key personnel in business plan example

How to Write the Management Team Section of a Business Plan + Examples

Written by Dave Lavinsky

Over the last 20+ years, we’ve written business plans for over 4,000 companies and hundreds of thousands of others have used the best business plan template and our other business planning materials.

From this vast experience, we’ve gained valuable insights on how to write a business plan effectively , specifically in the management section.

What is a Management Team Business Plan?

A management team business plan is a section in a comprehensive business plan that introduces and highlights the key members of the company’s management team. This part provides essential details about the individuals responsible for leading and running the business, including their backgrounds, skills, and experience.

It’s crucial for potential investors and stakeholders to evaluate the management team’s competence and qualifications, as a strong team can instill confidence in the company’s ability to succeed.

Why is the Management Team Section of a Business Plan Important?

Your management team plan has 3 goals:

• To prove to you that you have the right team to execute on the opportunity you have defined, and if not, to identify who you must hire to round out your current team
• To convince lenders and investors (e.g., angel investors, venture capitalists) to fund your company (if needed)
• To document how your Board (if applicable) can best help your team succeed

What to Include in Your Management Team Section

There are two key elements to include in your management team business plan as follows:

Management Team Members

For each key member of your team, document their name, title, and background.

Their backgrounds are most important in telling you and investors they are qualified to execute. Describe what positions each member has held in the past and what they accomplished in those positions. For example, if your VP of Sales was formerly the VP of Sales for another company in which they grew sales from zero to $10 million, that would be an important and compelling accomplishment to document.

Importantly, try to relate your team members’ past job experience with what you need them to accomplish at your company. For example, if a former high school principal was on your team, you could state that their vast experience working with both teenagers and their parents will help them succeed in their current position (particularly if the current position required them to work with both customer segments).

This is true for a management team for a small business, a medium-sized or large business.

Management Team Gaps

In this section, detail if your management team currently has any gaps or missing individuals. Not having a complete team at the time you develop your business plan. But, you must show your plan to complete your team.

As such, describe what positions are missing and who will fill the positions. For example, if you know you need to hire a VP of Marketing, state this. Further, state the job description of this person. For example, you might say that this hire will have 10 years of experience managing a marketing team, establishing new accounts, working with social media marketing, have startup experience, etc.

To give you a “checklist” of the employees you might want to include in your Management Team Members and/or Gaps sections, below are the most common management titles at a growing startup (note that many are specific to tech startups):

• Founder, CEO, and/or President
• Chief Operating Officer
• Chief Financial Officer
• VP of Sales
• VP of Marketing
• VP of Web Development and/or Engineering
• UX Designer/Manager
• Product Manager
• Digital Marketing Manager
• Business Development Manager
• Account Management/Customer Service Manager
• Sales Managers/Sales Staff
• Board Members

If you have a Board of Directors or Board of Advisors, you would include the bios of the members of your board in this section.

A Board of Directors is a paid group of individuals who help guide your company. Typically startups do not have such a board until they raise VC funding.

If your company is not at this stage, consider forming a Board of Advisors. Such a board is ideal particularly if your team is missing expertise and/or experience in certain areas. An advisory board includes 2 to 8 individuals who act as mentors to your business. Usually, you meet with them monthly or quarterly and they help answer questions and provide strategic guidance. You typically do not pay advisory board members with cash, but offering them options in your company is a best practice as it allows you to attract better board members and better motivate them.

Management Team Business Plan Example

Below are examples of how to include your management section in your business plan.

Key Team Members

Jim Smith, Founder & CEO

Jim has 15 years of experience in online software development, having co-founded two previous successful online businesses. His first company specialized in developing workflow automation software for government agencies and was sold to a public company in 2003. Jim’s second company developed a mobile app for parents to manage their children’s activities, which was sold to a large public company in 2014. Jim has a B.S. in computer science from MIT and an M.B.A from the University of Chicago

Bill Jones, COO

Bill has 20 years of sales and business development experience from working with several startups that he helped grow into large businesses. He has a B.S. in mechanical engineering from M.I.T., where he also played Division I lacrosse for four years.

We currently have no gaps in our management team, but we plan to expand our team by hiring a Vice President of Marketing to be responsible for all digital marketing efforts.

Vance Williamson, Founder & CEO

Prior to founding GoDoIt, Vance was the CIO of a major corporation with more than 100 retail locations. He oversaw all IT initiatives including software development, sales technology, mobile apps for customers and employees, security systems, customer databases/CRM platforms, etc. He has a  B.S in computer science and an MBA in operations management from UCLA.

We currently have two gaps in our Management Team: 

A VP of Sales with 10 years of experience managing sales teams, overseeing sales processes, working with manufacturers, establishing new accounts, working with digital marketing/advertising agencies to build brand awareness, etc. 

In addition, we need to hire a VP of Marketing with experience creating online marketing campaigns that attract new customers to our site.

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Other Resources for Writing Your Business Plan

• How to Write an Executive Summary
• How to Expertly Write the Company Description in Your Business Plan
• How to Write the Market Analysis Section of a Business Plan
• The Customer Analysis Section of Your Business Plan
• Completing the Competitive Analysis Section of Your Business Plan
• Financial Assumptions and Your Business Plan
• How to Create Financial Projections for Your Business Plan
• Everything You Need to Know about the Business Plan Appendix
• Business Plan Conclusion: Summary & Recap

Other Helpful Business Plan Articles & Templates

How Do You Draft the Personnel Section of the Business Plan? The Personnel Section of a Business Plan Explained.

One of the key sections of a Business Plan is the section that describes the plan to grow or scale the business.  This often involves hiring staff and staff often represent the single largest ongoing expense that a company will have.  As such, it is important to plan exactly who will be hired, how much they will be paid and when staff will join the team.

What Should a Personnel Plan Look Like?

The personnel section of a Business Plan should contain the following components.

• Job Descriptions – The job descriptions should provide the reader with enough detail so that they understand the job function of prospective hires
• Organizational Chart – An organizational chart show who will work for who and allows a reader to get an overview of the overall management and staffing structure of the company.
• Type of Hire – Staff can either be salaried employees or independent contractors. It is important to distinguish between these two types of workers for tax and other labor compliance issues.
• Salary Amount – Details of either yearly or hourly pay should be included.
• Salary Assumptions – common assumptions include an estimate of raises over time (eg. 5%) and a burden rate assigned to cover company benefits like health insurance (eg. 20% of salary costs)
• When Hires Will Take Place – Staff are usually hired over a period of time and staggered. As such, it is helpful to include detail surrounding when a particular employee will start. If you will have temporary staff of contractors, you should also specify when the employment will end.

What Do the Numbers Look Like?

The sample chart below is an example of the financial section of a business plan. It is for illustrative purposes only and each plan is unique and requires tailoring to meet the specific needs of the company.

What Should the Explanation of a Personnel Plan Look Like?

The detail below is a summary of some of the possible explanation that could be included in a Personnel Plan for the above data.  The description is an excerpt of possible language that could be used.

The company will start out utilizing the three founders and salaries have been allocated for each founder at $100,000 per year. Founder 1 will start taking a salary in FY2015 while the other two founders will start taking a salary in FY2016.    Founders will also take dividends as issued by the Board of Directors.

The budget contemplates hiring 2 employees in the sales area in fiscal 2016 and one software engineer . Until that time, one of the founders who specializes in application development (Hellen Bussiere), will work on developing the tech side of the business.  In addition, the plan includes hiring 1 sales person a year after that. Sales people will make approx.. $25,000 per year.  In year 4, the application will be completed and we will hire a marketing head to promote the product. The marketing head will make $24,000 a year and will be a part time position.  In year 5, a distribution manager will be hired and he/she will also be part time and make $24,000 per year. 

Full job descriptions are included in Section A.2 of the plan. 

The total number of employees at the end of year 5 is 9 people (including the founders).  This is a modest estimate and may increase significantly if more users sign up.

All salaries include a raise estimated at 5% per year.  20% of salary costs have been included for benefits such as health care and 401K matching.

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Personnel Management Business Plan

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OutReSources

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

OutReSources, Inc. will be a consulting company specializing in the design and delivery of training products and services in statewide and regional markets.  The company offers health care providers a reliable, high-quality alternative to in-house resources for business development, market development, training, and quality assurance.

OutReSources will initially be created as a Greenstate DBA company under the umbrella of Flowstone, Inc., based in the Central County area of Greenstate, the heart of Greenstate’s population and growth.

Within the state, OutReSources plans to target health care service providers, tailoring our services to their needs.  One of OutReSources’ challenges will be establishing itself as a real consulting and training company, positioned as a relatively risk-free purchase. 

Industry competition comes in several forms, the most significant being companies and agencies that choose to do business development and training in-house rather than outsourcing.  There are also State and independent organizations providing training and development resources.  Many of these companies are generalist in nature and do not focus on a niche market.  Furthermore, they are often hampered by a flawed organizational structure that does not provide the most experienced people for the client’s projects.  OutReSources’ advantage over such companies is that it provides high-level consulting to help integrate practice with theory and in concert with the client companies’ goals.

OutReSources will be priced at the upper edge of what the market will bear.  The pricing will fit with the general positioning of OutReSources as providing high-level expertise.  Sales are estimated to be substantial and an excellent cash balance in the first year.

The company’s founders are former and current health care service providers, all in the “fee-for-service” provider markets we will target.  They are founding OutReSources to formalize the consulting services they already offer.  OutReSources will be managed by working partners, in a structure taken mainly from Flowstone, Inc.  In the beginning we assume three partners, Khallie Locharnold and Soren Aboukir (from Flowstone Inc.) and Yuriatin Guadalquivir.

The firm estimates healthy profits by the first year with a commensurate net profit margin.  The company does not anticipate any cash flow problems arising.

1.1 Objectives

OutReSources has set several objectives for the first year.

• Develop and implement a training service that targets both for-profit and non-profit health care providers that provide fee-for-services and which are required to meet standards set by state and federal regulations, and/or private associations.
• Raise the standards for quality of care while breaking free of the confines of the “fee-for-service that is Medicaid” by developing a service to support those health care providers who still operate within those confines.
• Develop a company with low overhead and liability to optimize net profit margins.

1.2 Mission

Our mission is to raise the standards of health care services by improving the skills, abilities, and efficiencies of those who provide such services.  We wish to educate and train those who provide health care services and are reimbursed and regulated by the state governing agencies.  We aim to be transitional educators and trainers to those with the education but without the experience.

1.3 Keys to Success

Quality and Credibility  

Employing trainers within the appropriate disciplines who have

• Credentials: Education, Licenses, Certifications
• Proven successful track record
• Continuing Education Units

Strong Formal Methodology

Developing strong formalized training methodologies for all services

• Policy and Procedures 
• Hierarchy roles in the Organizational Structure: Qualifications and Duties
• Confidentiality control
• Feedback Reporting: Finished Product

Promotion and Marketing

• Starting with what we know: Our first offerings are based on our expertise 
• Reaching a large targeted population: Expanding our offerings 
• Spring boarding off current credentials

Operations and Liability

Maintaining low overhead and liability by:  

• Maximizing abilities and simplifying roles
• Assessing the market and initiating with “High End” targets (large providers, high fee-for-service rate services)
• Strong investments in quality equipment vs cost by including 
• Mobility vs Center or combinations
• Space and supplies
• Finished products (manuals, pamphlets, protocols)

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

OutReSources, Inc. is a new company providing high-level expertise consulting to health care providers, including business development, training development, quality assurance strategies, and marketing of additional training services.  It will focus initially on:

• Providing “How-to’s of Best Practice” with development and training for Developmental Disability, Service Coordination, and a multitude of Mental Health Service providers.
• Audit Preparation reviews to enable companies and agencies to avoid costly recoupment or pay backs, and avoid damaging citations.

As OutReSources grows it will take on people and consulting work in related markets becoming more diversified, such as supportive training services like First Aid/CPR, Cultural Diversity, Health and Wellness in the workplace, Research Resource Center, Mobility, Business Practices in the Business System, and so on.  It will also look for additional leverage by developing partnerships with key advocacy organizations and state officials.

2.1 Company Ownership

OutReSources, Inc. is projected as a Limited Partnership in conjunction with Flowstone, Inc., but may switch the preferred structure to a “C” Corporation or Limited Liability Corporation, for purposes of investment structuring.

OPERATING PARTNERS (initial)

• General Managing Partners, with 62% ownership by Flowstone, Inc.
• Vice Managing Partner for Programmatic Development and Operations, with 28% ownership.

INVESTMENT PARTNERS

• Flowstone, Inc. with 95% ownership from start-up date.
• Limited Partner Yuriatin Guadalquivir, with 5% ownership from start date.

Structure of Partnership

Flowstone, Inc. will provide the initial starting capital investment necessary to begin OutReSources, Inc., making them the primary stock holder.  Yuriatin Guadalquivir will begin as the General Operating Manager responsible for development and implementation, receiving compensation through salary and stock acquisition.  First year salary of $41,000 will be paid by Flowstone, Inc.  An appropriate profit percentage may be paid at each year end.  If a loss is realized at the end of any year then Yuriatin Guadalquivir receives no payout of stock in the company.

• Following first calander year, Flowstone, Inc. will reimburse Yuriatin Guadalquivir for service by turning 5% of stock ownership of OutReSources, Inc. over to him.
• Each additional year Flowstone will increase Yuriatin Guadalquivir’s stock ownership by 5% to a maximum of 33% ownership in OutReSources, Inc.
• Once equal partnership between Flowstone, Inc. and Yuriatin Guadalquivir has been reached then Guadalquivir becomes a full partner, assuming equal voting rights, and liability.
• Liability will include equal share in all legal and financial obligations.

2.2 Start-up Summary

Total start-up expenses includae legal costs, logo design, stationery and related expenses.

OutReSources, Inc. will begin by providing multiple training services for health care providers and public agencies in the areas of Developmental Therapy, and Service Coordination, but will later progress and diversify into Psychosocial Rehabilitation, Case Management, Clinical Therapies, and a multitude of supportive and more specific concepts.  These concepts may range from Health Care Business Practices, Health and Wellness Promotion, Specific Disabilities and Treatments. 

The initial service training categories for Developmental Therapy and Service Coordination are:

• Standard DS training (DS for Children and Adults) and state certification
• Paraprofessional Supervision by a Developmental Disabilities Professional
• Quality Assurance practices and implementation of the “Best Practice/Client 1st” concept
• Audit simulation in conjunction with training and assistance.
• First Aid/CPR Certifications
• Business analysis and restructuring consultations
• Specific acute “Hot Topic” analysis (treatment/therapy methods, disorders, customer service, adult transition to include Medicaid/SSI, guardianship, community resource)

Market Analysis Summary how to do a market analysis for your business plan.">

OutReSources, Inc. is a business that has become necessary because of today’s ever increasing demand on the need for community health care.  There are an increasing number of providers who have become dependent on Medicaid reimbursement, which has created the need for training resources.  There are 100s of agencies providing fee-for-services reimbursed by Medicaid.  Combine this with regional Medicaid units being severely understaffed and underbudgeted and you have a declining system unable to meet the huge need for support.  OutReSources is therefore, ideally positioned to deliver these support and training services to provider companies and agencies.

4.1 Market Segmentation

The are many Medicaid providers.  There are 79 listed in the Centerville Yellow Pages under the Mental Health and Developmental Disability categories, most of which provide a variety of service treatments or therapies.  Several are either incorporated or franchised across the state.  All of them provide at least one Medicaid reimbursed service (most offer several) and are required to maintain certain standards, self regulate, and educate.  This creates the prime market for our services:

• Pre-Audit preparation which would be on a sliding scale from finding, fixing, and training.
• Certification Training (Specialist Certifications, CPR/First Aid, etc…)
• Supportive training options (Diversity, Language, Parenting, “Best Practice”, Business and HR in Health Care, etc…)

The segmentation of the market is a new concept within the Mental Health and Developmental Disabilities fields of service but is not new to the general health care industry, and other service fields leaving a strong need for specific services:

• Developmental Disabilities: Largest population in target with even larger body of regulations.
• Service Coordination: Little regulation but severe lack of quality service. 
• Psychology/Social Rehabilitation: Smaller population but strong need for improvements in both quality and quantity.

It makes logical sense for OutReSources, Inc. to primarily direct its marketing approach at these three segments.  In 2000, the market potential for the disabled service population is estimated to be around 200,498 people reporting some disability in Greenstate (Census 2000). Nationally the number was nearly 50 million.  At the same time, the market potential for the need of bilingual services was estimated to be around 127,609 people speaking another language other than English at home of which 85% speak Spanish.  Each of these populations are expected to grow at a steady rate of 5.6% per year.

In the table and chart below:

• Agency Group 1 = State Licensed Developmental Disabilities Agencies
• Agency Group 2 = State Licensed Service Coordination Agencies
• Agency Group 3 = Other Medicaid Providers in Need of Cross Training and Continuing Education Units

4.2 Target Market Segment Strategy

OutReSources, Inc. chooses to make the above segments its targeted market is because we have the applied first hand experience and the credentials having provided these services for significant periods of time, earning credibility with substantial marks in quality.  Through our experiences as providers we have developed a strong knowledge of what services would be greatly needed, appreciated and valued. 

We have and are continually increasing our credentials as providers to improve our current services allowing us to utilize those gained credentials in support of our new offerings.  Through the years we have developed a reputation of providing high-quality services among state regulators, providers, and the community.

4.3 Service Business Analysis

Consulting participants range from major international name-brand consultants to tens of thousands of individuals.  One of OutReSources’ challenges will be establishing itself as a real consulting company, positioned as a relatively risk-free organizational purchase. 

There really is not much local competition specific to the field of Mental Health and Developmental Disabilities, only small private entities that are usually sole proprietors consulting from the basis of that one individual’s own knowledge and/or theories, and their own interpretations but with varying levels of practical application experience. 

Our program will minimize its starting cost and have almost no overall risk by developing our new offerings based on the services  services Flowstone, Inc. currently provides.  This allows us to minimize up front cost and overhead while improving services within OutReSources.  Flowstone will provide the inial start-up expenses in return for partial ownership, profit, and free access to services rendered.

4.3.1 Competition and Buying Patterns

The key element in purchase decisions made at the OutReSources’ client level is trust in the professional reputation and reliability of the consulting firm.

Strategy and Implementation Summary

OutReSources, Inc. will primarily focus on three service markets, Developmental Disability, Service Coordination, and Mental Health Providers, and in limited product segments: Pre-audit Review, Training, and Certifications. 

5.1 Competitive Edge

Clearly, our competitive edge is the customer service experience and approach that our management team will bring to the table.  Our “Best Practice” and “Client First” approach to all of our services is evident, and highly appreciated.

5.2 Marketing Strategy

An overview of the marketing plan includes:

• Networking via word of mouth
• Joining Associations of potential clients
• Evolve Flowstone’s services to optimized levels to maximize profit and quality
• Community involvement through volunteering, providing free seminars or scholarships to families in need to attend seminars
• Symposium and Conferences 
• Website 
• Calling on connections within key state departments, agencies, and other affiliates
• High profile interaction between our managers, and the customers
• Excellent service and high quality results

5.3 Sales Strategy

The Team Supervisor needs and expects close contact and cooperation with the client agency’s staff.  The General Operational Manger is under pressure to get a quotation together.  The GOM and Trainers must be armed with quick reference guide to pricing.  The important caller should be told that the GOM will “call right back.” The more successful the marketing strategy is in making in-roads into the foundation of a market, the more important this communication response will become.

In respect to the prospect list of clients, it is essential that a “salesman’s” approach be adopted to insure an organized, orderly approach to each prospect.  Notes need to be kept on each client.  Follow-up and persistence will pay off.

5.3.1 Sales Forecast

OutReSources, Inc. is a start-up and a relatively new concept in the field within a fairly common concept of consultation and training services.  It is difficult to forecast without any benchmarks.  However, since our overhead and start-up cost will be minimal we are able to use basic forecast principles by estimating our primary cost of salary (what it cost us to provide the service) which includes staffs estimated operating costs of lodging, meals and travel expenses to forecast our cost. 

We want a 50% profit margin (to allow room for adjustments as needed) and so will double operating expenses to project revenue.  This results in a Net profit of 50% on the dollar or 2-1 on our money.  Of course, as services are implemented adjustments will be made based on total sales, realized cost, accessibility, feasibility, etc.

5.4 Milestones

Set forth below are the main milestones in the schedule of proposed development.  We have carefully reviewed the timelines for start-up and firmly believe that once we are completely funded we can construct and open our initial services within less than one month of external implementation.

• Development of Formalized Methodology of all services provided by May 2005 (GOM)
• Purchase of High-end Presentation equipment by May 2005 (FLowstone, Inc.)
• Preliminary dry run of internal mock services by June 2005 (General Operations Manager)
• Approval of final product by July 2005 (Flowstone, Inc. GOM and Training Supervisors)
• Marketing for potential clients By July 2005 (Flowstone, Inc. and GOM)
• Training Packets, manuals, and documents by May 2005 (GOM, Training Supervisors)
• Develop internal operation protocols and employee manual By June 2005 (Flowstone, Inc. and GOM)
• Prepare and finalize marketing campaign (pamphlets, advertisements, etc) by June 2005 (Flowstone, Inc. and GOM)
• Train staff by June 2005 (GOM and Training Supervisors)
• Soft open (training period 30 to 45 days) by July 2005 (GOM and Training Supervisors)

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The three managers, Flowstone, Inc. owners Khallie Locharnold and Soren Aboukir and General Operations Manager Yuriatin Guadalquivir, have impeccable credentials in this industry.  This will benefit OutReSources, Inc. in three ways:

• Clients will be brought from existing professional relationships
• Respect and recognition by associated organizations and state departments
• The experience each has will attract new clients in the area of finance and administration,

The Training Supervisors  and Trainers have yet to be formalized but would primarily consist of the Program Managers and Professionals from within Flowstone. Their extensive experience and education in service, and management within the industry will provide a foundation for success for OutReSources, Inc.

6.1 Personnel Plan

All work is, at the moment, produced by Yuriatin Guadalquivir and Flowstone, Inc.  Since OutReSources, Inc. still remains in its formative stage and all stock holders’ compensation is purely based on net profit, and currently there is no revenue being generated, there are no salary expenses.  There will be added where and when necessary and in line with success in penetrating the plan’s targeted markets.  These salary expenses will absorbed by Flowstone, Inc.

By the end of June 2005, it is assumed that increased business volume will require the first Training Supervisor to be brought on board.  By the end of August 2005, increased volume will require hiring the first trainer.  

In FY2007, OutReSources will have 4 Training Supervisors and 4 trainers working, with the increasing amount of less sensitive work being farmed out to paraprofessionals and administrative support staff of Flowstone.  It is assumed that OutReSources will become completely independent of Flowstone’s financial and staff support in year FY2008 or FY2009, depending on demand volume.  

As stated earlier the salaries of the owner/consultants, training supervisors and trainers is included in the Cost of Sales.  Only those costs for the hourly paraprofessional and administrative staff are shown in the Personnel table below.

Financial Plan investor-ready personnel plan .">

Our main concerns will be aggressive time management, so that our labor costs stay under control, and proper purchasing, keeping costs down.  Secondarily, hiring the best team, training them properly and retaining them will be a critical component to good costs.  A good trainer does not sacrifice quality for quantity, but rather they optimize their time spent.  Growth will be sustained through a contribution to a “roll-over” plan, and from potential future clients.

7.1 Start-up Funding

Total start-up expenses include legal costs, logo design, stationery and related expenses.

Expensed presentation and office equipment include computers and projectors. Start-up assets include initial cash to handle the first few months of consulting operations as accounts receivable play through the cash flow.  Flowstone, Inc. is providing some of their used office furniture, chairs, as Other Current Assets.

Flowstone, Inc. will provide seed capital.  Soren Aboukir and Khallie Locharnold will each invest at start-up, and anticipate loaning the company additional funds during the year.

7.2 Important Assumptions

• We are assuming steady growth from good management, barring any unforseen local, or state disasters, economic slowdown, or Medicaid budget cuts.
• We are assuming adequate funding by Flowstone, Inc. and the partners to sustain us during start-up.
• We are assuming that health care providers will respond to the new concept of outsourced training and value it enough to pay for it.
• We are assuming that the state will support us by referring health care provider clients.
• We are assuming that we will be able to market our offerings as high-end services, allowing us to have a large profit potential.
• We are assuming that this endeavor will not negatively affect those services already provided by Flowstone, Inc.

7.3 Projected Profit and Loss

Initially, OutReSources will be housed in the Flowstone office spaces and and benefit from the established administrative support system.  In January 2006, we anticipate that OutReSources will move to it’s own office when an adjacent suite is due to become available.

As noted earlier, salaries for owner/consultants, training supervisors and trainers are included in Cost of Sales.  To correctly calculate the necessary payroll tax withholding, a formula was entered into the P&L table for a percentage of the combined salaried and hourly wages.

7.4 Break-even Analysis

Our monthly break even figure is based on our anticipated cost of sales, and in-kind administrative support from Flowstone.  Break even currently requires an average monthly sales as shown below.  This will vary if cost of sales increases or decreases, and if overhead expenses such as administrative support is transferred from Flowstone to us sooner than expected.

7.5 Projected Cash Flow

The Cash Flow table is based on ideal numbers.  The numbers where set as explained previously by basic business principles to permit room for adjustment as the company grows.  As seen in the chart as the months go by the Cash Balance remains  positive.  This is dependent upon reaching sales forecasts each month and keeping our expenses in line.  Over time we are assured to make adjustments as stated in the explanation of the forecasting.  The key components we will need to monitor that will adjust the overall true numbers are:

• The Demand for Service
• Cost of Service (The service may be desired, but must be priced right for clients to see the benefit)
• Quality of Service (A fine balance of quality vs quantity)
• Quality Cost (Salaries will be the primary factor.  Can we hire quality trainers and charge a quality price while still receiving a quality profit)

The founding partners anticipate loaning the company additional monies as a short-term loan in mid-year.  If sales exceed forecast this may not be necessary.  Additional computers and presentation equipment will need to be purchased as new trainers and supervisors are hired.

7.6 Projected Balance Sheet

The balance sheet is not a key factor at this point since OutReSources, Inc. will be operating as a company within a company and utilizing Flowstone, Inc.’s assets.  Given that any start-up cost or realized loss can be deemed as an assets expense for Flowstone there is truly little to no liability or risk thereof.

7.7 Business Ratios

The following table shows the projected business ratios.  We expect to maintain healthy ratios for profitability, risk, and return.  The industry comparisons are for SIC 8742.0200, Human Resources Consulting, part of the larger Management Consulting Services category.  The most noteworthy catagory is the percent of sales.  You will notice that OutReSources, Inc. and Industry Standards are comparable until gross profit margin wherein OutReSources falls back by 50% from industry standards.  This is primarily due to the majority of our expenses coming from staff compensation.  However, OutReSources more than compensates in general administrative expenses.  Though the numbers are based on ideal assumptions and are subject to change, OutReSources’ owner and management structure will continue to minimize general admin costs.

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How to Write Management Team Section in a Business Plan

Free Ultimate Guide On Writing A Business Plan

• May 1, 2024

A business is as efficient as its team and its management. Therefore, it becomes important for business owners to build a structured management team that achieves the objectives and goals set by the organization.

Andrew Carnegie, an American steel magnate, beautifully summarized it –

“Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives.”

A business management plan helps build an efficient team and formalizes business operations. This helps businesses streamline strategies to achieve their goals.

So, if you are a business owner who is looking to formalize their business structure and write the management team section in their business plans, this guide is for you.

Here’s a sneak peek into what you’ll learn:

Sounds good? Let’s dive in.

What is the Management Section of a Business Plan?

The management section of a business plan is an in-depth description of a business’s team, its structure, and the owners of a business.

The section discusses ‌who is on the management team—internal and external, their skill sets, experiences, and how meaningfully they would contribute to an organization’s mission statement and goals.

Now that we have defined what the management section of a business plan is, let’s understand why it is so important.

Importance of a Business Plan Management Section

The management section helps you to

• Showcase leadership: The management team section helps you showcase how qualified and experienced team you have.
• Clarify team roles: It outlines who does what in your team, ensuring everyone knows their key performance areas and works together towards the same goals.
• Attract investors: Present your team in the best possible way, as it is one of the key factors in making the final investment decision.

What to include in the Management Section of a Business Plan?

Now that you know why exactly a management section in the business plan is necessary, let’s move ahead with what to include in it:

1. The Management Team

An organization’s entire management team can be divided into parts — the internal team and the external team. Let us see those in detail:

The Internal Management Team

A business team consists of several departments. The most common departments are—marketing, sales, IT, customer service, operations, finance, and HR.

These departments depend on the nature and functioning of your business. For example, a dental clinic may not require a sales department per se.

The entire management team is distinguished according to their responsibility. This helps the business owners and investors be aware of the roles, benefits, ESOPs (if applicable), profit sharing (for sales), work contracts, NDAs (Non-Disclosure Agreements), and Non-Competition Agreements of the entire team.

It is recommended that business owners collect and document the following information about their team:

• Educational Background
• Work Experience
• Accomplishments

For example, your present VP of Marketing helped their previous company grow its bottom line from $3 million to $10 million over 18 months.

The External Management Team

The external management team is usually composed of—advisory board members and professional services.

Advisory board members help by:

• Bringing their industry expertise, experience, and knowledge to the table.
• Offering strategic advice and helping the business develop long-term goals with future considerations in mind.
• Having a lot more contacts than any other individual can help businesses grow.

Credible advisory board members show great commitment to a company’s growth. Therefore, it becomes important to mention their experience and specialization in the business management plan.

The advisory board members can help give valuable advice that internal team members need or lack.

Usually, board members meet quarterly or monthly to provide strategic guidance in place of stock options in your company. This helps attract the best advisors and motivates them to invest in your business.

On the other hand, professional service helps by

• Offering highly specialized advice and sharing knowledge.
• Helping through the implementation process of strategies.

Such services help businesses leverage skills that would be difficult to build and acquire over a short period.

Examples of such professional services are:

• IT Consultants
• Business coaches and consultants

After a brief overview of the management team, let’s move forward.

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2. The Management Team Gaps

The management team gap is an important part of the management section. Primarily because it helps document if your management team currently has gaps or missing skills.

Your team may lack a few required skills while starting. The management team gaps help you to be aware and make efforts to close this gap.

As a business owner, you must document what positions are missing and who ought to fill those positions or take responsibility.

For example, if you need a VP of Sales, clearly document this in the section.

Also, write down the job description and key responsibilities to be undertaken. For example—you might mention that the role requires 10 years of experience in the sales domain. The applicant must have experience handling a sales team, closing new accounts, and working in tandem with the marketing team.

Be as detailed as possible. This will help you build a checklist while interviewing the right candidate and also win investor confidence in your managerial skills.

Here are a few key positions you would want to include in your management team business plan:

• Founder and/or CEO
• Chief Technical Officer (CTO)
• Chief Marketing Officer (CMO)
• Head of Product Management (PM)
• VP of Sales
• VP of Marketing
• Business Development Manager
• Customer Service Manager
• Sales Managers/Sales Staff
• Human Resources Manager
• Advisory Board Members

3. The Management Structure

The management structure defines how a business organizes its management hierarchy. A hierarchy helps determine all team members’ roles, positions, power, and responsibilities.

The management structure also depends upon the type of business ownership. Business ownership can be—a sole proprietorship, partnership, or LLC.

Following is a sample management structure of an organization.

Now that we understand what details we need to document in business management plans, let’s have a look at the example.

Example of a Management Section Plan

[management section of a hotel], [management team], internal team members.

Name: Charles Fargo Role: Owner Responsibility: Formulating key strategies, defining budgets, and building a business plan Experience: 35 years of owning multiple hotels in Las Vegas Educational Background: B.Sc in Hospitality Management from South Dakota State University.

Name: Michael Clark Role: General Manager Responsibility: Overall hotel operations – guest interactions, revenue management, brand ambassador of the hotel, customer satisfaction, and experience, leadership to all departments Experience: 25 years working with several technology hotels as the general manager. Educational Background: MBA from Wharton School

Name: George Trump Role: Department Manager Responsibility: Manage employees, smooth coordination amongst employees, plan daily affairs of the department, strategize, prepare reports, and deal with complaints and suggestions. Lead team members to function as a team Experience: 15 years working as a department manager Educational Background: BSc in Hotel Management from Texas University

Note: There can be multiple Department Managers depending on the nature of your business. In the case of hotels, departments can include – housekeeping, logistics, security, food, and banquets.

Name: Donald Clooney Role: Marketing and Sales Manager Responsibility: Increase occupancy and generate revenue. Position the hotel as an option for leisure activities, relaxation, and holidays. Experience: 11 years working as the marketing and sales manager for hotels Educational Background: MBA in Tourism and Hospitality from Midway University

Name: Oprah Williams Role: Human Resources Manager Responsibility: Recruit and train hotel staff, maintain smooth onboarding process for new recruits, train, counsel, and coach staff, resolve conflicts, and conduct performance reviews Experience: 9 years working as human resources manager for hotels Educational Background: MBA in Human Resources Management from California University

External Team Members

Advisory Board Member

#1 Richard Branson Responsibility: Strategic advisory for sustainable growth and expansion Experience: Founder of Virgin Group

Professional Services

#1 Digital Marketing Agency – Neil Patel – Help market and sell our product using digital mediums – blog, website, YouTube, and social media.

[Management Structure]

There is a gap in one key position in our startup.

#1 Chief Finance Officer (CFO) Responsibilities: Finance, Accounting, Tracking Profit and Loss, and overseeing FP&A (Financial Planning and Analysis)

So, that’s it for today! Now that you know how to write a management team section, make sure you write the best one by mentioning all the necessary details.

If you are still confused about writing the management team sections, then you can visit various sample business plans to know more. You can even use smart business planning software to smooth your business planning process.

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Frequently Asked Questions

What tone should i use when writing the management team section.

When writing about your management team in your business plan, use a tone that’s confident, professional, and positive. This shows investors that your team is experienced, qualified, and able to lead your company to success.

Who should be included in the management team's business plan?

In the management team of a business plan, you should include all the key members of the company:

• Top management
• Founder/CEO
• VP of sales

Do I need to include personal information about team members?

In a business plan, it’s not necessary to include personal information about team members unless it directly relates to their role in the business. The focus should be on professional qualifications, experience, and skills that are relevant to their position.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How To Write the Management Section of a Business Plan

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

Ownership Structure

Internal management team, external management resources, human resources, frequently asked questions (faqs).

When developing a business plan , the 'management section' describes your management team, staff, resources, and how your business ownership is structured. This section should not only describe who's on your management team but how each person's skill set will contribute to your bottom line. In this article, we will detail exactly how to compose and best highlight your management team.

Key Takeaways

• The management section of a business plan helps show how your management team and company are structured.
• The first section shows the ownership structure, which might be a sole proprietorship, partnership, or corporation.
• The internal management section shows the department heads, including sales, marketing, administration, and production.
• The external management resources help back up your internal management and include an advisory board and consultants.
• The human resources section contains staffing requirements—part-time or full-time—skills needed for employees and the costs.

This section outlines the legal structure of your business. It may only be a single sentence if your business is a sole proprietorship. If your business is a partnership or a corporation, it can be longer. You want to be sure you explain who holds what percentage of ownership in the company.

The internal management section should describe the business management categories relevant to your business, identify who will have responsibility for each category, and then include a short profile highlighting each person's skills.

The primary business categories of sales, marketing , administration, and production usually work for many small businesses. If your business has employees, you will also need a human resources section. You may also find that your company needs additional management categories to fit your unique circumstances.

It's not necessary to have a different person in charge of each category; some key management people often fill more than one role. Identify the key managers in your business and explain what functions and experience each team member will serve. You may wish to present this as an organizational chart in your business plan, although the list format is also appropriate.

Along with this section, you should include the complete resumés of each management team member (including your own). Follow this with an explanation of how each member will be compensated and their benefits package, and describe any profit-sharing plans that may apply.

If there are any contracts that relate directly to your management team members, such as work contracts or non-competition agreements, you should include them in an Appendix to your business plan.

While external management resources are often overlooked when writing a business plan , using these resources effectively can make the difference between the success or failure of your managers. Think of these external resources as your internal management team's backup. They give your business credibility and an additional pool of expertise.

Advisory Board

An Advisory Board can increase consumer and investor confidence, attract talented employees by showing a commitment to company growth and bring a diversity of contributions. If you choose to have an Advisory Board , list all the board members in this section, and include a bio and all relevant specializations. If you choose your board members carefully, the group can compensate for the niche forms of expertise that your internal managers lack.

When selecting your board members, look for people who are genuinely interested in seeing your business do well and have the patience and time to provide sound advice.

Recently retired executives or managers, other successful entrepreneurs, and/or vendors would be good choices for an Advisory Board.

Professional Services

Professional Services should also be highlighted in the external management resources section. Describe all the external professional advisors that your business will use, such as accountants, bankers, lawyers, IT consultants, business consultants, and/or business coaches. These professionals provide a web of advice and support outside your internal management team that can be invaluable in making management decisions and your new business a success .

The last point you should address in the management section of your business plan is your human resources needs. The trick to writing about human resources is to be specific. To simply write, "We'll need more people once we get up and running," isn't sufficient. Follow this list:

• Detail how many employees your business will need at each stage and what they will cost.
• Describe exactly how your business's human resources needs can be met. Will it be best to have employees, or should you operate with contract workers or freelancers ? Do you need full-time or part-time staff or a mix of both?
• Outline your staffing requirements, including a description of the specific skills that the people working for you will need to possess.
• Calculate your labor costs. Decide the number of employees you will need and how many customers each employee can serve. For example, if it takes one employee to serve 150 customers, and you forecast 1,500 customers in your first year, your business will need 10 employees.
• Determine how much each employee will receive and total the salary cost for all your employees.
• Add to this the cost of  Workers' Compensation Insurance  (mandatory for most businesses) and the cost of any other employee benefits, such as company-sponsored medical and dental plans.

After you've listed the points above, describe how you will find the staff your business needs and how you will train them. Your description of staff recruitment should explain whether or not sufficient local labor is available and how you will recruit staff.

When you're writing about staff training, you'll want to include as many specifics as possible. What specific training will your staff undergo? What ongoing training opportunities will you provide your employees?

Even if the plan for your business is to start as a sole proprietorship, you should include a section on potential human resources demands as a way to demonstrate that you've thought about the staffing your business may require as it grows.

Business plans are about the future and the hypothetical challenges and successes that await. It's worth visualizing and documenting the details of your business so that the materials and network around your dream can begin to take shape.

What is the management section of a business plan?

The 'management section' describes your management team, staff, resources, and how your business ownership is structured.

What are the 5 sections of a business plan?

A business plan provides a road map showing your company's goals and how you'll achieve them. The five sections of a business plan are as follows:

• The  market analysis  outlines the demand for your product or service.
• The  competitive analysis  section shows your competition's strengths and weaknesses and your strategy for gaining market share.
• The management plan outlines your ownership structure, the management team, and staffing requirements.
• The  operating plan  details your business location and the facilities, equipment, and supplies needed to operate.
• The  financial plan  shows the map to financial success and the sources of funding, such as bank loans or investors.

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• Calculate Net Income
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• Calculate Net Present Value (NPV)
• Calculate Payroll Tax

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

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

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

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

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

Let’s get started.

What Do You Need A Business Plan For?

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

1. Secure Funds

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

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

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

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

2. Monitor Business Growth

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

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

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

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

3. Measure Business Success

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

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

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

4. Document Your Marketing Strategies

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

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

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

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

How to Write a Business Plan Step-by-Step

1. create your executive summary.

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

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

A good executive summary should do the following:

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

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

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

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

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

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

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

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

2. Add Your Company Overview

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

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

Your company overview should contain the following:

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

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

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

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

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

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

• Mission Statement

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

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

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

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

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

Business Objectives

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

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

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

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

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

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

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

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

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

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

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

Market Analysis

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

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

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

• Market Research

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

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

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

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

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

How to Quantify Your Target Market

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

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

What Does a Good Market Analysis Entail?

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

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

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

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

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

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

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

Competitive Analysis

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

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

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

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

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

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

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

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

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

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

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

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

Direct vs Indirect Competition

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

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

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

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

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

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

Factors that Differentiate Your Business from the Competition

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

1. Cost Leadership

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

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

2. Product Differentiation

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

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

3. Market Segmentation

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

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

4. Define Your Business and Management Structure

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

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

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

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

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

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

Management Team

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

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

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

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

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

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

Key Questions to Answer When Structuring Your Management Team

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

Additional Tips for Writing the Management Structure Section

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

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

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

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

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

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

Organizational Chart

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

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

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

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

5. Describe Your Product and Service Offering

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Avoid Technical Descriptions and Industry Buzzwords

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

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

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

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

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

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

3. Long or Short Products or Services Section

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

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

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

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

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

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

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

4. Describe Your Relationships with Vendors or Suppliers

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

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

5. Your Primary Goal Is to Convince Your Readers

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

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

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

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

Key Questions to Answer When Writing your Products and Services Section

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

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

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

6. Show and Explain Your Marketing and Sales Plan

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

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

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

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

Outline Your Business’ Unique Selling Proposition (USP)

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

Target Market and Target Audience

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

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

Creating a Smart Marketing and Sales Plan

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

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

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

Your Positioning Statement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Basic Rules to Follow When Pricing Your Offering

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

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

Pricing Strategy

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

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

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

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

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

Advertising

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

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

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

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

Public Relations

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

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

Content Marketing

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

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

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

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

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

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

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

Social Media

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

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

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

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

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

Strategic Alliances

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

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

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

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

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

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

2. Evaluate Your Competition

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

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

These questions can help you know your competition.

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

3. Consider Your Brand

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

4. Focus on Benefits

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

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

5. Focus on Differentiation

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

Key Questions to Answer When Writing Your Marketing and Sales Plan

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

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

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

7. Clearly Show Your Funding Request

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

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

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

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

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

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

Funding Request: Debt or Equity?

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

Case for Equity

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

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

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

Case for Debt

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

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

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

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

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

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

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

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

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

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

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

8. Detail Your Financial Plan, Metrics, and Projections

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

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

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

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

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

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

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

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

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

Use Graphs and Charts

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

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

Address the Risk Factors and Show Realistic Financial Projections

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

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

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

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

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

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

1. Sales Forecast

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

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

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

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

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

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

2. Personnel Plan

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

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

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

3. Income Statement

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

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

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

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

4. Cash Flow Statement

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

5. Balance Sheet

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

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

6. Exit Strategy

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

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

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

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

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

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

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

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

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

9. Add an Appendix to Your Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

Tips and Strategies for Writing a Convincing Business Plan

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

1. Know Your Audience

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

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

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

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

2. Get Inspiration from People

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

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

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

3. Avoid Being Over Optimistic

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

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

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

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

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

4. Keep it Simple and Short

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

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

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

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

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

5. Make an Outline and Follow Through

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

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

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

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

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

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

6. Ask a Professional to Proofread

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

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

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

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

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

1. hubspot's one-page business plan.

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

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

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

2. Bplan’s Free Business Plan Template

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

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

3. HubSpot's Downloadable Business Plan Template

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

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

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

4. Business Plan by My Own Business Institute

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

The comprehensive template consists of a whopping 15 sections.

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

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

5. Score's Business Plan Template for Startups

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

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

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

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

6. Minimalist Architecture Business Plan Template by Venngage

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

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

7. Small Business Administration Free Business Plan Template

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

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

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

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

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

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

9. PandaDoc’s Free Business Plan Template

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

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

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

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

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

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

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

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

Alternatives to the Traditional Business Plan

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

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

Business Model Canvas (BMC)

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

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

Segments of the Business Model Canvas

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

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

Lean Canvas

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

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

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

Startup Pitch Deck

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

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

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

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

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

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

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

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

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

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

Business Plan FAQ

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

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

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

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

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

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

Exlore Further

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

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How to Create a Personnel Plan for Investors

What is a personnel plan?

A personnel plan is a document that outlines an organization’s staffing needs, goals, and strategies for managing its workforce.

It is a key component of human resource management and provides a roadmap for the recruitment, selection, training, development, retention, and management of employees.

A personnel plan is critical within the business plan you would have created as a start-up or entrepreneur. It will help you in your financial forecasting, anticipating the right times to hire and expand.

What to include in the personnel section of your business plan

The personnel section of a business plan should include information about the management team and staff that will be involved in operating the business. The people who do the work are the most important asset, which of course comes with a cost. Understanding when to hire, when to think about human resources, and when to grow your business at the right time can be enormously important in meeting business objectives, setting yourself up for success with great personal benchmarks.

Building out a personnel plan within your business plan is going to be essential in planning for the long term success of your business. Forecasting this data can be the best way to ensure longevity.

Who is your management team?

This should include a brief introduction to the key members of the management team, including their backgrounds, experience, and relevant skills. It’s important to highlight their qualifications and how they will contribute to the success of the business.

This can be brief and doesn’t require a full resume for each member of the team. A simple explanation detailing qualifications and relevant experience applicable within the company is all that’s required.

What is the organizational structure?

This section should provide an overview of the organizational structure of the company, including who will be in charge of each department or functional area, as well as any outside consultants or advisors who will be involved.

In line with forecasting, you will want to illustrate the future of your company and who will be included. As you develop, you can anticipate your team growing from a just few employees into staff across multiple sectors, such as customer service, marketing, and support.

What are your staffing needs?

Outline the staffing needs of the business, including the number and types of employees needed to run the business successfully. This should also include the qualifications and skills required for each position.

Here you can identify the weaknesses and risks across your team, ensuring that you have a capable understanding of the roles and responsibilities that are important to the business in the future – though they may not be in place right now. Investors are quick to highlight “perfect” personnel plans, so you will want to embrace that you have identified risks in staffing.

As an example, your head of customer support may also be your head of sales, but in time these two roles will need to be separated.

What will recruitment and training look like?

This section should detail how the company plans to recruit and train employees, including any training programs or on-the-job training that will be provided.

What will the compensations and benefits be?

Outline the compensation and benefits packages that will be offered to employees, including salaries, bonuses, health benefits, retirement plans, and any other perks or incentives.

Outline the Human Resources policies

Detail the company’s policies on issues such as employee performance reviews , disciplinary procedures, and termination policies.

Does a business plan need personnel planning if I have no staff?

Even if you don’t have any employees right now, having a personnel plan is beneficial for your business in the long term.

Without a personnel plan, you may find it challenging to scale your business or adapt to changes in your industry or market. For example, if you suddenly need to hire someone to fill a critical role, you may not know where to start or what qualifications you should look for.

Creating a personnel plan can also help you to clarify your business goals and objectives. By determining the roles and responsibilities required to meet those goals, you can better prioritize and focus on the essential tasks that need to be done.

Therefore, even if you don’t have any employees currently, it’s still a good idea to develop a personnel plan to help you prepare for future growth and ensure that you have the right team in place to support your business objectives.

Is there an easy way to forecast a personnel plan?

Personnel planning is a long process as it requires dedicated thought as to what needs to happen in your business and where you want to take it. Typically, this require a lengthy process of spreadsheets and equations to figure out exactly who needs to be working with you, and at what cost.

Business planning software can ensure that this part of your business plan, alongside other key components, is created with ease – simply needing a few data entries to be entered throughout the software.

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• How to Start Your Business Plan Online for Free
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• How to easily forecast your startup’s cash flow

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How to Create an Investor-Ready Personnel Plan and Forecast Employee Costs

Posted march 22, 2021 by noah parsons.

A personnel plan is a critical part of your business plan and financial forecast . In addition to helping you budget for current and future employees, your personnel plan enables you to think through who you should hire and when you should hire them.

If you’re pitching to angel investors or venture capitalists for funding, they will want to see why your team is uniquely suited to grow and scale your business, as well as your hiring plan.

Investors will want to know:

• What positions do you need to fill?
• When you plan on filling them?
• How much it’s going to cost to build the team you need??

What to include in the personnel section of your business plan

For many startups and small businesses, the people who do the work—your team—are both the most costly and most valuable asset. It makes sense that hiring the right person at the right time can have a significant impact on your ability to meet your company’s milestones and goals , not to mention your cash flow .

Thinking strategically about human resources — when to add positions, compensation levels, and whether to hire full-time or on a contract basis are all pieces of a healthy personnel plan.

So, whether you’re seeking investment or not, building a personnel plan and forecast is an essential part of business planning and strategic planning for the long-term viability of your company. Let’s dive right in and look at the five key steps to build an investor-ready personnel plan.

1. Describe your team

In the “team” section of your business plan, you will typically include an overview of the key positions in your company and the background of the people who will be in those critical roles. Usually, you’ll highlight each of the management positions in your company and then speak more generally about other departments and teams.

You don’t need to include full resumes for each team member—a quick summary of why each person is qualified to do the job is enough. Describe each person’s skills and experience and what they will be doing for the company.

Emphasize your team’s strengths. How do they make your team stronger? What specific expertise and experience do they have in your (or a related) industry? Assuming your market research identified a great opportunity, why are you the right team to capitalize on it? 

For potential investors, this section helps qualify why each team member is necessary for the success of the business. It acts as a justification for their salary and equity share if they are part owners of the company.

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2. Describe your organizational structure

The organizational structure of your company is frequently represented as an “org chart” that shows who reports to whom and who is responsible for what.

You don’t have to create a visual org chart, though—describing your organization in the text is just fine. Just make sure to show that you have a clear structure for your company.

Is authority adequately distributed among the team? Do you have the resources to get everything done that you need to grow your company?

You’ll also want to mention the various teams your company is going to have in the future. These might include sales, customer service, product development, marketing, manufacturing, and so on.

You don’t need to plan on hiring all of these people right away. Think of this section as an outline of what you plan to do in the future with your company.

3. Explain the gaps

It’s alright to have gaps on your team, especially if you’re a startup. You may not have identified all the “right” team members yet, or you may not have the funds available yet to hire for essential roles . That’s okay.

The key is to know that you do have gaps on your team—this is how you figure out who you need to hire and when you need to hire them. Also, it’s much better to define and identify weaknesses in your team than to pretend that you have all the key roles that you need. In your business plan , explain where your organization is weak and what your plans are to correct the problem as you grow.

It might be tempting to hide your potential weaknesses from investors, but they’ll see through that right away. It’s much better to be open and honest about where you have management gaps and your plans to solve those problems. You want them to know you have identified and made plans to mitigate risks .

You also need to keep in mind that employees might wear a lot of hats in the early days of a company, but that specialization will happen as the company grows.

For example, initially, the CEO might also be the VP of Sales. But, eventually, the VP of Sales role should be filled by a specialist to take on that responsibility. Include these types of changes in your personnel plan to explain to investors that you understand how your company is going to grow and scale.

4. List your advisors, consultants, and board members

For some companies, external advisors, board members , and even consultants can play a crucial role in setting business strategy. These people might even fill key positions temporarily as your company grows. If this is the case, you’ll want to list these people in your business plan. Like your management team, provide a brief background on each principal advisor that explains the value they provide.

If your advisors don’t hold key roles or are not critical to your success, you don’t necessarily have to list them. But, do list anyone that is adding substantial value to the company by providing advice, connections, or operational expertise.

5. Forecast your personnel costs

Most business plans should include a personnel table to forecast the expense of your employees. Here are the expenses you’ll need to be aware of when forecasting.

Direct and indirect labor expenses

You’ll want to include both direct expenses , which usually comprise salaries, as well as indirect expenses which include: 

• Paid time off
• Healthcare and insurance
• Payroll costs

 As well as any other costs you incur for each employee beyond their salary. Here’s an example of what a personnel forecast can look like using LivePlan .

Burden rate and employee-related expenses

There are different names for the indirect expenses of personnel. Still, I like to call it “burden rate” or “employee-related expenses,” which is an expense over and above the direct wages and salaries. These expenses typically include payroll taxes, worker’s compensation insurance, health insurance, and other benefits and taxes.

For business planning purposes, don’t stress about coming up with the exact figure for the burden rate. Instead, estimate it using a percentage of total monthly salaries. Somewhere between 15 percent and 25 percent usually makes sense, but it depends on what kind of benefits you plan on offering.

In your personnel plan, you can list both individual people as well as groups of people. You’ll probably want to list out key people and other highly paid employees, but group together other departments or groups of people. For example, you might list out your management team, but then group together departments like Marketing, Customer Service, and Manufacturing.

Then, add in your personnel burden to cover benefits and insurance. In the example personnel table above, this is called “Employee-Related Expenses.”

You’ll then take the total number of your salaries plus personnel burden and include this in your profit and loss forecast as an expense. Suppose you’re using LivePlan to build your personnel forecast. In that case, this how-to article on entering personnel shows where you’ll see personnel costs appear on your cash flow statement, profit and loss (income statement), and your balance sheet.

Do you need a personnel plan if you have no employees?

If you are a sole proprietor and don’t have employees, you should still include your own salary as part of the business plan. Make sure to include your salary as an expense in your Profit & Loss Statement . Even if you, the business owner, don’t take the salary, so you can keep the cash in your business, you’ll want to record what you should have been paid.

In the case of a sole proprietor, you probably don’t need a full table for the personnel plan, like in the example above. But, when you do start planning to hire a team, you should use the format I’ve described here.

Personnel planning is a valuable part of the business planning process because it forces you to think about what needs to get done in your business and who’s going to do it. Take the time to work through this part of your financial forecast, and you’ll have a much better sense of what it’s going to take to make your business successful.

*Editors Note: This article was initially written in 2019 and updated for 2021.

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Noah Parsons

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Guide to Developing a Personnel Plan

• May 12, 2023
• BPO Insights
• Finance and Accounting Services , Financial Analysis & Financial Planning

Table of Contents

A people plan is an essential component of your business strategy and Financial Planning . In addition to assisting you in budgeting for current and prospective employees, your personnel strategy allows you to consider who to hire and when to hire them.

What is a Personnel Plan?

A Personnel Plan is a document that details an organization’s staffing needs, goals, and workforce management practices. It is an essential component of human resource management and serves as a road map for employee recruitment, selection, training, development, retention, and management.

A Personnel Plan is an essential component of any start-up or entrepreneur’s business plan . It will aid you in your financial predictions, allowing you to anticipate the best periods to hire and expand.

When presenting for funding to angel investors or venture capitalists , they will want to see why your team is uniquely equipped to grow and scale your firm, as well as your hiring strategy.

Investors will be interested in learning:

• What positions do you require?
• When do you intend to fill them?
• How much will it cost to assemble the team you require?

What should you put in your Personnel Plan section?

The people who execute the work—your team—are both the most expensive and most important asset for many startups and small businesses . It stands to reason that hiring the appropriate individual at the right moment can have a big impact on your company’s ability to accomplish milestones and goals, not to mention cash flow.

A healthy Personnel Plan includes strategic thinking about human resources, such as whether to expand roles, and salary levels, and whether to hire full-time or on a contract basis.

So, whether you’re looking for investment or not, developing a people plan and forecast is an important aspect of business planning and strategic planning for your company’s long-term success. Look at the 9 critical phases of developing an investor-ready Personnel Plan .

What is the composition of your management team?

Typically, the “team” portion of your business plan will include an overview of the main jobs in your organization as well as the backgrounds of the people who will fill those critical responsibilities. You will highlight each of your company’s executive positions before speaking more broadly about other departments and teams.

Keep it brief .

You do not need to submit whole resumes for each team member; a brief overview of why each person is qualified for the position is sufficient. Describe each individual’s talents and expertise, as well as what they will do for the company.

Highlight your team’s strengths . How do they bolster your group’s strength? What is their special knowledge and experience in your (or a related) industry? If your market research uncovered a fantastic opportunity, why are you the best team to capitalize on it?

This part helps potential investors understand why each team member is critical to the company’s success. It serves as the rationale for their wage and ownership stake in the company if they are part owners.

How is the organizational structure defined?

Your company’s organizational structure is typically portrayed as an “org chart” that indicates who reports to whom and who is accountable for what.

However, you do not need to construct a graphic org chart; simply defining your organization in the text is sufficient . Simply demonstrate that your organization has a well-defined structure.

Is authority divided fairly among the team members? Do you have the resources to do all of the tasks required to expand your business?

You should also explain the many teams that your organization will have in the future . Sales, customer service, product development, marketing, production, and so on are examples.

You don’t have to hire all of these employees right away. Consider this section to be an outline of what you intend to do with your firm in the future.

Compile a list of your advisors, consultants, and board members

External advisers, board members, and even consultants can play an important role in determining a corporate strategy for some organizations. These individuals may even temporarily fill crucial positions as your company grows. You should include a list of these individuals in your Personnel Plan if this is the case. Give a brief background on each main advisor that outlines the value they give, just like you would for your management team.

You don’t have to include your advisors if they don’t play essential roles or aren’t critical to your achievement. However, i nclude anyone who adds significant value to the organization through advice, contacts, or operational skills.

Explain the gaps

It’s normal for your team to have gaps, especially if you’re a startup . You may not yet have identified all of the “right” team members, or you may not yet have the cash to hire for critical roles. That’s OK.

The trick is to recognize that you do have gaps on your team—this is how you determine who to employ and when to hire them . Furthermore, it is far better to describe and recognize team deficiencies than to pretend that you have all of the critical responsibilities that you require. Explain where your organization is weak and how you intend to address the issue as you develop in your business strategy.

Although it may be tempting to conceal potential weaknesses from investors, they will see right through you. It is far preferable to be open and honest about where you have management gaps and your Personnel Strategy to remedy those gaps. You want them to know you’ve identified and planned for dangers.

You should also bear in mind that your Personnel Plan may wear many hats in the early days of a company, but specialization will occur as the company expands.

For example, the CEO may initially also be the VP of Sales. However, the job of VP of Sales should eventually be filled by a specialist to take on that task. Include modifications like these in your personnel plan to show investors that you understand how your company will expand and scale.

What are your personnel requirements?

Outline the company’s personnel requirements, including the number and types of people required to run the business successfully . The credentials and skills required for each post should also be included.

Here you may identify your team’s shortcomings and vulnerabilities , ensuring that you have a competent grasp of the roles and duties that will be crucial to the business in the future – even if they are not currently in existence. Investors are ready to highlight “perfect” people strategies, so you should embrace the fact that you have recognized staffing hazards.

For example, your head of customer service may also be your head of sales, but these two responsibilities will need to be split in the future.

How will recruitment and training be carried out?

This section should explain how the company intends to recruit and train personnel, including any training programs or on-the-job training.

What are the remuneration and benefits?

Outline the salary and benefits packages that will be provided to employees, including salaries, bonuses, health insurance, retirement plans, and any other perks or incentives.

Describe your Human Resources policies

Explain the company’s policies on topics such as employee performance reviews, disciplinary procedures, and termination procedures.

Estimate your personnel costs

Most Personnel Plans should include a personnel table to anticipate labor costs . Here are some expenses to keep in mind when forecasting.

Labor costs, both direct and indirect

You should include both direct expenses, which are often salary, and indirect expenses, which include:

• Paid vacation
• Insurance and healthcare
• Payroll expenses

As well as any extra fees you incur for each employee in addition to their compensation. Here’s an example of a personnel prediction:

Employee-related expenses and the burden rate

The indirect costs of staff are known by various names . Still, Innovature BPO will refer to it as a “burden rate” or “employee-related expenses”, as it is an expense in addition to direct wages and salary . Payroll taxes, worker’s compensation insurance, health insurance, and other benefits and taxes are common examples of these costs.

Don’t worry about calculating the correct burden rate for company planning objectives. Estimate it instead as a proportion of total monthly compensation. A range of 15% to 25% is normally appropriate, but it depends on the type of benefits you intend to provide.

Individuals and groups of individuals can both be listed in your Personnel Plan . You should certainly mention key people and other highly paid employees but put other departments or groups of people together. For example, you may include your management team but then group departments such as marketing, customer service, and manufacturing together.

Then factor in your employee costs for benefits and insurance. In the example personnel table above, this is referred to as “Employee-Related Expenses.”

The whole quantity of your salary and personnel load will then be included as an item in your profit and loss prediction. Assume you’re using HR management software to create a Personnel Prediction. This software explains where you’ll see personnel costs on your cash flow statement, profit and loss (income statement), and balance sheet.

Is it necessary to Personnel Plan in a company strategy if you have no employees?

Even if you don’t currently have any employees, having a Personnel Plan is useful to your firm in the long run.

You may find it difficult to scale your firm or respond to changes in your sector or market if you do not have a Personnel Plan . For example, if you need to hire someone immediately to fill a key function, you may not know where to begin or what qualifications to search for.

Developing a Personnel Plan can also assist you in clarifying your company’s aims and objectives. You can better prioritize and focus on the critical tasks that must be completed by establishing the roles and responsibilities required to fulfill those goals.

As a result, even if you don’t currently have any employees, it’s a good idea to build a Personnel Plan to help you prepare for future growth and ensure that you have the correct team in place to support your business objectives.

Is there an easy approach to forecasting a Personnel Plan?

Personnel Plan is a time-consuming process that necessitates careful consideration of what needs to happen in your company and where you want it to go. Typically, this necessitates a lengthy process of spreadsheets and mathematics to determine who needs to work with you and at what expense.

A financial modeling tool can ensure that this component of your business strategy, along with other critical components, is easily constructed, requiring only a few data entries to be entered throughout the software. Currently, on the market, there are quite a few tools to support Personnel plans and personnel management . Let’s enjoy!

Personnel Plan is an important aspect of the business planning process because it forces you to consider what needs to be done in your company and who will do it. Take the time to work through this section of your financial plan, and you’ll have a lot better idea of what it will take to make your firm a success.

• What is Financial Analysis of a company and Financial Analysis Outsourcing Process you need to know
• What is Financial Planning for a business, and how to outsource Financial Planning?
• Mastering the Income Statement: A Beginner’s Guide to Financial Analysis
• The Role of Balance Sheet in Financial Analysis: Why It Matters 
• Comparing the Financial Statements: Income Statement vs Balance Sheet
• A Beginner’s Guide to Cash Flow Statement: Examples and Explanation
• Understanding the Statement of Shareholder Equity: Key Concepts and Examples
• Risk Mitigation: Preparing for the Unexpected
• From Data to Insights: How to Build Accurate Sales Forecasts
• How Innovation Tools Change Financial Modeling for Strategic Success?

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Business Roles: Lead Management and Key Personnel Positions

• January 4, 2021

In organizations, there are several kinds of business roles crucial to company operations . From executives to entry-level workers , these positions involve specific tasks contributing to a company’s overall success. Understanding the different business roles involved in a company can help you make a defined career path.

Here are the different lead management positions and key personnel in a company and what you need to know about them—from their responsibilities to how they help a company succeed.

Chief Executive Officer

The Chief Executive Officer (CEO) of companies is the highest role. They’re the ones responsible for making all top-level decisions and getting resources to support a business and drive operational and structural changes, influencing organizational growth. Business owners often can hold this title as well.

Chief Financial Officer

The Chief Financial Officer (CFO) is the one who’s in charge of monitoring and regulating the cash flow and overall finances of a business. CFOs are responsible for searching for reputable investors and conducting external funding opportunities for growing their company. However, not every company can find a CFO with enough experience and skill to handle important duties in the company. This is why some firms opt to hire outsourced CFO services from reputable firms in Atlanta.

Chief Operating Officer

The Chief Operating Officer (COO) manages a company’s overall operations. The COO is often referred to as the general manager in smaller businesses, which possesses the same tasks as COOs. A COO is a top-level business role that ensures processes run efficiently while overseeing different departments, ensuring employees are completing tasks correctly and promptly.

Chief Marketing Officer

The Chief Marketing Officer (CMO) is the professional in charge of directing marketing campaigns, plans, and budgets while managing an organization’s entire marketing department. A CMO is often responsible for several marketing teams, each with their respective leaders. They also make the final decisions regarding the implementation or development of marketing campaigns.

Chief Technology Officer

The Chief Technology Officer (CTO) is in charge of managing an entire organization’s technological functions. CTOs often integrate the latest technology trends to a company, ensuring the technologies they introduce meets their organization’s needs. Additionally, in businesses that have prominent IT departments, the CTO is the one that oversees all high-level functions.

Instead of a traditional CEO, some companies designated a president. While most responsibilities of a company ‘president’ are the same as a CEO, presidents may tackle additional tasks that conventional CEOs may not. Presidents may perform some of the jobs that COO and CFOs handle. However, as a business grows, the president’s role may consist of more ‘defined’ jobs such as handling top-level decisions rather than general executive functions.

Vice President

The vice president of a company initiates the president’s decisions and plans by instructing managers and team leaders about different tasks, acting as an ‘operational role.’ Vice presidents generally oversee business operations and initiate organizational structure, among other positions.

Executive Assistants

Executive assistants typically report directly to the CEO or president, handling most of their administrative tasks. Businesses often rely on this professional to maintain a CEO or president’s schedules and appointments. They’re the backbone behind every successful business owner.

As you make your business plan, management teams need to be pulled together with serious thoughts given to the ‘key’ roles that need to get filled and who should fill them.

Management teams often evolve. If you work for a company or run one, expect to see different organization members wear several hats until the company grows and can hire additional staff. Large businesses may have some or all the positions mentioned—but no matter the role, each one provides crucial contributions to the company’s growth and success.

About the Author

Duties of Key Personnel

by Ashley Donohoe

Published on 30 Jun 2019

When you think of key personnel, you most likely picture a company's CEO, vice president and other key management personnel, meaning the people who are at the top and have a say in the company's long-term strategy and overall operations.

While small businesses usually do have such top executives, they also have other types of key personnel – including low-level to mid-level managers and regular professional staff – whose duties might involve carrying out top-level strategy, leading their departments or even performing operational work. Knowing types of key personnel and their duties can help you structure your company's workforce.

Top Officers and Key Personnel

The top executive position in a small business is usually the company's president or chief executive officer. This person's duties include directing the whole organization, formulating the business's long-term strategy, serving as the company's spokesperson, guiding daily operations and creating a company culture that serves its intended vision. The president or CEO can also take on additional duties such as recruiting workers, managing the company's finances and seeking expansion opportunities.

Small businesses can also have vice presidents and other chief officers who answer to the CEO or president. One key personnel example is the chief operating officer, whose duties involve directing and organizing daily operations.

You can also find department-specific roles such as the vice president of marketing, chief financial officer and vice president of production. These roles help execute top-level strategies from the president or CEO, lead their specific departments and work with the top executive to seek internal and external opportunities to improve the company.

Other Key Management Personnel

While they're not considered top executives, departmental managers are key personnel in small businesses since they provide key duties that keep the company running efficiently and smoothly.

For example, a quality control manager's duties are to ensure the company's products turn out safe and functional and adhere to industry and governmental regulations, while a marketing manager leads advertising campaigns and helps find ways to promote products to increase customer awareness. An office manager can handle a range of duties involving processing company payroll, helping with recruitment, doing clerical tasks and creating reports for management.

Other key managers you might find in a small business include shipping managers, purchasing managers and operations managers. While shipping managers maintain the company's warehouse and ensure that orders are transported effectively, purchasing managers deal with purchasing inventory from vendors, following production budgets and handling vendor contract issues. Operations managers can perform similar duties as some executive officers and key personnel since they are involved in human resources, business planning, financial management, business analysis and legal compliance.

Other Key Professional Staff

A small business has nonmanagement professionals who are also key assets for the company's success. Some of these positions include:

• Accountants: This role is essential for monitoring the company's financial status and involves analyzing financial data, creating reports, handling transactions, implementing security controls and handling the company's taxes.
• Human resources professionals : While top managers have a say in the hiring process, HR professionals assist with recruitment, training, performance management, employee relations issues, compensation and employee policies.
• Marketing professionals : When the company decides to offer a product or service, these professionals are the ones who come up with how to make them appealing to customers as well as advertising methods and how to set the price.
• IT professionals : These professionals are crucial to small businesses whether they keep the business's systems running, secure confidential data, run the company's website or ensure good performance of company networks. In small businesses in the technology sector, their presence is even more crucial.
• Sales representatives : Companies that sell products or services need quality sales representatives who can reach out to interested buyers, answer customers' questions, close on sales and collect payments for purchases.
• Creative staff: Content creators such as writers and video editors have a key role in presenting important information about the company in an appealing way, while graphic designers focus on visuals seen in advertising materials and on the web.

The Secrets of a Great Personnel Plan

Investing in human resources (HR) is a key element of healthy personnel planning and strategy. A hallmark of effective leadership is efficient HR which means hiring employees in a cost-effective manner and mostly when needed. Your business plan should always include an informative and up-to-date personnel plan section to provide direction for the company and help entrepreneurs stay focused.

At the heart of every business owner is the desire to excel. The best way to excel is to define your plans and proceed with purpose. Your business plan comprises a business description , a competition analysis, a marketing plan, a personnel section, the HR section and key financial information.

The personnel plan is designed to help company owners put their plans into action. It helps to clarify objectives for the current and forthcoming year. Thus, a good understanding of personnel plan and how to implement it in your business is vital.

What is a personnel plan?

A personnel plan is a vital part of every company plan and financial forecast, which aids future and current budgeting and defines the type of employee to hire and when to hire such employees.

When you are seeking funding, venture capitalists and angel investors will want a breakdown of your team. Who are they? What talents and skills do they bring to the table? What is your hiring plan for the first year, second year, and so on? How will your team drive business growth and success?

All this information will include the positions you will need employees for, the period in which the management intends to fill the plan, and the financial implications of the implementation of the plan. Just as you would assess if your business is financially feasible , you’ll need to apply this same sentiment when hiring employees.

The personnel plan represents a consolidated strategy for hiring the best people for all company positions, while keeping an eye on future expansion.

Michael E. Gerber, the author of The E-Myth Revisited, posited that an effective personnel plan designed as an efficient workplace game will help employers prime employees for organizational goals while creating job satisfaction. This means that an effective hiring process is vital to an efficient process of personnel planning.

The majority of employers find personnel planning difficult especially those whose staff work in shifts. Organizational challenges like these can easily be taken care of with TimeTrack Duty Roster which helps employers create a suitable overview of their workforce and personalize shifts according to any number of criteria, including their location and skills.

Features of the TimeTrack Duty Roster

Key elements of a personnel plan

Each company’s needs may differ, but in general, these are common elements that should form part of every personnel plan.

Job description

• Clearly explained requirements of the various job functions. Use easy-to-understand language and phrases.

Organizational chart and type of hiring

• The chart of the organization should show who works for whom and provide a good overview of the overall management and employee structure of the company.
• The plan should be clear on whether employees are independent contractors or receive salaries. This is essential for labor compliance issues and the workers’ tax.

Remuneration (salary amount and assumptions)

• Details of hourly or yearly payments are defined, including relevant assumptions that comprise estimates of salary increases over time. You also need to account for company benefits, including health insurance. This may be a percentage of salary costs employers pay to staff.

Time of recruitment

• The hiring of employees is often done over time and staggered. Thus, your plan must include details about when an employee will start and the end date for temporary staff.

Incorporate key personnel into the business plan

Employees are the most valuable assets any company can have. This means that hiring the right person should always be a key priority for every company. Your staff will have a significant impact on revenue, customer experience/satisfaction and the success of the company.

Incorporating the personnel section into your business plan is an important part of strategic planning for long-term viability. The information below serves as guide on how to implement a personnel plan in your business.

Team dynamics

This presents an overview of all the key positions in your business and the backgrounds of staff in their critical roles and departments. Add the total number of staff and their experiences. Emphasize the strengths of individuals and how to upskill where necessary. A great team is typically the fulcrum of business success because they have the responsibility of and possess the ability to translate policies into business success.

Organizational structure

The structure of your company is represented in the company’s organizational chart, which shows the hierarchy of duties and management. Is authority finely distributed and are the various company teams properly mentioned? This includes customer service, product development, marketing, manufacturing and sales.

When planning the company’s organizational details, you will need a strategy to manage absences and leave. TimeTrack Leave Management feature helps you to finetune these details so you can easily (and quickly!) oversee employee absences, vacation time and keep track of working hours for compliance management.

TimeTrack Leave Management

Gaps and stumbling blocks

While it may be difficult to identify gaps in your team, chances are that if you look closely, you will observe a section of your company in need of quality talent. You need to figure out how to fill this gap. Don’t hide the weakness of your team from potential investors. Always remember that specialization will evolve as the company grows.

Where advisors, board members and consultants are applicable to your company, list them. Where they will fill key positions as the business grows, you need to list them and provide background on the value they provide.

The fine print

Every personnel plan needs to include a section addressing employment benefits , rights and conditions, especially for managers. Design your company’s management personnel plan and include a table of staff expenses, including both direct and indirect labor expenses, a burden rate and employee-related expenses, while adding payroll tax, workers’ compensation, salaries and health insurance.

Checklist for personnel planning

Personnel improvement

Improving conditions for personnel involve the identification of gaps, developing and implementing action plans  and taking follow-up actions. Managers should develop a performance improvement plan before taking disciplinary action against employees.

Identify skills or performance gaps

A gap analysis is designed to help you identify potential and current issues and is an essential part of the personnel process. Incorporate characteristics of human resource planning into your business planning.

Provide proof of a skills gap or underperformance of the workforce using a consistent format across all employment cadres. Design your format, including employee information and a description of performance discrepancies using expected and actual performance criteria.

Have a face-to-face meeting with your employees to share observed issues or concerns and gain insights into causal factors of underperformance. Use your documentation to share insights on performance challenges. Let the affected employees know they have committed specific policy infractions. Focus only on the outcomes of behaviors to help affected staff understand how their behaviors affect company success.

Develop action plans

Establish specific and measurable improvement goals for your workforce. Avoid generalizations and focus on key goals. Setting bit-sized goals is an effective way of working while monitoring task on time .

Provide detailed resources, including advanced tools that can help employees improve. This also means providing the management with essential tools that will help with the efficient oversight of the workforce.

Create a timeline for achieving performance improvement goals. This will help keep the staff on track towards achieving expectations. Don’t forget to identify metrics for measuring progress. Be specific about what you want employees to achieve and define the intended consequences in the event of failure to complete performance improvement plan. Be specific about actions you will take whether or not targets are met.

Schedule regular appointments to review the performance improvement plan with your employees and implement their feedback.

Incorporating a personnel plan into your business strategy is a key factor for efficient planning. To maximize the opportunity presented by personnel planning, use any of the effective and reliable TimeTrack planning and absence management software tools.

I am a researcher, writer, and self-published author. Over the last 9 years, I have dedicated my time to delivering unique content to startups and non-governmental organizations and have covered several topics, including wellness, technology, and entrepreneurship. I am now passionate about how time efficiency affects productivity, business performance, and profitability.

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Key Personnel: Understanding Your Essential Workers

Nov 2, 2020

Some of these are employees who have the authority to directly or indirectly plan and control business operations, and significantly influence your day-to-day operations and processes. These essential workers are your key personnel.    

What are Key Personnel?  

Key personnel are individuals who perform essential functions in your business. Often, these employees in an organization are experts in specific areas. They may be the only ones who know how to complete specific tasks, or who have information about a specific part of your business.   

Also called key employees, they directly, significantly, and positively contribute to the company’s value . They exceed expectations in fulfilling their responsibilities and making important decisions, which improves sales, profitability, product development, and other critical business drivers.  

If these employees are not available in crucial times, it could affect your ability to do business effectively.  

Who are your Key Personnel?  

When you think of key personnel, you most likely visualise a company’s CEO, Vice President, and other key management employees or the people positioned at the top and have a say in the company’s long-term strategy and overall operations.   

While small businesses usually have top executives, they also have other types of key personnel including mid-level managers and regular professional staff whose duties might involve carrying out top-level strategy, leading their departments, or even performing operational work.   

A small business has non-management professionals who are also key assets for the company’s success. Some of these positions include:  

Accountants and Bookkeepers. These roles are essential for monitoring the company’s financial status and may involve analyzing financial data, creating reports, handling day-to-day transactions, implementing security controls, and handling the company’s taxes.  

Human resources professionals . While top managers have a say in the hiring process, HR professionals assist with recruitment, training, performance management, employee relations issues, compensation, and employee policies.  

Marketing professionals . When the company decides to offer a product or service, these professionals are the ones who come up with how to make them appealing to customers as well as advertising methods and how to set the price.  

IT professionals . These professionals are crucial to small businesses whether they keep the business’s systems running, secure confidential data, run the company’s website or ensure good performance of company networks. In small businesses in the technology sector, their presence is even more crucial.  

Creative staff. Content creators such as writers and video editors have a key role in presenting important information about the company in an appealing way, while graphic designers focus on visuals seen in advertising materials and on the web.  

How do you manage your Key Personnel?  

It is no longer enough for businesses to simply put together an amazing team. The key to success and longevity in today’s competitive business environment begins and ends with managing your vital workers and ensuring employee retention. The financial implications of a high turnover rate, where the cost of training and recruitment is lost, are high. On average, employee replacement costs a company one-fifth of that worker’s salary. Since those numbers rise according to position and salary, retaining key employees is a critical financial, as well as strategic, consideration for your business.  

Implementing workplace policies that benefit workers and help boost employee retention is not simply a “nice” thing for businesses to do for their employees. Maintaining a stable workforce by reducing employee turnover through better compensation and flexible workplace management and policies also makes good business sense, as it can result in significant cost savings to employers.  

Here are a few ways on how to better manage your key personnel and ensure employee satisfaction and retention:  

Identify your key players. Focus on key employees whose departure would have the biggest impact on your company. While high potential employees may seem to be the obvious choice, delve deeper, to include those with exceptional relationships, knowledge or expertise in critical areas of your business. Identify the skill sets of those you hire; you may find that certain employees could be contributing far more than their current position indicate s .   

Open the lines of communication. Nurture an environment in which employees are comfortable providing honest feedback or offering ideas or suggestions, knowing their voices will be heard. In addition to an annual employee review, make time to meet with staff individually to find out what’s working and what’s not, to ensure your key employees are challenged and motivated and that their needs are being met.  

Overcompensate. Be clear about the structure of pay, bonuses, and raises, and when they can expect to receive compensation, as well as what they can do to achieve their compensatory goals. Have this type of conversation on a consistent basis to avoid any misunderstandings or employee frustrations. Additionally, one of the best pieces of advice for managing key employees is to pay them a salary equivalent to or above the market value. A well-compensated employee will be much less likely to start looking around for greener financial pastures.  

Give them room to grow. Your best employees are the ones that aren’t “ satisfied ” with their job, but want to grow and develop, taking their careers to the next level. Provide them the opportunity to learn, advance and contribute in new ways, nurturing those talents discovered along the way.  

Provide a healthy environment. Financial compensation provides employees with a sense of value. But continue to nurture that value by showing appreciation through formal employee recognition. Positive feedback and acknowledgement can go a long way towards instilling a sense of pride and accomplishment and provides incentive for employees to remain a vital part of your organization.  

Do you have a backup?  

Employees with skills that are uniquely valuable to a company’s success are worth their weight in gold, but what happens when they leave, taking that institutional knowledge with them?  

Relying on key personnel carries risks that, if not properly managed, may cripple profits, productivity, and confidence among remaining employees. Also, at stake is the company’s image, which is particularly critical for those that rely on earning and keeping trust.  

Succession planning is critical in these situations. Identify, in advance, who will be responsible for important decisions and assign at least one back up. For example, who can approve and/or access funds for emergency services or supplies if the individual who normally makes those decisions is unavailable. In an emergency situation, the department manager may not be the only key personnel. You may have personnel who operate specific equipment or that have received specialized training/certifications.  

Assign cross training as a professional development activity and include it as part of your performance evaluations. This helps back up personnel understand how the business functions within networks, builds appreciation for roles and relationships, and supports retention by increasing opportunities and flexibility within your workforce.  

Provide alternate or backup personnel with opportunities to practice the assigned tasks during normal operations. This builds experience, confidence, and trust before they have to step in during a disaster.  

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Talk to us. Give us a call at 1300 287 421 or contact us here .

Dai is a Master of Business Administration graduate of the University of New England, Registered BAS Agent and member of the Institute of Certified Bookkeepers. For 16 years he owned, operated and managed businesses in the tourism and hospitality industry – particularly Accommodation, Event Management, and Food & Beverage Management. In recent years, Dai has worked in the Not for Profit sector, Real Estate, Motorsports, and Motor Trades industry and business services, in Finance, Administration, and Practice Management roles, before becoming a Professional Bookkeeper in 2009.

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How to write a business plan

24 April 2024

• More like this Less like this

If you're planning to launch a start-up or small business, this guide on how to write a business plan will help you create an effective road map to success. A thoughtfully researched, well-structured business plan can give you greater clarity on your business’s vision, help you avoid potential pitfalls and can help ensure you stay on track for your business goals. Read on to discover the essential elements of business planning, common mistakes to avoid, and business plan tips on how to make your plan compelling and ready for investors.

What is a business plan? Why is a business plan important? What to consider when writing a business plan? What to include in a business plan? Business plan formats How to write a business plan How to start a business plan What does a business plan look like? How long should a business plan be? Common business plan mistakes FAQ on creating a business plan

What is a business plan?

A business plan is a strategic document that details your business's objectives and the steps you’ll take to achieve them.

It is a tool that covers everything from your business strategy and key goals to financial projections and management structure. A business plan is also your opportunity to describe your company or proposed project in detail, showcasing both your short-term and long-term goals, budget details, and unique selling propositions (USPs).

Let's dive into understanding what a business plan looks like, why it's so important, and how you can create one for your business.

Why is a business plan important?

A business plan is important because it helps you create an effective plan for your new enterprise that allows you to make informed decisions, set clear goals, and manage your enterprise effectively.

The importance of a business plan becomes clear when you want to set your business apart from the competition.

Here’s how a business plan can help:

• Guidance and structure: A plan outlines your goals and strategies, providing a roadmap for your business.
• Attracting investment: It's essential for attracting investors and lenders who need to understand your strategy before funding it.
• Identifying strengths and weaknesses: Business plan writing helps identify potential pitfalls and strengths in your business idea.
• Planning for growth: Creates a strategy for facilitating future growth and expansion.
• Understanding your market: Includes research that helps you understand your target audience and competition.

What to consider when writing a business plan

When you write a business plan, there are important questions you need to consider.

Step 1. Understand your target market

The first step is understanding your target market. Who are they? What do they need? How will your product or service cater to these needs?

Your business plan should be designed to serve this audience. You’ll need to conduct thorough market research and include this data in your plan.

Step 2. Define your business goals

The second step is to clearly define your business goals. What do you want to achieve in the next year, five years, or ten years?

Having clear, measurable objectives will guide your business plan and help you stay focused on your end goal.

Step 3. Know your USP

Next, consider your unique selling proposition (USP). This is what sets you apart from the competition. Highlighting your USP in your business plan will not only help you stand out but also attract potential investors.

The financial aspect is another key factor. You need to have a clear understanding of your financial needs, cash flow projections, and profitability forecasts. This information is particularly important if you're seeking funding from investors or lenders.

Lastly, remember that your business plan is a living document. It should evolve as your business grows and changes.

Be prepared to review and update it regularly to reflect new goals, strategies, or market conditions. This flexibility will ensure that your business plan remains relevant and effective.

What should you include in a business plan?

When developing a business plan, it can be helpful to first look at business plan examples in your relevant industry. There is no fixed business plan template, but many plans will include the following elements:

1. Executive summary

Your business plan should start with a succinct overview of your plan that highlights the key points and creates a strong initial impression. It should be compelling enough to encourage readers to read further.

2. Company description

This section should provide an overview of what your business does, the problems it solves, and the market it serves.

3. Market analysis

The market analysis section requires a thorough understanding of your industry, target market, and competition. You should demonstrate knowledge of market trends, customer needs, and the competitive landscape.

4. Business goals

Define both your short-term and long-term objectives to provide a clear vision of where you want your business to be in the future. You can also describe how you plan to achieve these goals.

5. Products and services

You should describe what you're selling or what services you offer, highlighting how your offerings stand out from the competition.

6. Financial plan

You should include a detailed overview of your finances, including cash flow statements and profit projections. This section shows potential investors that you have a solid understanding of the financial aspects of running a business.

Your business plan is a marketing document. It should be concise, engaging, and persuasive, convincing potential investors, partners, and employees of the viability and potential of your business.

Business plan formats

Business plan format can vary depending on industry. For instance, a restaurant's business plan might feature a sample menu and location demographics, while a tech start-up may focus on development timelines and patent protections.

A small business plan is likely to look very different to a large business plan. Tailor your business plan to your specific industry and business type.

The complexity of your business plan might also depend on its purpose. If you're seeking significant investment, you'll need detailed financial projections. However, if the plan is mainly for internal use, you might focus more on strategy and team organisation.

In short, while there are common components in every business plan, the specifics can vary widely. Ensure your business plan is relevant to your industry, audience, and business needs.

Writing a business plan requires research and attention to detail for each section. Below, you’ll find a 9-step guide for researching and defining each element in the plan.

• Write an executive summary
• Draft a business description
• Conduct market analysis
• List your management and organisation structure
• Outline services or products
• Define your marketing and sales strategy
• Describe your funding needs
• Plan financial projections
• Appendix of supporting documents

1. Write an executive summary

This is a brief overview of your business plan. It should include your business’s name, location, and the products or services you offer. Also mention your mission statement and your business’s USP (unique selling proposition). Remember, the executive summary should be concise yet compelling, persuading the reader to learn more about your business.

Your executive summary should include:

• Business concept: What does your company do? What are your products or services? This section should clearly articulate your business’s core concept.
• Company information: Include the company’s name, when it was founded (if applicable), the names of the founders and their roles, the team and size, and location of premises.
• Growth highlights: If your business is already established, describe how much it has grown since inception, including financial or market highlights.
• Products/services: Describe what you sell or the service you offer. Explain how it benefits your customers and what makes it unique to the market.
• Financial information: If you’re seeking funding from investors, include a brief overview of your projections and what you’re asking for.
• Future plans: Summarise where you plan to take your business in the future. This could include potential growth, new products or services, or expansion into new markets.

2. Draft a business description

Describe your business in detail. Include the business structure (sole trader, partnership, limited company), the nature of your business, and the marketplace needs that your business aims to fulfil.

3. Conduct market analysis

This is where you demonstrate that you understand your industry and market. Include information about your target customers, including their demographics and buying habits. Also analyse your competition, outlining their strengths and weaknesses.

What else to include:

• Industry overview: This gives a broad view of your industry. You can include its size, growth rate, trends, and outlook.
• Target market: Identify who your customers are. You should define them by demographic factors like age, gender, income level, and geographic location. Also consider psychographic factors such as lifestyle, values, and attitudes.
• Market need: Determine what problem your product or service solves for your target market. This could be a gap in the market, an unfulfilled need, or an improvement on existing products or services.
• Competition analysis: Identify your direct and indirect competitors. Analyse their strengths and weaknesses, and how your business compares.
• Pricing and forecast: Set your pricing strategy based on your understanding of the market and competition. Include a forecast for your potential market share and sales.
• Regulatory environment: Understand any laws or regulations that could impact your industry. This includes permits, licenses, or regulatory compliance requirements.
• SWOT analysis: Identify your business's Strengths, Weaknesses, Opportunities, and Threats (SWOT). This helps you understand your business's position within the marketplace.

4. List your management and organisation structure

Outline your business's organisational structure. Identify the owners, management team, and any key employees. Include an organisational chart if possible.

5. Outline services or products

Describe what your business offers. If you sell products, explain how they are produced, their cost, and how you will sell them. If you provide services, describe them in detail, and list any associated costs.

6. Define your marketing and sales strategy

Detail how you plan to attract and retain customers. Include your sales strategy and the marketing channels you plan to use. Here's what it should include:

• Target market: Define who your customers are - their demographics, behaviours, and needs – and what kinds of marketing message they are likely to respond to. This will guide your marketing efforts.
• Unique selling proposition (USP): Identify what makes your product or service unique. How does it stand out from the competition? How will you convey this in your marketing?
• Pricing strategy: Explain how you have priced your products or services and why this will appeal to your target market.
• Sales plan: Detail how you'll sell your product. Will it be online, in a physical store, or both? Will you have a sales team? How will you bring your business to the target market?
• Promotional strategy: Describe how you will promote your business. This could include social media marketing, SEO, content marketing, advertising, public relations, and more.
• Retention strategy: Outline how you plan to keep your customers coming back. This could involve excellent customer service, loyalty programs, regular updates or improvements to the product or service, etc.
• Partnerships and collaborations: If applicable, discuss any partnerships or collaborations that will play a role in your marketing and sales plan.
• Measurement: Define how you'll measure the success of your marketing and sales efforts. This could be through key performance indicators (KPIs) like website traffic, conversion rates, customer acquisition cost, customer lifetime value, etc.

Your marketing and sales strategy should be flexible. As you learn more about your market and customers, adjust your strategies accordingly.

7. Describe your funding needs

If you are seeking investors or applying for business loans, you should include a funding request section within your business plan. It should include:

• Funding request: Start with the exact amount of funding you are seeking. Be clear and specific.
• Use of funds: Explain in detail how you plan to use the funds. This could be for starting costs, working capital, business expansion, or any other business expenses.
• Future funding: If you anticipate needing additional funding in the future, mention this. Provide an estimate of how much you might need, when you might need it, and what for.
• Business financials: Provide a snapshot of your financial statements and forecasts. Include your income statement, balance sheet, cash flow statement, business loans, and any other relevant financial data.
• Exit strategy: If you're seeking equity investment, describe your exit strategy. This could be selling the company, merging with another company, or going public with an IPO (initial public offering).
• Repayment plan: If you're requesting a loan, outline your plan for repaying it. Provide a schedule and method of repayment.

When considering where to secure funding, it's essential to explore your options. You may want to consider our app-based HSBC Kinetic Current Account for sole traders and single director shareholder businesses, or our Small Business Bank Account for small enterprises. Eligibility criteria apply.

Both accounts are designed to support the growth and financial management of your business. These platforms provide a range of services that cater to your business's needs, from daily transactions to long-term financial planning.

8. Plan financial projections

Provide a forecast of your business's financial future. This can include balance sheets, income statements, and cash flow statements for the next three to five years. Consider incorporating HSBC Kinetic into your financial planning for a comprehensive and digital-first approach to managing your business finances. Eligibility criteria apply.

Here are examples of what to include:

• Sales forecast: This is the amount of money you anticipate from sales of your products or services. It should be broken down monthly for the first year, then annually for the following two to five years.
• Income statement (profit and loss statement): This document shows your business’s profitability over time. It should include revenue, costs of goods sold, operating expenses, and net income.
• Cash flow statement: This demonstrates where your business is earning and spending money by highlighting how balance sheets and income affect your cash or cash equivalents.
• Balance sheet: This document provides a snapshot of your business's financial position at a particular moment in time. It lists your assets, liabilities, and equity.
• Capital expenditure budget: If there are large expenses for long-term assets such as property or equipment, these should be detailed here.
• Break-even analysis: This analysis shows when your company can cover all the expenses and make a profit.
• Financial ratios: These ratios compare financial metrics from your financial statements to assess your company’s financial health. They can provide valuable insights into how well the company is performing.

Your projections should be realistic, with all assumptions clearly stated. If you're a start-up with no financial history, base your projections on research and industry averages. If you're an existing business, use your past financial performance as a guide.

It can be beneficial to seek professional advice when preparing this section of your business plan, as it will be scrutinised by investors and lenders.

9. Appendix of supporting documents

An optional section that includes any additional supporting documents such as legal documents, permits, and contracts.

Writing a business plan is not a one-time event. It should be updated regularly as your business grows and changes.

How to start a business plan

Starting a business plan generally involves seven practical steps and may require consultation with other professionals. Here's a step-by-step guide on how to start:

Understand the purpose of your plan:

Research your industry:, outline your plan:, write the plan:, review and edit:, get feedback:, finalise your plan:.

Here are some people you might want to talk to when you write a business plan:

• Industry peers or mentors: People with experience in your field can provide valuable insights and advice.
• Business advisors or coaches: These professionals can offer guidance and help you avoid common pitfalls.
• Accountants: They can assist with the financial aspects of your plan, including projections and identifying potential costs.
• Potential customers: Speaking with your target audience can help you understand their needs and preferences, which can inform your marketing and sales plan.
• Legal advisors: If your business has any legal considerations, such as patents or regulations, a legal advisor can ensure these are properly addressed in your plan.

A business plan isn't a static document - it should evolve with your business. Regularly updating your plan can help you adapt to changes and stay on track towards your goals.

How long should a business plan be?

The recommended length of a business plan can vary depending on the complexity of your business model and the purpose of the plan. However, a typical business plan ranges from 15 to 35 pages.

What does a business plan look like?

Your business plan can and should be branded to reflect your business identity. Here's how:

Cover page:

Headers and sub-headers:, colour scheme:, images and graphics:, tone of voice:, consistency:.

Your plan is a reflection of your business. By incorporating your brand into the design, you're not just creating a strategy document - you're showcasing your business's identity.

FAQ on creating a business plan

You may have many questions when creating your new business plan. Below we look at some of the common ones.

How much information should I include in my business plan?

Your business plan should be concise yet comprehensive, providing all the necessary information. The length might also depend on whether you're writing the plan for internal use, for potential investors, or for a loan application, as each audience might have different expectations.

It can be helpful to mark out which sections are for which audience, so that you can edit into a new document as required, rather than starting a new business plan from scratch.

What is the proper business plan format?

Printed versions of your business plan should be on standard A4 paper, bound neatly, and presented in a professional manner. All electronic versions should be in a PDF format and have a clear file name for ease of sharing.

The layout should be clear and easy to navigate, with headers, sub-headers, bullet points, and plenty of white space to make the document easy to read.

Common business plan mistakes

There are common mistakes that businesses can make when writing a plan. These include:

Lack of planning:

Wrong audience:, it’s too long:, insufficient market research:, unrealistic financial projections:, not addressing potential risks:, poor grammar, spelling, and punctuation:, unclear business model:.

Writing a business plan may seem like a daunting task at first, but with careful planning, thorough research, and thoughtful consideration of each section - from the executive summary to financial projections - you can create a powerful document that serves as a roadmap for your business's success.

Business plan template

Remember, a business plan is not a static document. As your business grows and evolves, so too should your business plan. Regular reviews and updates will ensure your plan remains relevant and continues to guide your strategic decision-making.

Whether you're seeking investment, planning for growth, or simply setting the course for your day-to-day operations, a well-crafted business plan is an invaluable tool for every business owner. With the advice and guidance provided in this guide, you're now well-equipped to create a robust and compelling business plan.

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Project Plan Examples: How to Write an Effective Plan (2024)

Key takeaways What is a project plan? A project plan outlines the project’s scope, objectives, and schedule; it details what needs to be done, when, and by whom. The plan includes significant deliverables, methods to achieve them, team roles, stakeholder feedback, and milestones. This transparency makes sure everyone involved understands their role and how it…

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Key takeaways

• A project plan is a vital document in project management that outlines the project’s scope, objectives, and schedule.
• Effective project planning enhances resource management, mitigates risks, and improves project implementation and success.
• Project plans can vary in format, such as Excel spreadsheets, PowerPoint presentations, Gantt charts, and mind maps for brainstorming.

Jan. 8, 2024: Irene Casucian reviewed the information on this page for accuracy, refined the page layout, and added elements to improve the visual flow of information. She also created a downloadable project plan template.

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What is a project plan.

A project plan outlines the project’s scope, objectives, and schedule; it details what needs to be done, when, and by whom. The plan includes significant deliverables, methods to achieve them, team roles, stakeholder feedback, and milestones. This transparency makes sure everyone involved understands their role and how it contributes to the overall goal.

A project plan is the tangible output of the second phase of project management , project planning . This phase involves identifying and arranging each task necessary to cover the project’s scope, achieve deliverables, and meet the project’s goals. A comprehensive project plan developed in this phase is instrumental in tracking dependencies, staying updated on the status, and maintaining productivity throughout the project.

What are the key elements of an effective project plan?

A well-prepared project plan requires several key elements that will outline the project’s goals and define the stakeholders ‘ individual roles. Incorporating these key elements into a project plan is essential for effective project management and a higher success rate.

How do you create a project plan?

Step 1: define the project’s overall goals and objectives.

Identifying your project’s overall objectives and goals will help you measure the project’s success and keep your team aligned with the overarching mission. In this step, you should determine the desired outcome of your project that would represent its success.

By clearly understanding what the project aims to accomplish, project managers and teams can better identify the necessary tasks and establish the project scope . 

When defining your project goals, apply the SMART standards for a solid foundation. Make your objectives specific, measurable, achievable, relevant, and time-bound. This approach guarantees a clear, focused, and actionable framework for your project.

Step 2: Establish the project’s success criteria

To measure success effectively, align your success criteria with the project’s key deliverables and outcomes, and make sure they are based on its intended result. Confirm that these criteria are quantifiable and accurately reflect the impact and value your project aims to deliver. Such alignment is essential for accurately assessing the project’s performance and its effectiveness in achieving the intended results.

Step 3: Identify project milestones, dependencies, risks, and deliverables

To identify project milestones, break the project down into key tasks and outcomes and specify significant progress points or phase completions as milestones. Consider dependencies when establishing a realistic workflow. Additionally, identify potential risks that can impact task completion and define deliverables clearly as measurable results expected from each project phase.

Step 4: Assign roles and responsibilities to the team and stakeholders

Your project’s stakeholders include any individuals or groups related to the project. To assess if someone is a stakeholder in a project, determine how much they influence, impact, or have an interest in the project’s outcome. Consider if their involvement is direct, if the project’s results affect them, or if they can influence the project’s direction or success.

Examples of stakeholder groups include:

• Team members.
• Departments.
• Project sponsors.
• Contractors.

Once you have determined your stakeholders, you can define their roles and responsibilities. This can help you structure your project team, identify members who are directly responsible for its success, and make sure they are assigned the correct tasks to carry out the project appropriately.

When assigning roles and responsibilities, utilize a RACI chart (Responsible, Accountable, Consulted, Informed) to clarify the involvement of each stakeholder in the project. This provides clear communication and accountability and prevents overlaps or gaps in responsibilities.

Step 5: Create a schedule and set a timeline

Creating a schedule and timeline for each task can provide visibility into the execution process and keep each team member productive.

Consider how much time is required to complete each task necessary for your project milestones. You can even break down tasks into smaller subtasks to make them more manageable. However, be mindful of factors that can cause delays such as:

• Resource limitations.
• Task dependencies.
• Unforeseen risks.

When creating a project schedule, visual tools like Gantt charts and Kanban boards help you map out task dependencies and timelines. A useful project management tool you can use for this step is Trello. Trello offers an intuitive platform for creating Kanban boards. It allows easy visualization and management of tasks through customizable columns and cards for streamlined project workflow.

Step 6: Establish an estimated project budget

To generate an estimated project budget, you must consider all of the necessary project resources, including personnel, labor, materials, and equipment. Establishing a project budget will help you make wise spending decisions throughout the project execution phase to avoid overspending. 

Step 7: Plan for communication and collaboration

A communication plan should show how information is shared among stakeholders. For instance, in a software development project, the communication plan might specify that the development team shares a beta version of the software with the client for feedback every two weeks. It’s a systematic approach to making sure that the client receives consistent updates about the project’s progress. Having a communication plan in place will also outline the channels of communication and frequency to all necessary parties. 

Leverage collaboration tools , such as Slack , that integrate with your project management software to receive real-time updates and interactions among team members and stakeholders. 

Step 8: Document the project plan

Compile all related planning information and documentation as you plan your project. Some of these vital documents include: 

• Stakeholder analysis.
• Feasibility study .
• Business case.
• Work breakdown structure .

Having these reports in one place will serve as a reference during the project’s execution.

Utilize a centralized digital platform, like Sharepoint , where stakeholders can store, update, and access all project documentation. This approach serves as a reliable reference and streamlines the management and tracking of the project’s progress.

Learn more about Sharepoint and other document management tools in our video overview:

Free project plan template download

Project plan examples.

Using an appropriate project plan format is essential to keeping stakeholders well-informed. Here are some of the widely-used project plan formats: 

1.  Spreadsheets

Using spreadsheets for project planning is beneficial due to its simplicity and widespread use, especially suitable for small-scale projects with straightforward tasks. Its customizable nature is excellent for simple initiatives like office events or basic marketing plans.

However, a significant drawback of using spreadsheets in project planning is the limited visualization options. While spreadsheets can manage data, they fail to offer comprehensive visual representations essential for a holistic view of project progress. Lastly, the risk of human error in data entry and formula setup in spreadsheets is high and can lead to critical miscalculations affecting the entire project plan.

Try this software

For more complex projects, Smartsheet is an ideal upgrade. It merges the simplicity of a spreadsheet with advanced project management features such as real-time collaboration, automated workflows , and app integration. More than just a basic spreadsheet tool, Smartsheet is particularly effective for large-scale projects like detailed marketing campaigns or cross-departmental efforts, offering comprehensive task tracking and resource management in a user-friendly format.

2. Slideshow presentations

Slideshow presentations for project plans provide a visually engaging method to simplify complex information. They effectively break down project components into understandable segments, using visuals, charts, and bullet points to highlight key information and timelines for team members and stakeholders.

However, the downside is that slide shows can oversimplify complex projects and potentially leave out critical nuances. They also require significant preparation time and may not be the best medium for detailed, data-heavy projects.

Microsoft PowerPoint is an excellent choice for creating slide show presentations as part of project plans. It’s user-friendly and offers many templates and design tools. That’s why it’s suitable for beginners and seasoned professionals. PowerPoint’s ability to integrate with other Microsoft Office tools, like Excel for data representation, enhances its utility in project planning.

3. Gantt charts

Gantt charts create a clear visual timeline of a project’s schedule and progress by displaying various project elements’ start and finish dates. This approach helps identify potential bottlenecks and overlaps and facilitates better resource allocation and time management. However, Gantt charts can become cumbersome for complex projects with numerous tasks and dependencies.

Gantt charts are particularly effective in construction projects, event planning, and software development, where timelines and task dependencies are critical.

TeamGantt is an effective PM tool that creates clear visual timelines for project schedules and progress tracking. By allowing users to input various project elements, including tasks, milestones, and dependencies, and then assigning start and finish dates to each, TeamGantt generates an intuitive Gantt chart.

This chart visually represents the project timeline, displaying how different tasks and phases overlap and interconnect over the project duration. The color-coded bars and easy-to-read format make it simple to understand the sequencing of tasks and the project’s overall progress at a glance.

4.     Mind maps

Mind maps differ from other project visualization methods by showing a radial, non-linear format ideal for brainstorming and capturing the holistic view of a project. They emphasize the creative mapping of ideas and relationships. They promote the free flow of ideas and easy visualization of relationships between different aspects of a project. Mind maps can also help identify key components, dependencies, and potential challenges at the early stages of a project.

Moreover, using a mind map before presenting a Gantt chart can help ease the transition from creative brainstorming to detailed scheduling, resource allocation, and progress tracking.

Lucidchart is an excellent software solution for creating mind maps that can be converted into detailed reports. Its intuitive, drag-and-drop interface is ideal for conceptualizing project plans.

Lucidchart also stands out because it integrates with various tools like Google Workspace and Microsoft Office. This integration can facilitate the transition from a visual mind map to a comprehensive written report.

Components of project planning

Work breakdown schedule development.

Using a Work Breakdown Structure (WBS) in project planning offers distinct advantages and some drawbacks. The primary benefit of a WBS is its ability to break down a complex project into manageable components. It is then easier to allocate resources, assign responsibilities, and track progress. This hierarchical project decomposition guarantees that every part of the project is apparent.

However, the main disadvantage lies in its potential rigidity; a WBS can become overly prescriptive, limiting flexibility and adaptability to changes or unforeseen challenges. Additionally, creating a comprehensive WBS can be time-consuming, and if not done meticulously, it may lead to gaps or overlaps in project planning.

monday.com includes a work breakdown feature to help teams organize complex projects into manageable tasks. Each task is separated into more minor subtasks assigned to the appropriate individuals. The chart also displays additional information, such as the deliverables, end dates, and schedules based on interdependencies.

Project and documentation management 

Project and documentation management in project planning has its own advantages and disadvantages. With this process, you can make sure that all project-related documents are organized, up-to-date, and easily accessible. This approach is essential for maintaining consistency and clarity throughout the project lifecycle. Yet, the downside includes the possibility of information overload, where team members might get overwhelmed by the sheer volume of documents.

Agile teams use Jira for planning and managing their projects. Here, you can see some of the information regarding risks and dependencies compiled within Jira. This method of organizing this information can be helpful, as the platform can act as a single source of truth to keep team members updated on the status of specific tasks. It also makes it easy for teams to communicate with external stakeholders about factors impacting the project.

Benefits of creating a project plan

Effective project planning is the cornerstone of successful project execution. It involves several key aspects contributing to a project’s smooth functioning and success. Some of these benefits include:

Remember, an effective project plan is not just a document; it’s a strategic tool that integrates various critical elements to secure the project’s success.

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Money blog: How to split housework fairly - and the things you shouldn't say

Welcome to the Money blog, your place for personal finance and consumer news and tips. Enjoy our Weekend Money content below and we'll be back with live updates on Monday. Let us know your thoughts on any of the topics we're covering using the comments box below.

Saturday 29 June 2024 09:20, UK

Weekend Money

• How to split housework fairly with your partner
• Price of popular food at Wimbledon has stayed same for 14 years - and it's fairly affordable
• Ofgem urged not to lift ban on acquisition-only energy tariffs
• Your comments : Paying off a mortgage into retirement and new cars turning faulty

Essential reads

• A week when probable future of mortgage rates became clearer
• Savings Guide: What to look for with 5% rates still available on easy access accounts
• Cheap Eats : Great British Menu legend picks out favourites at home and in North Yorkshire
• Women in Business : How accident in cafe and £400 turned into a genius business idea that's about to go global
• Money Problem : 'I bought a new car but it's been back six times with same fault - what can I do?'
• How to stop your car from being stolen - or even 'cannibalised'
• Best of the Money blog - an archive

Ask a question or make a comment

By Jess Sharp , Money team

Splitting up household jobs, whether that be cleaning, washing or life admin, is an issue that affects a lot of couples. 

Starling Bank found women do a total of 36 hours of household tasks and admin per week - equivalent to a full-time job. 

This is nine hours more than men - and yet men believe they do the majority in their household. The average man estimates they do 52% of work overall.

It's the discrepancy between perception and reality (and, of course, this can work both ways) that leads to arguments.

Couples who don't divide the housework equally have roughly five arguments about housework each month - rising to eight for couples who rely on just one person for the work.

We spoke to relationship expert Hayley Quinn about the best ways to split household work - and how to deal with arguments should they arise with your partner. 

She explained that it's necessary to be "transparent" when deciding how to split the workload - but also to be flexible in order to find a solution that suits all involved. 

While a 50/50 split might be your idea of perfection, Hayley said it was "almost inevitable that one partner may take on slightly more of the load" at different periods of time. 

"Striving for perfect 50/50 fairness at all times is a really nice ideal, but it just may not be that practical for modern life," she said. 

She said some jobs may be more visible than others, like cleaning, sorting out the washing, and taking the bins out.

Other jobs can take up just as much time and resource, but will fly under the radar. She gave the examples or sorting out travel insurance or changing over internet provider. 

How should you approach a conversation with your partner about splitting the work? 

To start off, Hayley said you should enter the conversation with a positive mindset - think how you are both contributing to the relationship in different ways.

"When you're having these conversations, it's not that many people are sitting around feeling like they're not contributing," Hayley said. 

"In fact, I think if there's a discrepancy in how people contribute, it's just due to a lack of awareness as to what the other partner does, and some chores are just more obviously visible than others."

Try to avoid starting the chat with the perspective that you are working a lot harder than your partner and they're not pulling their weight. 

"That way, you start from a place of we're all on the same team," she said. 

"When you're doing that as well, it's really important not to make statements which assume what the other partner is thinking, feeling, or contributing. 

"So, for instance, saying something like 'I'm always the one that's picking the kids up from school and you never do anything',  becomes easily very accusational, and this is when arguments start.

"Instead, most partners will be much more receptive if you simply ask for more help and assistance." 

When asking for help, Hayley said it's important to ask in a way that's verbal and clear - don't assume your partner is going to intuitively know what share of household chores to take on if you just complain. 

"In a nice way, explicitly ask for what you want. It could be something like saying, 'Look, I know that we're both working a long week, but I feel like there's so much to do. It would be really helpful if... I'd really appreciate it if you take over lunch,'" she explained. 

"Again, start from a place of appreciation. Acknowledge what your partner contributes already, and be explicitly clear as to what you would like them to do. Phrase it as a request for their help." 

She also said some people can feel protective of how jobs are completed, and learning to relinquish that control can be helpful. 

"If you want it to feel more equitable, you have to let your partner do things in their own way," she said. 

What happens if that doesn't work? 

If you find the conversations aren't helping, you can always try organising a rota, Hayley said. 

She recommended using Starling Bank's Share the Load tool to work out your chore split. 

However, she said if you feel there are constant conversations and nothing is changing then the issue is becoming more about communication than sharing the workload. 

"It's actually about someone not hearing what you're trying to communicate to them, so it's more of a relationship-wide issue," she said. 

She advised sitting down and trying to have another transparent verbal conversation, making it clear that you have spoken about this before and how it's making you feel in a factual way, without placing blame. 

Using phrases like "I've noticed" or "I've observed" can help, she said. 

If after all that, the situation still isn't getting better, she said it's time to consider confiding in friends or family for support, or seeing a relationship counsellor. 

The oldest and most prestigious tennis event in the world returns on Monday, with the best of the best players to battle over two weeks to be named champion.

Crowds in their thousands will flock to Wimbledon to enjoy a spot of sport - as well as the range of food and drink on offer.

It's not the cheapest day out, with a cool cup of Pimms setting you back just under £10 and a bottle of water coming in at nearly £3.

But did you know that despite souring inflation in recent years sending food prices through the roof, one fan favourite - the quintessentially British strawberries and cream combo - has stayed at the same price since 2010?

A pot of the sweet snack costs just £2.50, making it one of the more affordable offerings at the All England Club. It has been served up there since the very first Wimbledon tournament in 1877.

Perdita Sedov, Wimbledon's head of food and beverage, previously told The Telegraph the price freeze "goes back to a long-standing tradition" of strawberries and cream being associated with the championship.

"It's about being accessible to all," she said.

According to the Wimbledon website, each year more than 38.4 tonnes of strawberries are picked and consumed during the tournament.

Ofgem is being urged not to lift a ban on acquisition-only energy tariffs (deals that are available only to new customers, not existing ones).

A coalition of consumer organisations and energy companies led by Which? has penned a letter to the government regulator for electricity and gas warning it of the risk of a "return to a market which discriminates against loyal customers". 

They have also raised the potential impact on customers in debt, who may not be able to switch but could also find themselves struggling to access a better deal with their current supplier under the plans. 

The letter also notes the "very recent history" when more than 30 suppliers went bust - many after trying to win customers with unsustainably cheap tariffs.

Ofgem has said it could remove the ban on acquisition-only tariffs from 1 October but consumer choice website Which?  has research that shows the public are opposed to cheap deals that exclude existing customers, with 81% feeling it would be unfair if their supplier was offering cheaper deals to new customers only. 

The consumer champion has signed the letter to Ofgem alongside E.ON, Octopus, So Energy, Rebel Energy, End Fuel Poverty Coalition, Citizens Advice and Fair by Design.

Two topics dominated our inbox this week.

Many readers got in touch about our Weekend Money feature on older Britons who face having to work past pension age to pay off long-term mortgages.

Lots of you share the fears of those we spoke to in the feature...

I am in my 70s with still about five years to go on my mortgage. It stands at 30k on a 300k house. The mortgage repayments are £800 a month, this doesn't sound much but on a static pension it is massive and I am literally on the point of not having sufficient money to pay it. Red

I was supposed to retire in 2.5 years at 66 and 4 months, my mortgage finishes when I'm 70. I was paying off extra (double) on my previous rate to reduce an interest only mortgage, but the recent increases in mortgage rates have meant I'm paying off hardly any. AVB

I'm 67 and still trying to pay off a mortgage that has another five years to run. I can't stop working and do over 10 hours a day, 5 days a week. Keith

My problem is going to be paying off an interest-only mortgage. More than anything I wish I hadn't changed when I had my twins but we couldn't make ends meet at the time. Sazavan

Six years ago I reached the age of 70 and my interest-only mortgage ended - to extend it was impossible with the conditions attached. This then threw me into the rental market, paying more than my mortgage. Now I am facing eviction from the rental due to it being sold. Marianj

We also heard from a mortgage adviser, whose recommendations matched those of Gerard Boon, the managing director of online mortgage broker Boon Brokers, who we spoke to for the feature...

I am a mortgage adviser in Leicestershire and have found an increasing number of people asking to go as long as possible past normal retirement age. I always point out that it's great to have lower payments in the short term but you will need to work to 75. There's no choice. Semaine

Onto the second topic that dominated your correspondence, and we were sorry to learn that lots of you face similar issues as reader Adam, who has had to take his faulty car back to the garage six times - and is still not convinced it is fixed. 

Scott Dixon, from The Complaints Resolver , was on hand to help break down what Adam could do for our Money Problem feature - read his advice here:

Same thing happened to me, except that they didn't let me refund the vehicle and claimed it was my fault even though I told them about the issue during the six months' warranty multiple times... they barely replied. K

I have bought a used car and there is an engine management light on. The garage where I bought it from has since changed name and moved premises (found out by accident). When I call to book in I am told to expect a call back or the mechanic will ring me but they never do. Andy D

I have taken my car to Halfords four times in the last 14 months. Each time they guarantee me it's fixed and within a week it's back to normal. Can I get it repaired elsewhere and bill Halfords? Simon

I have a JAG SVR that's been faulty since day one, the garage sent me home with it faulty and not working correctly. I have tried to reject it but the finance company are playing David versus Goliath... we can prove issues from day one, we have two vehicle reports to back it up. Jezza

Have a Nissan Juke, which has a seat issue where it sinks on its own… Nissan saying it's not a manufacturing fault, but "user error". Where do I stand in getting it fixed? Technical team keeps fobbing it off as our fault. Esmith97

If you're in a position like this, do check out Scott Dixon's advice in the feature above.

The Money blog is your place for consumer news, economic analysis and everything you need to know about the cost of living - bookmark news.sky.com/money.

It runs with live updates every weekday - while on Saturdays we scale back and offer you a selection of weekend reads.

Check them out this morning and we'll be back on Monday with rolling news and features.

The Money team is Bhvishya Patel, Jess Sharp, Katie Williams, Brad Young, Ollie Cooper and Mark Wyatt, with sub-editing by Isobel Souster. The blog is edited by Jimmy Rice.

Starting from next month, gamers will be able to play Xbox titles like Fallout 4, Starfield and Fortnite using Amazon Fire TV.

A new upgrade coming to the Fire TV 4K devices transforms your television into a console, thanks to Xbox Cloud Gaming.

You'll need to be a member of Xbox Game Pass Ultimate to take advantage, plus you'll need a compatible controller and a solid internet connection.

"One of the biggest benefits of cloud gaming is the ability to play premium games without needing a console," Amazon explained.

"The Fire TV Stick may be compact, but it can stream and run graphically intense Xbox games like Senua's Saga: Hellblade II.

"This portability also means you can easily move your cloud gaming setup from the living room TV to a different room or even take it on the road.

"As long as you have a solid internet connection and your compatible Fire TV Stick, and a compatible controller, you can take your Xbox Game Pass games and saved progress travels with you."

Once downloaded, the Xbox app is designed to offer a smooth and seamless experience. Here’s how it works:

• Install and launch the Xbox app from your Fire TV device;
• Sign in with your Microsoft account to play. If you’re an Xbox Game Pass Ultimate member, you’ll have instant access to hundreds of cloud-enabled games;
• Connect a Bluetooth-enabled wireless controller. Controllers like the Xbox Wireless Controller, Xbox Adaptive Controller, PlayStation DualSense, or DualShock 4 controller are all compatible.

A new Amazon Fire TV Stick 4K will set you back £59.99 on Amazon, while a new Xbox Wireless Controller costs £49.59.

Xbox Game Pass Ultimate currently costs £1 for the first 14 days for new members, then is billed at £12.99 per month.

House prices are overvalued by thousands of pounds, according to a major property company.

The typical property is £20,000 more than is affordable to the average household, says Zoopla.

But rising incomes and longer mortgage terms mean the "over-valuation" is expected to disappear by the end of the year.

Zoopla's report said: "House prices still look expensive on various measures of affordability.

"We expect house price inflation to remain muted, likely to rise more slowly than household incomes over the next one to two years."

The average house price is around £264,900 – but according to Zoopla's calculations, the affordable price is £245,200.

"A new government will add a dimension of political stability when the autumn market starts in September and even if the [Bank of England base] rate is not lower by then, a cut will be imminent," said Tom Bill, head of UK residential research at estate agent Knight Frank.

"Given that mortgage rates will steadily reduce as services inflation comes under control, we expect UK house prices to rise by 3% this year."

Zoopla's over-valuation estimate was reached by comparing the actual average house price in its index with an "affordable" price, which was calculated based on households' disposable incomes, average mortgage rates and average deposit sizes for home buyers.

It's one of the most iconic and popular music festivals in the world, and it's notoriously hard to get a ticket.

Glastonbury has rolled around once again and roughly 210,000 people have flocked to Somerset this year as Dua Lipa, Coldplay and SZA headline the UK's biggest festival this weekend.

Those in the crowd are in the lucky minority — an estimated 2.5 million people tried to get tickets for this year's event, meaning the odds really aren't in your favour if you fancy going.

Tickets routinely sell out within an hour of going on sale, and that demand is unlikely to decrease next year, given the festival will likely take a fallow year in 2026.

So, if you're feeling jealous this year, how do you get tickets for Glastonbury 2025, and how can you give yourself the best possible chance?

We've run through all the available details as well as some tips so you're best prepared when the time comes.

Registration details:  Before potential festivalgoers get the chance to buy tickets, they must register on the official website.

One of the reasons this is done is to stop ticket touting, with all tickets non-transferable. Each ticket features the photograph of the registered ticket holder, with security checks carried out to ensure that only the person in the photograph is admitted to the festival.

Registration is free and only takes a few minutes. You will be asked to provide basic contact details and to upload a passport-standard photo.

Registration closes a few weeks before tickets are released.

Where to buy tickets:  Tickets can be bought exclusively at  glastonbury.seetickets.com   once they become available.

No other site or agency will be allocated tickets, so if you see anyone else claiming to have Glastonbury tickets available for purchase, it's most likely a scam.

When tickets go on sale: We don't know the details for next year yet - but Glastonbury ticket sales usually take place in October or November of the year before the festival. 

This year's ticket sales began, following a delay, in November 2023. Coach tickets typically go on sale a few days before (traditionally on a Thursday), with general admission tickets following on the Sunday morning a few days later.

For those that miss out, there's also a resale that takes place in April for tickets that have been returned or for those with a balance that has not been paid.

This year's April resale took place on 18 April (for ticket and coach travel options) and 21 April (general admission tickets and accommodation options).

How much it costs:  General admission tickets for this year's festival cost £355 each, plus a £5 booking fee. That's an increase on last year's price of £335 each, which was also an increase on the 2022 price of around £280.

So, we can probably assume that ticket prices will go up once again for next year's festival. 

Remember, there are options to pay for your ticket in instalments, so you won't have to pay the full price in one go if you don't want to. All tickets are subject to a £75 deposit, with the remaining balance payable by the first week of April.

It's also worth noting that Glastonbury is a family festival, and that's reflected in the fact that children aged 12 and under when the festival takes place are admitted free of charge.

TIPS FOR THE BIG TICKET SALE DAY

The scramble for tickets when they go on general sale is nothing short of painstaking, with demand far outweighing supply.

Here are some tips to give you the best possible chance of bagging tickets:

Familiarise yourself with the website: You may see a reduced, bare-looking version of the booking page once you gain entry. The organisers say this is intentional to cope with high traffic and does not mean the site has crashed, so be sure not to refresh or leave the page.

Once you reach the first page of the booking site, you will need to enter the registration number and registered postcode for yourself and the other people you are attempting to book tickets for.

When you proceed, the details you have provided will be displayed on the next page.

Once you have double checked all of your information is correct, click 'confirm' to enter the payment page, where you will need to check/amend your billing address, confirm your payment information, accept the terms and conditions, and complete the checkout within the allocated time.

Timekeeping: You can get timed out if you don't act fast, so it's a good idea to have your details saved on a separate document so you can copy and paste them over quickly.

You might also have to approve your payment, which could mean answering security questions from your card issuer. Have a device on hand to ensure you're ready for this.

Internet connection: This should go without saying, but you won't stand a chance without a solid internet connection.

Avoid trying to rely on your mobile phone signal, and politely ask those you might share the internet with to delay any online activity that might slow your connection.

Don't give up: Until the page tells you that tickets have sold out, you still have a chance. 

Shortly before that point, there will be a message saying 'all available tickets have now been allocated,' which users often think means their chances are up. 

What it actually means is that orders are being processed for all the tickets that are available. But if somebody whose order is being processed doesn't take our previous advice and runs out of time, their loss could be your gain.

Multiple tabs and devices: Glastonbury advises against its customers trying to run multiple tabs and devices to boost their chances of getting a ticket.

Glastonbury's website says running multiple devices simultaneously is "a waste of valuable resources, and doesn't reflect the ethos of the festival".

"Please stick to one device and one tab," it adds, "so that you can focus on entering your details without confusing your browser and help us make the ticket sale as quick and stress free as possible for all."

Shoppers have been buying bigger TVs to enjoy this summer's European Championships, according to the electrical retailer Currys.

The chain said UK sales were up by more than 30% in the past month, with "supersize" screens — 85-inch and above — selling well in the run-up to the Euros.

"Having a third of the TV market and the Euros being a big event for many people, we're seeing that super-sizing trend keep on giving," said Currys chief executive Alex Baldock.

The most popular, and also cheapest, 85-inch TV on the Currys website costs £999. 

The most expensive super-size TV is a 98-inch offering from Samsung that will set you back £9,499.

Currys reported adjusted pre-tax profits of £118m for the year to 27 April. That represented a 10% increase from the previous year's profits of £107m.

Like-for-like sales for Currys UK and Ireland declined by 2% to £4.97bn in the 12 months to 27 April, with consumer confidence knocked by high inflation levels and rising interest rates.

"We can see our progress in ever-more engaged colleagues, more satisfied customers and better financial performance," Mr Baldock added.

Selling your home can be expensive, with the range of fees that come as part of the selling process meaning costs can really rack up.

Those costs are usually present whether you visit a bricks and mortar estate agents on the high street or if you go online, although Purplebricks has marketed itself as an exception to the rule.

Since December, it has launched a new pricing structure that enables sellers to list their homes without paying a penny, making it the only completely free online estate agent in the UK.

Purplebricks previously charged a fixed fee of £1,349 (including VAT) to sell your house, with that figure rising to £2,999 for those based in and around London. 

That needed to be paid upfront or not later than 10 months after the property was first advertised, even if it went unsold.

Now, after being bought out by rival online estate agency Strike last year, Purplebricks is offering a free service, no strings attached.

Is there a catch, though?

There's no such thing as a free lunch or, it seems, a totally free way to sell your house.

If you'd like to pay more to unlock extras and upgrades, you can do so, with a 'Boost' and 'Full House' package costing £899 and £1,499 respectively.

All estate agents are also required by law to carry out anti-money laundering checks on everyone selling a property.

Typically, that cost is incorporated by estate agents into their service fees. However, as Purplebricks' service is free, it has implemented a separate £60 Anti-Money Laundering (AML) fee for sellers.

What's more, there's also no Rightmove listing included as part of its free service.

As the UK's biggest property portal market, attracting more buyers and sellers than anyone else, Rightmove can help sell your home much faster. 

Purplebricks does include a free Zoopla listing, but adding Rightmove is an optional add-on that will set you back £299.

So, how does Purplebricks make money?

Add-ons and extras. 

Purplebricks will be hoping to make money by customers opting for optional extras or premium services.

As well as the Rightmove example mentioned above, professional photographs and a floorplan will cost £699, while hosted viewings of your property will come at a charge of £899.

Purplebricks can also work with sellers and buyers to help them find the right mortgage deal and by offering them conveyancing services. 

It's important to remember that there is no obligation to buy any of the add-on services, though some will undoubtedly come in handy.

Purplebricks is clear about its up-selling tactics too. This is what its website says:

We’re fully transparent about what little extras we offer and where your money is going – so it really is your choice. When our agent speaks to you, they’ll talk you through the options, and then you can decide if it’s right for you.

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