That counts for 41% of the total expenses in supply chain. That is no surprise as last-mile delivery is known to be one of the most expensive steps in supply chain!

But what about starting last-mile delivery business in those conditions? That kind of market growth definitely indicates potential for entrepreneurs wishing to start last mile company.

During the pandemic and till that day online shopping skyrocketed, AND more online shoppers = more deliveries!

Thus, if you are considering starting a last-mile delivery business, this article is for you!  

Keep reading and find useful information written in a step-by-step guidance format on how to start a last-mile delivery business in 2024. 

I will reveal challenges of last-mile delivery business, costs of starting last-mile delivery company/business, and more!

What is a last-mile business and how does last-mile delivery work?

Last-mile delivery is the last service step of the delivery process. Or you can say it is the final step of delivering goods to a to customer’s doorstep. If you are new to the concept of last mile delivery and need more information on what it is, I recommend reading this article .

Managing multiple deliveries, delivery times, drivers, vehicles, all of that can be rather complex, thus in 2024 many businesses take advantage of utilizing technology to improve customer satisfaction and business competitiveness.

Hope the introduction was clear and let’s move on to finding out what are the types of last-mile deliveries in general available currently and what are their differences.

Types of last-mile delivery businesses

Lets dive in details of the types of last-mile delivery businesses. Each type can be a good fit for specific industry you will specialise in and reflect to specific needs of your potential customers.

The most common types of services you could provide as last-mile delivery business:

• Traditional courier services . From point to point delivery of packages and/or documents.
• On-demand delivery services . Offers different flexible delivery options. Services could be provided through last-mile delivery apps or platforms that connect customers with delivery drivers for quick and convenient deliveries.
• Specialized delivery services. Special delivery types focused on specific industry desires and conditions. Example pharmaceutical goods, groceries, flowers, oversized items like furniture, or appliances. If you are interested in becoming specialized as a medical courier, you can read our article here .
• Same-day or instant delivery services. As the name says, those last-mile delivery businesses would offer expedited delivery options as same day or instant delivery. 
• White-glove delivery services.   White glove delivery is known as premium delivery services.. They provide additional services like installation, assembly, or personalized customer support. To find out more about white glove delivery and business benefits of it, check this article .
• Smart Locker Networks. Those are d elivery businesses that offer secure, self-service lockers in convenient areas where customers can pick up their deliveries whenever they want.

Is it worth starting a last-mile delivery business?

If we look at statistics again , last-mile of total shipping costs in 2018 was 41% and has grown to 54% by 2023 . Assuming the popularity of online shopping, that also has a potential of growth. But it is obviously necessary to consider obstacles, costs, your interest in the industry before starting.

Starting from scratch: A guide on how to start a last-mile delivery business in 2024

Anyone who is starting a last-mile delivery business should read this comprehensive guide to know how to start from scratch. 

Choose a niche

Conduct a market research

Define your last-mile business model

Develop a last-mile delivery business plan

Obtain licenses and permits for your last-mile delivery service business

Consider costs when starting your last mile business

Pick the right software

Hire the right staff

Find clients

1. Choose a niche for your last-mile delivery company.

There are plenty of delivery services, popular niches include food, flowers, pharmaceutical items, laundry, dry cleaning, party and event items, furniture and more.

2. Conduct market research

Some of the main things that should be included in your market research:

• Define your business objectives.  As an e xample, you would choose to provide best customer service, efficiency, etc.
• Analyze industry trends. Check customer behavior and trends in the niche you selected, either analyze niches if you have not selected one yet. Look at what are the problems to be solved in particular niche, check customer behavior, technology trends, any special regulations.
• Determine your target audience. Identify your customer audience, what are they looking for, their geography, purchasing power, how to reach them.
• Analyze your competition. Look at what your competitors offer - what are their strengths and weaknesses.
• Research on customer feedback. Gather customer reviews through surveys, focus groups, or forums.
• Make a SWOT analysis. It will consist of your strengths, weaknesses, opportunities and threats. Here is a guide.

3. Define your last-mile business model  

Last-mile delivery business models can also vary based on how many owners, stakeholders are involved, thus it is something important to consider. Best model/option to operate a last-mile business might depend on the number of owners and regulations in your particular country. Some examples are below: 

• A sole proprietorship involves a single owner who operates a business and is solely liable for all debts and obligations.
• A Partnership entails two or more individuals who share ownership and responsibilities.
• A Corporation is a business structure considered a separate legal entity from its owners, protecting the owners from being personally responsible for the business debts.
• An LLC, or Limited Liability Company , is a business structure in which owners are protected from personal liability for their company’s debts. 

4. Develop a last-mile delivery business plan  

Business plan can consist of many variables, thus outlining your business concept, target audience, evaluating your financial projections and available assets can help you develop a last-mile delivery company plan specifically for you.

In addition, you should describe your company’s mission, vision, and values while emphasizing the key value that distinguishes you from your competitors.

A good business plan includes: 

• Executive summary
• Business description
• Market analysis and strategy
• Marketing and sales plan
• Management and organization description
• Products and services description
• Competitive analysis
• Operating plan
• Financial projections and needs
• And anything else what could be relevant to your particular market. Example “Exhibits and appendices” Maybe you will need special licenses to operate your business or etc.

Your business plan is likely to get some revisions as your last mile delivery company keeps growing.

5. Obtain licenses and permits for your last-mile delivery service business

Please keep in mind that licenses, permits can vary based on your niche and the country you operate in. 

Some common examples of licenses and permits you might need are listed below:

• Basic business license: Once you register, you must obtain a business license to operate legally.
• Employer Identification Number (EIN): The staff you’ll employ must have an EIN from the IRS for tax purposes.
• Transportation licenses: Obtain all required permits for your l ast-mile delivery vehicles.
• Vehicle registration and insurance : Ensure the vehicles you’ll use for delivery are registered and insured.
• Operating permits: Some last-mile delivery businesses must obtain specific licenses related to zoning, noise, and environmental regulations.
• Health and Safety Permits: If your last-mile delivery business is about food deliveries, you must obtain health and safety permits to ensure compliance with food regulations.

6. Consider costs when starting your last mile business

Once you have an idea of the size and scope of your last-mile delivery business, you have to analyze its costs. Please see below presented some of the variables, that you might want to consider.

A few factors can impact last-mile delivery costs , such as the staff you’ll have to pay for the service, obtaining licenses and permits, and the equipment you’ll use.

Or, as Starter Story claims , the average startup cost for a delivery service of any kind is $19,267.

Here is a list of the basic last-mile delivery company costs that you should consider:

Let’s say that you’ll have a brick-and-mortar location for your business. There will be expenses for the rent that need to be paid, and depending on where you want it to be located, the rent costs can vary. 

Rent costs are accounted for 10% of the total last-mile delivery expenses.

Business fees

Once you form your last-mile delivery business, you must obtain trademarks, copyrights, business insurance, permit and license fees, and lawyer fees. 

Your business needs software to run smoothly in this digital era. 

The software will save you time and money by automating certain functions while helping you grow your business. It should include a CRM (Customer Relationship Software), accounting and invoicing software, email marketing tools, internal communication tools, IT support, social media management tools, and payroll software. 

The costs of delivery management software account for 10% to 15% of the total cost of last-mile delivery.

Employee hiring costs

Labor costs are the biggest expense when starting a last-mile delivery business. 

The staff that needs to be hired, mainly delivery drivers, costs a lot to hire, maintain, and train, accounting for 50% to 60% of last-mile delivery costs.

Setting a business website

Most successful businesses have official websites. It is worth investing money in setting up your last-mile business website.

There will be costs for getting a domain name, website hosting, a website builder, a business email hosting service, and web design. 

The business website setup can take up to 7% of the total last-mile delivery expenses.

Transport equipment (vehicles)

Your last-mile business will need its mode of transportation, so you’ll need to invest in durable equipment. Also, remember that the delivery vehicles you purchase or lease must be maintained regularly.

Last-mile delivery vehicle costs are accounted for 10% of the total last-mile delivery expenses.

Fuel expenses can add up quickly, and their prices can often fluctuate, leading to unexpected costs. On average, they account for 10% to 15% of the overall expenses. To calculate your cost per mile, let me share with you this cost per mile calculator , that you can download in the excel format.

Marketing costs

Any business needs advertising initially until it sets a good foot on the market for such companies. Consider costs like business cards, signage, printing and mailing, Google Ads, and Facebook and Instagram ads.

On average, marketing and advertising expenses account for 5%.

7. Pick the right software 

When it comes to running a business like a last-mile delivery service, technology is an indispensable asset. 

The delivery management software of last-mile delivery businesses is meant to streamline most delivery operations.

Automation processes are crucial for all last-mile delivery businesses. 

Invest in deploying a last-mile delivery tracking platform (software) to handle delivery automation, route optimization, real-time monitoring, automatic order scheduling, and push notifications for every delivery milestone. 

The software can automate customer queries and collect feedback with suggestions to improve delivery services. It also offers proof of delivery and analytics to determine whether the scheduled order was delivered. Example of the Track-POD delivery management software is below.

Try for Free

8. Hire the right staff

To hire the right staff for your last-mile startup, you can use recruitment agencies to seek qualified and experienced staff. 

Good to Know: According to Salary , the average salary for a last-mile delivery driver in the US is around $50,600 annually.

The logistics and shipping workers your business needs must have soft skills. Here is a breakdown of the vital ones you should evaluate in potential candidates:

• Problem-solving — Your staff must know what to do when encountering unexpected issues. You can test their problem-solving skills by asking them hypothetical questions and asses their approach to finding a solution.
• Effective communication — Communication is paramount to running any successful business. Ask candidates questions to assess their communication style and pay attention to how they articulate ideas clearly.
• Attention to detail — All details are important when managing inventory. You should ask candidates about their experience completing meticulous tasks requiring precision.
• Excellent time management — Time is money, and timely deliveries cannot be negotiated. You should ask candidates for their strategies for prioritizing tasks and handling deadlines. 
• Adaptability — Last-mile delivery services are constantly evolving. You must ask candidates how they would adapt to changing circumstances. Perhaps you can pose a hypothetical situation, such as how they would adapt if there is a sudden change in shipment schedules. 

Teamwork - Good logistics staff collaborates with different stakeholders. Ask candidates about their work experience in cross-functional environments.

9. How to find clients

After you’ve done all the hard work mentioned above, it's time to find and grow your customer base. 

We laid down a few tips to kickstart your delivery service:

• Social media platforms 

You can promote your last-mile startup on social media platforms like Instagram, Facebook, or TikTok. Create a profile to build connections with potential clients and advertise your services.

• Partner with e-commerce platforms 

Many small businesses sell online but need help with delivery logistics. You can partner with such companies and offer customized last-mile delivery solutions.

• Offer promotions and discounts.

Promotions and discounts are attractive and can help you get your first clients. For example, you can discount the first ten deliveries or provide a short trial period to allow potential clients to test your services.

• Connect with local businesses.

Networking with local businesses is important because it might offer partnerships where you can provide your delivery services.

What are the essentials for launching a last-mile delivery service?

There is a basic starter kit for launching a last-mile delivery business. Here are the essentials that you should know when starting one:

• Business permits and licenses
• Delivery vehicles (cargo van, bicycle, car or truck)
• Drivers with valid driver’s licenses
• Smartphones or tablets
• Auto insurance for the vehicles
• Navigation software
• Packing supplies

What are the last-mile delivery challenges?

There is a big pressure on logistics companies seeking ways to optimize their last-mile operations.

Here is a brief of some of the most intense last-mile delivery issues and challenges:

• Navigation through congested urban areas
• Delivery on time
• Package theft and security 
• Environmental impact and sustainability
• Workforce shortage

How can technology be beneficial for last-mile delivery businesses?

Technology can be very beneficial in addressing the challenges that last-mile delivery businesses face. 

All last-mile delivery entrepreneurs should take advantage of the advent of innovative technology solutions like drone delivery, route optimization software, or micro-fulfillment centers.

• Drone delivery is a great option for last-mile delivery, especially in areas that are hard to reach. These devices can overcome the challenge of traffic congestion and can deliver the package to the customer on time.
• Machine learning technologies improve delivery routes based on weather conditions, traffic patterns, and priorities.
• MFCs, or micro-fulfillment centers, use robotics and automation to speed up order processing and bring orders closer to the end customer.
• Delivery Management Software integrates with your website or allows manual file uploads, schedules routes, offers free driver’s apps, offers live tracking, and custom notifications to customers.

Wrapping up

Hopefully, this piece gave you insider tips on how to start a last-mile delivery company in 2024.

Remember that once you open your last-mile shipping company, the technology you’ll use will be crucial to its success.

Invest wisely in it and focus on implementing advanced solutions because the future of last-mile delivery businesses is all about technology.

Keep this article as a reminder starter kit for all you need to know about starting a business in the last-mile delivery industry.

At Track-POD we offer delivery management software that provide route optimization, proof of delivery, live tracking features and many more! Sign up for 7 days free trial or get a demonstration.

Request a Demo

About The Author

Alina Kostukova

Skilled marketing content creator with a background in digital media and public relations. Focused on creating first-rate text and visual content that stands out and tells compelling stories.

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Many Americans have no idea how much they need to save for retirement — and the calculus is getting even more complicated

• How much money people need in retirement isn't one defined answer — it really depends.
• While some workers think they'll need $1.5 million or more, many don't have nearly that much.
• And while some retirees rely on Social Security, those benefits may not be paid in full in just 10 or so years.

What's your magic number for retirement ? Many Americans don't know, and it's getting even harder to calculate — especially as Social Security is poised to start reducing benefits in just about a decade.

But those who do calculate it are upping their savings. According to a press release about the Employee Benefit Research Institute's recent 2024 Retirement Confidence Survey conducted in January with Greenwald Research and with a sample of 1,255 workers and 1,266 retirees, half "of Americans have tried to calculate how much money they will need in retirement."

"In reaction to their calculation, 52% of workers and 44% of retirees started to save more," the press release stated.

A third of respondents who are working and had attempted to calculate their retirement needs think they'll need $1.5 million or more in retirement.

Similarly, an AARP Financial Security Trends Survey conducted in January showed over a quarter of people aged 50 and over think they will need to save $1 million or more to feel financially secure in retirement .

That's quite a bit more than what workers actually have in savings.

A third of workers in the EBRI and Greenwald Research survey have less than $50,000 in savings and investments. And while they could use that for retirement, there's always the chance they'll have to dip into those savings for other unexpected costs.

So how can you calculate what might be right for you?

Craig Copeland, director of Wealth Benefits Research at the Employee Benefit Research Institute, told Business Insider that there isn't just one correct number for retirement savings because it depends on different factors for each individual, such as where they live and their lifestyle.

In addition, Americans looking toward retirement could see unexpected inflation like we saw in the last few years or a similarly unpredictable stock market. Finally, Social Security is facing a decline in payouts in just over a decade. It all adds up to a lot of confusion and fear about Americans' golden years.

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"That number is all over the place," Copeland said, referring to how much people are going to need in retirement savings. "Some people use a multiple of their salary; some have suggested that you need 10 times your salary in assets. That's sometimes where someone has a six-figure income, you'd expect to have a million dollars."

Social Security's uncertainty and inflation add to complications

Social Security is also a key contributor toward financial comfort in retirement. According to the survey, 88% of workers expect Social Security to be an income source in retirement, with 91% of retirees confirming that sentiment, reporting the federal benefit as one of their income sources.

Those relying on Social Security just got some new information on the fate of the program — the latest Social Security and Medicare Boards of Trustees report found that the program will not be able to pay out full benefits beginning in 2035, a year later than expected. While that offers a bit of breathing room for the funds and new retirees — who would start receiving 83% of the full benefits come 2035 — it could still be a major blow to workers' prospects if Social Security goes unfunded.

"It will be devastating if people who already are facing very dire retirement prospects get less Social Security than they're planning on. That would be devastating because, for too many people, Social Security provides the bulk of their income in retirement," William Arnone, the CEO of the non-partisan National Academy of Social Insurance, told BI.

While people are likely going to need to rely on savings during retirement, some may also need to pick up some type of work as a retiree. Estimating how much you will need in retirement may be helpful, even long before retirement.

Copeland said people "need to be aware that that backup source isn't always going to be there and that they need to think about making sure that they can get enough savings, that they have that buffer, because many people end up retiring before they expect to or may want to." Copeland said that a health issue could be one of the reasons behind this earlier retirement.

Some workers think they will also have to work for pay in retirement: 75% of workers said so in the survey, including 40% who said part-time work and 24% who said seasonal or sporadic work. That's compared to almost a third of retirees who said this, including 17% who said they have worked part time.

"Every adult in America deserves to retire with dignity and financial security," Indira Venkateswaran, AARP senior vice president of research, said in a statement. "Yet far too many people lack access to retirement savings options and this, coupled with higher prices, is making it increasingly hard for people to choose when to retire."

Still, the survey from EBRI and Greenwald Research found that "​​30% of retirees say their overall lifestyle in retirement is better than expected." Almost half of retirees said they somewhat agree that they're able to spend money how they want to now as a retiree, within reason.

That highlights the fact that calculating how much you're going to actually need in retirement is complicated.

"We do see that the people that actually do a calculation become more confident and they start doing things that will get them in that direction," Copeland said. "They'll start saving more and they'll start developing plans for what they're doing. So it's really a matter of getting people to really focus on what they need and start building a plan toward that."

What do your retirement outlook and savings look like? Reach out to these reporters to share at [email protected] , [email protected] , and [email protected] .

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