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Printing Business Guide

A Complete Guide to Start Promotional Products Business

Hiral thaker, table of content, promotional product business online/offline, how to start promotional products business, steps to launch promotional products business online, different marketing tactics, vendors for getting promotional products, things you can sell as promotional products, over to you.

Remember 2020?

A year full of surprises, bad news, and isolation?

However, amidst all the chaos, the e-commerce market stood out and even thrived!

As per Forbes , e-commerce sales grew by a staggering 50% to reach $870 billion during the pandemic.

This surge in online shopping has been nothing short of extraordinary, and it shows just how important e-commerce has become in our lives.

And the growth of e-commerce is not slowing down anytime soon.

According to research done by Statista, it is estimated that the ecommerce market will grow by 8.15 trillion US dollars by 2026.

However, with increasing demand comes increased competition in the e-commerce market.

This, coupled with the shorter attention spans of customers, has made it even more challenging for companies to stay afloat.

But it’s not all bad news.

The increase in e-commerce has also led to a surge in demand for promotional products businesses and their web-to-print services.

So, if you’re thinking of starting a promotional products business and want to stay ahead of the game, this guide is for you.

Now, this is the primary question you must be asking yourself. Here, the answer is clear; you need to start promotional products business online.

The above research showed us how much ecommerce is booming. Today people prefer ordering almost everything online from the comfort of their home.

Some of the significant benefits it brings to online promotional business products are you can enter into global markets. Yes, you heard it right. Initially, it might be difficult, but it helps you have a better return on investment , increase sales , have a global customer base, and more.

Another major thing is you get to know your customers’ needs in more detail. Your own eStore will provide you the freedom to make all business decisions, provide support round the clock, and you will have full autonomy of business processes.

PrintXpand offers a customizable platform that makes it easy to set up and manage an online store.

With features like product personalization, real-time quotes, and automated print-ready files, you can streamline your workflow and provide a better customer experience.

Plus, with PrintXpand, you’ll have access to a team of experts who can help you every step of the way.

From designing your storefront to integrating with your existing systems, they’ll work with you to create a solution that meets your unique needs.

Starting promotional business involves multiple complexities. But, to help you and reduce your burden these are certain steps you need to follow. Implementing these strategies will give you more clarity and help you lead your business better.

Decide Budget

When you plan to sell promotional products online, the first step is to decide your budget. Having clear and concise planning is necessary. It will help you to strategize and plan your next year or quarter. Not only this, but a clear budget will help you to attract more investors, reduce all unnecessary investments and spending.

Apart from this, it helps you improve your decision-making, manage resources, and monitor your business performance.

Decide Business Plan

Running promotional products business requires you to have precise planning of your next steps. You need to define your plans very accurately. Include things like plans for next quarter or year, get clients and retain them, define marketing strategies, etc.

Making business plans will help you at every phase and provide you clarity about different segments of your business. It will also help you have a broader understanding of your market, focus on bringing more investors, and keep an eye on the budget.

Decide Target Audience

Knowing your target audience is a very crucial part. It gives you insights into your customers, their requirements, and creating products accordingly. There are two ways you can sell promotional products online, i.e., B2B and B2C. Depending on your business model and requirements, you can decide whom you want to target.

In the case of promotional products business, it’s better to start B2B. You will have a fair chance to get bulk orders. Reach out to companies, NGOs, sports academies, etc., talk about your company and how you can help them.

Once you sign a contract with any company, you can help them promote their business using different products such as pens, mugs, t-shirts, pen drives, etc.

To make the process of designing and creating custom promotional products easier, consider using an online product design tool.

With the easy-to-use software, your customers can create their own designs, and you can fulfill those orders with ease.

This way, you can create a strong online presence, reach a wider customer base, and provide a more personalized experience for your customers.

Legal Procedures

Going through all legal procedures to register your company is essential to start promotional products business. Reach out to the business registration office in your area and fill in the required forms. Each district has different formalities, so make sure to read procedures to register your business. Once needed formalities are completed, and you get a green signal from this office, you are all set to start your business.

Pro-tip: Be ready for lots of paperwork.

Once your business is registered, your next step is to reach out to a logistics company as your store is online. Contact multiple logistics companies in your area and places you plan to ship your product. Make sure that they are experienced and have good services. One of the unique selling points of eStores is timely delivery. Of Course, we don’t have to aim for fast delivery like Amazon, i.e., the next day. But, make sure that your product gets delivered in 3 to 4 business days. Alternatively, consider outsourcing your registration and compliance legwork. According to this Incfile alternatives post by SmallBusinessHQ , some business formation firms even offer free LLC formation services.

Good and timely delivery will help you embark on a long-lasting impression on your customers. It will also make you their first choice when they plan to purchase or order some promotional products.

Tie-up with IT Companies

When you plan to sell promotional products online and are confused about where to start from or what to do. Then, reaching out to IT Companies like us should be your priority. They will help you at every step from scratch.

Why IT companies over freelancers?

When creating a website, there are lots of complexities. It starts with researching, designing, development, security, deployment, and maintenance. Each of these phases requires a dedicated team to handle all complexities. If you are planning freelancers, it might become difficult to get your entire eStore up and running and hinder quality.

Whereas, with IT companies like us you can easily depend due to large experienced team members. Each phase has a dedicated team assigned, which makes the process faster without affecting the quality. Hence tying with IT companies like us is a wiser choice to develop your eStore.

Features That Matter

After signing a deal, your next step will be deciding on features. Start with market research , study your competitors, understand your customers’ requirements, and decide the features of your eStore. Following are some of the standard features needed to sell products online:

• Multiple payment modules like UPI, Stripe, Credit/Debit cards, Net banking, etc.
• Social media sign in options
• Add to cart
• Add to wish lists
• Personalized recommendations of purchased history
• Good UI/UX and easy navigation
• Multi-language support

These are some of the basic features when it comes to developing an eStore. Further, you can decide features according to your business and customers’ needs.

Choose the right technology platform

There are multiple technology platforms available in the market for developing ecommerce platforms . It can often create confusion while selecting, as each of these platforms are good in their own. Thus, to overcome this confusion, let’s have a quick brief about them,

When we talk about ecommerce technology then Magento, Shopify and wooCommerce are leading options. Other technologies like Php, Dot.Net, OpenCart, etc., are not used much.

Magento Design Tool

It is a go-to solution when dealing with businesses. The timely security updates, SEO friendly, and scalability to handle complex processes makes it stand out. Apart from this, the admin can handle multiple stores easily; make any changes needed in the code during configuration. It’s an open-source platform, and so it has large support of developers and resources like blogs, videos, articles, etc.

Additionally, Magento has more than 900 themes and is a leader when it comes to B2B and international websites. Majorly because of its open-source, enterprise-focused, and cloud edition PaaS.

Shopify Design Tool

Talking about Shopify, they are leading when it comes to SMB solutions. Mainly designed to keep the ecommerce audience first. Widely known for its easy navigation, appealing UI/UX, and more than a thousand themes. If you are a beginner in the ecommerce industry, Shopify makes it easy for you to set up a store in a few hours. Additionally, it is very easy to install apps, manage catalogs, and a complete SaaS-based solution.

Moreover, its hosting and security services are included, which is beneficial for beginners. No more struggles of handling servers or learning the complexity of SSLs.

WooCommerce Design Tool

Many people prefer having their ecommerce website in wooCommerce because of the strong CMS support. wooCommerce has a 1000+ themes and its large community support makes it easy to develop websites. Developers can easily plugin third-party tools without worrying about extra charges and can completely customize their code as per need.

The combination of wooCommerce and WordPress has made it a go-to solution for many developers due to the great demand for robust CMS. It is a perfect solution for companies who depend more on CMS. The major weakness of this platform is the constant need to have a developer for maintenance.

Below table shows some quick comparisons between each of them:

It is seen that Magento and Shopify are leading in the ecommerce sector. They are a go-to solution for many eStore developers because of the scalability they provide.

Pro-tip: Experienced IT companies can help you selecting the right platform.

Each of the platforms is best suited according to your need. If you still need further guidance to set up your e-store with a promotional product designer tool , check out the designer tool below to know more!

Your Unique Selling Point

There are already many promotional companies in the market, which means a lot of competition. In such a competitive market, it can become difficult to sell promotional products online. Hence, this is when you need to define your USP, i.e., one thing which makes you stand out from the crowd.

If you haven’t thought about it yet, don’t worry, we have an answer for you.

Your USP can be Customization.

Yes! You heard (read, I mean) it right. Currently, there is a huge demand for customized products in the market. People are ready to pay anything for custom products.

Gone are the days when you were creating designs on your customer’s behalf. In the era where everything is going online, you can provide your customers with third-party tools to create custom designs.

While you plan to start promotional products business, you can integrate our Product Designer Tool on your website. When you reach out to your customers, you can talk about customization and ways they can create custom designs.

Our Product Designer Tool makes it easy for your customers to create custom designs from an extensive library of fonts, images, and more. Once the design is ready, they can place orders directly from the website. This entire process is easy and avoids unnecessary back and forth.

Below are some of the significant benefits of the PrintXpand Product Designer Tool:

• Supports all technology platforms like Magento, Shopify, wooCommerce, Php, Opencart, API integration
• Feature-rich library with font types, images, clip-arts, object handling, and more
• Mobile-first approach to creating designs on the go
• Design a wide range of products like mugs, t-shirts, hats, pin buttons, etc.
• Easy integration and configuration on the admin side

And a lot more features. Try our tool and see how useful it is for your business and customers. And ways it can add value to your organization.

Once your website is launched, the next step is marketing. Marketing is vital to make your business reach more people. There are multiple ways you can market your website and business. Let’s see them in brief:

Digital Marketing

Digital marketing plays an important role when you want your website to rank on search engines. There are two ways to do it, i.e., PPC and SEO . If you want immediate results and quickly rank your website, then PPC is the best option. Whereas SEO takes some time to make your website rank and get organic traffic. Both of them are best in their way, so depending on your needs, you can decide.

Social Media Marketing

Social media marketing is the best way to reach out to more customers. Today almost every person uses social media, and marketing products on it has become essential for businesses. Create your businesses’ social media account and post your products. Further, using the right tools, you can know your customers in detail and understand their needs. This data helps you to make your product better and serve your customers better.

Influencer Marketing

Social media has given birth to influencers. It resulted in an entire new vertical known as influencer marketing. You can reach out to social media influencers, explain your services, sign a deal, and market your products. It’s a new way of marketing and has a lot of potential, especially when your target is GenZ and millennials.

Creating a proper marketing strategy and executing it is important. The correct way of marketing will help your business a lot.

When you plan to start promotional products business, your major concern will be reaching out to vendors. You must be selling multiple products online like; t-shirts, mugs, pin buttons, hats, pens, caps, and a lot of other products. For each of these products, you will require a vendor who will supply them to you.

To do so, reach out to experienced vendors who can help you supply all these products and make sure about the quality. You can either order them in bulk and stock them in inventory or order them according to customers’ demands.

There are multiple promotional products which you can sell. But, as you will be dealing with B2B, your product needs will be based on your customers’ needs. That can be; company special t-shirts, bottles, mugs, etc.

Here are the top ten things which you can sell as promotional products:

• T-shirt/Hoodies
• Caps/Beanies

Many companies are leading in providing such promotional products to their employees as well as meet up attendees for free. It is an important part of the branding and marketing of their business.

Initially it is challenging to sell promotional products online. But, this market has a huge scope if you start in the right direction. Follow these steps to set your eStore and see how your business shines in the competitive market.

It’s time to bring your business online and bring new ways to reach out to more customers. If you are looking for expert advice and need guidance on how to start promotional products business online, you can reach out to us. Our experts are industry leaders and have helped many clients set up their entire business from scratch.

All product and company names are trademarks™, registered® or copyright© trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Hiral is an Art of Living volunteer, IamRemarkable Facilitator, tech community enthusiast and loves talking about Google. Coming from an engineering background, she took up writing because she wants to contribute to making “Technology an Equalizer”. Hiral likes reading self-help books to know about other people’s stories and this gives her insight into creating stories about tech. You can often find her grooving to Taylor Swift or Kpop music. Her best writing is done on waffle energy! 

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Maximize Growth Now

How to Create a Promotional Plan to Maximize Business Growth (with Examples & Strategies)

Updated July 2023.

You can elevate your business to new heights with a stellar promotional plan. In an increasingly competitive world, this tool has become indispensable for businesses big and small.

From identifying your target market to choosing a catchy promotion name, from selecting an effective promotion type to deciding on key messages and promotional products, we’ll journey through the creation of a powerful promotional plan.

Get ready to excel with our comprehensive guide and downloadable promotional plan template. You’re one step away from transforming your business goals into a reality!

Their expertise has helped Nextiva grow its brand and overall business

TABLE OF CONTENTS:

What is a promotional plan.

• Public relations
• Sales promotion
• Social media marketing
• Online marketing

Advertising

• Personal selling
• Conduct a SWOT Analysis

What Are the Main Components of a Promotional Plan?

• Define Your Target Audience
• Name Your Promotion
• Determine Your Promotion Type
• Craft Your Key Messages
• Create Your Promotional Products and Swag
• A Promotional Planning Template to Help You Get Started

Brand Promotion

6 types of marketing & sales promotion strategies to boost your sales.

• How to Create a Promotional Plan: A Final Recap

Before we dive deeper into the main components of a promotional plan, I think it’s absolutely necessary to understand what a promotional plan is. This will help us be more accurate in defining the future steps of a business plan, thus making it more likely for us to achieve our marketing objectives and grow.

A promotional plan is a strategic document that outlines your company’s marketing and advertising efforts over a specific period. It details the actions your business will take to promote its products or services to its target audience.

A promotional plan is an element of a marketing plan for a specific product or service. It includes the types of promotional methods you’ll use, such as social media marketing and print advertisements, as well as key components like target market and key messages.

Here are some of the key elements that you might find in a promotional plan:

• Objective : Clear, specific goals that the promotion seeks to achieve, such as increasing product awareness, driving sales, or attracting a new audience.
• Target Audience : Identification of the group of people who are most likely to be interested in the product or service. This can be based on demographic information, lifestyle, consumer behavior, and other factors.
• Promotion Name : A catchy name for the promotional campaign that aligns with the brand and resonates with the target audience.
• Promotion Type : The specific form of promotion that will be used. This might include advertising, direct marketing, sales promotion, public relations or digital marketing, among others.
• Promotion Mix : This refers to the combination of promotional tools and methods that will be used to reach the target audience. It might include a mix of traditional advertising, social media marketing, email marketing, event marketing, and more.
• Key Messages : The main points that the promotional campaign seeks to communicate to the target audience. This could include information about the product, the brand, or other important aspects.
• Promotional Products or Services : The specific products or services that will be promoted. These might be a new product, a seasonal offering, a special deal, etc.
• Budget : The financial resources allocated to implement the promotional plan. This should cover all costs associated with the promotion, such as advertising costs, production costs, and event costs.
• Timeline : The start and end dates of the promotion, including any important milestones or deadlines within the promotional period.
• Evaluation Metrics : The measures that will be used to determine the success of the promotional campaign. This could include sales data, website traffic, social media engagement, customer surveys, and more.

It’s essentially a roadmap that guides all of your promotional activities, helping to ensure they align with your overall business goals and objectives.

What Are Promotional Strategies?

As you can see from the definition above, this plan details the tools and you need to implement various promotion strategies. But what exactly are promotional strategies?

In a nutshell, promotional strategies are the tactics, techniques, and activities you use to promote your product or service. Promotional strategy examples can include:

Public Relations

Playing a major role in getting your key promotional messages out to as wide an audience as possible, Public Relations (PRs) uses various communications strategies designed to influence public perception and opinion of a brand, its products, or public-facing figures.

These strategies include:

• Media relations and pitching stories to journalists
• Organizing press conferences and media events
• Community engagement events covered by the media

Sales Promotion

Sales promotions typically involve enticing customers with a discount, freebie or other perk.

Examples include:

• Buy-one-get-one-free offers
• Percentage-off sales
• Limited-time only discounts
• Seasonal sales
• Free trial periods
• Free shipping when the cart total reaches a specific volume

Social Media Marketing

Few brands (if any) can truly thrive in today’s digital society without an effective social media presence.

With an array of social media platforms available, brands have unprecedented opportunities to connect with their target audience and drive engagement.

Examples of social media marketing include:

• Partnerships with social media influencers
• Creating and sharing relevant and useful content
• Running contests and giveaways
• Using paid social media advertising such as Facebook ads
• Improving brand loyalty and reputation by engaging with followers

Online Marketing

Online marketing can take many forms, including:

• Content such as blogs and videos
• Email marketing
• Influencer marketing
• Social media
• Affiliate marketing

Advertising remains a tried-and-true promotion method that continues to generate significant revenue for brands, even at a time when those brands have more marketing and promotional options at their disposal than ever before.

Examples of advertising as a promotional strategy can include:

• Display ads placed on websites and video sites such as YouTube
• Print advertising
• Television , radio and streaming media spots
• Billboards and street furniture (like bus benches) advertising

Personal Selling

Personal selling is all about building direct connections and relationships with potential customers. It’s a hands-on approach that involves face-to-face interactions and persuasive communication techniques such as:

• Presenting products at tradeshows and exhibitions
• Product demonstrations at locations your audience is likely to populate
• Networking at events
• Personalized lead generation and follow-ups

Together, these strategies can prove highly effective for achieving marketing goals relating to your website or digital presence.

Related Content:   10 Inspiring Examples of Promotional Campaign Videos for Startups

Conduct a SWOT Analysis for Your Promotional Plan

After having outlined your activities and marketing efforts, you then need to put your plan out there. What’s extremely important is to make sure that you conduct some sort of situation analysis or SWOT analysis.

SWOT is an acronym for Strengths, Weaknesses, Opportunities, Threats:

To put it simply, such an analysis will help you track and measure the effectiveness of your promotion plan as well as your marketing plan as a whole.

Author’s Note:  Keep in mind that conducting a SWOT analysis can also be beneficial for your business’ content marketing strategy, social media plan, SEO, and – in general – any other actions that your marketing department might be taking, like creating a marketing plan template.

Measuring the results and monitoring your metrics will help you understand whether you’ve put some smart goals in place when designing your plans or if you should reconsider. It’ll also give you a clear idea of how close you are to achieving your marketing goals and what your future steps should be.

Simply put, to be aware and keep track of the results will help you make sure you’re not losing time or money on an ineffective promotional plan.

The promotion plan template below illustrates the main components you’ll need to use in your plan, including (we’ll go into details about each one in the next section):

• Target audience
• Name of your promotion
• Type of promotion
• Key messages
• Promotional products and swag
• Additional notes

This template illustrates various examples of promotional strategies inspired by a UK government promotional campaign that ran across the country after the reopening of restaurants. The campaign’s goal was to help the industry that had been hit hard by the pandemic:

How to Create a Promotional Plan

I’ll use the example of a fictitious London restaurant participating in this campaign to demonstrate how to create a promotional plan of your own in the following step-by-step tutorial.

1) Define Your Target Audience

No promotional plan can ever be successful if you don’t know who it is you’re promoting to. This is why it’s so important that you start this process by defining who your audience is and what they want.

In the free promotional strategy template included with this guide, you’ll see that the target audience doesn’t have a specific audience, as the campaign was essentially an appeal to the entire country.

That may be fine if you’re a national government with a bottomless budget, but let’s face it: The products and services produced by most businesses were never designed to appeal to everyone.

Whether you sell classy-but-comfortable business shoes to female executives or performance monitoring watches to marathon runners, practically every business has a specific ideal customer they want to reach.

So, before you do anything else, determine who that ideal customer is for your brand.

If your business is brand new, you’ll benefit from learning how to develop buyer personas , a process that can be invaluable for helping you think about the type of people your promotional marketing strategies are aimed towards:

If you’re already well-established, think about your long-term customers:

• Who are they?
• What do they like?
• What would appeal to them from a promotional stand point?

These insights into your target audience will make a world of difference when it comes to making informed decisions about the kind of promotional message that is most likely to hit home with your customers and the best approach to deliver that message.

To show you what this might look like, we can refer to our fictitious London restaurant, which might come up with the following:

Our target audience is young executives working in the nearby business complex. Most of our existing customers fit these audience demographics and we know that they value fast, efficient service. We also know that the majority of bookings and enquiries from this demographic are made on social media.

2) Name Your Promotion

Now that you know who your audience are, you need to give your promotion a name that will appeal to them.

“Eat Out to Help Out” was a great name for this campaign because it was catchy, memorable and appealed to people’s sense of patriotic duty in the aftermath of major crisis while also answering that fundamentally important question: “What’s in it for me?”

You mean all I have to do to help out my country is go to a restaurant for a hugely discounted meal? Sure, I’ll do that, sign me up!

To give a more recent example from here in the United States, Taco Bell’s “Freeing Taco Tuesday” campaign is fast gaining a lot of attention partly because it’s such a unique idea, but also because it genuinely engages the curiosity of its audience.

Why does Taco Tuesday need freeing? Who from? I don’t know! Tell me more Taco Bell, and tell me how I can help!

LeBron James was featured in an ad called “Taco Bleep,” which emphasized the campaign message: the absurdity of “Taco Tuesday” being trademarked:

This is what you’re trying to do by naming your promotion. Come up with something that grabs the attention of your audience, sticks in their mind, and compels them to want to take action, whether that action is signing a taco-related petition , eating at a restaurant, or buying a pair of shoes.

3) Determine Your Promotion Type

Next, you need to determine what type of promotion you’re planning for.

Some of the most effective promotion types  include:

• Discounts (percentage off or dollar off)
• Loyalty schemes
• Referral rewards
• Free shipping
• Spend a set amount and get a free product or service

To determine which promotion types are bested suited for your campaign, it pays to think about what your goals are.

With Eat Out to Help Out , restaurants were offering customers £10 off (almost $13 USD) per person:

This type of promotion would be classed as a discount and is the right approach for our restaurant, as it aligns with the business goal of getting more paying customers through the door and increasing profits.

However, for the aforementioned Taco Tuesday  campaign, a discount would be less effective as the main goal of this campaign is essentially boosting Taco Bell’s brand reputation and visibility by presenting themselves as “the good guys” who want to liberate the Taco Tuesday trademark from the evil clutches of their competitors.

If you were selling shoes, you might also run with (pun intended, of course) a discount promotion, while a company selling performance monitoring watches might run a promotion in which customers who upgrade to their newest device get an additional product for free.

4) Craft Your Key Messages

Your next task is to come up with a compelling marketing message that tells your audience what you want them to do and how they’ll benefit from doing it.

Again, the Eat Out to Help Out campaign did a good job with their message:  Support your local restaurant by eating out with a 50% discount on food or non-alcoholic drinks.

This one has it all.

It provides a clear call to action to eat out at a local restaurant and answers the “What’s in it for me?” question by telling people that they’ll benefit by enjoying a half-price meal .

Here, the word “support”   lends this promotional message added gravitas as it subtly tugs at our emotions and appeals to that part of human nature that makes us want to help others.

Your message should be equally as clear, concise and compelling as this one.

If you’re struggling with this, here are a couple more examples to get you inspired:

• Upgrade your TechX Performance Monitoring Watch to the latest new model and get a free pair of headphones.
• Save 50% on this season’s most popular shoes when you shop at Big Foot’s Shoe Store.

Both of these messages contain all the vital components.

They make it clear what action the audience should complete (upgrade their watch or shop at a certain shoe store), and they outline a clear benefit (save 50% or get some free headphones).

Each example also appeals to the audience’s emotions in different ways. The word “free” triggers a certain level of excitement in all of us, while the promise of a discount on “this season’s most popular shoes” appeals to customers who love staying up-to-date with the latest styles.

6) Create Your Promotional Plan’s Swag

Promotional products serve as a kind of distribution channel which help draw attention to your current campaign and your business as a whole.

What’s great about branded merchandise is that it can be almost anything, through the closer your swag ties into your campaign, the better.

In my hypothetical promotional campaign, I’m using promotional t-shirts  to convey my message and promotion name:

Promotional hats are also among the most popular branded products, so why not include them as well?

Both the t-shirts and hats can be worn by members of restaurant staff, but also be given to customers as a “thank you” gift.

Elsewhere, our shoe store might create high-quality, reusable bags that customers can take away their purchases in, while our company selling performance watches for marathon runners would naturally opt for branded running apparel to help boost their campaign’s visibility among their key demographic.

You might even choose to create a swag box  in which you put several useful items relating to the promotion and your brand:

When it comes to creating products of your own, keep the following tips in mind:

• The more useful your promotional items are to your target audience, the more they’ll be used, and therefore the more effective they’ll be at increasing brand recognition.
• Use your company’s logo and usual branding colors across your items. If your logo, website, and storefront all use a blue and white color scheme, don’t suddenly start giving away yellow and black t-shirts.

6) Take Notes

Creating a notes column in your promotional plan template will be a huge help when it comes to keeping track of new ideas or other relevant details that could help you run your campaign more effectively.

I’ve definitely used the notes column in my promotional plan template to write down a few additional ideas for promoting my campaign.

For example, I thought promotional banners outside the restaurant, alongside digital banners posted on social media platforms, would significantly help me bring more awareness to my campaign.

A Promotional Plan Template to Help You Get Started

After having broken down the components of a promotional plan, here’s the promotional plan example I promised I’d give you.

👉 Click here for access to the Promotional Planning Template 👈 ( be sure to save a copy to your own computer first ):

The columns are as discussed above and include all essential information about the promotion. Make sure to copy/download it first and then start using it to build your promotional plans!

Related Content: Just Do It: What We Can Learn from Nike’s $39B Marketing Strategy

Promotional Plan Examples

1) Johnston County 2022-2023 Marketing Plan

Johnston County in North Carolina put together a comprehensive marketing plan outlining how they plan to increase visitor numbers:

The plan outlines the challenges faced by the tourism board: “In year two of recovery from the pandemic, travel seems to be on the rise, however, new challenges continue to plague the tourism industry.”

To overcome those challenges, Johnson County first defines its target audiences and then sets forth a list of clearly defined marketing goals.

The plan then outlines the strategies they’ll use to achieve those goals, such as increasing email marketing efforts and upping the game in online paid advertising.

2) Viral Spiral Marketing Plan

Viral Spiral (VS) is a Taiwanese biotechnology company that used its marketing strategy to promote at-home covid testing kits:

Containing everything from an analysis of current market trends and the company’s competitors to a thorough SWOT analysis and detailed information on their promotional strategy, this is an excellent marketing plan example for those going to market with a new product.

1) Unicef PPC

An excellent example of a promotional strategy focused on advertising comes from Unicef:

The charity frequently uses pay-per-click advertising on YouTube and social media as part of its fundraising efforts.

If you read our round-up of multi-channel PPC case studies , you may recall that one campaign served display ads to around 5 million people, resulting in Unicef tripling their anticipated fundraising total.

2) Boston Red Sox Media Campaign

The Boston Red Sox had an image problem:

“Despite coming off two straight division titles, there was an inexplicable yet palpable “ho-humness” among the team’s fanbase that not even a new manager or a $100 million slugger could fix. We needed to find a way reignite the city’s passion for the team.”

Since a disengaged audience can harm brand reputation and sales, the Red Sox launched a new advertising campaign to foster a personal connection between the team and their fans:

“’More’ became a foundation for our work: the idea that to the city of Boston, baseball is more than just a game. And those who play for the team are more than a collection of names and uniform numbers. They’re our family. It was a deliberately intimate campaign that provided snapshots of the team and players, thereby giving fans a more personal connection with the team.”

The Opening Day spot earned over one million impressions within the first two weeks of airing.

1) Boohooman Personalized Promotions

In men’s fashion, boohooMAN was experiencing some frustrations when it first began sending SMS campaigns to customers:

• They used the channel mostly as a one-off on big shopping days such as Black Friday.
• They sent non-personalized messages to unsegmented customers.
• They sent these messages to largely inactive customers.

Their ROI was, as they stated, “subpar at best.”

So they created a new promotional plan in which they sent personalized SMS campaigns to drive more sales:

With messages relating to each customer’s purchase history, birthday and other key data, the company generated increased ROI on promotional activities 25-fold.

2) Industrial Tool Supplies Customer-First Approach

Further proof that focusing on your audience can lead to better sales comes courtesy of UK-based Industrial Tool Supplies :

A case study  showed that focusing on giving users the best shopping experience and putting customers front and center of every decision helped them increase orders by 21% and revenue by 23%.

1) Glossier Brand Promotion

This case study details how beauty company Glossier grew into a $1.2 billion enterprise by placing a heavy emphasis on branding in its promotional plans:

The company focused on getting to really know its audience and developing a unique signature style that proved irresistible to its target customers.

2) Visit Baton Rouge

Here’s another example of a tourism board making good use of its promotion plans. This time, it’s from the folks over in Louisiana who came up with a detailed campaign to promote their “Visit Baton Rouge” brand:

Their strategy involved a complete rebranding with a new logo, tagline, and vision that appealed to tourists and local Louisiana folk alike. They used the SWOT template for a deep analysis, deeply segmented their target audience, and outlined specific goals.

In the dynamic world of commerce, employing a diverse mix of marketing and sales promotion strategies is crucial for driving growth and achieving your revenue goals. These six strategies encompass a blend of paid and organic methods to attract, engage and convert your target audience.

We can help you skyrocket your sales and grow your business with these strategies:

• Paid advertising :  Harness the power of targeted advertising platforms to reach your ideal audience with compelling messages that drive conversions.
• Content marketing : Create and distribute engaging, informative and valuable content that attracts and retains a clearly defined audience — and ultimately drives profitable customer action.
• Sponsorships and Influencer Marketing :  Collaborate with reputable brands and individuals to tap into their established audiences and gain credibility in your industry.
• Email marketing :  Build strong relationships with your subscribers through personalized and relevant email campaigns that nurture leads and drive sales.
• Retargeting :  Reconnect with website visitors who have shown interest in your products or services by displaying targeted ads across the web.
• Referral marketing :  Encourage your existing customers to refer their friends, family, and colleagues to your business through incentives and rewards.

Final Recap: How to Create a Promotional Plan

Once again, here is your free Promotional Planning Template  ( be sure to save a copy to your own computer first! ).

In this post, we’ve discussed the definition and importance of a promotional plan, some of the main activities that such a plan might include, and what the components of a promotional plan should be in order to be concise and successful in achieving your goal.

After presenting the main components of a promotional plan, we’ve also shared with you a free promotional planning template.

If you’re ready to level up your business, Single Grain’s marketing experts  can help!👇

Additional content by  David Borgogni .

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How to Start a Promotion Company

Last Updated: February 22, 2024 Approved

This article was co-authored by Michael R. Lewis . Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. He has over 40 years of experience in business and finance, including as a Vice President for Blue Cross Blue Shield of Texas. He has a BBA in Industrial Management from the University of Texas at Austin. There are 8 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 15 testimonials and 91% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 198,010 times.

Promotion companies are the driving force behind many well-known brands, musicians, and actors, and many of the top firms make millions of dollars a year. If you have a knack for promotions and a strong entrepreneurial spirit, knowing how to start a promotion company could offer you a rewarding career. And though starting a promotion company doesn't require any formal training, it does require a significant knowledge of branding and marketing, as well as a sound understanding of business principles. By creating a solid foundation and working to market your promotion services, you can soon be on your way to success.

Research and Planning

• However, working with a large company is not the only path to success. You can also start with an artist or set of small events and then build your career from there.
• Working on your own places you in charge, with all of the associated risks and rewards that come from that. [1] X Research source

• You can also start in one area in which you can find work and expand from there as your career progresses.
• For example, it is relatively easier to get work producing promotional materials than as an event promoter. Once you have established yourself with effective marketing materials, you can branch out from there. [2] X Research source

• You also need to include your startup costs, services offered, and strategies utilized.
• Your strategy section might include, for example, a timeline of your preparations made before an event.
• Write in a marketing analysis section that includes your target demographic, an analysis of the industry, and an assessment of the local market for your services. [4] X Research source

Funding and Licensing

• Reduce your capital needs by looking for venues without large advance deposits, working on word-of-mouth advertising, and keeping ad spending low. [5] X Research source

• You may also be responsible for signing up to collect state sales tax and for buying insurance coverage. Check with your local branch of the Small Business Administration (SBA) for more information.

Marketing and Networking

Expert Q&A

You Might Also Like

• ↑ https://www.thebalance.com/music-industry-jobs-how-to-become-a-promoter-2460877
• ↑ http://www.startupbizhub.com/start-a-promotional-company.htm
• ↑ http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-09/Concert-Promotions-Company.html
• ↑ http://www.earlytorise.com/how-to-grow-an-event-promotion-business/
• ↑ http://www.marieclaire.com/career-advice/tips/a9840/successful-self-promotion-building-your-own-brand/
• ↑ https://www.entrepreneur.com/article/71900
• ↑ https://www.careersinmusic.com/concert-promoter/
• ↑ http://www.forbes.com/sites/theyec/2013/10/08/five-steps-to-expand-your-business-globally/2/#3cbfaf834f06

About This Article

To start a promotion company, create a business plan that outlines your investment and startup costs, services offered, client strategy, and projected income for the first 2-3 years of operation. Next, register your company, obtain a business license, and purchase the equipment you need to get started. Then, cultivate a social media presence and create a website that reflects your brand and vision. Finally, reach out to potential customers with email campaigns, flyers, posters, and magazine ads! For tips on networking, read on! Did this summary help you? Yes No

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Promotional Products

Q&a: how to build a promotional products business from scratch.

How do you build a promotional products business from scratch? How do you grow without spending an arm and a leg on marketing? How do you keep your customers in an age of increasing competition from online vendors? These are questions that everyone in the promotional products industry has pondered, and the best person to answer them is someone with a deep understanding of the industry and its customers.

We sat down with Jeffrey Wasserstrom of JAW Enterprises , a business owner with 15 years of promotional products experience. He shared some invaluable insights about how to build strong customer relationships and succeed as a distributor, whether you’re new to the industry or a seasoned veteran. Stick around until the end for a list of Jeff’s best tips.

OutboundEngine: How did you get started in the industry? Jeffrey Wasserstrom: I went to work selling printed apparel, T-shirts and embroidery. I did that for a few years until I started realizing a lot of my customers needed more than just apparel, so I started adding promotional products on my own. Once I knew the business, I decided I could do this myself and just contract out the printing. I don’t consider myself the typical old-fashioned salesperson. I’m more of a customer relationship person. All of a sudden, I was stuck out on my own with zero customer base and had to find all new customers. That’s not really my forte, so that’s where my struggle has been off and on for the past 15 years.

What did you do to build your business from nothing? When I first started out I did a lot more cold calling, knocking on doors, and I can honestly say there are a number of customers that I still have that I got from knocking on doors 15 years ago. It’s a great feeling to realize one, that it did work, and two, I’ve been able to develop relationships with them and they stuck with me all the way through. That’s what I enjoy most about the business — building relationships and trying to figure things out creatively to help my customers increase their business and make more of an impression with their prospects.

Where does most of your business come from? Very much referrals, often from my established customers. I was also lucky enough to be named the Ambassador of the Year from the Dublin Chamber of Commerce. They pick one each year, and that’s already been paying dividends. I’ve had a number of customers contact me after seeing that I was the ambassador of the year, and realizing there’s somebody right here who’s active in the community.

Since referrals are important to your business, what’s your strategy for seeking them out? Write handwritten notes. When I meet people, I send a handwritten note. If I get a referral from somebody, I write a handwritten note, just saying thank you. A lot of times I’ll even give them a 10 percent discount on their next order. With a new customer I get as a result of a referral, I’ll do the same thing. I’ve tried to get back to writing handwritten notes that take a lot more time because people really appreciate that. And then, of course, I rely on you guys to do all the social media and email stuff.

What role do you think online marketing has in driving customer loyalty? I’ve been looking for someone like you guys for years. I wanted to do my own emails on a regular basis, but I’m not very savvy on the computer. And I don’t really have the time to do all that. I first reached out and got started with OutboundEngine’s email program about two years ago, and then a little over a year ago I added the social media.

What kind of response have you had from clients in regards to your marketing efforts? I do get a number of people who come up to me and say, “Man, you’ve got one heck of a marketing program!” They think of JAW Enterprises now as an up-to-date marketing company, not just this little operation, and that makes a big difference for me.

How do you provide value to customers beyond just taking their orders? I try and make sure that they’re being thoughtful when deciding on a promotional product. Some people come to me and just want something to hand out. Instead, I try to stress the importance of the three U’s. Give a product away that’s 1) Useful, 2) Unique and 3) Unforgettable. So now you’re going to stand out a little more than your competition. And that’s how you make a lasting impression.

If a client expresses interest in one of the products mentioned in an email newsletter we send for you, what do you do from there? Before reaching out to the customer, I’ll spend a little bit of time searching supplier sites, looking for things that I think would be of interest to them. And then I go ahead and utilize suppliers that I’m comfortable with and know I can rely on. Some companies are just set up better than others for turnaround. Bullet is one that has an incredible customer service program.

How do you keep past customers coming back to you and establish lasting relationships? I really do care about my customers. It goes back to the win-win thing. There’s a vested interest to make sure my customers are successful if I want them to come back to me. My living relies on making sure they get the best possible outcome.

What effect does staying top of mind with past customers have on order frequency? It’s amazing how many people are now aware of what I do because of the email and social media outreach that OutboundEngine does. I’m sticking with it because it’s valuable and a great way for me to stay in front of these people and get them to see me as a primary promotional product company and not just a small business.

What are some of your favorite product trends right now? For me, it really goes back to the “useful” thing. There are certain products that have been successful since the beginning of promotional products. If you look at the list, with the exception of technology items, it’s pretty much the same today as it was 20 years ago. You’ve got your pens, notepads, T-shirts and polypropylene totes that you use at the grocery store or beach — they get a huge number of impressions because people save them and use them. You can get a huge logo on them, and they get used over and over again.

What kind of changes do you see happening in the industry? The biggest change is the added element of all these online promotional companies. That’s what has hurt a lot of us because they usually work with much lower margins. With that said, I don’t think you’ll ever lose the opportunity to do business with customers who want to build relationships and work with someone they know and trust.

What advice would you give to someone who’s new to the promo business? Get active in the community and various organizations and give back, too. It does make a difference. If you help other people, they’ll return the favor and help you too. Building relationships through community outreach is a great way to set yourself apart.

What advice would you give to a distributor who’s not using email or social media marketing? If you’re a small company, you’re limited with hours. Social media is just a much more effective way to hit the masses. You want to become an expert in your field — that’s the new way of selling today. You put out the information, but don’t expect everything in return right away. And when the time comes, they want to contact you because they’ve seen all this information you put out there. You brand yourself as an expert so people trust you, and that’s what you guys are helping people like me do.

From our talk with Jeff, we got three great takeaways that can apply to anyone in the promotional products industry:

• Nurture your relationships with relevant, engaging content marketing. Your customers will see you as an expert in the industry and will remember you when they want to refer a friend.
• Provide value beyond just product. Use Jeff’s “Three U’s” to give customers the best possible experience and ROI.
• Get involved in your local community. You’ll meet new prospects and establish your professional reputation, especially if you’re building a business from scratch.

Thanks for the tips, Jeff!

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How To Start A Promotional Products Company

To start a Promotional Products Company, identify a niche market, develop a business plan incorporating cost analysis and investment, establish partnerships with manufacturers, set up a pleasing website and effective inventory system, and create a strong marketing strategy to attract clients.

• Last Update: November 23, 2023

• Steps in this Guide: 11

Starting a promotional products company can be an exciting and lucrative venture. In today’s highly competitive business landscape, companies are constantly looking for effective ways to market their products and services. Promotional products offer a tangible and cost-effective solution to help businesses increase brand exposure and build customer loyalty. If you have a creative spirit, an entrepreneurial mindset, and a passion for helping businesses succeed, setting up your own promotional products company could be the perfect opportunity for you. In this blog post, we will guide you through the essential steps to start your own promotional products company and provide you with valuable insights to help you succeed in this competitive industry. From understanding the market to planning your product offerings and establishing supplier relationships, we will cover all the key aspects you need to consider in order to launch a successful promotional products business. So let’s get started on this exciting journey to becoming a leader in the promotional products industry.

How To Start A Promotional Products Company: Step-by-Step

Step 1: idea generation,.

When brainstorming ideas for promotional products, think about what items would be useful or interesting to your target audience. Research current market trends to ensure you choose items that are appealing and relevant.

Step 2: Market Research,

In addition to identifying your target audience and understanding their preferences, it is crucial to gain insights into the market dynamics, competition, product pricing, and the level of demand for the promotional products you plan to offer.

Step 3: Business Plan Development,

A comprehensive business plan is essential for outlining a company’s goals, operational tactics, financial projections, marketing tactics, and future expansion plans, thereby providing a roadmap for success.

Step 4: Legal Formalities,

To establish a legally compliant business, register with relevant authorities, obtain licenses, secure required insurance, and establish clear legal terms. This ensures smooth operations and protects your business from potential risks and liabilities.

Step 5: Resource Allocation,

Investing in high-quality equipment and supplies is crucial to ensure the production of top-notch promotional items. Additionally, carefully organize logistics, including securing office space, establishing shipping processes, and setting up storage solutions, to streamline your operations effectively.

Step 6: Team Building,

To build a successful business, assemble a diverse team of talented professionals skilled in areas like design, sales, marketing, and customer service. Ensure they are aligned with the business’s objectives and values for optimal performance and collaboration.

Step 7: Vendor Partnerships,

Establish strong relationships with reliable vendors and suppliers who comprehend your needs and consistently deliver superior promotional products promptly.

Step 8: Product Development,

Once you have finalized your product design, proceed with the manufacturing process while closely monitoring the quality and ensuring that the end product matches the samples. This step is crucial to meet the expectations of your intended market audience.

Step 9: Branding and Marketing,

Create visually appealing brand assets, such as a captivating logo, user-friendly website, and engaging social media profiles. Implement strategies to promote your product both digitally and through traditional marketing channels, ensuring you connect with your desired customer base.

Step 10: Sales Strategy,

In addition to selling directly to consumers through websites, effective sales strategies may also involve utilizing a dedicated sales team to sell products in bulk to businesses, maximizing market reach and ensuring successful product distribution.

Step 11: Customer Service,

To maintain strong customer relationships and promote customer loyalty, it is crucial to establish a reliable customer service system. This includes effectively addressing queries, complaints, and feedback, as well as providing exceptional after-sales support to encourage repeat business.

Starting a promotional products company can be a fulfilling and lucrative venture for those passionate about marketing and entrepreneurship. By following the steps outlined in this guide and dedicating time to market research, product selection, branding, and networking, you can position your company for success in the competitive promotional products industry. Remember to stay updated with industry trends, always prioritize customer satisfaction, and embrace innovation to stay ahead of the competition. With perseverance, a strong business strategy, and a commitment to providing high-quality products, starting a promotional products company can lead to a promising and prosperous future. So, take the leap and turn your passion into a thriving business!

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Starting a Promotional Products Business – Profitable Business Plan

Run it the right way, and you could make handsome profits from a business dealing with promotional products. If you have the courage and determination to begin your new venture from scratch, do so. Otherwise, go for a franchise or a direct sales dealer having an established setup.

Your products should prove popular at every kind of event, such as college campus events, political rallies, sporting events, webinars, etc. After all, people do love receiving free T-shirts, pens, key chains, business card holders, calendars, foodstuff, drinks, etc. Just make sure that your company logo and name are on each promotional product.

However, how would you actually go about initiating a promotional products business?

At the outset, this step is not compulsory, but might prove helpful if you are a novice in this arena. You may give a couple of years to learning the ropes of the business by joining an established organization.

You will be able to observe all kinds of promotional campaigns from initiation to completion, as well as learn about the risks and pitfalls you must take care to avoid. Above all, you will gain a number of professional contacts.

Do your Research

You will have to identify your niche or target market first. Towards this end, you must make up your mind about what kind of promotions you would love to take up. For instance, you might like to link up with companies that deal with specific products/services.

Alternatively, you may like to become a specialist in enhancing brand names, entertainment promotions, etc. Then again, you may be wish to be a part of all kinds of events, go in for ticket sales, make guest appearances on the radio/television, engage in direct marketing and distribution of services/products, etc.

In case, you desire to begin your venture from scratch, it would be best to link up with wholesale manufacturers or wholesalers. Peruse certain publications and websites, to garner as much information as you can.

It would be best to find someone, who offers drop-shipping , for you will be able to order large quantities of products at wholesale costs. Some wholesalers offer commercial printers for printing your establishment’s name and logo. If you cannot find such a dealer, you will have to purchase a printer of your own.

Look at Competing Branded Merchandise Suppliers

It’s always good to check out the competition, so you should look at other branded merchandise suppliers for inspiration on product lines and the way they market their business. One of the recent trends have been a push towards eco-friendly promotional items , with customers and companies alike concerned at the use of disposable items, and the impact they may be having on the environment.

Competition

You need to check out the competition too, in order to fix your prices. Investigate and compare over the Internet. This exercise will also help you decide if you are entering a rather overcrowded market or a landscape with sufficient space for your setup too. Whatever you decide to do, ensure that it is a niche you are passionate about, for only then will you give your 100% to it.

Draw up a business plan

Even if you are the most intelligent person on earth, it does not hurt to document a detailed business plan on paper! Use the business plan as a blueprint for evaluating your establishment’s progress regularly, as well as resetting of business goals. Include a wonderfully catchy name for your promotional products business too, in this plan.

Names do attract, even if they are a small part of the whole picture. At the same time, ensure that it is easy to remember, and not long-drawn in nature! Anyway, you will need a name for registration purposes, whether you are planning to set up your business in an urban, semi-urban or rural area. You will need a business/vendor’s license in hand too, as your clients will have to give you sales tax. You will need insurance too.

The next important thing is expense. You will have to expend on various areas, such as initial investment, startup, products/services, advertising, action strategies, acquisition of clients, linking up with business associates, etc. If you can reasonably figure it out, place your projected income in the first couple of years too, on the blueprint.

Finally, set up an analysis section, wherein you place your thoughts about the demographics you plan to target, the industry you have decided to enter, and the existing scenario at the marketplace. It always helps to gain clarity in thought processes. Towards this end, you might even connect up with friends, who work in diverse sectors of industry, or have their own businesses.

Just request them to outline the challenges they have faced in the past, and how they have handled them competently. Their answers should help add value to your business propositions, whenever you approach potential clients. In fact, you will be able to decide the kind of individuals you want to be around for a major part of your day. It always helps to work with people who share your views, or whom you can respect and like.

Creating the infrastructure

Fortunately, for you, you will not need a huge amount of capital to set up your promotional products establishment. In fact, you may not require a physical layout at all. It is easy enough to work from home, if you have a desktop computer or a laptop, along with a Smartphone. At the same time, you should be willing to travel to meet clients at their chosen locations.

Apart from traveling expenses, you will have to shell out money for purchasing materials required for promoting products/services. Sometimes, you may opt to print promotional materials. The venues, where you choose to conduct your promotions, will demand advance fees too. Finally, all kinds of incidental expenses may crop up without warning. If you wish to reduce your costs, look for arenas that do not demand heavy advance deposits. Similarly, use word-of-mouth advertising as much as you can.

Will you require business equipment?

Apart from your phone and computer, you may require some office furniture and production equipment too. Ensure that you have a load of business cards handy, to offload on various contacts. The content should be very professionally and entertainingly outlined on these cards, including your updated contact details.

Acquiring clients

You will need to build a network of contacts, both, from within the industry and without. The people within your chosen industry will support you with materials or at events. They should include event organizers, printers, transport services, caterers, etc. Check their professional backgrounds and expertise, prior to hiring them.

With regard to building a customer base, you will have to keep your posters and flyers handy at all times. Do not hesitate to connect with small corporations, educational institutions, dealers, restaurants, etc, and request to speak with managers of advertising campaigns or public relations officers. You may even connect with coaches, owners of trade magazines, local radio/television stations, etc.

Do not forget to build a presence on social media. After all, this is the ‘Internet’ age! Create an eye-catching and knowledgeable website, which appeals to accidental visitors, potential customers, as well as professionals. Note that your professional profile should be separate from your personal one, for you are keen to enhance your ‘brand’ .

Use e-mails and print media to display your services and talents too. Just in case, you fail to find paying clients during the initial stages, work with non-profit organizations that may, or may not, pay you. Your kindness, combined with their goodwill, should suffice to give a boost to your non-existent business and make it progress!

A promotional products business is a business that specializes in creating and selling promotional products such as apparel, pens, mugs, and other items that can be customized with a company logo or message.

You will need to have a good understanding of the promotional products industry, the types of products available, and the companies and suppliers that you will be working with. You should also create a business plan, decide on a budget, and consider hiring additional staff to help manage the business.

The types of promotional products you can offer are almost limitless. You can offer apparel, pens, mugs, keychains, bags, and many other items that can be customized with a logo or message.

You can use a variety of methods to find customers for your promotional products business. Some of the most effective methods include using local advertising, attending trade shows and events, and using digital marketing techniques such as SEO, PPC, and social media marketing.

We offer a wide variety of promotional products, including custom t-shirts, hats, mugs, pens, apparel, bags, office supplies, and more. We specialize in creating custom items that reflect the unique brand and message of each of our clients.

Most promotional products do not come with any guarantees or warranties, as they are typically low-cost items. However, some suppliers may offer a limited warranty on certain items. It is important to ask the supplier if they offer a warranty before making a purchase.

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How to Build a Detailed Business Plan That Stands Out [Free Template]

Updated: March 29, 2022

Published: March 11, 2022

While starting a company may seem easier now than ever before, entrepreneurs have an uphill battle from the moment they start a business. And without a clear, actionable business plan for selling, marketing, finances, and operations, you're almost destined to face significant challenges.

This is why crafting a business plan is an essential step in the entrepreneurial process.

In this post, we'll walk you through the process of filling out your business plan template, like this free, editable version :

Download a free, editable one-page business plan template.

We know that when looking at a blank page on a laptop screen, the idea of writing your business plan can seem impossible. However, it's a mandatory step to take if you want to turn your business dreams into a reality.

That's why we've crafted a business plan template for you to download and use to build your new company. You can download it here for free . It contains prompts for all of the essential parts of a business plan, all of which are elaborated on, below.

This way, you'll be able to show them how organized and well-thought-out your business idea is, and provide them with answers to whatever questions they may have.

Free Business Plan Template

The essential document for starting a business -- custom built for your needs.

• Outline your idea.
• Pitch to investors.
• Secure funding.
• Get to work!

You're all set!

Click this link to access this resource at any time.

Building a Successful Business Plan

In the next section, we'll cover the components of a business plan , such as an executive summary and company description. But before we get to that, let's talk about key elements that should serve as building blocks for your plan.

For some entrepreneurs, the thought of writing a business plan sounds like a chore — a necessary means to an end. But that's a bad take.

A solid business plan is a blueprint for success . It's key to securing financing, presenting your business, outlining your financial projections, and turning that nugget of a business idea into a reality.

At the core, your business plan should answer two questions: why your business and why now?

Investors want to know why your business is entering the market, i.e. what problem it's solving and how it's different from what's currently out there. They also want to know why now is the right time for your type of product or service.

At a minimum, your plan should:

• Be more realistic than idealistic: Too often, business plans focus too much on how things could be instead of how they are. While having a vision is important, your plan needs to be rooted in research and data.
• Legitimize your business idea : If an idea fails on paper, it's a signal to go back to the drawing board. In doing so, you avoid losing precious time or money chasing an unrealistic idea.
• Position your business for funding: To get your business off the ground, chances are you'll need financial backing. Even with a solid business idea, investors, lenders, and banks still need convincing. An effective business plan will outline how much money you need, where it's going, what targets you will hit, and how you plan to repay any debts.
• Lay the foundation: Investors focus on risk – if anything looks shaky, it could be a dealbreaker. Ideally, your business plan will lay down the foundation for how you'll operate your business — from operational needs to financial projections and goals.
• Communicate your needs: It's nearly impossible to communicate your needs if you don't know what they are first. Of course, a business’ needs are always changing — but your plan should give you a well-rounded view of how your business will work in the short and long term.

So back to the question of why and why now – consider three things:

• Your industry – How does your product or service fit within your industry? Are you targeting a specific niche? Where do you see the industry going in the next five to 10 years?
• Your target audience – Who are you targeting? What challenges are they facing? How will your product or service help them in their daily lives?
• Your unique selling proposition (USP) – What sets you apart from your competitors? Is it your product/service features? Your company values? Price?

Once you know the answers to these questions, you'll be equipped to answer the question: why your business and why now.

How to Build a Business Plan

• Executive Summary
• Company and Business Description
• Product and Services Line
• Market Analysis
• Marketing Plan
• Legal Notes
• Financial Considerations

Featured Resource: Free Business Plan Template

1. cover page.

Your business plan should be prefaced with an eye-catching cover page. This means including a high-resolution image of your company logo, followed by your company's name, address, and phone number.

Since this business plan will likely change hands and be seen by multiple investors, you should also provide your own name, role in the business, and email address on the cover page.

At the bottom of this page, you can also add a confidentiality statement to protect against the disclosure of your business details.

The statement can read as follows: " This document contains confidential and proprietary information created by [your company name]. When receiving this document, you agree to keep its content confidential and may only reproduce and/or share it with express written permission of [your company name] ."

Remember to keep your cover page simple and concise — and save the important details for other sections.

Why it matters: First impressions are everything, and a clean cover page is the first step in the right direction.

Example of a Cover Page

2. Executive Summary

The executive summary of your business plan provides a one- to two-page overview of your business and highlights the most crucial pieces of your plan, such as your short-term and long-term goals.

The executive summary is essentially a boiled-down version of your entire business plan, so remember to keep this section to the point and filled only with essential information.

Typically, this brief section includes:

• A mission statement.
• The company's history and leadership model.
• An overview of competitive advantage(s).
• Financial projections.
• Company goals.
• An ask from potential investors.

Why it matters: The executive summary is known as the make-or-break section of a business plan. It influences whether investors turn the page or not — so effectively summarizing your business and the problem it hopes to solve is a must.

Think of the Summary as a written elevator pitch (with more detail). While your business plan provides the nitty-gritty details, your Summary describes — in a compelling but matter-of-fact language — the highlights of your plan. If it's too vague, complicated, or fuzzy, you may need to scrap it and start again.

Example of an Executive Summary Introduction

"The future looks bright for North Side Chicago, particularly the Rock Hill Neighborhood. A number of high-end commercial and residential developments are well on their way, along with two new condo developments in nearby neighborhoods.

While the completion of these developments will increase the population within the neighborhood and stimulate the economy, the area lacks an upscale restaurant where residents and visitors can enjoy fine food and drink. Jay Street Lounge and Restaurant will provide such a place."

3. Company & Business Description

In this section, provide a more thorough description of what your company is and why it exists.

The bulk of the writing in this section should be about your company's purpose – covering what the business will be selling, identifying the target market, and laying out a path to success.

In this portion of your business plan, you can also elaborate on your company's:

• Mission statement
• Core values
• Team and organizational structure

Why it matters: Investors look for great structures and teams in addition to great ideas. This section gives an overview of your businesses' ethos. It's the perfect opportunity to set your business apart from the competition — such as your team's expertise, your unique work culture, and your competitive advantage.

Example of a Values/Mission Statement

"Jay Street Lounge and Restaurant will be the go-to place for people to get a drink or bite in an elegant, upscale atmosphere. The mission is to be North Side's leading restaurant, with the best tasting food and the highest quality service."

3. Product & Services Line

Here's where you'll cover the makeup of your business's product and/or services line. You should provide each product or service's name, its purpose, and a description of how it works (if appropriate). If you own any patents, copyrights, or trademarks, it's essential to include this info too.

Next, add some color to your sales strategy by outlining your pricing model and mark-up amounts.

If you're selling tangible products, you should also explain production and costs, and how you expect these factors to change as you scale.

Why it matters: This section contains the real meat of your business plan. It sets the stage for the problem you hope to solve, your solution, and how your said solution fits in the market.

There's no one-size-fits-all formula for this section. For instance, one plan may delve into its ability to market in a more cost-effective way than the competition, whereas another plan focuses on its key products and their unique features and benefits.

Regardless of your angle, it's critical to convey how your offerings will differ from the competition.

Example of a Product/Service Offering

"The menu at Jay Street Lounge and Restaurant will focus on Moroccan cuisine. The stars of the menu (our specialties) are the Moroccan dishes, such as eggplant zaalouk, seafood bastilla, tagine, and chickpea stew. For those who enjoy American dishes, there will also be a variety of options, from burger sliders and flatbread pizza to grilled steak and salads.

The food at Jay Street will have premium pricing to match its upscale atmosphere. During the summer months, the restaurant will have extra seating on the patio where clients can enjoy a special summer menu. We will be open on all days of the week."

4. Market Analysis

It helps to reference your market research documentation in this section, like a Porter's Five Forces Analysis or a SWOT Analysis ( templates for those are available here ). You can also include them in your appendix.

If your company already has buyer personas, you should include them here as well. If not, you can create them right now using the Make My Persona Tool .

Why it matters: Having an awesome product is, well, awesome — but it isn't enough. Just as important, there must be a market for it.

This section allows you to dig deeper into your market, which segments you want to target, and why. The "why" here is important, since targeting the right segment is critical for the success and growth of your business.

It's easy to get lost (or overwhelmed) in a sea of endless data. For your business plan, narrow your focus by answering the following questions:

• What is my market? In other words, who are my customers?
• What segments of the market do I want to target?
• What's the size of my target market?
• Is my market likely to grow?
• How can I increase my market share over time?

Example of a Market Analysis

"Jay Street Lounge and Restaurant will target locals who live and work within the Rock Hill Neighborhood and the greater North Side Chicago area. We will also target the tourists who flock to the many tourist attractions and colleges on the North Side.

We will specifically focus on young to middle-aged adults with an income of $40,000 to $80,000 who are looking for an upscale experience. The general demographics of our target market are women between 20 to 50 years old.

A unique and varied Moroccan-American menu, along with our unique upscale atmosphere, differentiates us from competitors in the area. Jay Street will also set itself apart through its commitment to high-quality food, service, design, and atmosphere."

5. Marketing Plan

Unlike the market analysis section, your marketing plan section should be an explanation of the tactical approach to reaching your aforementioned target audience. List your advertising channels, organic marketing methods, messaging, budget, and any relevant promotional tactics.

If your company has a fully fleshed-out marketing plan, you can attach it in the appendix of your business plan. If not, download this free marketing plan template to outline your strategy.

Free Marketing Plan Template

Outline your company's marketing strategy in one simple, coherent plan.

• Pre-Sectioned Template
• Completely Customizable
• Example Prompts
• Professionally Designed

Why it matters: Marketing is what puts your product in front of your customers. It's not just advertising — it's an investment in your business.

Throwing money into random marketing channels is a haphazard approach, which is why it's essential to do the legwork to create a solid marketing plan.

Here's some good news — by this point, you should have a solid understanding of your target market. Now, it's time to determine how you'll reach them.

Example of a Marketing Plan Overview

"Our marketing strategy will focus on three main initiatives:

• Social media marketing. We will grow and expand our Facebook and Instagram following through targeted social media ads.
• Website initiatives. Our website will attract potential visitors by offering updated menus and a calendar of events.
• Promotional events. Jay Street will have one special theme night per week to attract new clients."

6. Sales Plan

It doesn't matter if your sales department is an office full of business development representatives (BDR) or a dozen stores with your products on their shelves.

The point is: All sales plans are different, so you should clearly outline yours here. Common talking points include your:

• Sales team structure, and why this structure was chosen.
• Sales channels.
• Sales tools, software, and resources.
• Prospecting strategy.
• Sales goals and budget.

Like with your marketing plan, it might make sense to attach your completed sales plan to the appendix of your business plan. You can download a template for building your sales plan here .

Why it matters: Among other things, investors are interested in the scalability of your business — which is why growth strategies are a critical part of your business plan.

Your sales plan should describe your plan to attract customers, retain them (if applicable), and, ultimately, grow your business. Be sure to outline what you plan to do given your existing resources and what results you expect from your work.

Example of a Sales Plan Overview

"The most important goal is to ensure financial success for Jay Street Lounge and Restaurant. We believe we can achieve this by offering excellent food, entertainment, and service to our clients.

We are not a low-cost dining option in the area. Instead, the food will have premium pricing to match its upscale feel. The strategy is to give Jay Street a perception of elegance through its food, entertainment, and excellent service."

7. Legal Notes

Your investors may want to know the legal structure of your business, as that could directly impact the risk of their investments. For example, if you're looking for business partners to engage in a non-corporation or LLC partnership, this means they could be on the line for more than their actual investment.

Because this clarification is often needed, explain if you are and/or plan to become a sole proprietor, partnership, corporation, LLC, or other.

You should also outline the steps you have taken (or will need to take) to operate legally. This includes licenses, permits, registrations, and insurance.

The last thing your investor wants to hear after they've sent you a big chunk of change is that you're operating without proper approval from the local, state, or federal government.

Why it matters: The last thing your investor wants to hear after they've sent you a big chunk of change is that you're operating without proper approval from the local, state, or federal government.

Example of Legal Notes

"Jay Street Lounge and Restaurant is up-to-date on all restaurant licenses and health permits. Our business name and logo are registered trademarks, presenting the possibility of expanding locally."

8. Financial Considerations

Ultimately, investors want to know two things:

• When they will earn their money back.
• When they will start seeing returns on their initial investment.

That said, be clear, calculated, and convincing in this section. It should cover:

• Startup costs.
• Sales forecasts for the next several months/quarters.
• Break-even analysis for time and dollars.
• Projected profit and loss (P&L) statement.

Facts and figures are key here, so be as specific as possible with each line item and projection. In addition, explain the "why" behind each of these sections.

However, keep in mind that information overload is a risk, especially when it comes to data. So, if you have pages upon pages of charts and spreadsheets for this section, distill them into a page or two and include the rest of the sheets in the appendix. This section should only focus on key data points.

Why it matters: One of the most important aspects of becoming "investor ready" is knowing your numbers. More importantly, you need to understand how those numbers will enhance your business.

While it's easy to write a number down on paper, it's more important to understand (and communicate) why you need capital, where it's going, and that your evaluation makes sense.

Example of Financial Projections

"Based on our knowledge and experience in the restaurant industry, we have come up with projections for the business.

Starting with an expenditure of $400,000 in year 1, we forecast sales of $1,500,000 and $2,800,000 for years two and three. We expect to achieve a net profit of 15% by year three."

9. Appendix

A detailed and well-developed business plan can range anywhere from 20 to 50 pages, with some even reaching upward of 80.

In many cases, the appendix is the longest section. Why? Because it includes the supportive materials mentioned in previous sections. To avoid disrupting the flow of the business plan with visuals, charts, and spreadsheets, business owners usually add them in the last section, i.e. the appendix.

Aside from what we've already mentioned – marketing plan, sales plan, department budgets, financial documents – you may also want to attach the following in the appendix:

• Marketing materials
• Market research data
• Licensing documentation
• Branding assets
• Floor plans for your location
• Mockups of your product
• Renderings of your office space or location design

Adding these pieces to the appendix enriches the reader's understanding of your business and proves you've put the work into your business plan without distracting from the main points throughout the plan.

Why it matters: An appendix helps the reader do their due diligence. It contains everything they need to support your business plan.

Keep in mind, however, that an appendix is typically necessary only if you're seeking financing or looking to attract business partners.

Use a Business Plan Template to Get Started

Writing a business plan shouldn't be an insurmountable roadblock to starting a business. Unfortunately, for all too many, it is.

That's why we recommend using our free business plan template. Pre-filled with detailed section prompts for all of the topics in this blog post, we're confident this template will get your business plan started in the right direction.

Editor's note: This post was originally published in June 2017 and has been updated for comprehensiveness.

Don't forget to share this post!

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How to make a business plan

Table of Contents

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

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

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

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

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

What is a business plan?

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

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

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

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

Business plan vs. business model canvas

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

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

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

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

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

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

Why is a business plan important?

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

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

Helps to define the business goals and objectives

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

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

Guides decision-making

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

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

Attracts investors and secures funding

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

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

Identifies potential challenges and risks

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

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

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

Provides a basis for measuring success

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

Are we where we want to be at this point?

Did we achieve our goals?

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

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

How to make a business plan step by step

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

1. Create an executive summary

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

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

2. Write your company description

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

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

3. Conduct a market analysis

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

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

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

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

4. Describe your products and services

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

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

5. Design a marketing and sales strategy

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

Pricing strategy

Advertising and promotional tactics

Sales channels

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

6. Determine budget and financial projections

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

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

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

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

8. Make an action plan

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

Types of business plans

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

Startup business plan

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

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

Strategic business plan

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

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

Operational business plan

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

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

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

Growth-business plan

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

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

One-page business plan

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

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

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

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

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

Be practical

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

Be specific

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

Be thorough with your research

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

Get input from others

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

Review and revise regularly

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

Create a winning business plan to chart your path to success

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

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

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

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

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

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

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

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

Let’s get started.

What Do You Need A Business Plan For?

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

1. Secure Funds

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

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

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

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

2. Monitor Business Growth

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

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

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

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

3. Measure Business Success

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

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

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

4. Document Your Marketing Strategies

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

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

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

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

How to Write a Business Plan Step-by-Step

1. create your executive summary.

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

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

A good executive summary should do the following:

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

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

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

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

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

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

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

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

2. Add Your Company Overview

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

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

Your company overview should contain the following:

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

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

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

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

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

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

• Mission Statement

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

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

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

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

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

Business Objectives

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

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

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

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

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

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

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

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

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

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

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

Market Analysis

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

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

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

• Market Research

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

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

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

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

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

How to Quantify Your Target Market

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

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

What Does a Good Market Analysis Entail?

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

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

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

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

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

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

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

Competitive Analysis

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

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

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

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

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

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

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

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

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

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

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

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

Direct vs Indirect Competition

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

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

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

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

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

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

Factors that Differentiate Your Business from the Competition

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

1. Cost Leadership

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

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

2. Product Differentiation

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

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

3. Market Segmentation

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

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

4. Define Your Business and Management Structure

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

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

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

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

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

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

Management Team

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

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

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

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

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

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

Key Questions to Answer When Structuring Your Management Team

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

Additional Tips for Writing the Management Structure Section

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

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

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

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

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

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

Organizational Chart

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

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

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

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

5. Describe Your Product and Service Offering

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Avoid Technical Descriptions and Industry Buzzwords

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

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

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

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

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

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

3. Long or Short Products or Services Section

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

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

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

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

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

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

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

4. Describe Your Relationships with Vendors or Suppliers

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

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

5. Your Primary Goal Is to Convince Your Readers

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

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

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

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

Key Questions to Answer When Writing your Products and Services Section

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

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

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

6. Show and Explain Your Marketing and Sales Plan

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

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

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

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

Outline Your Business’ Unique Selling Proposition (USP)

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

Target Market and Target Audience

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

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

Creating a Smart Marketing and Sales Plan

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

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

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

Your Positioning Statement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Basic Rules to Follow When Pricing Your Offering

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

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

Pricing Strategy

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

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

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

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

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

Advertising

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

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

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

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

Public Relations

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

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

Content Marketing

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

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

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

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

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

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

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

Social Media

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

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

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

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

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

Strategic Alliances

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

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

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

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

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

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

2. Evaluate Your Competition

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

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

These questions can help you know your competition.

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

3. Consider Your Brand

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

4. Focus on Benefits

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

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

5. Focus on Differentiation

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

Key Questions to Answer When Writing Your Marketing and Sales Plan

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

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

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

7. Clearly Show Your Funding Request

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

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

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

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

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

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

Funding Request: Debt or Equity?

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

Case for Equity

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

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

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

Case for Debt

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

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

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

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

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

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

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

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

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

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

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

8. Detail Your Financial Plan, Metrics, and Projections

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

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

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

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

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

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

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

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

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

Use Graphs and Charts

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

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

Address the Risk Factors and Show Realistic Financial Projections

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

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

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

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

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

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

1. Sales Forecast

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

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

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

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

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

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

2. Personnel Plan

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

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

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

3. Income Statement

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

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

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

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

4. Cash Flow Statement

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

5. Balance Sheet

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

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

6. Exit Strategy

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

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

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

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

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

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

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

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

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

9. Add an Appendix to Your Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

Tips and Strategies for Writing a Convincing Business Plan

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

1. Know Your Audience

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

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

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

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

2. Get Inspiration from People

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

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

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

3. Avoid Being Over Optimistic

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

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

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

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

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

4. Keep it Simple and Short

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

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

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

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

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

5. Make an Outline and Follow Through

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

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

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

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

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

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

6. Ask a Professional to Proofread

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

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

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

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

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

1. hubspot's one-page business plan.

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

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

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

2. Bplan’s Free Business Plan Template

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

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

3. HubSpot's Downloadable Business Plan Template

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

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

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

4. Business Plan by My Own Business Institute

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

The comprehensive template consists of a whopping 15 sections.

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

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

5. Score's Business Plan Template for Startups

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

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

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

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

6. Minimalist Architecture Business Plan Template by Venngage

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

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

7. Small Business Administration Free Business Plan Template

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

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

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

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

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

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

9. PandaDoc’s Free Business Plan Template

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

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

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

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

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

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

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

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

Alternatives to the Traditional Business Plan

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

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

Business Model Canvas (BMC)

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

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

Segments of the Business Model Canvas

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

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

Lean Canvas

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

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

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

Startup Pitch Deck

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

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

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

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

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

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

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

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

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

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

Business Plan FAQ

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

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

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

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

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

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

Exlore Further

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

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Martin luenendonk.

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

How to Write a Promotional Plan

• Small Business
• Business Planning & Strategy
• Write a Business Plan
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Four Examples of Financial Objectives in a Marketing Plan

New year business marketing plan & annual strategy goal update, a financial plan vs. a pro-forma cash flow budget.

• How to Rent a Kiosk at a Mall
• A Business Plan for Advertising and Promotion

A promotional plan contains a detailed strategy for expanding your business or marketing a particular product. You have to take several factors into account when you write your promotional plan, such as budgetary constraints, past sales and your desired results. You may have to share your plan with business partners, investors, lenders and your employees, so it must contain clear and concise information, including the specific actions that you intend to take. Once you have implemented your promotional plan, you must keep it on file so you can track your progress towards your goals.

Gather together the most recent bank statements for your business as well as financial papers detailing sales revenues and operating costs. Review this financial information to determine how much you can afford to set aside for marketing costs. Ideally, revenue should increase as a result of your promotional campaign, but do not use money that you need to cover other day-to-day essential expenses -- such as wages, taxes or inventory purchases -- to promote your products.

Establish a timeline. Many businesses set 12-month goals, but you may consider breaking down your annual sales or revenue goals into a series of short-term goals that last for a quarter, a month or a week. You must ensure that you have enough capital to cover your marketing costs for the entire timeline, so if you have very little cash, you may consider conducting a very brief promotional campaign.

Identify your target clients, and include a detailed description of your ideal client base in the plan. This may involve targeting homeowners in a particular part of town, people of a certain age or consumers who are engaged in specific types of activities. As you target your market, you must also determine your product price because you cannot effectively promote your product if your target clients cannot afford to buy it.

Decide where you intend to place your product and your advertisements, and write a list of these locations. If you plan to sell your product through online vendors, then you should consider promoting the product online so that prospective clients can easily locate the product after viewing the advertisements. If you plan to promote the product with posters or TV commercials, then make sure that you promote the product in an area close to a retail store where your clients can buy the product.

Set a goal. You must set a revenue- or sales-based goal for your promotion based either on a dollar amount or on a percentage increase in revenue. Investors or lenders will refer to this goal when your plan ends, so do not set a goal so high that you cannot reach it but do not set it so low that it serves no real purpose.

Write a list of the specific responsibilities that each department or employee must undertake as part of the promotional plan. This list should include a precise list of the budgets that you plan to assign to each department. Distribute a copy of the completed plan to all relevant parties.

• Iowa Small Business Development Center: How to Write a Marketing Plan -- Identifying Your Market
• Over the course of time, you may have to write several promotional plans to market different products. Whenever a marketing campaign finishes, you should keep a copy of the promotional plan on file and keep a record of sales and revenue data related to the plan. You can use this data when you make your next promotional plan so that you can implement ideas that have worked in the past and eliminate actions that do not yield results.
• Unexpected events may occur over the course of the year, and you may have to make adjustments to your plan to cope with these events. If revenue drops due to a recession or a similar event, then you should consider reassigning some of your advertising budget to cover essential costs. Your promotional plan should help your business rather than harm it, so if events unfold that necessitate the abandonment or suspension of the promotion, then you must act accordingly.

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• In a sales slump? Try these 12 promotio ...

In a sales slump? Try these 12 promotion strategies to create customer demand

If you want people to buy something, you need to tell them about it first. It sounds simple, but that’s the core principle behind all promotion strategies—raising awareness about a product, then convincing potential customers they should buy it. Learn about 12 different types of promotion strategies, plus best practices to create a successful strategy of your own.

People don’t just choose Red Bull for the taste and jolt of energy it provides. Thanks to the brand’s distinctive promotion strategy, customers prefer the Red Bull brand because it’s famous, edgy, and part of something bigger. 

What is a promotion strategy?

A promotion strategy is a plan to create or increase demand for a product. It outlines the tactics you’ll use to raise awareness about your product and get people interested in buying it.

The goal of a promotion strategy is to introduce potential customers to your product and convince them to make a purchase. You want to move them along the buyer’s journey—the path customers take from realizing a need, considering your product as a solution, and finally deciding to buy.

Promotion strategy vs. marketing strategy

Your promotion strategy is just one piece of a larger marketing strategy —a long-term plan outlining how you’ll market and sell your product. A successful marketing plan covers all the tactics you’ll use to promote your product, including the full “marketing mix”: product, price, place, and promotion. Your promotion strategy is a key component of the marketing mix. 

Here’s a breakdown of the marketing mix, also known as the 4 P’s of marketing :

Product: The item you’re selling. 

Price: How much you should charge for your product in order to make a profit.

Place: Where you should sell your product to reach your target audience . 

Promotion: How you create demand for your product and move customers through the marketing funnel.

The 4th “P” of marketing—promotion—is your promotion strategy. 

Promotion strategies and the marketing funnel

The buyer’s journey is often visualized as a funnel divided into three sections: top of funnel, middle of funnel, and bottom of funnel. Customers enter their journey at the top of the funnel, then decide to purchase your product once they reach the bottom. A successful promotion strategy includes different tactics to appeal to customers in each section of the marketing funnel. 

Here’s a breakdown of the marketing funnel, with example promotion strategies for each section: 

Top of funnel

When a customer is at the top of the funnel, they know the problem they want to solve and are looking for a solution. They may not know your product exists yet, so at this stage your promotion strategy should grab the customer’s attention and build awareness about your brand and your product. 

Example promotion strategies: TV ads, event sponsorships, content marketing  

Middle of funnel

In the middle of the funnel, customers weigh your product against other available options. To keep them in the funnel, you need to show how your product is different from the competition and convince customers that your product is the best option. Here, your promotion strategy should create an emotional connection and show how your product can specifically resolve customer pain points. 

Example promotion strategies: Customer reviews, free samples, case studies

Bottom of funnel

Customers decide if they want to purchase your product when they’re in the bottom of the funnel. To target bottom-of-funnel customers, your promotion strategy should prompt people to take action.

Example promotion strategies: Special deals, email offers, flexible return policies

12 types of marketing promotion strategies, with examples

There are lots of ways to promote a product. If you’re looking for inspiration, we’ve laid out 12 different types of promotion strategies below. 

1. Paid advertising

Paid advertising is often the first type of promotion that comes to mind. This straightforward strategy involves paying to show an advertisement in a specific place at a specific time, so you can capture the attention of your target market. It’s a great way to build brand awareness and introduce your brand to people who may not have heard of it before. 

Here are some examples of paid advertising:  

Television ads

Newspaper and magazine ads

Online display ads (for example, through Google or social media)

2. Content marketing 

Content marketing is a common type of digital promotion strategy, focused on distributing valuable content in order to attract and retain an audience. The idea behind content marketing is this: It associates your brand with useful, relevant content that helps customers solve issues—building trust over time and ultimately encouraging customers to buy your products. Content marketing is a great promotional tool for any company, but it’s especially helpful for businesses with longer sales cycles, like B2B and SaaS companies. For these companies, content marketing helps provide enough customer education for buyers to make informed purchase decisions.

Content marketing comes in many forms, including: 

Social media posts

Email newsletters

Whitepapers or reports

Content created to improve SEO (search engine optimization)

3. Sponsorships

Sponsorships involve aligning your company with another brand—like an event, TV program, charity, or even a celebrity. For example, Pepsi routinely sponsors the Super Bowl, while Red Bull sponsors NASCAR and extreme athletes of all kinds. Nowadays, sponsorships often include social media influencer marketing—creating partnerships with individuals who became famous through social media platforms like Instagram or Youtube. 

The goal of a sponsorship is to boost your brand’s public image and credibility. Aligning yourself with another brand can drive media exposure, improve public relations, and expand your audience—plus make you stand out from the competition. 

4. Email marketing

Email marketing helps you connect with your target audience via—you guessed it—email. You can send emails to any subscribers on your mailing list—whether they’re potential customers, loyal customers, or something in between. For example, you can collect email addresses from potential customers by offering free products or services in exchange for their information. 

There are lots of things you can send via email, including: 

Newsletters and exclusive content

Information about product releases

Special deals and coupons

5. Retargeting

Retargeting focuses on customers (or potential customers) with high purchase intent. In other words, it involves targeting segments of your customer base who’ve already made it down to the bottom of the marketing funnel. Prioritizing retargeting can help you get a high return on your investment, since this audience is already primed and ready to buy. 

For example, retargeting could include: 

Sending reminder emails to customers who filled up an online shopping cart but didn’t check out.

Showing targeted advertisements to customers who purchased your products in the past. 

Sending nurture emails to people who purchased something a while ago but haven’t been back. 

6. Referral marketing

Referral marketing is when you get customers to tell their friends about your brand. Also known as word-of-mouth marketing, referral marketing happens organically when you have a great product—but you can also speed it along with special deals and incentives for customers who refer their connections. 

Referral marketing is a powerful strategy because it’s virtually free. And since people tend to trust their friends, referred customers are more likely to actually purchase your product than someone who just sees an ad. For example, Dropbox used referral marketing to permanently increase signups by 60 percent —eventually growing into a multi-billion dollar startup. 

7. Event marketing

Event marketing involves participating in, sponsoring, or hosting events in order to promote your brand or product. This strategy helps you connect and engage with customers first-hand, so they can get a real sense of your product and what your brand represents. Not only that, but events can help you build your brand presence, generate leads, and generate goodwill with customers. 

Event marketing comes in many forms, including: 

Conferences

Trade shows

Seminars and classes

Virtual events

Live streaming events

Community events

8. Special Causes 

Aligning your brand with a special cause makes customers feel like they’re part of something bigger. They’re not just helping themselves by purchasing your products—they’re also helping make the world a better place. This can help boost brand loyalty and give customers a reason to choose your brand over competitors. 

The clothing company Patagonia is a great example of this. By promoting their sustainable manufacturing processes, Patagonia attracts and retains customers who believe in environmental preservation. 

9. Customer reviews

Customer reviews are one of the most powerful marketing tools out there. Brands like Amazon, Yelp, and TripAdvisor built their businesses out of reviews—generating trust by promoting customer feedback. The beauty of this strategy is that it encourages customers to promote your brand for you. And as long as you have a high-quality product (and positive reviews), this type of user generated content can go a long way in convincing potential customers to purchase. 

Collecting customer reviews often happens organically, but you can speed it along by specifically requesting reviews from current customers via email or website banners. Some newer brands also seed reviews by sending products to customers in exchange for their honest feedback. 

10. Customer loyalty programs

Customer loyalty programs reward people who repeatedly interact with your brand. It’s a way to keep customers coming back by offering deals, discounts, and exclusive product launches. The more customers purchase from your company, the more perks they earn. For example, the beauty company Sephora promotes a loyalty program that offers discounts and gifts to customers who spend a certain amount.

Loyalty programs don’t just boost customer retention—they also help convince potential buyers to choose your brand over competitors. By promoting loyalty programs, you demonstrate ways customers can save money and get more bang from their buck over time. 

11. Free samples, giveaways, and trials

Everyone loves free stuff. Giving away samples of your product can help promote customer satisfaction and make customers feel like they’re getting a great deal. But most importantly, free samples and trials give potential customers first-hand experience with your product—and therefore the confidence to actually buy it later on. 

To employ this promotion strategy, companies can: 

Offer a trial period so customers can try out the product risk free. Gyms, apps, and online software companies often do this. 

Offer free samples for customers who visit stores in person. The warehouse club Costco is famous for using this method. 

Include free samples when customers purchase a product. This method can encourage existing customers to try new products. For example, online beauty suppliers like Glossier often include free skincare and makeup samples with every purchase. 

Organize contests with free prizes. This is a good way to collect contact information from potential customers. For example, a hotel company might encourage potential customers to enter their contact information for a chance to win a free vacation. 

12. Coupons and deals

Special deals can help you capture customers at the bottom of the marketing funnel—people who are deciding whether or not to purchase your product. Deals work in two ways: First, they create a sense of urgency and encourage customers to act quickly before the deal is over. Second, they help customers save money and feel like they’re getting a high return on their investment. 

The types of deals you can offer are endless. Here are some examples: 

Special intro offers for first-time customers

Bundling products together and offering them at a discount (for example, a 10-pack of socks)

Buy one, get one free deals

Seasonal sales and discounts (like Black Friday promotions)

Discounts on special item categories

Birthday coupons for customers

Free shipping for customers who spend over a certain amount

Best practices for a successful promotion strategy

Even the most innovative promotion strategies can fail if they’re not executed correctly. Here’s how to set yours up for success: 

Keep promotions simple: The best promotions strategies are simple and easy for customers to understand. You don’t want to make them spend a lot of effort figuring out what an advertisement means or how to redeem a deal. Instead, promotions should feel almost effortless—so customers don’t give up and decide to spend their money somewhere else. For example, keep sales promotion emails simple and to the point. Instead of cluttering the page with text, highlight the deal and include a call to action button so customers can click through and redeem directly. 

Measure results and be ready to change your strategy: Not all promotions work as expected. That means it’s important to routinely track metrics and measure how your strategy is performing—for example, with A/B tests or split tests. This helps you avoid wasting time on marketing efforts that aren’t working anymore, and quickly adapt when the market environment changes. 

Re-merchandise your product and homepage for promotions: People get used to seeing your homepage and product a certain way. Re-merchandising means mixing up your creative strategy and changing the look and feel of your homepage or product landing page to grab customers’ attention. For example, an e-commerce business could add new visual elements to their homepage to draw attention to promotions. 

Create a distinctive brand: There are a lot of products in the market, so chances are you need to compete for your audience’s attention. That means it’s important to focus on brand differentiation—demonstrating how your brand is better than the competition, and what you can offer that other companies can’t. For example, the grocery chain Whole Foods set their brand apart by promoting a healthier approach to eating and living—plus creating a visually appealing shopping experience. 

Provide a good customer experience: Your promotion strategy isn’t over once customers make a purchase. Instead of just focusing on attracting new customers, make sure existing customers have a good experience and want to come back to your brand later on. Create a customer journey map to plot how people think, act, and feel throughout the buying process—then see what improvements you can make. This might include better customer service, a more seamless checkout process, or even welcome emails and ongoing communications to maintain customer relationships over time. 

Strategize your way to success

A solid promotion strategy is key for any great marketing campaign , digital marketing strategy , or go to market (GTM) strategy . As you craft your approach, keep in mind that the 12 examples in this article don’t need to stand on their own. You can combine different tactics to catch customers’ attention at every stage of the buyer’s journey—whether they’re new to your brand, weighing your product against the competition, or returning for a repeat purchase. 

To run a successful promotion strategy, you need to coordinate work with many different stakeholders. Keep tasks organized with a marketing strategy template, which can help you plan goals, allocate resources, and clarify strategy owners—all in one place.

Related resources

How to create a CRM strategy: 6 steps (with examples)

What is management by objectives (MBO)?

Write better AI prompts: A 4-sentence framework

What is content marketing? A complete guide

• Dopinger Blog
• Digital Marketing

How to Create a Promotion Plan? (With Examples)

Irem Gokcan

Updated April 30, 2024

What will we cover in this article?

Promotion planning is optimizing every element of the marketing plan of your services. It requires thinking and making decisions for the utilization of a promotion process. These include consideration of resources, strategies, marketing tools to use, and services that carry your objectives and demands. Let’s take a look at how to create a promotion plan.

An Overview of a Promotion Plan

The promotion plan is the outline and shows significant aspects of the promotion. Thus, creating your promotion outline of the campaign should consist of sequences of components. Each of them has its aims for creating a successful promotion. These aspects also have vital relationships and impacts on each other to lead to achievement or failure of promotion plan.

Your promotional plan will be unique to your business relative to your marketing campaign. Therefore, your promotion plan varies in each element to achieve your goal. As each marketing campaign stands in different aspects and serves a purpose, promotion plans should differ for goals. Even in a single campaign plan, you might need several or more objectives which add more distinctiveness to your business.

In a word, creating a promotion plan shows your aim to get a successful outcome at the end of the promotion, and you believe that you need a roadmap to launch into the market.

How Does a Promotional Plan Benefit?

As it seems, a promotional plan seems more necessary now for any business with different ambitions. The company’s purpose of creating promotions can change. Therefore, it needs to follow structures about trying something new. The promotion plan gives a clear roadmap to your business and investors. Promotion plans are an outline of trying new strategies.  It is straightforward, and almost all aspects of promotion are planned before implementing it. Indeed, a promotion plan illustrates the company’s strategic characteristics of any promotion. It creates ways to achieve and describes how it is possible. 

The end of the promotion plan helps in achieving long-term goals. It can grab attention and make you known to your target and turn them into long-term customers. A promotion plan can function as inform, influence, or persuasive purposes. It is also adjustable and can change to any part of the plan.

Components of a Promotional Plan

Promotional plans don’t have a specific structure in terms of components. While creating a promotion plan, there are some components to set off. However, some things need to have in a promotion plan. Namely, they are elements to take into consideration for every promotion plan. These segments are equally important in creating any promotion. You can find the most probably efficient ones stated in this article.

Create Your Promotional Plan

You may want and have different reasons to start your promotion. For instance, the promotional plan process aims to inform, reach target audiences, persuade and engage with the company in basic terms. A promotion plan requires thinking systematically. Before starting your promotion plan, consider the most convenient elements shown below.

Creating Your Promotional Plan Includes

To create your promotion plan, you can look for the components covered in your promotion. Some of them are listed and explained in this article.

A Promotional Plan

• Define Aims And Problems

Identify Objectives

Know target audience.

• Promotion Type And Strategy

Key Messages

Name promotion plan, promote products and services, plan resources, test your promotion plan, implementation of promotion plan, monitor and evaluate promotion plan.

Define Aims and Problems

Why do you want to promotion plan? Any issues you are concerned about and lead to planning? It is one of the crucial parts to know and get more clear about starting your promotion plan. Define and state your reasons, goals, and problems to create a promotion. Make sure about your motivation and be specific for creating a detailed promotion plan. Defining aims might be the very first step to start your planning.

After you define your reasons to start a promotion plan, the next thing to do is make clear objectives. Objectives are goals to at the end of the promotion plan, outcome to get through the company efforts. Identify your reasons for creating a promotion plan with your objectives. Objectives will guide particular strategies and shows how you will market them. They also should match with your promotion type in the promotion plan. You can decide your objectives by keeping in mind your target audience. Objectives should be specific, achievable, realistic, and measurable. Promotional objectives would be specific to your intents in your campaign, and you can find some examples:

• Your promotional objectives would be to launch a new product or service, inform customers about the product, build loyal customers, expand your market. 
• The objective can be specific to get traffic to your website or registrations.

Think about the target audience before deciding anything about the promotion plan, and try to have their perspectives in marketing. In every marketing, there is always a target audience. You can not think of objectives or strategies without considering audiences. So, try to learn or conduct research about your possible target audiences. Without knowing them, any business could not make it and be successful.

 One of the first things to start in a promotion plan is to know your target audiences. The target audience can be people who probably would be interested in your product. When you know about your target audience, you will save time, deliver the right services and provide knowledge about marketing efforts to take. It would help the company is more likely to meet with the right people and use the right offer to lead solutions to any problem.

 Define the target audience to make a clear vision for the products, like things the audience needs to know. 

In general, know or pick some of them, possibly worth knowing:

• Audience demographics (gender, age, etc.) 
• Behavior patterns most probably benefit the promotion plan.

Design of Promotion

Promotional design is like launching your execution plan. You have to find the type, the strategies and add some of your creativity. Decide on the promotion types and strategies that consist of the target audience and objective of the promotional plan. In addition to that company should analyze the pros and cons to select appropriate promotional tools with their resources.

Promotion Type and Strategy

Promotion type and strategy is about how to apply your objective to marketing. While looking for a promotion strategy, you need to focus on the target audience, objective, product, or service for promotion type. 

Create your promotion type which is suit best to the company and campaign. With the promotion type, you decided that is a way to attract the target audience. It will encourage people to know your business or change the image of your company and pursue. Also, simple promotions are easy to understand and respond high within the market. 

You can choose from the various promotion types:

• Advertising
• Personal selling
• Sales promotion
• Public relations
• Social Media

If you decide what type of promotion you will use, start implementing it into your promotion strategies. You may promote with these strategies:

• Free shipping
• Percentage discount
• Give free items
• Loyalty-coupons
• Special offers at weekends

What is the mission statement of the company in that specific promotion? Find massage, name promotion, and products or services to reflect your promotion. Let the audience know about your promotion product or service with simple and catchy phrases. This phrase needs to infer the company and its promoted service. 

Make promotion more unique by giving a name. Name promotion plan with the campaign, find catchy and related to promotion campaign. Try to title it to grab attention just hearing that. 

You can present promotions with products with their messages. Choose something relevant to the promotion plan. It could be classic as shirts and hats. Products that include the company logo or slogan will say more about the current promotion plan. It allows to high chance of grabbing attention and meeting with audiences to deliver the campaign. 

Plan your resources, should decide the duration of the promotion, strategies, or tools to have in the promotion plan. The budget you have and incentives need to take consideration during the planning.

Check the resources that you are going to invest in marketing. Set budgets because you will know your expense of promotion, services, and marketing tools you can choose.

Once you have a promotional plan, you should test your plan. It would help to realize potential problems and identify the things you need to change in the promotion plan. To test the promotion plan and try it with selected markets. Similarly, you can test your strategies once you set a goal and objective. A key performance indicator is the simplest way to test your revenue goal at a particular time.

Until this part, you make a plan and decide on an objective, target audience, strategies to use in implementation. It is time for promotion to launch. You are in the market and assess your processes with the outcomes of the promotion plan. It allows you to adjust the promotion plan or change it completely.

A promotional plan is a great way to evaluate your business. In planning processes, you think about your current resources, target audience, objective, strategies. After you launch, you see the performance of the promotion plan with the result in the real market now. 

Promotional Plan Template

Create your promotion plan with components of it.

Yet, a simple promotional template can include of following elements:

• Overview of the current status of the business and products or services you offered (resources, products, and budget)
• Mission statement to start promotion plan
• Long term goals and KPIs
• Target Audience (information about your target audience)
• Promotion strategies

Conclusion About How to Create Promotional Plan (With Examples)

In this article, you can find almost everything about the promotional plan. So, start your promotion plan while sticking with its fundamental aspects. Also, consider your business and services to create your unique promotion plan, know your target, and always keep into your mind the objective and goal in each promotion plan. We hope this article will help all you need to know about the promotion plan.

Frequently Asked Questions About

A promotion plan is a process of optimizing your marketing. You need to know about aspects of a promotion plan to create your own. It means more emphasis on thinking and deciding on implementing it. Think of your promotion plan as an outline with elements that shows your goal to create a plan. It’s a unique roadmap to your business

The company’s purpose of creating promotions can change. So, it needs to follow structures about trying something new. Promotion is easy to get attention,  and people are most likely to purchase. Those build brand loyalty.

There are not certain fundamentals of a promotion plan. But a promotion plan has components to include in every promotion plan to achieve its goal. Each of them is equally important and impacts on results of the promotion. Therefore, to create a successful promotion that should consider and have every plan. Cover these in a plan: mission statements, objectives, audience, strategies, and assessment tools.

A promotion plan is a process, so you don’t need to do anything special but start creating and thinking about your promotion. You can try the promotion plan by asking the following questions as a start, Why do you want to promote a plan? What is your current company doing?

A promotional plan is for various purposes so, there are many different templates that you can find or create your unique template. However, in a basic promotional template, you look for components such as current status, state reasons for promotion plan, define an objective, know the target audience, find promotion strategies and test the process.

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May 21, 2024

May 07, 2024

Apr 08, 2024

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Promotional Products Distributor Business Plan and SWOT Analysis

Promotional Products Distributor Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Promotional Products Distributor Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Promotional Products Distributor business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be available for download after your purchase.

Product Specifications (please see images below):

• Bank/Investor Ready!
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Promotional products are important form of advertising for many small businesses. This includes having branded apparel, pens, stationery, and other items that can be easily embossed with a businesses logo and address. As such, promotional product distributors almost always able to remain profitable and cash flow positive in any economic climate given that these items are continually going to be in demand. It should be noted that many economically secure businesses only work with promotional products distributors in order to ensure that they have a continuous stream of purchase orders on a monthly basis. By aligning the business with certain companies like medical and healthcare businesses – promotional product repeaters can ensure that revenues remain stable in any economic climate. The gross margins generated from the sales of promotional products is moderate.

Typically, these businesses are able to generate several different types of revenue. First, many of these businesses maintain an on site graphic designer that can assist the client with putting their logo onto any type of specific promotional product. Generally, the gross margins generated from the service range anywhere from 70% to 90% depending on whether or not the graphic designer is an independent contractor. Second, the sales of the actual promotional product itself usually generates gross margins ranging anywhere from 40% to 60% depending on the item being produced and distributed. Usually, startup costs for new promotional product distribution business ranges anywhere from $50,000 to $100,000 depending on whether or not the equipment needed to make the promotional products will be kept within the company’s facilities.

Given that these businesses deal with a large amount of inventory, furniture, fixtures, and equipment – most financial institutions will provide a significant amount capital for a new promotional product distributor. Many entrepreneurs that enter this field typically use a working capital one credit to finance their underlying operating expenses until the business reaches profitability. Of course, a promotional products distributor business plan is going to be required. This business plan should feature a three year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business rations page.

Within this document a full demographic analysis outlining the companies to be targeted for the company services should be developed as well. This includes overlying the annual revenues, industries targeted, annual profits, and the amount of money that any specific client will spend on promotional products in any given month. Given that many people now use the Internet to find these products, the demographic profile can be somewhat minimal as the company will be able to rendered services to businesses throughout the country.

A promotional products distributor marketing plan needs to be produced as well. Foremost, is that the business these have an expansive online presence so the individuals can quickly find the company when they do a search request for specific types of promotional products. The company’s website should showcase the full inventory of the company, how quickly promotional products can be produced, and the anticipated cost based on a per unit basis. A presence on social media is a moderate importance of this type of business given that most people actually use search engines rather than social media in order to find these companies. However, a presence on social media can boost the brand-name visibility of the business especially among small business entrepreneurial pages that act as communities. As such, these businesses can benefit significantly by having a modest presence on FaceBook, Twitter, Google+, and LinkedIn profiles of promotional products have been developed in the past.

A promotional product distributor SWOT analysis should be produced as well. This document outlines the strengths, weaknesses, opportunities, and threats that are common to this type of industry. For strengths, promotional product distributors generate moderate gross margins from two different revenue sources. They are usually able to remain profitable and cash flow positive in any economic climate. The barriers to entry are considered to be moderately low. For weaknesses, this is a highly competitive industry and the Internet has made even more competitive given that companies can offer their services to anyone else within the United States. As such, the promotional products distributor to find ways to effectively differentiate itself from other competitors in the market. For opportunities, frequently that these companies grow as to the acquisition of promotional product businesses that are already in operation. Additionally, the business can source a number of unusual products that can be embossed with a small to medium-size businesses logo and contact information. For threats, there is nothing at this time that would impact the way that these companies conduct their operations.

A promotional product that you can be a great business for someone that is looking to become an entrepreneur to start. These are relatively easy businesses to operate and they do not require a large capital commitment in order to get them profitable. The primary concern for these types of businesses and that this is an established anticompetitive industry. Again, the entrepreneur looking to start a promotional products distribution business is going to need to have a strong differentiating factor is how they will provide these products to the general public. In the long run these businesses can become extremely lucrative and they have a very high sales value once a highly predictable stream of purchase orders is developed among the business public.

How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated May 7, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

Free business plan templates and examples

Kickstart your business plan writing with one of our free business plan templates or recommended tools.

Free business plan template

Download a free SBA-approved business plan template built for small businesses and startups.

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One-page plan template

Download a free one-page plan template to write a useful business plan in as little as 30-minutes.

Sample business plan library

Explore over 500 real-world business plan examples from a wide variety of industries.

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How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

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

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan
• Templates and examples

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