how many parts does a business plan have

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

By Joe Weller | October 11, 2021

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

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

What Is a Business Plan?

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

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

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

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

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

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

Business Plan Steps

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

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

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

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

Do I Need a Simple or Detailed Plan?

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

How to Choose the Right Plan for Your Business

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

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

Is the Order of Your Business Plan Important?

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

The Difference Between Traditional and Lean Business Plans

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

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

How to Write a Business Plan Step by Step

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

Step 1: Executive Summary

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

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

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

Step 2: Description of Business

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

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

Step 3: Market Analysis

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

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

Step 4: Competitive Analysis

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

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

Step 5: Description of Organizational Management

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

Step 6: Description of Products or Services

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

Questions to answer in this section are as follows:

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

Step 7: Marketing Plan

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

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

Step 8: Sales Plan

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

Start by answering the following questions:

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

Step 9: Funding Details (or Request for Funding)

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

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

Step 10: Financial Projections

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

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

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

Business Plan Template

Download Business Plan Template

Microsoft Excel | Smartsheet

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

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

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

How to Write a Simple Business Plan

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

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

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

Simple Business Plan Template

Download Simple Business Plan Template

Microsoft Excel |  Microsoft Word | Adobe PDF  | Smartsheet

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

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

How to Write a Business Plan for a Lean Startup

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

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

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

Lean Business Plan Template for Startups

Download Lean Business Plan Template for Startups

Microsoft Word | Adobe PDF

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

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

How to Write a Business Plan for a Loan

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

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

Download free financial templates to support your business plan.

Tips for Writing a Business Plan

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

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

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

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

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

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

Resources for Writing a Business Plan

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

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

How a Business Plan Helps to Grow Your Business

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

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

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How to Write a Business Plan, Step by Step

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What is a business plan?

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

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

ZenBusiness

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

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

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

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

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

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

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

Your business’s registered name.

Address of your business location .

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

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

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

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

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

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

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

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

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

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

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

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

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

Licenses and permits.

Equipment leases.

Bank statements.

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

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

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

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

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

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

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

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What Is a Business Plan?

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

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

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

Key Takeaways

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

Investopedia / Ryan Oakley

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

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

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

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

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

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

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

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

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

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

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

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

2 Types of Business Plans

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

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

Why Do Business Plans Fail?

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

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

What Does a Lean Startup Business Plan Include?

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

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

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

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

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

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8 Components of a Business Plan

Back to Business Plans

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 19, 2023 Updated on February 27, 2024

A key part of the business startup process is putting together a business plan , particularly if you’d like to raise capital. It’s not going to be easy, but it’s absolutely essential, and an invaluable learning tool. 

Creating a business plan early helps you think through every aspect of your business, from operations and financing to growth and vision. In the end, the knowledge you’ll gain could be the difference between success and failure. 

But what exactly does a business plan consist of? There are eight essential components, all of which are detailed in this handy guide.

1. Executive Summary 

The executive summary opens your business plan , but it’s the section you’ll write last. It summarizes the key points and highlights the most important aspects of your plan. Often investors and lenders will only read the executive summary; if it doesn’t capture their interest they’ll stop reading, so it’s important to make it as compelling as possible.

The components touched upon should include:

• The business opportunity – what problem are you solving in the market?
• Your idea, meaning the product or service you’re planning to offer, and why it solves the problem in the market better than other solutions.
• The history of the business so far – what have you done to this point? When you’re just getting started, this may be nothing more than coming up with the idea, choosing a business name , and forming a business entity.
• A summary of the industry, market size, your target customers, and the competition.
• A strong statement about how your company is going to stand out in the market – what will be your competitive advantage?
• A list of specific goals that you plan to achieve in the short term, such as developing your product, launching a marketing campaign, or hiring a key person. 
• A summary of your financial plan including cost and sales projections and a break-even analysis.
• A summary of your management team, their roles, and the relevant experience that they have to serve in those roles.
• Your “ask”, if applicable, meaning what you’re requesting from the investor or lender. You’ll include the amount you’d like and how it will be spent, such as “We are seeking $50,000 in seed funding to develop our beta product”. 

Remember that if you’re seeking capital, the executive summary could make or break your venture. Take your time and make sure it illustrates how your business is unique in the market and why you’ll succeed.

The executive summary should be no more than two pages long, so it’s important to capture the reader’s interest from the start. 

• 2. Company Description/Overview

In this section, you’ll detail your full company history, such as how you came up with the idea for your business and any milestones or achievements. 

You’ll also include your mission and vision statements. A mission statement explains what you’d like your business to achieve, its driving force, while a vision statement lays out your long-term plan in terms of growth. 

A mission statement might be “Our company aims to make life easier for business owners with intuitive payroll software”, while a vision statement could be “Our objective is to become the go-to comprehensive HR software provider for companies around the globe.”

In this section, you’ll want to list your objectives – specific short-term goals. Examples might include “complete initial product development by ‘date’” or “hire two qualified sales people” or “launch the first version of the product”. 

It’s best to divide this section into subsections – company history, mission and vision, and objectives.

3. Products/Services Offered 

Here you’ll go into detail about what you’re offering, how it solves a problem in the market, and how it’s unique. Don’t be afraid to share information that is proprietary – investors and lenders are not out to steal your ideas. 

Also specify how your product is developed or sourced. Are you manufacturing it or does it require technical development? Are you purchasing a product from a manufacturer or wholesaler? 

You’ll also want to specify how you’ll sell your product or service. Will it be a subscription service or a one time purchase?  What is your target pricing? On what channels do you plan to sell your product or service, such as online or by direct sales in a store? 

Basically, you’re describing what you’re going to sell and how you’ll make money.

• 4. Market Analysis 

The market analysis is where you’re going to spend most of your time because it involves a lot of research. You should divide it into four sections.

Industry analysis 

You’ll want to find out exactly what’s happening in your industry, such as its growth rate, market size, and any specific trends that are occurring. Where is the industry predicted to be in 10 years? Cite your sources where you can by providing links. 

Then describe your company’s place in the market. Is your product going to fit a certain niche? Is there a sub-industry your company will fit within? How will you keep up with industry changes? 

Competitor analysis 

Now you’ll dig into your competition. Detail your main competitors and how they differentiate themselves in the market. For example, one competitor may advertise convenience while another may tout superior quality. Also highlight your competitors’ weaknesses.

Next, describe how you’ll stand out. Detail your competitive advantages and how you’ll sustain them. This section is extremely important and will be a focus for investors and lenders. 

Target market analysis 

Here you’ll describe your target market and whether it’s different from your competitors’.  For example, maybe you have a younger demographic in mind? 

You’ll need to know more about your target market than demographics, though. You’ll want to explain the needs and wants of your ideal customers, how your offering solves their problem, and why they will choose your company. 

You should also lay out where you’ll find them, where to place your marketing and where to sell your products. Learning this kind of detail requires going to the source – your potential customers. You can do online surveys or even in-person focus groups. 

Your goal will be to uncover as much about these people as possible. When you start selling, you’ll want to keep learning about your customers. You may end up selling to a different target market than you originally thought, which could lead to a marketing shift. 

SWOT analysis 

SWOT stands for strengths, weaknesses, opportunities, and threats, and it’s one of the more common and helpful business planning tools.   

First describe all the specific strengths of your company, such as the quality of your product or some unique feature, such as the experience of your management team. Talk about the elements that will make your company successful.

Next, acknowledge and explore possible weaknesses. You can’t say “none”, because no company is perfect, especially at the start. Maybe you lack funds or face a massive competitor. Whatever it is, detail how you will surmount this hurdle. 

Next, talk about the opportunities your company has in the market. Perhaps you’re going to target an underserved segment, or have a technology plan that will help you surge past the competition. 

Finally, examine potential threats. It could be a competitor that might try to replicate your product or rapidly advancing technology in your industry. Again, discuss your plans to handle such threats if they come to pass. 

5. Marketing and Sales Strategies

Now it’s time to explain how you’re going to find potential customers and convert them into paying customers.  

Marketing and advertising plan

When you did your target market analysis, you should have learned a lot about your potential customers, including where to find them. This should help you determine where to advertise. 

Maybe you found that your target customers favor TikTok over Instagram and decided to spend more marketing dollars on TikTok. Detail all the marketing channels you plan to use and why.

Your target market analysis should also have given you information about what kind of message will resonate with your target customers. You should understand their needs and wants and how your product solves their problem, then convey that in your marketing. 

Start by creating a value proposition, which should be no more than two sentences long and answer the following questions:

• What are you offering
• Whose problem does it solve
• What problem does it solve
• What benefits does it provide
• How is it better than competitor products

An example might be “Payroll software that will handle all the payroll needs of small business owners, making life easier for less.”

Whatever your value proposition, it should be at the heart of all of your marketing.

Sales strategy and tactics 

Your sales strategy is a vision to persuade customers to buy, including where you’ll sell and how. For example, you may plan to sell only on your own website, or you may sell from both a physical location and online. On the other hand, you may have a sales team that will make direct sales calls to potential customers, which is more common in business-to-business sales.

Sales tactics are more about how you’re going to get them to buy after they reach your sales channel. Even when selling online, you need something on your site that’s going to get them to go from a site visitor to a paying customer. 

By the same token, if you’re going to have a sales team making direct sales, what message are they going to deliver that will entice a sale? It’s best for sales tactics to focus on the customer’s pain point and what value you’re bringing to the table, rather than being aggressively promotional about the greatness of your product and your business. 

Pricing strategy

Pricing is not an exact science and should depend on several factors. First, consider how you want your product or service to be perceived in the market. If your differentiator is to be the lowest price, position your company as the “discount” option. Think Walmart, and price your products lower than the competition. 

If, on the other hand, you want to be the Mercedes of the market, then you’ll position your product as the luxury option. Of course you’ll have to back this up with superior quality, but being the luxury option allows you to command higher prices.

You can, of course, fall somewhere in the middle, but the point is that pricing is a matter of perception. How you position your product in the market compared to the competition is a big factor in determining your price.

Of course, you’ll have to consider your costs, as well as competitor prices. Obviously, your prices must cover your costs and allow you to make a good profit margin. 

Whatever pricing strategy you choose, you’ll justify it in this section of your plan.

• 6. Operations and Management 

This section is the real nuts and bolts of your business – how it operates on a day-to-day basis and who is operating it. Again, this section should be divided into subsections.

Operational plan

Your plan of operations should be specific , detailed and mainly logistical. Who will be doing what on a daily, weekly, and monthly basis? How will the business be managed and how will quality be assured? Be sure to detail your suppliers and how and when you’ll order raw materials. 

This should also include the roles that will be filled and the various processes that will be part of everyday business operations . Just consider all the critical functions that must be handled for your business to be able to operate on an ongoing basis. 

Technology plan

If your product involves technical development, you’ll describe your tech development plan with specific goals and milestones. The plan will also include how many people will be working on this development, and what needs to be done for goals to be met.

If your company is not a technology company, you’ll describe what technologies you plan to use to run your business or make your business more efficient. It could be process automation software, payroll software, or just laptops and tablets for your staff. 

Management and organizational structure 

Now you’ll describe who’s running the show. It may be just you when you’re starting out, so you’ll detail what your role will be and summarize your background. You’ll also go into detail about any managers that you plan to hire and when that will occur.

Essentially, you’re explaining your management structure and detailing why your strategy will enable smooth and efficient operations. 

Ideally, at some point, you’ll have an organizational structure that is a hierarchy of your staff. Describe what you envision your organizational structure to be. 

Personnel plan 

Detail who you’ve hired or plan to hire and for which roles. For example, you might have a developer, two sales people, and one customer service representative.

Describe each role and what qualifications are needed to perform those roles. 

• 7. Financial Plan 

Now, you’ll enter the dreaded world of finance. Many entrepreneurs struggle with this part, so you might want to engage a financial professional to help you. A financial plan has five key elements.

Startup Costs

Detail in a spreadsheet every cost you’ll incur before you open your doors. This should determine how much capital you’ll need to launch your business. 

Financial projections 

Creating financial projections, like many facets of business, is not an exact science. If your company has no history, financial projections can only be an educated guess. 

First, come up with realistic sales projections. How much do you expect to sell each month? Lay out at least three years of sales projections, detailing monthly sales growth for the first year, then annually thereafter. 

Calculate your monthly costs, keeping in mind that some costs will grow along with sales. 

Once you have your numbers projected and calculated, use them to create these three key financial statements: 

• Profit and Loss Statement , also known as an income statement. This shows projected revenue and lists all costs, which are then deducted to show net profit or loss. 
• Cash Flow Statement. This shows how much cash you have on hand at any given time. It will have a starting balance, projections of cash coming in, and cash going out, which will be used to calculate cash on hand at the end of the reporting period.
• Balance Sheet. This shows the net worth of the business, which is the assets of the business minus debts. Assets include equipment, cash, accounts receivables, inventory, and more. Debts include outstanding loan balances and accounts payable.

You’ll need monthly projected versions of each statement for the first year, then annual projections for the following two years.

Break-even analysis

The break-even point for your business is when costs and revenue are equal. Most startups operate at a loss for a period of time before they break even and start to make a profit. Your break-even analysis will project when your break-even point will occur, and will be informed by your profit and loss statement. 

Funding requirements and sources 

Lay out the funding you’ll need, when, and where you’ll get it. You’ll also explain what those funds will be used for at various points. If you’re in a high growth industry that can attract investors, you’ll likely need various rounds of funding to launch and grow. 

Key performance indicators (KPIs)

KPIs measure your company’s performance and can determine success. Many entrepreneurs only focus on the bottom line, but measuring specific KPIs helps find areas of improvement. Every business has certain crucial metrics. 

If you sell only online, one of your key metrics might be your visitor conversion rate. You might do an analysis to learn why just one out of ten site visitors makes a purchase. 

Perhaps the purchase process is too complicated or your product descriptions are vague. The point is, learning why your conversion rate is low gives you a chance to improve it and boost sales. 

8. Appendices

In the appendices, you can attach documents such as manager resumes or any other documents that support your business plan.

As you can see, a business plan has many components, so it’s not an afternoon project. It will likely take you several weeks and a great deal of work to complete. Unless you’re a finance guru, you may also want some help from a financial professional. 

Keep in mind that for a small business owner, there may be no better learning experience than writing a detailed and compelling business plan. It shouldn’t be viewed as a hassle, but as an opportunity! 

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9 essential components of a business plan.

Maybe you’re a small business owner that has been in business for years. Or, you could be going through the process of starting a business. Regardless of where you’re at with your career, tasks and responsibilities will come at you quickly.

You need to worry about to-do lists, scheduled meetings, accounting processes and everything in between. When are you supposed to find the time to put your business plan together? It can be an intimidating process to go through, but having a well-thought-out business plan is incredibly important.

There’s no perfect recipe for a business plan, but one of the best things that you can do is write it before you start your business. It can act as a roadmap for where your business is going in the future and how you’re going to get there. So, where do you start?

Let’s take a look at everything that you need to know for writing a business plan that can get you ahead.

Here’s What We’ll Cover:

What Is a Business Plan?

Tips to make your business plan stand out, 9 components of a business plan, key takeaways.

Think about the last time you needed to get somewhere you hadn’t been before. You might drive, ride your bike or take the train. But no matter the way you get there, you first need to know how to get there. You might put the directions into a GPS, follow a bike path or look up the train schedules.

A business plan works in the exact same way, only it’s a roadmap for your business. It’s a comprehensive document that outlines how your small business is going to grow and develop.

Throughout a business plan, you’re going to communicate who your business is, what you plan on doing and how you plan on doing it. This can give valuable insights into your business for potential investors or hiring new talent.

That all said, a business plan is completely different from a general business concept or business idea. A business plan acts as a blueprint for your business and will highlight who you are. Most banking institutions and venture capitalists won’t invest in a small business unless they have a good business plan.

Potential investors are going to want to know that you have a product or service that fits in the market with a good team in place. Plus, it can show the scalability of your business and how you will grow sales volume.

When Do You Need a Business Plan?

First and foremost, a business plan is important to have regardless of the industry you’re in or the products you offer your customers. It will not only keep you focused and efficient, but a well-written business plan can have other benefits.

A business plan can be helpful when:

• You need new investments, funding or loans
• You are searching for a new partner for your business
• You are attracting and retaining top talent
• You are experiencing slower growth than expected and want a change

Every business plan is going to be a little different compared to others. This is since your business is unique and your business plan is going to reflect that. But, if your plan is badly written or missing key bits of information then it won’t be as attractive to potential investors.

Here are some tips to help you get the most out of your business plan and make it stand out.

• Make it as easy to read as possible. Investors want something that’s easily scannable and is divided into distinct sections. This way, they can quickly look through the plan and spot the key information.
• Keep it brief. Most business plans are going to range anywhere from 10 – 20 pages. But, as long as you cover the essentials and highlight the key points, less can often be more.
• Make sure you proofread and edit. Always double-check for grammatical errors and that it’s formatted properly. Typos and mistakes are not going to reflect positively for your business.
• Have a quality design. Make sure you have the proper layout, formatting and brand messaging throughout. Bookbinding your business plan can make it look more professional.
• Know all your business margins. Include each and every cost that your business incurs. You can make sure that you’re organizing and assigning those costs to the right product or service you offer.

One of the best things that you can do before writing your business plan is to determine who your audience is going to be. Are you pitching to a room full of potential investors? Do you have a meeting with your local financial institution’s venture funding department? Or, do you just want to create an internal document to help guide your business forward?

Being able to define who your audience is going to be will help you figure out how to write your business plan. For example, the language in your business plan might be different depending on who you want to highlight your business to.

Here are the 9 essential components of a business plan.

1. Executive Summary

Your executive summary is going to be at the front of your plan and be one of the first things that someone reads. But, writing the executive summary should be the last thing that you do, even though it’s first on the list. For now, you can leave your executive summary blank.

Why? Because it lays out every piece of vital information that’s included in your business plan, usually in one page or less. It’s basically a high-level summary of each of the sections in the plan. This means you can’t really write the executive summary first.

2. Company Description

This is where you’re going to highlight your business and what you do. Your company description will include three different things: a mission statement, company history and business objectives.

First, let’s look at your mission statement .

A mission statement is basically the main reason why you’re in business. It’s not necessarily about what you do or the products or services that you sell. Rather, it’s all about why your business does what it does.

Try and make your mission statement inspirational, motivational and even emotional. It’s going to be the foundation on which your business is built. Put some thought into the things that motivate you and the reasons why you started your business in the first place. What do you want to get out of it? Why are you doing it?

You can also think about the causes or different experiences which led you to start your business and the problems it can solve for your customers.

Next, let’s look at your company history .

This doesn’t need to be a long or in-depth section, but more of a highlight of what your business has done in the past and where you stand today. To help make things easier, you can even write about your company history in the form of a profile. Here’s some of the important information you can include in your company history.

• The date you founded or started your business
• Any major milestones worth highlighting
• Your business location, or locations
• How many employees you have
• Your executive leadership and the roles that they have within your company
• The flagship services or products that you offer your customers

Finally, let’s look at your business objectives .

Your business objectives are your guiding lights. They’re the goals that you plan on achieving and they will outline how you plan on getting there. When developing your business objectives, base them on the process of SMART goals.

These are specific, measurable, achievable, realistic and time-bound. Basically, each objective gets tied to the key results you want to achieve. If you don’t clearly define your business objectives, it can make it more difficult for your employees to work efficiently towards a common goal.

3. Market Research and Business Potential

This is the section of your business plan where you outline your target demographic and ideal customer base. You’re also going to do research into the potential and actual size of the market you’re going to enter into. Target markets are going to identify specific information about your customers.

Usually, you can research and find the following information for your target customers:

• Location and average income
• Age and gender
• Education level and profession
• Any activities or hobbies that are relevant

Getting as specific as possible will allow you to illustrate your expertise and get a sense of confidence when it comes to your business. For example, if your target market is extremely broad, it will show investors that it might be more difficult to generate revenue.

4. Competitive Analysis

What is your competition doing? Competitor research is going to start by identifying any companies that are currently in the market you want to enter into. Understanding everything you can about your competition can seem overwhelming and intimidating.

But having this information is extremely useful and will help you make more informed business decisions in the future. Here are a few common questions that you can ask yourself when you’re doing competitive research.

• Where are they investing most in marketing and advertising?
• Do they get any press coverage? If they do, how are they getting it?
• What is their customer service like? Does your customer service stack up against theirs?
• What are their pricing strategies and what are their sales?
• Do they have good reviews on third-party rating platforms?

One of the best ways to do competitive research is to check out your competition’s website. Read through their About Us page or their value and mission statements. This will give you a better understanding of who they are, what they’re doing and how they’re doing it.

Being able to distinguish your business from your competition is a critical element of any business plan. Take some time to think about what sets your business apart and how you’re going to provide a solution to a problem.

5. Describe You Products or Services

What do you offer your customers? What product or service is your business built on? This section of your business plan is going to detail everything about your product or service. Plus, it’s going to highlight why what your business offers is better than the competition.

Touch on the benefits that your product or service offers, the production process and the product life cycle.

When you’re describing the benefits, try and focus on things like unique features and how they translate into benefits. You can also highlight intellectual property rights or patents that differentiate your products.

For the production process, you can explain how you create your existing or new products or services and how you source the raw materials. Other things such as quality control, quality assurance and supply chain logistics can get included.

With your product life cycle, you can highlight any cross-sells, down-sells or upsells. As well as your future plans for research and development.

6. Marketing and Sales Strategy

You could spend weeks putting together an in-depth business plan that highlights your company and what you do. But, if you don’t have a solid marketing and sales strategy in place then it won’t matter how good your business plan is. You still need to know how you’re going to generate sales.

This part of your plan is entirely dependant on the type of products or services that you offer. You can include your company’s value proposition, ideal target market and your existing customer segments. Then, you can start with some more specifics.

What’s the launch plan that you have in place to help attract new business? What are your growth tactics to help your business expand in the future? Do you have any retention strategies in place, such as customer loyalty or referral programs? What about advertising across print, social media, search engines or television?

These are all good questions to ask yourself when putting together your sales and marketing strategy. You can use this part of the business plan to highlight your business strengths and how you differentiate from the competition.

7. Business Financials

If you are just starting your business then you aren’t going to have much financial data. You won’t have things like financial statements or an income statement. But, you still need to put together some type of financial plan and budget. If you have been operating for a while, you will have some important information to include, such as:

• Profit and loss statements
• Income statements
• Cash flow statement
• Balance sheets
• Revenue vs net income
• The ratio of liquidity to debt repayment

Make sure that the data and figures that you include are accurate. For example, things like costs, profit margins and sale prices can be closely linked together. If you don’t have access to historical data, you can put together financial projections.

8. Management and Organization

The people that you have working for your business are the driving force behind your overall success. Without the right people in place, your business won’t likely be successful. This is the part of your business plan where you’re going to highlight your team.

Identify the members of your team and explain how they are going to help turn your business idea into a reality. Plus, you can highlight the qualifications and expertise of each team member. This will position your business as one that’s worth potentially investing in.

9. Include an Appendix

This is where you’re going to compile and include everything that both investors and your team will need access to. Include everything that’s useful for an investor to conduct due diligence.

Here are some of the most common official documents you can include in a well-organized appendix.

• Any legal documents, local permits or deeds
• Professional licenses or business registries
• Any patents or intellectual property
• Any industry memberships or associations
• Your business identification numbers or codes
• Any key purchase orders or customer contracts that you have in place

It can also be helpful to include a table of contents in your appendix. This can make it easier to find the right information or allow you to highlight the most important documents.

It’s worth noting that a business plan doesn’t just have to be a way to attract potential investors. There are several other reasons why having a business plan is important.

You can better clarify the goals and objections that you want your business to accomplish and you can gain insights into your target market. Team members can have a much better sense as to the direction the business is going and how they can contribute to its success and growth. Plus, you can establish and define the roles of each team member, all while setting achievable benchmarks.

Creating a business plan will act as a roadmap for your business. It’s going to highlight the goals and objectives you have. As well as touch on things like marketing, advertising, your management team and financials. Here’s a quick review of the 9 essential components of a business plan.

• Executive summary, which you will write after you have completed steps 2 – 9
• Company description, including a mission statement, company history and business objectives
• Competitive analysis
• Market research and business potential
• Your products or services
• Marketing and sales strategy
• Business financials
• Management and organization

Follow the 9 components outlined in this article to help you develop a business plan. You can clearly define your business goals and have a roadmap to help your business be successful.

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Parts of Business Plan and Definition

The parts of business plan and definition refer to the governing document of your company and the elements it should include. 3 min read updated on February 01, 2023

The parts of business plan and definition refer to the governing document of your company and the elements it should include. The business plan thoroughly describes your company's purpose, structure, and goals for potential partners, stakeholders, and investors.

Purpose of a Business Plan

Your business plan will be informed by the specific goals for your business. The more complex your product or service, the more complex and detailed your business plan must be. If you are using the business plan to seek investors, you'll need to provide a thorough explanation of your concept and how it fits into your industry.

Once you've drafted a plan, show it to colleagues, partners, and mentors you trust. They can provide an objective view of the business plan and indicate areas where you may need to provide more thorough information.

Executive Summary

This is the first section of your business plan and provides a quick overview of what you want to accomplish with your company. This should comprise the mission statement followed by a description of the services and/or products you provide. Use this basic outline:

• Description of the business
• Products/services
• Market/competition
• Goals and objectives
• Owner and executive qualifications
• Funding information
• Cash and earnings projections

Company Description

A more involved company description should follow the executive summary. This section details the business's key information and examines the market segment you want to capture. The company description is the "meat" of your business plan and should include information about:

• The name of your business
• The business location
• The type of business entity (proprietorship, corporation, or limited liability company (LLC))
• How your company is different from its competition
• Growth and success factors
• How the products and services you offer will solve a problem or fill a need for your desired audience

This is also where you should include operational details such as your hiring plan for the first year or two in business with job classifications and duties. You should also indicate the type of facility you will need for operations and where it will be located.

Market Analysis

This section will demonstrate your understanding of your specific market as well as your industry as a whole. Include the following information:

• Description of your target market
• Overview of industry projection
• List of all competitors with business analysis of each

Product and Service Information

Describe the products and services your business will offer, providing enough detail for those who may be unfamiliar with your industry. Indicate whether you will need to patent your product idea and/or whether a patent application is pending. You should also indicate other steps you've taken to protect intellectual property such as your business name, product names, logo, and branding identity.

If you are manufacturing a product, include information about the materials you'll need and your suppliers for those materials as well as the production process.

Financial Projections

This section demonstrates your plan to make a profit using realistic numbers with a basis in research. Although your ideas are important, you'll also need to show that you will generate enough cash flow to capture a significant market share. Elements this section of your business plan should address include:

• Initial operating costs
• First-year cash flow and sales projects
• Personal expenses
• Start-up and growth financing
• Business bank accounts and/or credit lines
• Projected timeline to a positive cash flow

Management Information

A strong management team will inspire confidence in potential lenders, investors, and partners. The purpose of this section is to make your people shine by highlighting their unique strengths. This part of your business plan should include answers to these questions:

• Who are your company-level and department-level managers?
• What are their qualifications?
• How many full-time and part-time managers do you need?
• How many employees will each manage and what are their responsibilities?
• How will you fund wages and benefits?
• What are your plans for employee training and mentorship?

Additional Information

Complete your business plan with supplemental information that will strengthen your case. Finish with a summary that restates the highlights of your plan and indicates your determination to succeed as a business owner. Attach supporting documents such as licenses, permits, patents, product diagrams, building blueprints, and letters of support from consultants and/or your accountant and attorney.

If you need help with creating a business plan, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top five percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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Components of a Business Plan: An In-Depth Guide

So, you decided to set up a business and now, it’s time to write your business plan. But where to start? What do you need? To answer these qestions in your mind, you need to know the parts, components of a business plan. Knowing the components of a business plan will give you guidance and keep you on track during writing your business plan. So, let’s have a look at the parts (in other words, components) of a business plan and define each part in detail. Click here to Access free resources for your business plan.

Click here to Access free resources for your business plan.

Part -1: Executive Summary

The executive summary is the opening section of your business plan. It is a summary and overview your entire business plan, expressing the vision and promise of your business, its goals, and its strategy. An executibe summary is the last written part of a business plan. So, write it after you finish every other part of your business plan.

Key components of an executive summary can include:

Business Name:

The official name of your business.

Business Type and Ownership:

Write the legal type of your business (LLC, C-Corpetc.) Write the owners and their percantage of shares in the business. Also indicate the location of your business.

Business Description:

Describe what your business does, define the problem it solves, and summarize the market needs it addresses. It’s the “elevator pitch” for your entire business.

Founding Team:

A short summary of founders’ backgrounds and relation with the business. Keep this 1-2 sentences short, you will give details in Management & Organization section later.

Industry Information and Market Opportunity:   

Provide a short information about the insdustry you are in (is it growing, is it shrinking, what is th CAGR, etc.) and your startup’s opportunity in going into this industry.  

Business Model:

A brief description of how your business will make money.

Vision & Mission

Clearly state the vision and mission of your business. This gives readers a sense of the company’s direction and its core values.

Funding Needs:

Provide a short information about how much Money you need, in which form (equity, debt, loan, etc.) and provide information about the use of funds; why are you asking this Money?

Part-2: Company Description

Legal structure.

Explain whether your business is a sole proprietorship, partnership, corporation, or LLC.

Business History:

If you are not just starting up, summarize your business’ history shortly, discussing significant milestones and achievements.

Location & Facilities

Describe the location of your business, if you have or will have any facialities, give details about them.

Business Objectives:

Your business will have short-term and long-term goals for sure. Here is the best part to write them. For e.g. in short term, you can aim to be a profitable venture in your area. As a long term goal, you can aim to expand your business to more attractive areas.

Problem Statement:

Stare the problem you’re solving.

Solution:   

Clearly describe how your product or service solves the problem. This is the reason your business exists.

Target Market:

Who you are aiming to sell your products or services. These are your target customers and the blood cells of your business.

Part-3: Market Analysis

Industry overview:.

Give a brief overview of your business industry do not forget to include current trends, challenges, and outlook about your industry for the upcoming years.

Define the specific customers your business aims to serve. Give information about their demographics, psychographics, and buying behaviors.

Competitors:

Identify your main competitors and analyze their strengths and weaknesses. This helps in positioning your business strategically in the market.

SWOT Analysis:

Here is a good place to make your SWOT analysis if you would like to include it into your business plan.

Part-4: Marketing and Sales Strategy

Marketing strategy.

Detail how you intend to reach your target audience. This includes advertising, PR, content marketing, social media, and more.

Sales Strategy

Discuss how you plan to convert leads into paying customers. This includes your sales funnel, pricing strategy, and sales team structure.

Part-5: Products or Services

Provide a detailed description of your product or service, highlighting features, benefits, prices, costs and what sets it apart from competitors.

If applicable, discuss the lifecycle of your product or any research and development activities.

Part-6: Management & Organization

Organizational structure.

Ilustrate the structure of your business, identifying key roles and their responsibilities.

Management Team

Introduce your management team, providing a brief background of each member and their relevance to the business.

Personnel Plan

Include an overview of the personnel list, how many employees you will employ, what are their costs, etc.

Part-7: Financial Projections

Startup costs.

For new businesses, provide a list of the initial costs required to start the business, including equipment, inventory, and licensing.

Revenue & Profit Forecasts

Provide a projection of your revenue and profit for the next three to five years, with a clear explanation of your assumptions.

Cash Flow Statement

This is a snapshot of your business’s cash inflows and outflows over a period, giving an insight into its financial health.

Part-8: Funding Request

If you’re seeking external funding, detail the amount of funding required, its purpose, and the type of funding you’re seeking (e.g., equity, loan).

Part-9: Appendix

Provide the necessary documents such as proforma financial tables, projections, assumptions, location maps, charts, graphs, images, cv’s of founders, etc.

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The 10 Key Components of a Business Plan

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1 million entrepreneurs and business owners write business plans. These plans have been used to raise funding and grow countless businesses.

Download our Ultimate Business Plan Template here >

From working with all these businesses, we know what the 10 elements in any great business plan. Providing a comprehensive assessment of each of these components is critical in attracting lenders, angel investors , venture capitalists or other equity investors.

Get started with a title page that includes your company name, logo and contact information, since interested readers must have a simple way to find and reach out to you. After that be sure to include the 10 parts of a business plan documented below.

What are the 10 Key Components of a Business Plan?

The 10 sections or elements of a business plan that you must include are as follows:

1. Executive Summary

The executive summary provides a succinct synopsis of the business plan, and highlights the key points raised within. It often includes the company’s mission statement and description of the products and services. It’s recommended by me and many experts including the Small Business Administration to write the executive summary last.

The executive summary must communicate to the prospective investor the size and scope of the market opportunity, the venture’s business and profitability model, and how the resources/skills/strategic positioning of the company’s management team make it uniquely qualified to execute the business plan. The executive summary must be compelling, easy-to-read, and no longer than 2-4 pages.

2. Company Analysis

This business plan section provides a strategic overview of the business and describes how the company is organized, what products and services it offers/will offer, and goes into further detail on the business’ unique qualifications in serving its target markets. As any good business plan template will point out, your company analysis should also give a snapshot of the company’s achievements to date, since the best indicator of future success are past accomplishments.

3. Industry or Market Analysis

This section evaluates the playing field in which the company will be competing, and includes well-structured answers to key market research questions such as the following:

• What are the sizes of the target market segments?
• What are the trends for the industry as a whole?
• With what other industries do your services compete?

To conduct this market research, do research online and leverage trade associations that often have the information you need.  

4. Analysis of Customers

The customer analysis business plan section assesses the customer segment(s) that the company serves. In this section, the company must convey the needs of its target customers. It must then show how its products and services satisfy these needs to an extent that the customer will pay for them.

The following are examples of customer segments: moms, engaged couples, schools, online retailers, teens, baby boomers, business owners, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of business you operate as different segments often have different needs. Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations and income levels of the customers you seek to serve. With regards to psychographic variables, discuss whether your customers have any unique lifestyles, interests, opinions, attitudes and/or values that will help you market to them more effectively.

5. Analysis of Competition

All capable business plan writers discuss the competitive landscape of your business. This element of your plan must identify your direct and indirect competitors, assesses their strengths and weaknesses and delineate your company’s competitive advantages. It’s a crucial business plan section.

Direct competitors are those that provide the same product or service to the same customer. Indirect competitors are those who provide similar products or services. For example, the direct competitors to a pizza shop are other local pizza shops. Indirect competitors are other food options like supermarkets, delis, other restaurants, etc.

The first five components of your business plan provide an overview of the business opportunity and market research to support it. The remaining five business plan sections focus mainly on strategy, primarily the marketing, operational, financial and management strategies that your firm will employ.

6. Marketing, Sales & Product Plan

The marketing and sales plan component of your business plan details your strategy for penetrating the target markets. Key elements include the following:

• A description of the company’s desired strategic positioning
• Detailed descriptions of the company’s product and service offerings and potential product extensions
• Descriptions of the company’s desired image and branding strategy
• Descriptions of the company’s promotional strategies
• An overview of the company’s pricing strategies
• A description of current and potential strategic marketing partnerships/ alliances

7. Operations Strategy, Design and Development Plans

These sections detail the internal strategies for building the venture from concept to reality, and include answers to the following questions:

• What functions will be required to run the business?
• What milestones must be reached before the venture can be launched?
• How will quality be controlled?

8. Management Team

The management team section demonstrates that the company has the required human resources to be successful. The business plan must answer questions including:

• Who are the key management personnel and what are their backgrounds?
• What management additions will be required to make the business a success?
• Who are the other investors and/or shareholders, if any?
• Who comprises the Board of Directors and/or Board of Advisors?
• Who are the professional advisors (e.g., lawyer, accounting firm)?

9. Financial Plan

The financial plan involves the development of the company’s revenue and profitability model. These financial statements detail how you generate income and get paid from customers,. The financial plan includes detailed explanations of the key assumptions used in building the business plan model , sensitivity analysis on key revenue and cost variables, and description of comparable valuations for existing companies with similar business models.

One of the key purposes of your business plan is to determine the amount of capital the firm needs. The financial plan does this along with assessing the proposed use of these funds (e.g., equipment, working capital, labor expenses, insurance costs, etc.) and the expected future earnings. It includes Projected Income Statements, Balance Sheets (showing assets, liabilities and equity) and Cash Flow Statements, broken out quarterly for the first two years, and annually for years 1-5.

Importantly, all of the assumptions and projections in the financial plan must flow from and be supported by the descriptions and explanations offered in the other sections of the plan. The financial plan is where the entrepreneur communicates how he/she plans to “monetize” the overall vision for the new venture. Note that in addition to traditional debt and equity sources of startup and growth funding that require a business plan (bank loans, angel investors, venture capitalists, friends and family), you will probably also use other capital sources, such as credit cards and business credit, in growing your company.

10. Appendix

The appendix is used to support the rest of the business plan. Every business plan should have a full set of financial projections in the appendix, with the summary of these financials in the executive summary and the financial plan. Other documentation that could appear in the appendix includes technical drawings, partnership and/or customer letters, expanded competitor reviews and/or customer lists.

Find additional business plan help articles here.

Expertly and comprehensively discussing these components in their business plan helps entrepreneurs to better understand their business opportunity and assists them in convincing investors that the opportunity may be right for them too.

In addition to ensuring you included the proper elements of a business plan when developing your plan always think about why you are uniquely qualified to succeed in your business. For example, is your team’s expertise something that’s unique and can ensure your success? Or is it marketing partnerships you have executed? Importantly, if you don’t have any unique success factors, think about what you can add to make your company unique. Doing so can dramatically improve your success. Also, whether you write it on a word processor or use business plan software , remember to update your plan at least annually. After several years, you should have several business plans you can review to see what worked and what didn’t. This should prove helpful as you create future plans for your company’s growth.

Download The 10 Key Components of a Business Plan Here

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Dealstruck > Resources > General > The Essential Parts of a Business Plan

The Essential Parts of a Business Plan

Written by: Joe Harris April 30, 2019

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Are you ready to be your own boss? Are you prepared to pursue the passion project of your wildest dreams? These are  two of the top reasons  for entrepreneurs—like yourself—to start the long, challenging, and rewarding journey of opening a business.

A business starts as a vision and evolves from there. Are you ready to make your vision a tangible reality? What are the next steps required for bringing this to life?

First things first: you need a plan. You need to carefully consider all parts of a business plan and lay out what your company hopes to do  and  how they hope to accomplish it. This essential information is what you’ll show investors, the city, employees. . .

Spend your time crafting one that embodies your company’s mission. Make it unique to you. Someone may read your executive summary and realize they’re ready to invest right then!

Here are the bare bones of what to include in your business plan. It’s up to you to fill in the spaces.

1. An Executive Summary

This is an essential first part of every great business plan. It does what it describes: summarizes what’s to come with the plan. An executive summary should be good enough to stand on its own!

What does that mean?

An executive summary includes everything your business plan includes, but in a briefer manner. It should describe the following:

• Your company’s name and location
• The products or services you’re planning to offer
• A thoughtfully-crafted mission statement

Your summary is like a proposal or a cover page. Make it compelling and straightforward.

2. A Company Overview

Here’s where you can start getting into some more detail. At this point, your business plan can be as long as it needs to be.

This is the time to explain what your company is all about.

• What is your name and what does it mean?
• What is its history of conception? History of ownership?
• What are its short-term and long-term goals?

Let’s run through one example.

If you’re opening a brewpub, here is where you can explain the styles of beer that you’d like to focus on brewing or the type of food you plan to sell. You can tell a bit about where your location will be and how the building is getting used.

3. An Industry Analysis

You need to prove that you’ve done your research.

What audience is your industry targeting? What demographics is it most popular with? Per our brewpub example—what age group is drinking craft beer right now?

Your industry analysis is an excellent place to state this.

Not only that, but what’s the competition look like? Or the industry itself? You need to have an idea of the projected future of the industry you’re attempting to enter into.

Now is your chance to state the facts and then provide your solution. Explain the fundamentals of your business and why (and how) it’s going to impact the industry.

4. Your Marketing Plan

Your marketing plan says everything about how you hope to attract, get, and keep customers.

It answers some basic but  essential questions :

• Who are your target customers? (By this point, you know the answer)
• How do you plan to reach those customers?
• How do you plan to retain those customers and keep them coming back?

Use your Unique Selling Proposition (or USP) to your advantage in this area. This explains how your company is unique, how you distinguish yourself from others.

You need to think about marketing materials, which includes everything from  a quality website  to paper brochures. It also includes promotional tactics like social media accounts, event advertising, or whatever is specific to your company.

5. Your Ownership/Team

If someone is going to invest in your company, it helps to know the history of who’s behind it. Whether that’s you, the solo entrepreneur, or a small team that you work with, investors (and others) need to know the people involved. This will help them make informed decisions and know who they’re connecting with.

What is your history and how does it affect your company? What skills, knowledge, and experience are you bringing to the table? Did you go to school, and if so, what was your area of focus?

A small look into you (or your team) humanizes your project. This space also allows you to highlight your strengths.

6. Your Financial Plan

You knew this was coming—it’s time to talk money.

Now, this shouldn’t be a hurriedly scrambled-together piece. You need to prepare this portion of your business plan with the utmost care. Talk to an accountant and bring real numbers to the table.

At this point, you’ve considered the state of your industry and ran some numbers. Now put these numbers into place with an account and make some tangible projections.

Your  financial plan  should include information like:

• Your startup costs
• The cost of maintaining
• A projection of the next few years to come
• How you plan to use and allocate funds
• How you plan to pay employees or do salaries
• Your plan with investors

Let’s go back to our example of the brewpub.

In your plan, you’d include things like the cost of the brewing equipment, the price of Front of House furniture and supplies, the construction costs. Anything of that nature deserves careful consideration—and a place on your business plan.

7. Your Products and Services

Here’s where you get to talk about the fun stuff!

It’s time to go into precise detail about your plan. The things that you think about day in and day out—you get to brag about them here. Talk about your concept, your vision, your mission!

Are you going to give your spent grain to local farms for cow feed? State that here.

Are you featuring locally-sourced goods? Tell your investors here.

Is your space going to be so aesthetically pleasing, no one will ever want to leave?

You get the idea. This is where you pour a little of your heart and soul out into the plan. You can even include a “Q & A,” allowing whoever you’re sharing the presentation with to ask any questions they have about your product.

This space is also an excellent place to mention any plans for community involvement, such as events, collaborations, or unique things you plan to do. This can mean anything of importance for your business, whether it be hosting a fundraising event or ultimately creating your own charity.

Don’t be afraid to set some high goals here. This section of your business plan can focus on as far into the future as you’ve imagined thus far!

Why Do I Even Need a Business Plan?

A business plan is right for you, your future investors, and your business. Without it, you’ve got nothing to show for your work, investors don’t trust you, and your business doesn’t have outlined goals. As you can see by now, the best business plan considers all factors of business carefully.

It has some positive benefits, too. If you’re still on the fence about crafting a plan, here are some  things to know :

• A business plan helps you get finances (unless, of course, you don’t need those)
• It gives you credibility
• It enables you to prioritize your goals, both short-term and long-term
• It gives you an outline you can revisit and update regularly to meet your company’s needs
• It allows you to have more control in the decision-making and operations
• It instills you with helpful knowledge that you can use throughout your company’s existence
• It gives you a competitive edge over others who have not prepared as well
• It gives your product or service a better chance at success

You can show your business plan to bankers, investors, accountants, the city. When you go to apply for permits, bring your policy with you. When you go to ask an investor for funding— bring your business plan with you .

If you care about the success of your passion project, it’s clear: you need a plan.

The Necessary Parts of a Business Plan

They’re all right here. The rest is easy—and if it’s not (say, you’re not the most excellent writer, or you’re terrible at math)—don’t be afraid to ask for professional help.

Many people have done this before you, and many of them are willing to impart some knowledge. And if you’re not lucky enough to know some of those entrepreneurs, well, that’s why you hire them!

Of course, there are optional parts of a business plan—such as your professional advisors. Who are you looking to for inspiration and information? Having a substantial list of advisors may help you look more credible to potential investors.

Let this list guide you in the right direction, not steer you into a box!

Good luck on your startup journey. Making your dreams a reality is rewarding work. And whatever you do, avoid these  ten common startup mistakes  at all costs!

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Parts of a Business Plan

Whether you are starting a pizza shop or a plumbing business, a flower shop or a factory, you need a solid plan. In fact, your Business Plan will be an essential tool throughout the life of your business – from starting out to cashing in. It will help you to start out on the right foot, stay focused, get financing, manage your growth, and more.

Not every Business Plan will be the exactly same, but every Plan should incorporate several key elements.

The Parts of the Plan

Here are the key pieces to a solid Business Plan.

• The title, or heading, of the plan, and very brief description of the business.
• The name of the owner
• The company name and location
• A copyright or confidentiality notice

Table of Contents

• A list of the individual sections and their page numbers, starting with the Title Page and ending with a section for Special Materials (references, etc.).

Summary/Overview

• A brief, but focused statement (a few sentences or paragraphs) stating why the business will be successful. This is the most important piece of a Business Plan because it brings everything together.

Market Analysis

• Identifies specific knowledge about the business and its industry, and the market (or customers) it serves.
• An analysis that identifies and assesses the competition.

Description of the Company

• Information about the nature of the business and the factors that should make it successful .
• Special business skills and talents that provide the business with a competitive advantage, such as a unique ability to satisfy specific customer needs, special methods of delivering a product or service, and so on.

Organization & Management

• The company’s organizational and legal structure, Is it a sole proprietorship? A partnership? A corporation? (See: “ Ownership Structures “)
• Profiles of the ownership and management team: What is their background, experience and responsibilities?

Marketing & Sales

• The company’s process of identifying and creating a customer base. (See: “ Market Research “)

Description of Product or Service

• How they will benefit from the product or service?
• Specific needs or problems that the business can satisfy or solve, focusing especially on areas where the business has the strongest skills or advantages.
• The amount of current and future funding needed to start or expand the business. Includes the time period that each amount will cover, the type of funding for each (i.e., equity, debt), and the proposed or requested repayment terms.
• How the funds will be used: For equipment and materials? Everyday working capital? Paying off debt?
• Explains or projects how the company is expected to perform financially over the next several years. (Sometimes called a “pro-forma projection.”)  Because investors and lenders look closely at this projection as a measure of your company’s growth potential, professional input is strongly recommended.
• Credit histories (personal & business)
• Resumes of key personnel and partners
• Letters of reference
• Details of market studies
• Copies of licenses, permits, patents, leases, contracts, etc.
• A list of business consultants, attorneys, accountants, etc.

These are just the basic essentials to creating a Business Plan. Each plan should be tailored to the specific business. (See: Business Plan Assistance )

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By Bhvishya Patel, Money team

We're all familiar with the stats - nearly half (42%) of all marriages in the UK end in divorce.

But unless you've been through it, you'll probably be surprised at how much getting divorced costs. 

It varies depending on where you live and how you do it, but according to MoneyHelper a couple could be looking at between £1,300 and £2,600 for an uncontested divorce and between £10,000 and £30,000 if it is a contested case - for example, you've failed to reach an agreement and the case is taken to court.

The cost can climb even higher if the case drags on.

Family court backlogs mean a quick resolution is almost unheard of - with Ministry of Justice figures showing the average divorce takes more than a year to complete.

So what do you need to know?

This table shows some of the main costs to consider when getting a divorce.

Can you do it for less?

Although the process had become a lot more straightforward with the introduction of no-fault divorces, some solicitors still take advantage, says Desmond O'Donnell, a partner in the family team at the legal firm Thomson Snell & Passmore. 

"I say to my clients, you are more than capable of applying for a divorce without a solicitor - the court fee is £593. You get other solicitors who say 'let me do it for you' because they can charge the client for that and then costs go up to £600-800." Desmond O'Donnell

He says it is better to settle a separation outside court because taking a case to court "racks up costs".

"You get some solicitor firms who see it as a business rather than what is best for their client," he says. 

"If you settle a case quickly you don't make money, so they almost encourage their client to go to court."

He recommends looking at other avenues such as mediation, collaborative law, arbitration and the process of "one couple, one lawyer" to avoid being "at the mercy of the court".

Less lawyer routes

With mediation, through which a couple resolves issues with a mediator, "emails are not flying back and forth" between solicitors and matters can be resolved "within hours", Mr O'Donnell says.

Another way of handling a separation is arbitration - a private system in which spouses choose an arbitrator to hear their case in their chambers.

"It's having a judge who has the time to give your case the attention it needs and because it is much quicker, there is less correspondence so it is going to be cheaper," Mr O'Donnell says.

'Collaborative' lawyers

He also draws attention to collaborative law, which involves specially trained solicitors meeting for roundtable meetings for the benefit of the family.

"As there is more realism brought into it and we're not trying to bluff each other, very often we agree on things outside the traditional court system more quickly and cheaply than the traditional system," he says.

Sharing a solicitor?

Opting for "one couple, one lawyer", with the solicitor acting for both spouses, can cost £3,000 to £4,000 plus VAT - so "much cheaper", Mr O'Donnell says.

But this only works if the couple are on amicable terms.

Finances are not sorted with divorce

A common misconception is that divorce and finances are dealt with in the same processes - they are not, says Zoe Rose, senior associate at Hedges Law.

"I often say to clients you probably won't need a lawyer to help you with the divorce application because if you can do online shopping you can do the relevant online application with the court directly." Zoe Rose

But, she says, with discussions about finances and children people "should be spending some money getting some decent legal advice".

"You do the simple paperwork and come to me for the strategic stuff about what happens with assets and what happens with your children and what that looks like," she says.

How you communicate with your lawyer is key

How people communicate with lawyers is important in keeping costs down, according to Ms Rose.

"If you send your solicitor two emails and then automatically ring them, your solicitor won't have had time to look at your email and won't give you the nuanced advice you want," she says.

"Whereas if you send them a couple of emails and then book a slot later, what you will get back out will be much better."

Here are Ms Rose's other tips to keep fees down:  

• Only speak to your lawyer about legal advice as you are charged for the time you spend with them;
• Avoid asking the same questions more than once;
• Keep ongoing correspondence to a minimum and if you want to ask if an email has been received, your solicitor's assistant is the best person to answer this.

'Train wreck break-up prompted me to set up amicable divorce service'

In the course of writing this article, we came across Kate Daly, a relationship counsellor and the co-founder of Amicable. 

The company first offers a 15-minute free advice consultation and then follows this up by helping couples decide how to divide their money and property, or with arrangements for their children.

Once they have a financial agreement, this is drafted into a consent order and sent to court for a judge to review. 

It means no lawyers are needed and, the theory goes, results in an amicable divorce.

"I came up with the idea for this business off the back of my own awful train wreck divorce - it was really terrible," she says.

"It cost huge amounts of money and it created untold emotional damage, even now it still plays out in my family. A horrible divorce is like the gift that keeps on giving - it just stalks you through all life events.

"When I went through mine, I thought 'what have I done wrong to create this awful situation where we are both spending so much money and ended up in such a bad place?'"

Most couples could do a simple divorce - that is, one with no finances to sort out - themselves, she says, but it is "trickier" to do a consent order and "definitely worth getting legal advice at that point".

"We're on a mission to change the way society thinks about relationships ending and to get to a point where we can say love can end and that doesn't have to be a fight, and it doesn't have to be a failure," she says.

Here's a round up of the changes...

Child benefit

The amount people can earn before child benefit is reduced or taken away is increasing.

At the moment, people lose 1% of the benefit for every £100 they earn over £50,000. At £60,000, the benefit is cut completely.

From this month, the benefit won't be reduced until one parent earns more than £60,000. And it will only go completely at £80,000.

Benefits and tax credits that are linked to inflation will rise by 6.7% this month.

That was the level CPI in September.

For joint claimants over the age of 25, universal credit standard allowances will rise from £578.82 to £617.60 per month.

The state pension will rise by 8.5% this month.

The "new" state pension, for those reaching state pension age on or after 6 April 2016, will rise to £221.20 a week - up from £203.85.

The "basic" state pension, for those who took it out prior to April 2016, is rising to £169.50 a week.

Both groups may get more or less depending on individual circumstances. 

When do the changes tax effect?

Pensions will rise from Monday.

Housing benefit and council tax reduction rates changed at the start of this month.

Tax credits changes typically apply at the start of the new tax year - so today.

Means-tested benefits like universal credit, income support or pension credit are changed from Monday.

Four topics elicited the most consternation in our mailbox this week: pensioners being drawn into tax, the price of pints, banned adverts and Royal Mail cutbacks. 

On Tuesday we revealed that 650,000 extra pensioners will have to pay income tax for the first time following an inflation-linked 8.5% rise in the state pension which will take many with additional income over the (currently frozen) tax threshold of £12,570.

I have a service pension which I've been living off for 10 years and this month qualify for my state pension. Couldn't believe it when my service pension was nearly £200 less due to tax!! They give with one and take with another!! Brilliant!! I guess I should have expected it!! Ian, Fareham

Thanks to the tax bracket not being raised in line with inflation, I am now paying tax on my pension... Pointless the Tories keeping on about triple lock as I get an increase in one hand then take it out with the other. Mr c k

Others asked if the move meant pensioners were being effectively "taxed twice"...

Why should pensioners have to pay tax on personal/private pensions when they have already paid tax on it during their working lives. Surely the government is getting double payment of taxes? Sarah

This isn't quite right - as pension income is only taxed when it's withdrawn, ie when you retire. 

Making pension contributions during your working life is tax free within certain limits . 

Away from pensions, on Wednesday we reported that a Nationwide advert starring Dominic West would be banned following 282 complaints. 

The watchdog found it was misleading consumers into thinking the building society – unlike its rivals – would not be closing its branches.

Some of our readers have seen first-hand closures, in contrast to the advert's message...

Our Nationwide branch closed after they stated it would remain open for at least two years. Goldie30

Good! I am glad that the Nationwide adverts have been banned as they did, indeed, close last year the Blaby, Leicestershire branch of their bank. So the adverts always left a very bitter taste in the mouth. Well done ASA for calling Nationwide out on this. Alan Henry

Looking at the breakdown of the cost of a pint we posted on Thursday...

...we had an interesting question from Pete on non-alcoholic drinks...

Why do alcohol-free drinks cost so much in pubs and restaurants? Prices are often the same and yet tax is lower. Petethepilot

Although the same duty doesn't apply on alcohol-free drinks, they can be more expensive to manufacture.

Many breweries make their standard beer then "remove" the alcohol after - adding an extra step to an already expensive process, using the same ingredients and methods etc. 

Historically, it's also been brewed in much smaller quantities (naturally driving price up), although as its popularity continues to rise we may see that change. There's also development and marketing costs.

Another reader, John, said... 

Having just returned from a holiday in mainland Spain - I find myself asking why the cost of a large draft local beer (pint) - even in many restaurants - is only about €3. Which is the equivalent of about £2.56. Yet another example of rip-off Britain!!! JohnMette

On Wednesday, Royal Mail revealed it may slash  1,000 jobs as part of cutbacks including reducing second-class deliveries to three days a week, prompting comments like this...

So now we all pay for 1st class post and get 2nd class service.  Liyzlg

National insurance has been cut, for the second time this year, from 10% to 8% on employee earnings between £12,570 and £50,270 from today.

The change, announced by the chancellor in his March budget, impacts around 27 million payroll employees across the UK.

The cut is worth almost £250 to someone earning £25,000 a year and almost £750 for those earning £50,000

Use our tool below for a rough guide to what tax changes can be expected for most people, as there are other variables not included which might affect how much tax you pay including being in receipt of the blind person's allowance or the marriage allowance. It also assumes you are not self-employed and are under pension age...

There are also national insurance cuts for the self-employed. This includes the scrapping of Class 2 contributions, as well as a reduction of the rate of Class 4 contributions from 9% to 6% for the £12,570 to £50,270 earnings bracket.

These will impact nearly two million self-employed people, according to the Treasury.

While many campaigners welcomed the national insurance announcement last month, they pointed out that the tax burden remains at record high levels for Britons - thanks in part to the threshold at which people start paying income tax being frozen, rather than rising with inflation.

Big Issue founder Lord Bird says the government has "lost the plot" over proposed legislation which critics say criminalises homelessness .

He called the Criminal Justice Bill a "waste of time" that fails to stop people living and dying on the streets of the UK.

The bill contains provisions to allow police to forcibly move on "nuisance" rough sleepers, with criteria including creating "excessive smell" or "looking like they are intending to sleep on the streets".

"How the hell are you going to enforce this?" Lord Bird said on Sky News.

"You're going to get the old bill [police] or the local security going out their sniffing people? This is just a waste of time."

Lord Bird said it was "human rights abuse to let people live and die on our streets".

"When it's moved onto criminal justice issues, then you've lost the plot."

British Savings Bonds , which were announced in the budget, have gone on sale .

The bonds, issued by the Treasury-backed NS&I, offer a fixed rate for three years - and the rate has been revealed at 4.15%.

This has left experts feeling a little underwhelmed.

Savings Champion  founder Anna Bowes gave us her view: "In essence, this is simply a re-issuance of the NS&I three-year Guaranteed Income and Guaranteed Growth bonds, rather than anything new or British.

"As was reported just after the budget and as is often the case with NS&I products, while the interest rate is not rock bottom it’s mid-table, so is likely to still be utilised, especially for those rolling over old bonds, and those with more than the FSCS limit of £85,000, because of course all cash held with NS&I is guaranteed by HM Treasury.

"NS&I is a trusted institution so will always be popular, but savers can earn quite a lot more if they shop a

Trade groups have warned of higher food prices and empty supermarket shelves because of new post-Brexit border fees being introduced this month.

A maximum charge of £145 will apply on imports of plant and animal products, such as cheese and fish, entering the UK through the Port of Dover and Eurotunnel from 30 April.

The fees are intended to cover the cost of operating new border control posts required after Brexit, and will not apply to goods brought into the UK for personal use, the government said.

But importers warned the new charges could lead to higher prices for consumers.

Read more here ...

The Money blog is your place for consumer news, economic analysis and everything you need to know about the cost of living - bookmark news.sky.com/money.

It runs with live updates every weekday - while on Saturdays we scale back and offer you a selection of weekend reads.

Check them out this morning and we'll be back on Monday with rolling news and features.

The Money team is Emily Mee, Bhvishya Patel, Jess Sharp, Katie Williams, Brad Young and Ollie Cooper, with sub-editing by Isobel Souster. The blog is edited by Jimmy Rice.

Senior doctors in England have voted to accept an improved government pay deal, bringing to an end the year-long dispute which had led to strike action.

The British Medical Association (BMA), a trade union which has been representing the consultants, put the offer on pay and conditions to its members, with 83% voting in favour.

The pay deal includes changes to the review body on doctors' and dentists' remuneration (DDRB) and a 2.85% (£3,000) uplift for those who have been senior doctors for four to seven years, said the BMA.

The offer is in addition to the 6% awarded during the DDRB process last summer.

You can read more here ...

Administrators to The Body Shop are drawing up plans to salvage a future for one of Britain’s best-known high street brands.

Insolvency practitioners at FRP Advisory have outlined proposals to launch a company voluntary arrangement (CVA) that would see The Body Shop entering talks with landlords about rent cuts, as well as other creditors, Sky News has learnt.

According to proposals sent to The Body Shop's creditors on Friday morning, which lay bare the depths of the financial problems inherited by the investor which bought the company less than four months ago, a CVA would "allow the company to be rescued and exit from administration".

This would see it continuing to trade under the ownership of Aurelius, the investment firm which took control of it at the start of the year.

Read more in our City editor Mark Kleinman's  full story .

The crisis enveloping Thames Water has deepened after its holding company announced it had been unable to meet a debt repayment.

Kemble Water said it missed an interest payment that was due on Tuesday.

The firm said it had asked its lenders to take no immediate action so as to "provide a stable platform while all options are explored".

The announcement paves the way for a potential restructuring of Thames Water, which serves nearly a quarter of Britain's population.

You can read more about that here .

The UK's largest specialist wine retailer, Majestic, has completed a rescue deal to buy Vagabond from administration.

On Friday, Majestic confirmed it had completed the acquisition of the wine bar chain, which will secure the future of nine Vagabond venues and 171 workers.

The bar firm's "underperforming" site in Canary Wharf has not been bought and will be closed.

Vagabond's two sites at Gatwick Airport are also not included in the deal.

The average UK house price fell by approximately £2,900 month on month in March, according to Halifax.

The typical property value fell by 1%, having risen 0.3% in February.

Average property prices landed at £288,430, said Kim Kinnaird, director of Halifax Mortgages.

"That a monthly fall should occur following five consecutive months of growth is not entirely unexpected, particularly in view of the reset the market has been going through since interest rates began to rise sharply in 2022.

"Despite this, house prices have shown surprising resilience in the face of significantly higher borrowing costs."

Prices remain almost £50,000 above pre-pandemic levels, she added.

Nicky Stevenson, managing director at estate agent group Fine & Country, said: "An increasingly busy property market helped to prop up prices on an annual basis at the beginning of spring, but the monthly fall shows there is still some turbulence."

Once an interest rate cut appears on the horizon, demand should "push UK prices 3% higher this year", said Tom Bill, head of UK residential research at estate agent Knight Frank.

British billionaire Joe Lewis has avoided a jail sentence after admitting he orchestrated an insider trading scheme that helped those around him make millions.

The former Tottenham Hotspur owner, who lives in the Bahamas, tipped off his girlfriend, friends, and two of his private pilots with inside information on four publicly-traded companies, which they used to get rich, prosecutors in New York said.

In January, he pleaded guilty to one count of conspiracy to commit securities fraud and two counts of securities fraud, admitting in court he had known he was breaking the law.

Read more here...

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The 2024 solar eclipse is next week! Here's everything you need to know.

The april 8, 2024 total solar eclipse will cross the united states, with millions of americans witnessing the spectacle. here's info on the eclipse's time, path, how to find glasses and more..

We are exactly one week from the April 8, 2024 solar eclipse that'll cross a wide swath of the United States, with an expected 34 million Americans witnessing the celestial show.

The 2024 solar eclipse will last longer than the one viewed  by more than 20 million people in August 2017 , and according to NASA won’t happen again  for another 20 years . Fifteen total solar eclipses have been recorded in the U.S. in the last 150 years, with the next one expected in August 2044 .

Even if you're not in the path of totality, like most of Michigan, you can still watch the spectacle. You will need special eclipse glasses to be able to take in the experience so you don't risk eye damage . Thankfully, there is still time to get your hands on a pair — or create your own eclipse viewer at home .

Here's everything to know about the April 8, 2024 solar eclipse.

What is a solar eclipse?

Solar eclipses occur when the moon passes directly between the sun and Earth’s orbits , creating an eclipse of Earth’s view of the sun. The term "eclipse" traces its roots to the Latin  “eclipsis,” drawn from the Greek  “ekleipsis.”

The  path of totality  is the predicted path of the eclipse; in this case, from Mexico, through the U.S. across Texas and North America to the coast of Newfoundland, Canada. States  in the path of totality  for the 2024 solar eclipse include Texas, Oklahoma, Arkansas, Missouri, Illinois, Kentucky, Indiana, Michigan, Ohio, Pennsylvania, New York, Vermont, New Hampshire and Maine.

What is the 2024 solar eclipse path?

Use the map below to see NASA's prediction of the April 8 solar eclipse's path of totality. Keep in mind that this is a prediction, and predictions can vary, but they may only affect you if you're on the very edge of the path .

More: What is the meaning of the word 'eclipse'? Here is its origin ahead of April 8 event

When is the solar eclipse 2024? When does the solar eclipse start near me?

The 2024 solar eclipse is Monday, April 8, 2024. Its path of totality will cross the United States from approximately 2:27 p.m. to 3:35 p.m. Eastern time. That's when, if you're in the path, the sky will darken for several minutes and the air will get colder.

Use the ZIP code locator below to find out when the eclipse begins and ends in your area — and what it will look like. (Can't see it? Hit refresh.)

What time is the solar eclipse in Michigan?

Only one small sliver of Michigan is in the 2024 eclipse's path of totality, in southeastern Monroe County. That includes Luna Pier, which sits along Lake Erie, just north of Toledo. Its residents are getting excited , albeit a little concerned about potential traffic snarls.

Most of the rest of Michigan will see somewhere between 90-99% coverage of the sun , though it won't be visible to the naked eye; you'll need special glasses or a viewer (more on that later).

When is the solar eclipse in Detroit?

In Detroit, where there will be 99.4% coverage of the sun, the 2024 solar eclipse will begin at 1:58 p.m. and reach maximum totality, or coverage, around 3:14 p.m. It will conclude with a final partial eclipse at 4:27 p.m.

What is the April 8, 2024 weather forecast in Michigan?

Clear skies will be essential to viewing the eclipse, especially since most of Michigan doesn't fall in the path of totality.

As of Friday, the latest weather forecast for southeast Michigan shows potential cloud cover, but encouraging signs that it'll be clear enough to view the eclipse .  AccuWeather  predicts a high of 63 degrees in Detroit on April 8, with "variable cloudiness" and a chance of a shower in the morning.  Weather.com  also predicts partly cloudy skies and a high of 66 degrees.

If these predictions hold up, that would give eclipse viewers in southeast Michigan  a chance to see the eclipse at least somewhere within the 2.5-hour window, as long as the clouds break at any point. (But remember, it's Michigan; the weather forecast changes fast. Stay tuned to Freep.com for the latest.)

How to find 2024 solar eclipse glasses

First of all, make sure the eclipse glasses you're searching for are safe. According to  NASA's eclipse safety website , the agency does not recommend specific eyewear for eclipse viewing but  does  recommend glasses that come with an IOS compliance label, or standard, of 12312-2, on the packaging. The eyewear may also be labeled IOS 12312-2:2015. According to NASA, torn, scratched, or otherwise damaged eyewear should be discarded.

While local hardware and big box retailers may have eclipse eyewear on their shelves, buyer beware, especially if they claim to be endorsed by NASA. NASA does not make specific recommendations.

Here's where to find eclipse glasses :

• The American Astronomical Society  has a list of approved solar-eclipse glasses suppliers  here .  You'll be able to find eclipse glasses on  Amazon  in bulk; just ensure they are approved before you buy them. Here are more ideas on where to find free eclipse glasses .
• Warby Parker , the eyewear company,  is giving away eclipse eyewear at its stores beginning Monday , but does not have details about the availability of the free glasses at its locations. According to its website, the chain has six stores in Michigan: Grand Rapids, Novi, Troy, Ann Arbor, Detroit, and Birmingham.
• Check your local library: You also may be able to find free eclipse glasses at your local public library in Michigan, along with special programs. Check your library nearest you for details.
• Check these retailers: The American Astronomical Society says some locations of these retailers may sell eclipse glasses: Walmart, Lowe's, Menards, Kroger, Meijer and Staples.

Here's more information on how to safely view the eclipse . Also try the the American Astronomical Society's website  or to  NASA .

More: Michigan Science Center offers eclipse glasses for $2, plans viewing event at Ford House

Watch for eclipse glasses scams!

Please don't forget the scams. Consumers should exercise caution when buying eclipse-related experiences or goods, according to Melanie Duquesnel, president and CEO of BBB Serving Eastern Michigan and the Upper Peninsula.

So far, she said, the Michigan BBB has not received eclipse-related complaints or scam reports. Even so, you want to take extra care to avoid fake products, like counterfeit eclipse glasses, and rip-offs, like too good to be true deals for  special tickets  or deals on hotel rooms. Here's finance columnist Susan Tompor with more tips on avoiding eclipse glasses and hotel scams.

How to make your own eclipse viewer

Want to watch the eclipse without glasses? You don't necessarily need special glasses or filters, but it takes a little creativity and a handful to household supplies to make your own pinhole box or pinhole projector, also known as a pinhole camera.

Here's what to know, including step-by-step instructions , about building your own eclipse viewer.

Will the eclipse affect my pets? Will it affect other animals?

There are four things likely to happen to animal behavior during the April 8, 2024 eclipse, according to Erica Cartmill, professor of anthropology, animal behavior and cognitive science at Indiana University in Bloomington, Indiana:

• Animals won't do anything unusual.
• Animals will do evening behaviors. For example, if a dog is used to a bedtime treat, he may go to the kitchen to wait for it.
• Animals will display signs of increased anxiety such as scratching, yawning, circling and pacing or if they are animals that typically flock together, they will start grouping.
• Animals display unexpected behavior.

Here's more on what to know from reporter Jamie LaReau .

When is the next solar eclipse after 2024?

Not for another 20 years. According to NASA, after the total solar eclipse on April 8, 2024, the next total solar eclipse that can be seen from the contiguous U.S. will be on Aug. 23, 2044 . Here's how we're able to predict eclipses so far ahead of time.

It'll be much longer before another solar eclipse's path of totality crosses Michigan. The next solar eclipse to cross the state will be Sept. 14, 2099, when  the path of totality crosses the southwest Lower Peninsula .

Follow the Detroit Free Press on Instagram ( @detroitfreepress ), TikTok ( @detroitfreepress ), YouTube ( @DetroitFreePress ), Twitter/X ( @freep ), and LinkedIn , and like us on Facebook ( @detroitfreepress ).

Watch CBS News

99 Cents Only stores closing all 371 locations, liquidation sales starting Friday

By Danielle Radin

Updated on: April 5, 2024 / 5:07 PM PDT / KCAL News

The operators of the 99 Cents Only stores announced Thursday they will shut down all 371 of the locations throughout four states, with liquidation sales starting Friday. 

"This was an extremely difficult decision and is not the outcome we expected or hoped to achieve," interim company CEO Mike Simoncic said in a statement. "Unfortunately, the last several years have presented significant and lasting challenges in the retail environment, including the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures and other macroeconomic headwinds, all of which have greatly hindered the company's ability to operate.

"We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades."

The move will impact all company locations in California, Arizona, Nevada and Texas. The operators are based in Commerce. 

Friday, many customers in Santa Ana were getting last-minute items before the store there shut down for good. 

"Inflation has been high," said Julie Ann Mckenzie, a shopper. "So that's why I shop here. And it is close to home." 

Los Angeles County Supervisor Janice Hahn said she would introduce a motion during Tuesday's board meeting asking for a report on ways the county can provide support for displaced workers from the chain.

"I am worried about the thousands of 99 Cents Store workers across L.A. County who are going to lose their jobs, but L.A. County is ready to help," Hahn said in a statement Friday. "We have a department that can step in during an event like this and help workers with not only short-term assistance to get through this difficult time, but job training and support to help them get a better job."

According to the company, it has partnered with Hilco Real Estate to facilitate the liquidation of all merchandise, along with "certain fixtures, furnishings and equipment at the company's stores."

Company officials said they conferred with financial and legal advisers in hopes of finding a way to continue operating.

"Following months of actively pursuing these alternatives, the company ultimately determined that an orderly wind-down was necessary and the best way to maximize the value of 99 Cents Only Stores' assets," according to a company statement.

The 99 Cents Only stores were founded in 1982.

Danielle Radin is a journalist for CBS Los Angeles and has authored 9 books. She is originally from Hermosa Beach. Danielle covers breaking news, crime, tech and politics.

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AT&T Resets Millions of Passcodes After Customer Records Are Leaked

Nearly eight million customers and 65.4 million former account holders were affected by the data breach, the company said.

By Aimee Ortiz

The telecommunications giant AT&T announced on Saturday that it had reset the passcodes of 7.6 million customers after it determined that compromised customer data was “released on the dark web.”

“Our internal teams are working with external cybersecurity experts to analyze the situation,” AT&T said . “To the best of our knowledge, the compromised data appears to be from 2019 or earlier and does not contain personal financial information or call history.”

The company said that “information varied by customer and account,” but that it may have included a person’s full name, email address, mailing address, phone number, Social Security number, date of birth, AT&T account number and passcode.

In addition to those 7.6 million customers, 65.4 million former account holders were also affected.

The company said it would be “reaching out to individuals with compromised sensitive personal information separately and offering complimentary identity theft and credit monitoring services.”

AT&T said it reset the passcodes for those affected and directed customers to a site with details about how to reset them. It also said that it was starting a “robust investigation supported by internal and external cybersecurity experts.”

A company representative did not address specific questions about how the breach happened or why it went unnoticed for so long.

TechCrunch, which first reported on the passcode reset , said it informed AT&T on Monday that “the leaked data contained encrypted passcodes that could be used to access AT&T customer accounts.”

TechCrunch said it delayed publishing its article until the company “could begin resetting customer account passcodes.”

In its report, TechCrunch said that “this is the first time that AT&T has acknowledged that the leaked data belongs to its customers, some three years after a hacker claimed the theft of 73 million AT&T customer records.”

AT&T had previously denied a breach of its systems but how the leak happened was unclear, TechCrunch reported.

AT&T said that it did not know whether the leaked data “originated from AT&T or one of its vendors” and that it “does not have evidence of unauthorized access to its systems resulting in theft of the data set.”

The episode comes after AT&T customers experienced a widespread outage last month that temporarily cut off connections for users across the United States for several hours. The Feb. 22 outage affected customer in cities including Atlanta, Los Angeles and New York.

At its peak, there were around 70,000 reports of disrupted service for the wireless carrier, according to Downdetector.com , which tracks user reports of telecommunication and internet disruptions.

A few days later, AT&T offered customers affected by the outage a $5 credit in an effort to “make it right.”

Aimee Ortiz covers breaking news and other topics. More about Aimee Ortiz

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Cashing In on Graffiti:  Brands, developers and even officials are embracing the global appeal of street art , but the boom comes with questions about preserving a neighborhood’s cultural cachet.

Altering San Francisco’s Course:  The deep pockets of the tech investor Garry Tan are valued by his allies, but his pugnacious online habits  are creating plenty of enemies in the city he says he wants to save.

A C.E.O.’s Bold Claims:  Amira Yahyaoui, a human rights activist, promoted the success of her student aid start-up, Mos. Some of her statements do not add up .