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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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What Is a Business Plan? Definition and Planning Essentials Explained

Posted february 21, 2022 by kody wirth.

What is a business plan? It’s the roadmap for your business. The outline of your goals, objectives, and the steps you’ll take to get there. It describes the structure of your organization, how it operates, as well as the financial expectations and actual performance. 

A business plan can help you explore ideas, successfully start a business, manage operations, and pursue growth. In short, a business plan is a lot of different things. It’s more than just a stack of paper and can be one of your most effective tools as a business owner. 

Let’s explore the basics of business planning, the structure of a traditional plan, your planning options, and how you can use your plan to succeed. 

What is a business plan?

A business plan is a document that explains how your business operates. It summarizes your business structure, objectives, milestones, and financial performance. Again, it’s a guide that helps you, and anyone else, better understand how your business will succeed.  

Why do you need a business plan?

The primary purpose of a business plan is to help you understand the direction of your business and the steps it will take to get there. Having a solid business plan can help you grow up to 30% faster and according to our own 2021 Small Business research working on a business plan increases confidence regarding business health—even in the midst of a crisis. 

These benefits are directly connected to how writing a business plan makes you more informed and better prepares you for entrepreneurship. It helps you reduce risk and avoid pursuing potentially poor ideas. You’ll also be able to more easily uncover your business’s potential. By regularly returning to your plan you can understand what parts of your strategy are working and those that are not.

That just scratches the surface for why having a plan is valuable. Check out our full write-up for fifteen more reasons why you need a business plan .  

What can you do with your plan?

So what can you do with a business plan once you’ve created it? It can be all too easy to write a plan and just let it be. Here are just a few ways you can leverage your plan to benefit your business.

Test an idea

Writing a plan isn’t just for those that are ready to start a business. It’s just as valuable for those that have an idea and want to determine if it’s actually possible or not. By writing a plan to explore the validity of an idea, you are working through the process of understanding what it would take to be successful. 

The market and competitive research alone can tell you a lot about your idea. Is the marketplace too crowded? Is the solution you have in mind not really needed? Add in the exploration of milestones, potential expenses, and the sales needed to attain profitability and you can paint a pretty clear picture of the potential of your business.

Document your strategy and goals

For those starting or managing a business understanding where you’re going and how you’re going to get there are vital. Writing your plan helps you do that. It ensures that you are considering all aspects of your business, know what milestones you need to hit, and can effectively make adjustments if that doesn’t happen. 

With a plan in place, you’ll have an idea of where you want your business to go as well as how you’ve performed in the past. This alone better prepares you to take on challenges, review what you’ve done before, and make the right adjustments.

Pursue funding

Even if you do not intend to pursue funding right away, having a business plan will prepare you for it. It will ensure that you have all of the information necessary to submit a loan application and pitch to investors. So, rather than scrambling to gather documentation and write a cohesive plan once it’s relevant, you can instead keep your plan up-to-date and attempt to attain funding. Just add a use of funds report to your financial plan and you’ll be ready to go.

The benefits of having a plan don’t stop there. You can then use your business plan to help you manage the funding you receive. You’ll not only be able to easily track and forecast how you’ll use your funds but easily report on how it’s been used. 

Better manage your business

A solid business plan isn’t meant to be something you do once and forget about. Instead, it should be a useful tool that you can regularly use to analyze performance, make strategic decisions, and anticipate future scenarios. It’s a document that you should regularly update and adjust as you go to better fit the actual state of your business.

Doing so makes it easier to understand what’s working and what’s not. It helps you understand if you’re truly reaching your goals or if you need to make further adjustments. Having your plan in place makes that process quicker, more informative, and leaves you with far more time to actually spend running your business.

What should your business plan include?

The content and structure of your business plan should include anything that will help you use it effectively. That being said, there are some key elements that you should cover and that investors will expect to see. 

Executive summary

The executive summary is a simple overview of your business and your overall plan. It should serve as a standalone document that provides enough detail for anyone—including yourself, team members, or investors—to fully understand your business strategy. Make sure to cover the problem you’re solving, a description of your product or service, your target market, organizational structure, a financial summary, and any necessary funding requirements.

This will be the first part of your plan but it’s easiest to write it after you’ve created your full plan.

Products & Services

When describing your products or services, you need to start by outlining the problem you’re solving and why what you offer is valuable. This is where you’ll also address current competition in the market and any competitive advantages your products or services bring to the table. Lastly, be sure to outline the steps or milestones that you’ll need to hit to successfully launch your business. If you’ve already hit some initial milestones, like taking pre-orders or early funding, be sure to include it here to further prove the validity of your business. 

Market analysis

A market analysis is a qualitative and quantitative assessment of the current market you’re entering or competing in. It helps you understand the overall state and potential of the industry, who your ideal customers are, the positioning of your competition, and how you intend to position your own business. This helps you better explore the long-term trends of the market, what challenges to expect, and how you will need to initially introduce and even price your products or services.

Check out our full guide for how to conduct a market analysis in just four easy steps .  

Marketing & sales

Here you detail how you intend to reach your target market. This includes your sales activities, general pricing plan, and the beginnings of your marketing strategy. If you have any branding elements, sample marketing campaigns, or messaging available—this is the place to add it. 

Additionally, it may be wise to include a SWOT analysis that demonstrates your business or specific product/service position. This will showcase how you intend to leverage sales and marketing channels to deal with competitive threats and take advantage of any opportunities.

Check out our full write-up to learn how to create a cohesive marketing strategy for your business. 

Organization & management

This section addresses the legal structure of your business, your current team, and any gaps that need to be filled. Depending on your business type and longevity, you’ll also need to include your location, ownership information, and business history. Basically, add any information that helps explain your organizational structure and how you operate. This section is particularly important for pitching to investors but should be included even if attempted funding is not in your immediate future.

Financial projections

Possibly the most important piece of your plan, your financials section is vital for showcasing the viability of your business. It also helps you establish a baseline to measure against and makes it easier to make ongoing strategic decisions as your business grows. This may seem complex on the surface, but it can be far easier than you think. 

Focus on building solid forecasts, keep your categories simple, and lean on assumptions. You can always return to this section to add more details and refine your financial statements as you operate. 

Here are the statements you should include in your financial plan:

• Sales and revenue projections
• Profit and loss statement
• Cash flow statement
• Balance sheet

The appendix is where you add additional detail, documentation, or extended notes that support the other sections of your plan. Don’t worry about adding this section at first and only add documentation that you think will be beneficial for anyone reading your plan.

Types of business plans explained

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

Traditional business plan

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

This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix. We recommend only starting with this business plan format if you plan to immediately pursue funding and already have a solid handle on your business information. 

Business model canvas

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

The structure ditches a linear structure in favor of a cell-based template. It encourages you to build connections between every element of your business. It’s faster to write out and update, and much easier for you, your team, and anyone else to visualize your business operations. This is really best for those exploring their business idea for the first time, but keep in mind that it can be difficult to actually validate your idea this way as well as adapt it into a full plan.

One-page business plan

The true middle ground between the business model canvas and a traditional business plan is the one-page business plan. This format is a simplified version of the traditional plan that focuses on the core aspects of your business. It basically serves as a beefed-up pitch document and can be finished as quickly as the business model canvas.

By starting with a one-page plan, you give yourself a minimal document to build from. You’ll typically stick with bullet points and single sentences making it much easier to elaborate or expand sections into a longer-form business plan. This plan type is useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Now, the option that we here at LivePlan recommend is the Lean Plan . This is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance.

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

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

Try the LivePlan Method for Lean Business Planning

Now that you know the basics of business planning, it’s time to get started. Again we recommend leveraging a Lean Plan for a faster, easier, and far more useful planning process. 

To get familiar with the Lean Plan format, you can download our free Lean Plan template . However, if you want to elevate your ability to create and use your lean plan even further, you may want to explore LivePlan. 

It features step-by-step guidance that ensures you cover everything necessary while reducing the time spent on formatting and presenting. You’ll also gain access to financial forecasting tools that propel you through the process. Finally, it will transform your plan into a management tool that will help you easily compare your forecasts to your actual results. 

Check out how LivePlan streamlines Lean Planning by downloading our Kickstart Your Business ebook .

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What is a Business Plan? Definition, Tips, and Templates

Published: June 07, 2023

In an era where more than 20% of small enterprises fail in their first year, having a clear, defined, and well-thought-out business plan is a crucial first step for setting up a business for long-term success.

Business plans are a required tool for all entrepreneurs, business owners, business acquirers, and even business school students. But … what exactly is a business plan?

In this post, we'll explain what a business plan is, the reasons why you'd need one, identify different types of business plans, and what you should include in yours.

What is a business plan?

A business plan is a documented strategy for a business that highlights its goals and its plans for achieving them. It outlines a company's go-to-market plan, financial projections, market research, business purpose, and mission statement. Key staff who are responsible for achieving the goals may also be included in the business plan along with a timeline.

The business plan is an undeniably critical component to getting any company off the ground. It's key to securing financing, documenting your business model, outlining your financial projections, and turning that nugget of a business idea into a reality.

What is a business plan used for?

The purpose of a business plan is three-fold: It summarizes the organization’s strategy in order to execute it long term, secures financing from investors, and helps forecast future business demands.

Business Plan Template [ Download Now ]

Working on your business plan? Try using our Business Plan Template . Pre-filled with the sections a great business plan needs, the template will give aspiring entrepreneurs a feel for what a business plan is, what should be in it, and how it can be used to establish and grow a business from the ground up.

Purposes of a Business Plan

Chances are, someone drafting a business plan will be doing so for one or more of the following reasons:

1. Securing financing from investors.

Since its contents revolve around how businesses succeed, break even, and turn a profit, a business plan is used as a tool for sourcing capital. This document is an entrepreneur's way of showing potential investors or lenders how their capital will be put to work and how it will help the business thrive.

All banks, investors, and venture capital firms will want to see a business plan before handing over their money, and investors typically expect a 10% ROI or more from the capital they invest in a business.

Therefore, these investors need to know if — and when — they'll be making their money back (and then some). Additionally, they'll want to read about the process and strategy for how the business will reach those financial goals, which is where the context provided by sales, marketing, and operations plans come into play.

2. Documenting a company's strategy and goals.

A business plan should leave no stone unturned.

Business plans can span dozens or even hundreds of pages, affording their drafters the opportunity to explain what a business' goals are and how the business will achieve them.

To show potential investors that they've addressed every question and thought through every possible scenario, entrepreneurs should thoroughly explain their marketing, sales, and operations strategies — from acquiring a physical location for the business to explaining a tactical approach for marketing penetration.

These explanations should ultimately lead to a business' break-even point supported by a sales forecast and financial projections, with the business plan writer being able to speak to the why behind anything outlined in the plan.

Free Business Plan Template

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

• Outline your idea.
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Click this link to access this resource at any time.

Free Business Plan [Template]

Fill out the form to access your free business plan., 3. legitimizing a business idea..

Everyone's got a great idea for a company — until they put pen to paper and realize that it's not exactly feasible.

A business plan is an aspiring entrepreneur's way to prove that a business idea is actually worth pursuing.

As entrepreneurs document their go-to-market process, capital needs, and expected return on investment, entrepreneurs likely come across a few hiccups that will make them second guess their strategies and metrics — and that's exactly what the business plan is for.

It ensures an entrepreneur's ducks are in a row before bringing their business idea to the world and reassures the readers that whoever wrote the plan is serious about the idea, having put hours into thinking of the business idea, fleshing out growth tactics, and calculating financial projections.

4. Getting an A in your business class.

Speaking from personal experience, there's a chance you're here to get business plan ideas for your Business 101 class project.

If that's the case, might we suggest checking out this post on How to Write a Business Plan — providing a section-by-section guide on creating your plan?

What does a business plan need to include?

• Business Plan Subtitle
• Executive Summary
• Company Description
• The Business Opportunity
• Competitive Analysis
• Target Market
• Marketing Plan
• Financial Summary
• Funding Requirements

1. Business Plan Subtitle

Every great business plan starts with a captivating title and subtitle. You’ll want to make it clear that the document is, in fact, a business plan, but the subtitle can help tell the story of your business in just a short sentence.

2. Executive Summary

Although this is the last part of the business plan that you’ll write, it’s the first section (and maybe the only section) that stakeholders will read. The executive summary of a business plan sets the stage for the rest of the document. It includes your company’s mission or vision statement, value proposition, and long-term goals.

3. Company Description

This brief part of your business plan will detail your business name, years in operation, key offerings, and positioning statement. You might even add core values or a short history of the company. The company description’s role in a business plan is to introduce your business to the reader in a compelling and concise way.

4. The Business Opportunity

The business opportunity should convince investors that your organization meets the needs of the market in a way that no other company can. This section explains the specific problem your business solves within the marketplace and how it solves them. It will include your value proposition as well as some high-level information about your target market.

5. Competitive Analysis

Just about every industry has more than one player in the market. Even if your business owns the majority of the market share in your industry or your business concept is the first of its kind, you still have competition. In the competitive analysis section, you’ll take an objective look at the industry landscape to determine where your business fits. A SWOT analysis is an organized way to format this section.

6. Target Market

Who are the core customers of your business and why? The target market portion of your business plan outlines this in detail. The target market should explain the demographics, psychographics, behavioristics, and geographics of the ideal customer.

7. Marketing Plan

Marketing is expansive, and it’ll be tempting to cover every type of marketing possible, but a brief overview of how you’ll market your unique value proposition to your target audience, followed by a tactical plan will suffice.

Think broadly and narrow down from there: Will you focus on a slow-and-steady play where you make an upfront investment in organic customer acquisition? Or will you generate lots of quick customers using a pay-to-play advertising strategy? This kind of information should guide the marketing plan section of your business plan.

8. Financial Summary

Money doesn’t grow on trees and even the most digital, sustainable businesses have expenses. Outlining a financial summary of where your business is currently and where you’d like it to be in the future will substantiate this section. Consider including any monetary information that will give potential investors a glimpse into the financial health of your business. Assets, liabilities, expenses, debt, investments, revenue, and more are all useful adds here.

So, you’ve outlined some great goals, the business opportunity is valid, and the industry is ready for what you have to offer. Who’s responsible for turning all this high-level talk into results? The "team" section of your business plan answers that question by providing an overview of the roles responsible for each goal. Don’t worry if you don’t have every team member on board yet, knowing what roles to hire for is helpful as you seek funding from investors.

10. Funding Requirements

Remember that one of the goals of a business plan is to secure funding from investors, so you’ll need to include funding requirements you’d like them to fulfill. The amount your business needs, for what reasons, and for how long will meet the requirement for this section.

Types of Business Plans

• Startup Business Plan
• Feasibility Business Plan
• Internal Business Plan
• Strategic Business Plan
• Business Acquisition Plan
• Business Repositioning Plan
• Expansion or Growth Business Plan

There’s no one size fits all business plan as there are several types of businesses in the market today. From startups with just one founder to historic household names that need to stay competitive, every type of business needs a business plan that’s tailored to its needs. Below are a few of the most common types of business plans.

For even more examples, check out these sample business plans to help you write your own .

1. Startup Business Plan

As one of the most common types of business plans, a startup business plan is for new business ideas. This plan lays the foundation for the eventual success of a business.

The biggest challenge with the startup business plan is that it’s written completely from scratch. Startup business plans often reference existing industry data. They also explain unique business strategies and go-to-market plans.

Because startup business plans expand on an original idea, the contents will vary by the top priority goals.

For example, say a startup is looking for funding. If capital is a priority, this business plan might focus more on financial projections than marketing or company culture.

2. Feasibility Business Plan

This type of business plan focuses on a single essential aspect of the business — the product or service. It may be part of a startup business plan or a standalone plan for an existing organization. This comprehensive plan may include:

• A detailed product description
• Market analysis
• Technology needs
• Production needs
• Financial sources
• Production operations

According to CBInsights research, 35% of startups fail because of a lack of market need. Another 10% fail because of mistimed products.

Some businesses will complete a feasibility study to explore ideas and narrow product plans to the best choice. They conduct these studies before completing the feasibility business plan. Then the feasibility plan centers on that one product or service.

3. Internal Business Plan

Internal business plans help leaders communicate company goals, strategy, and performance. This helps the business align and work toward objectives more effectively.

Besides the typical elements in a startup business plan, an internal business plan may also include:

• Department-specific budgets
• Target demographic analysis
• Market size and share of voice analysis
• Action plans
• Sustainability plans

Most external-facing business plans focus on raising capital and support for a business. But an internal business plan helps keep the business mission consistent in the face of change.

4. Strategic Business Plan

Strategic business plans focus on long-term objectives for your business. They usually cover the first three to five years of operations. This is different from the typical startup business plan which focuses on the first one to three years. The audience for this plan is also primarily internal stakeholders.

These types of business plans may include:

• Relevant data and analysis
• Assessments of company resources
• Vision and mission statements

It's important to remember that, while many businesses create a strategic plan before launching, some business owners just jump in. So, this business plan can add value by outlining how your business plans to reach specific goals. This type of planning can also help a business anticipate future challenges.

5. Business Acquisition Plan

Investors use business plans to acquire existing businesses, too — not just new businesses.

A business acquisition plan may include costs, schedules, or management requirements. This data will come from an acquisition strategy.

A business plan for an existing company will explain:

• How an acquisition will change its operating model
• What will stay the same under new ownership
• Why things will change or stay the same
• Acquisition planning documentation
• Timelines for acquisition

Additionally, the business plan should speak to the current state of the business and why it's up for sale.

For example, if someone is purchasing a failing business, the business plan should explain why the business is being purchased. It should also include:

• What the new owner will do to turn the business around
• Historic business metrics
• Sales projections after the acquisition
• Justification for those projections

6. Business Repositioning Plan

When a business wants to avoid acquisition, reposition its brand, or try something new, CEOs or owners will develop a business repositioning plan.

This plan will:

• Acknowledge the current state of the company.
• State a vision for the future of the company.
• Explain why the business needs to reposition itself.
• Outline a process for how the company will adjust.

Companies planning for a business reposition often do so — proactively or retroactively — due to a shift in market trends and customer needs.

For example, shoe brand AllBirds plans to refocus its brand on core customers and shift its go-to-market strategy. These decisions are a reaction to lackluster sales following product changes and other missteps.

7. Expansion or Growth Business Plan

When your business is ready to expand, a growth business plan creates a useful structure for reaching specific targets.

For example, a successful business expanding into another location can use a growth business plan. This is because it may also mean the business needs to focus on a new target market or generate more capital.

This type of plan usually covers the next year or two of growth. It often references current sales, revenue, and successes. It may also include:

• SWOT analysis
• Growth opportunity studies
• Financial goals and plans
• Marketing plans
• Capability planning

These types of business plans will vary by business, but they can help businesses quickly rally around new priorities to drive growth.

Getting Started With Your Business Plan

At the end of the day, a business plan is simply an explanation of a business idea and why it will be successful. The more detail and thought you put into it, the more successful your plan — and the business it outlines — will be.

When writing your business plan, you’ll benefit from extensive research, feedback from your team or board of directors, and a solid template to organize your thoughts. If you need one of these, download HubSpot's Free Business Plan Template below to get started.

Editor's note: This post was originally published in August 2020 and has been updated for comprehensiveness.

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What is a business plan? Definition, Purpose, and Types

In the world of business, a well-thought-out plan is often the key to success. This plan, known as a business plan, is a comprehensive document that outlines a company’s goals, strategies , and financial projections. Whether you’re starting a new business or looking to expand an existing one, a business plan is an essential tool.

As a business plan writer and consultant , I’ve crafted over 15,000 plans for a diverse range of businesses. In this article, I’ll be sharing my wealth of experience about what a business plan is, its purpose, and the step-by-step process of creating one. By the end, you’ll have a thorough understanding of how to develop a robust business plan that can drive your business to success.

What is a business plan?

Purposes of a business plan, what are the essential components of a business plan, executive summary, business description or overview, product and price, competitive analysis, target market, marketing plan, financial plan, funding requirements, types of business plan, lean startup business plans, traditional business plans, how often should a business plan be reviewed and revised, what are the key elements of a lean startup business plan.

• What are some of the reasons why business plans don't succeed?

A business plan is a roadmap for your business. It outlines your goals, strategies, and how you plan to achieve them. It’s a living document that you can update as your business grows and changes.

Looking for someone to write a business plan?

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These are the following purpose of business plan:

• Attract investors and lenders: If you’re seeking funding for your business , a business plan is a must-have. Investors and lenders want to see that you have a clear plan for how you’ll use their money to grow your business and generate revenue.
• Get organized and stay on track: Writing a business plan forces you to think through all aspects of your business, from your target market to your marketing strategy. This can help you identify any potential challenges and opportunities early on, so you can develop a plan to address them.
• Make better decisions: A business plan can help you make better decisions about your business by providing you with a framework to evaluate different options. For example, if you’re considering launching a new product, your business plan can help you assess the potential market demand, costs, and profitability.

The executive summary is the most important part of your business plan, even though it’s the last one you’ll write. It’s the first section that potential investors or lenders will read, and it may be the only one they read. The executive summary sets the stage for the rest of the document by introducing your company’s mission or vision statement, value proposition, and long-term goals.

The business description section of your business plan should introduce your business to the reader in a compelling and concise way. It should include your business name, years in operation, key offerings, positioning statement, and core values (if applicable). You may also want to include a short history of your company.

In this section, the company should describe its products or services , including pricing, product lifespan, and unique benefits to the consumer. Other relevant information could include production and manufacturing processes, patents, and proprietary technology.

Every industry has competitors, even if your business is the first of its kind or has the majority of the market share. In the competitive analysis section of your business plan, you’ll objectively assess the industry landscape to understand your business’s competitive position. A SWOT analysis is a structured way to organize this section.

Your target market section explains the core customers of your business and why they are your ideal customers. It should include demographic, psychographic, behavioral, and geographic information about your target market.

Marketing plan describes how the company will attract and retain customers, including any planned advertising and marketing campaigns . It also describes how the company will distribute its products or services to consumers.

After outlining your goals, validating your business opportunity, and assessing the industry landscape, the team section of your business plan identifies who will be responsible for achieving your goals. Even if you don’t have your full team in place yet, investors will be impressed by your clear understanding of the roles that need to be filled.

In the financial plan section,established businesses should provide financial statements , balance sheets , and other financial data. New businesses should provide financial targets and estimates for the first few years, and may also request funding.

Since one goal of a business plan is to secure funding from investors , you should include the amount of funding you need, why you need it, and how long you need it for.

• Tip: Use bullet points and numbered lists to make your plan easy to read and scannable.

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Business plans can come in many different formats, but they are often divided into two main types: traditional and lean startup. The U.S. Small Business Administration (SBA) says that the traditional business plan is the more common of the two.

Lean startup business plans are short (as short as one page) and focus on the most important elements. They are easy to create, but companies may need to provide more information if requested by investors or lenders.

Traditional business plans are longer and more detailed than lean startup business plans, which makes them more time-consuming to create but more persuasive to potential investors. Lean startup business plans are shorter and less detailed, but companies should be prepared to provide more information if requested.

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A business plan should be reviewed and revised at least annually, or more often if the business is experiencing significant changes. This is because the business landscape is constantly changing, and your business plan needs to reflect those changes in order to remain relevant and effective.

Here are some specific situations in which you should review and revise your business plan:

• You have launched a new product or service line.
• You have entered a new market.
• You have experienced significant changes in your customer base or competitive landscape.
• You have made changes to your management team or organizational structure.
• You have raised new funding.

A lean startup business plan is a short and simple way for a company to explain its business, especially if it is new and does not have a lot of information yet. It can include sections on the company’s value proposition, major activities and advantages, resources, partnerships, customer segments, and revenue sources.

What are some of the reasons why business plans don't succeed?

• Unrealistic assumptions: Business plans are often based on assumptions about the market, the competition, and the company’s own capabilities. If these assumptions are unrealistic, the plan is doomed to fail.
• Lack of focus: A good business plan should be focused on a specific goal and how the company will achieve it. If the plan is too broad or tries to do too much, it is unlikely to be successful.
• Poor execution: Even the best business plan is useless if it is not executed properly. This means having the right team in place, the necessary resources, and the ability to adapt to changing circumstances.
• Unforeseen challenges:  Every business faces challenges that could not be predicted or planned for. These challenges can be anything from a natural disaster to a new competitor to a change in government regulations.

What are the benefits of having a business plan?

• It helps you to clarify your business goals and strategies.
• It can help you to attract investors and lenders.
• It can serve as a roadmap for your business as it grows and changes.
• It can help you to make better business decisions.

How to write a business plan?

There are many different ways to write a business plan, but most follow the same basic structure. Here is a step-by-step guide:

• Executive summary.
• Company description.
• Management and organization description.
• Financial projections.

How to write a business plan step by step?

Start with an executive summary, then describe your business, analyze the market, outline your products or services, detail your marketing and sales strategies, introduce your team, and provide financial projections.

Why do I need a business plan for my startup?

A business plan helps define your startup’s direction, attract investors, secure funding, and make informed decisions crucial for success.

What are the key components of a business plan?

Key components include an executive summary, business description, market analysis, products or services, marketing and sales strategy, management and team, financial projections, and funding requirements.

Can a business plan help secure funding for my business?

Yes, a well-crafted business plan demonstrates your business’s viability, the use of investment, and potential returns, making it a valuable tool for attracting investors and lenders.

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What is a Business Plan? Definition and Resources

9 min. read

Updated March 4, 2024

If you’ve ever jotted down a business idea on a napkin with a few tasks you need to accomplish, you’ve written a business plan — or at least the very basic components of one.

The origin of formal business plans is murky. But they certainly go back centuries. And when you consider that 20% of new businesses fail in year 1 , and half fail within 5 years, the importance of thorough planning and research should be clear.

But just what is a business plan? And what’s required to move from a series of ideas to a formal plan? Here we’ll answer that question and explain why you need one to be a successful business owner.

• What is a business plan?

A business plan lays out a strategic roadmap for any new or growing business.

Any entrepreneur with a great idea for a business needs to conduct market research , analyze their competitors , validate their idea by talking to potential customers, and define their unique value proposition .

The business plan captures that opportunity you see for your company: it describes your product or service and business model , and the target market you’ll serve. 

It also includes details on how you’ll execute your plan: how you’ll price and market your solution and your financial projections .

Reasons for writing a business plan

If you’re asking yourself, ‘Do I really need to write a business plan?’ consider this fact: 

Companies that commit to planning grow 30% faster than those that don’t.

Creating a business plan is crucial for businesses of any size or stage. 

If you plan to raise funds for your business through a traditional bank loan or SBA loan , none of them will want to move forward without seeing your business plan. Venture capital firms may or may not ask for one, but you’ll still need to do thorough planning to create a pitch that makes them want to invest.

But it’s more than just a means of getting your business funded . The plan is also your roadmap to identify and address potential risks. 

It’s not a one-time document. Your business plan is a living guide to ensure your business stays on course.

Related: 14 of the top reasons why you need a business plan

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What research shows about business plans

Numerous studies have established that planning improves business performance:

• 71% of fast-growing companies have business plans that include budgets, sales goals, and marketing and sales strategies.
• Companies that clearly define their value proposition are more successful than those that can’t.
• Companies or startups with a business plan are more likely to get funding than those without one.
• Starting the business planning process before investing in marketing reduces the likelihood of business failure.

The planning process significantly impacts business growth for existing companies and startups alike.

Read More: Research-backed reasons why writing a business plan matters

When should you write a business plan?

No two business plans are alike. 

Yet there are similar questions for anyone considering writing a plan to answer. One basic but important question is when to start writing it.

A Harvard Business Review study found that the ideal time to write a business plan is between 6 and 12 months after deciding to start a business. 

But the reality can be more nuanced – it depends on the stage a business is in, or the type of business plan being written.

Ideal times to write a business plan include:

• When you have an idea for a business
• When you’re starting a business
• When you’re preparing to buy (or sell)
• When you’re trying to get funding
• When business conditions change
• When you’re growing or scaling your business

Read More: The best times to write or update your business plan

How often should you update your business plan?

As is often the case, how often a business plan should be updated depends on your circumstances.

A business plan isn’t a homework assignment to complete and forget about. At the same time, no one wants to get so bogged down in the details that they lose sight of day-to-day goals. 

But it should cover new opportunities and threats that a business owner surfaces, and incorporate feedback they get from customers. So it can’t be a static document.

For an entrepreneur at the ideation stage, writing and checking back on their business plan will help them determine if they can turn that idea into a profitable business .

And for owners of up-and-running businesses, updating the plan (or rewriting it) will help them respond to market shifts they wouldn’t be prepared for otherwise. 

It also lets them compare their forecasts and budgets to actual financial results. This invaluable process surfaces where a business might be out-performing expectations and where weak performance may require a prompt strategy change. 

The planning process is what uncovers those insights.

Related Reading: 10 prompts to help you write a business plan with AI

• How long should your business plan be?

Thinking about a business plan strictly in terms of page length can risk overlooking more important factors, like the level of detail or clarity in the plan. 

Not all of the plan consists of writing – there are also financial tables, graphs, and product illustrations to include.

But there are a few general rules to consider about a plan’s length:

• Your business plan shouldn’t take more than 15 minutes to skim.
• Business plans for internal use (not for a bank loan or outside investment) can be as short as 5 to 10 pages.

A good practice is to write your business plan to match the expectations of your audience. 

If you’re walking into a bank looking for a loan, your plan should match the formal, professional style that a loan officer would expect . But if you’re writing it for stakeholders on your own team—shorter and less formal (even just a few pages) could be the better way to go.

The length of your plan may also depend on the stage your business is in. 

For instance, a startup plan won’t have nearly as much financial information to include as a plan written for an established company will.

Read More: How long should your business plan be?  

What information is included in a business plan?

The contents of a plan business plan will vary depending on the industry the business is in. 

After all, someone opening a new restaurant will have different customers, inventory needs, and marketing tactics to consider than someone bringing a new medical device to the market. 

But there are some common elements that most business plans include:

• Executive summary: An overview of the business operation, strategy, and goals. The executive summary should be written last, despite being the first thing anyone will read.
• Products and services: A description of the solution that a business is bringing to the market, emphasizing how it solves the problem customers are facing.
• Market analysis: An examination of the demographic and psychographic attributes of likely customers, resulting in the profile of an ideal customer for the business.
• Competitive analysis: Documenting the competitors a business will face in the market, and their strengths and weaknesses relative to those competitors.
• Marketing and sales plan: Summarizing a business’s tactics to position their product or service favorably in the market, attract customers, and generate revenue.
• Operational plan: Detailing the requirements to run the business day-to-day, including staffing, equipment, inventory, and facility needs.
• Organization and management structure: A listing of the departments and position breakdown of the business, as well as descriptions of the backgrounds and qualifications of the leadership team.
• Key milestones: Laying out the key dates that a business is projected to reach certain milestones , such as revenue, break-even, or customer acquisition goals.
• Financial plan: Balance sheets, cash flow forecast , and sales and expense forecasts with forward-looking financial projections, listing assumptions and potential risks that could affect the accuracy of the plan.
• Appendix: All of the supporting information that doesn’t fit into specific sections of the business plan, such as data and charts.

Read More: Use this business plan outline to organize your plan

• Different types of business plans

A business plan isn’t a one-size-fits-all document. There are numerous ways to create an effective business plan that fits entrepreneurs’ or established business owners’ needs. 

Here are a few of the most common types of business plans for small businesses:

• One-page plan : Outlining all of the most important information about a business into an adaptable one-page plan.
• Growth plan : An ongoing business management plan that ensures business tactics and strategies are aligned as a business scales up.
• Internal plan : A shorter version of a full business plan to be shared with internal stakeholders – ideal for established companies considering strategic shifts.

Business plan vs. operational plan vs. strategic plan

• What questions are you trying to answer? 
• Are you trying to lay out a plan for the actual running of your business?
• Is your focus on how you will meet short or long-term goals? 

Since your objective will ultimately inform your plan, you need to know what you’re trying to accomplish before you start writing.

While a business plan provides the foundation for a business, other types of plans support this guiding document.

An operational plan sets short-term goals for the business by laying out where it plans to focus energy and investments and when it plans to hit key milestones.

Then there is the strategic plan , which examines longer-range opportunities for the business, and how to meet those larger goals over time.

Read More: How to use a business plan for strategic development and operations

• Business plan vs. business model

If a business plan describes the tactics an entrepreneur will use to succeed in the market, then the business model represents how they will make money. 

The difference may seem subtle, but it’s important. 

Think of a business plan as the roadmap for how to exploit market opportunities and reach a state of sustainable growth. By contrast, the business model lays out how a business will operate and what it will look like once it has reached that growth phase.

Learn More: The differences between a business model and business plan

• Moving from idea to business plan

Now that you understand what a business plan is, the next step is to start writing your business plan . 

If you’re stuck, start with a one-page business plan and check out our collection of over 550 business plan examples for inspiration. They’re broken out over dozens of industries—you can even copy and paste sections into your plan and rewrite them with information specific to your business.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

Table of Contents

• Reasons to write a business plan
• Business planning research
• When to write a business plan
• When to update a business plan
• Information to include
• Business vs. operational vs. strategic plans

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

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

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

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

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

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

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What Is A Business Plan (& Do I Really Need One?)

The term "business plan" is a familiar one, often bandied about in entrepreneurial circles. Yet, despite its ubiquity, it's remarkable how much mystery and confusion can surround this essential business tool.

What exactly is a business plan? What purpose does it serve? How is it structured? This article aims to lift the veil, demystifying the business plan and revealing its multifaceted nature.

Business Plan Definition

A business plan is a document that describes a company's objectives and its marketing, financial, and operational strategies for achieving them. It's more than a mere document; it's a structured communication tool designed to articulate the vision of the business, allowing stakeholders to easily find the information they seek.

The business plan is a tangible reflection of the strategic planning that has gone into the business's future. While the plan is a static document, the planning is a dynamic process, capturing the strategic thinking and decision-making that shape the business's direction.

Purposes of a Business Plan

1. attracting funding opportunities.

A well-crafted business plan illustrates the company's potential for growth and profitability. It outlines the company's vision, mission, and strategies, providing a clear roadmap for success. A potential investor, whether venture capitalists or angel investors, can see how capital will be utilized, fostering trust and confidence in the business venture. A bank or financial institution can assess your company's ability to meet debt service obligations and compliance with strict financial accounting to meet underwriting requirements.

2. Aligning Organizational Objectives

A business plan acts as a unifying document that aligns the team with the company's goals and strategies. It ensures that everyone is on the same page, working towards common objectives. This alignment fosters collaboration and efficiency, driving the business towards its targets.

3. Validating the Business Concept

Before launching, a business plan helps in validating the feasibility of the business idea. It's a rigorous process that tests the concept against real-world scenarios, ensuring that the idea is not only innovative but also practical and sustainable. This validation builds credibility and prepares the business for the challenges ahead. For an existing business, a business plan can help address a possible merger and acquisition (M&A), rolling out a new business product or location, or expanding the target market.

4. Facilitating Legal and Regulatory Compliance

Whether it's securing a visa for international operations or meeting other regulatory requirements, a business plan can be an essential tool. It provides the necessary information in a structured format, demonstrating compliance with legal and regulatory standards. This can streamline processes and prevent potential legal hurdles.

5. Articulating and Formalizing the Business Vision

The business plan is more than a set of numbers and projections; it's the embodiment of the business vision. It communicates the essence of the business to stakeholders, turning abstract ideas into a concrete operational plan. It's a vital tool for leadership to articulate and formalize the vision, setting the stage for strategic execution.

Identifying the Right Type of Business Plan

Once you understand who your business plan is for and what specific needs it must address, you can identify the type of plan that best suits your situation. Business plans can be categorized into two main types: traditional and lean, each serveing its own unique purpose.

Traditional Business Plan

The Traditional Business Plan is a detailed and comprehensive document, often used by a new business, especially those seeking significant funding. It provides a complete picture of the company's vision, strategies, and operations. A traditional business plan leaves no stone unturned, offering a robust tool that communicates the business's entire vision and plan to stakeholders.

Lean Business Plan

In contrast, the Lean Business Plan is an abbreviated structure that still emphasizes the key elements of a Traditional Business Plan, but in less detail. It's suitable for early-stage startups, small businesses, or situations where agility and speed are essential. The Lean Business Plan focuses on the essentials, providing a quick overview without overwhelming details. It's a flexible and adaptable tool that can evolve with the business. One of the primary distinctions between it and a Traditional Business Plan is that a Lean Business Plan does not typically include financial planning, or if it does, it's a simple financial forecast or cash burn.

Components of a Business Plan

There are many places online where you can buy a business plan template. Often, those documents are just an outline of the sections of the business plan and what is included in each. If that's what you're looking for, here's a good business plan outline:

Executive Summary

The Executive Summary is the first section read but often the last written, as it encapsulates the entire plan. If the company has a mission statement, it's typically included here. When used for funding, it includes the ask or uses of funds, and for investment, it may contain an investor proposition. It's a concise overview that sets the tone, summarizing each section that follows.

Company Overview

The Company Overview is the foundation of the business, articulating how it operates, generates revenue, and delivers unique value to its customers. This section defines products and/or service the business sells, as well as the company’s business model and unique value proposition. It covers key partners, pricing strategy, revenue model, and other essential business activities. 

Market Analysis Summary

The Market Analysis is the business intelligence portion of the plan. It comprises an industry analysis, market segments, target customers, competitive analysis, competitive advantage. This section provides insights into the market landscape, identifying opportunities, challenges, and how the business positions itself uniquely within the industry.

Strategy & Implementation Summary

Here, the business plan should outline the short-term and long-term objectives, marketing strategy and sales approach. It's a roadmap that details how the business will achieve its goals, including tactical steps, timelines, and resources. In a business plan for investors, the inclusion of an exit strategy can provide a vision for the future, considering various potential outcomes.

Management Summary

The Management Summary offers profiles of key personnel, their qualifications, roles, and plans to fill talent gaps. It's a snapshot of the leadership team, providing assurance that the right people are in place to execute the business plan successfully.

Financial Projections

This section includes standard financial statements like the profit & loss statement (P&L), the balance sheet, and the cash flow statement. It offers a detailed financial blueprint, illustrating the company’s revenue drivers and unit assumptions, income statement, a break-even analysis, and a sensitivity analysis to examine how changes in variables affect outcomes. For businesses with complex structures, framing the revenue in terms of market share can offer additional insight into the viability and feasibility of the financial projections.

The Appendices often include year 1 and year 2 monthly financial statements, intellectual property like patents and trademarks, construction blueprints, and other essential documentation. It's a repository for supporting information that adds depth and context to the main sections of the plan.

Do I Need a Business Plan?

The question "Do I need a business plan?" is one that many entrepreneurs and business leaders grapple with. The answer, however, is not as straightforward as it might seem. While not every business requires a traditional business plan, the strategic planning process is essential for all. 

In some cases, a traditional business plan is required. Applying for a Small Business Administration (SBA) loan , obtaining a entrepreneurship visa , or meeting specific investor requirements may mandate a comprehensive business plan.

However a traditional business plan isn’t always necessary. For example, in early-stage investor funding, particularly in industries like SaaS, a lean business plan accompanied by a pitch deck presentation will often suffice. The focus here is on agility and essential information rather than exhaustive detail.

Every Business Needs Business Planning

Unlike the traditional business plan, which may or may not be required depending on the situation, business planning as a process is indispensable for every business, regardless of size or stage.

Business planning is a dynamic, continuous process. It's not confined to a single document but evolves with the business, adapting to changes, challenges, and opportunities. Effective strategic planning ensures internal alignment with both long-term vision and short-term objectives. It's a holistic approach that guides business goal-setting decision-making, resource allocation, and strategic direction. It often serves as the basis for a fully developed marketing plan.

Every business, from a small startup to a large corporation, benefits from strategic planning. It's a practice that fosters growth, innovation, and resilience, providing a roadmap for success.

Not every business needs a traditional business plan as a document, but all businesses need to engage in business planning as a process. While the traditional business plan serves specific purposes and audiences, business planning is a universal practice that guides and grows the business.

Entrepreneurs and business leaders must assess their specific needs, recognizing that the traditional business plan is just one tool among many. The true value of the business plan lies in continuous planning, adapting, and aligning with the unique vision and goals of the business.

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What Is a Business Plan?

Definition and Examples of a Business Plan

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

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A business plan is a document that summarizes the operational and financial objectives of a business. It is a business's road map to success with detailed plans and budgets that show how the objectives will be realized.

Keep reading to learn the basic components of a business plan, why they're useful , and how they differ from an investment plan.

A business plan is a guide for how a company will achieve its goals. For anyone starting a business , crafting a business plan is a vital first step. Having these concrete milestones will help track the business's success (or lack thereof). There are different business plans for different purposes, and the best business plans are living documents that respond to real-world factors as quickly as possible.

In a nutshell, a business plan is a practice in due diligence. When it's done well, it will prevent entrepreneurs from wasting time and money on a venture that won't work.

How Does a Business Plan Work?

If you have an idea for starting a new venture, a business plan can help you determine if your business idea is viable. There's no point in starting a business if there is little or no chance that the business will be profitable, and a business plan helps to figure out your chances of success.

In many cases, people starting new businesses don't have the money they need to start the business they want to start. If start-up financing is required, you must have an investor-ready business plan to show potential investors that demonstrates how the proposed business will be profitable.

Since the business plan contains detailed financial projections, forecasts about your business's performance, and a marketing plan, it's an incredibly useful tool for everyday business planning. To be as effective as possible, it should be reviewed regularly and updated as required.

Business owners have leeway when crafting their business plan outline. They can be short or long, and they can include whatever detail you think will be useful. There are basic templates you can work from, and you'll likely notice some common elements if you look up examples of business plans.

Market Analysis

The market analysis will reveal whether there is sufficient demand for your product or service in your target market . If the market is already saturated, your business model will need to be changed (or scrapped).

Competitive Analysis

The competitive analysis will examine the strengths and weaknesses of the competition and help direct your strategy for garnering a share of the market in your marketing plan . If the existing market is dominated by established competitors, for instance, you will have to come up with a marketing plan to lure customers from the competition (lower prices, better service, etc.).

Management Plan

The management plan outlines your business structure, management, and staffing requirements. If your business requires specific employee and management expertise, you will need a strategy for finding and hiring qualified staff and retaining them.

Operating Plan

The operating plan describes your facilities, equipment, inventory, and supply requirements. Business location and accessibility are critical for many businesses. If this is the case for your business, you will need to scout potential sites. If your proposed business requires parts or raw materials to produce goods to be sold to customers, you will need to investigate potential supply chains.

Financial Plan

The financial plan is the determining factor as to whether your proposed business idea is likely to be a success. If financing is required, your financial plan will determine how likely you are to obtain start-up funding in the form of equity or debt financing from banks, angel investors , or venture capitalists . You can have a great idea for a business, along with excellent marketing, management, and operational plans, but if the financial plan shows that the business will not be profitable enough, then the business model is not viable and there's no point in starting that venture.

Business Plan vs. Investment Proposal

A business plan is similar to an investment proposal. In fact, investment proposals are sometimes called investor-ready business plans . Generally speaking, they both have the same contents. You can think of an investment proposal as a business plan with a different audience.

The business plan is largely an internal document, intended to guide the decisions of executives, managers, and employees. The investment proposal, on the other hand, is designed to be presented to external agencies.

Key Takeaways

• A business plan is a detailed road map that explains what the company's goals are and how it will achieve them.
• The exact details of a business plan will depend on the intended audience and the nature of the business.
• It's a good idea to regularly revisit your business plan so you know it's as accurate, realistic, and detailed as possible.

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Business Plan

Who should write a business plan, pros and cons of a business plan, the anatomy of a business plan, .css-uphcpb{position:absolute;left:0;top:-87px;} what is a business plan, definition of a business plan.

A business plan is a strategic document which details the strategic objectives for a growing business or startup, and how it plans to achieve them.

In a nutshell, a business plan is a written expression of a business idea and will describe your business model, your product or service, how it will be priced, who will be your target market, and which tactics you plan to use to reach commercial success.

Whilst every enterprise should have a plan of some sort, a business plan is of particular importance during the investment process. Banks, venture capitalists, and angel investors alike will need to see a detailed plan in order to make sound investment decisions — think of your plan as a way of convincing them your idea is worth their resources.

Roadmapping From A to Z

Business plans can also be useful as a guide to keeping a new business on track, especially in the first few months or years when the road ahead isn’t too clear.

Starting a business isn’t an exact science. Some companies organically develop out of trial and error, while others are plotted out from start to finish.

So if you’re asking whether your company needs a lengthy business plan, the answer would be ‘no’. That said, there are definitely a few situations in which writing a plan makes sense and can help increase the chances of a business becoming successful:

In situations when the market is new and untested — or simply volatile — it can be very helpful to have a business plan to refer back to when the road ahead isn’t clear.

For those who have an exciting business idea but haven’t necessarily distilled it down into black-and-white. Writing a business plan is a great way to look at a concept from all angles and spot any potential pitfalls.

How to write a business plan?

The most important step in writing a business plan is to identify its purpose.

Who are you trying to attract with it, and why?

Here are a few key pointers for writing a business plan:

Are you looking to secure a bank loan, get funding from private investors, or to lure skilled professionals to join you?

Include a brief history of your business, the concept, and the products or services. Keep it professional and transparent.

Don’t exaggerate your experience or skills, and definitely don’t leave out information investors need to know. They’ll find out at some point, and if they discover you lied, they could break off their involvement. Trust is crucial.

Explain what the product or service your business offers in simplistic terms.

Watch out for complex language and do whatever you can to prevent readers from becoming confused.

Focus on the benefits the business offers, how it solves the core audience’s problem(s), and what evidence you have to prove that there is a space in the market for your idea. It’s important to touch on the market your business will operate in, and who your main competitors are.

Another essential aspect of writing an effective business plan is to keep it short and sweet. Just focus on delivering the crucial information the reader has to know in order to make a decision. They can always ask you to elaborate on certain points later.

Still, deciding whether or not a business plan will benefit you at this stage of your venture?

Let’s look at a few reasons why you might (or might not) want to write a business plan.

A business plan will help you to secure funding even when you have no trading history. At the seed stage, funding is all-important — especially for tech and SaaS companies. It’s here that a business plan can become an absolute lifesaver.

Your business plan will maintain a strategic focus as time goes on. If you’ve ever heard of “mission creep”, you’ll know how important an agreed can be — and your business plan serves exactly that purpose.

Having a plan down in black and white will help you get other people on board . Again, with no trading history, it can be hard to convince new partners that you know what you’re doing. A business plan elegantly solves this problem.

Your business plan can cause you to stop looking outward. Sometimes, especially in business, you need to be reactive to market conditions. If you focus too much on your original business plan, you might make mistakes that can be costly or miss golden opportunities because they weren’t in the plan.

 A lot of time can be wasted analyzing performance. It’s easy to become too focused on the goals and objectives in your business plan — especially when you’re not achieving them. By spending too much time analyzing past performance and looking back, you may miss out on other ways to push the business forward.

A business plan is out of date as soon as it’s written. We all know how quickly market conditions change. And, unfortunately, certain elements in your business plan may have lost relevance by the time you’re ready to launch. But there is another way — by transferring your strategic plan into an actionable roadmap , you can get the best of both worlds. The business plan contains important detail that is less likely to change, such as your mission statement and target audience, and the roadmap clarifies a flexible, adaptable, route forward.

So, you’ve decided to write a business plan — a great choice! 

But now comes the tricky task of actually writing it. 

This part can be a little frustrating because there is no one-size-fits-all template appropriate for all business plans. The best approach, in fact, is to look at common ingredients of a business plan and pick out the ones that make sense for your venture.

The key elements of a great business plan include:

An overview of the business concept . This is sometimes referred to as an executive summary and it’s essentially the elevator pitch for your business.

A detailed description of the product or service. It’s here that you’ll describe exactly what your core offering will be — what’s your USP , and what value do you deliver?

An explanation of the target audience. You need a good understanding of who you’ll be selling your product or service to, backed up by recent market research.

Your sales and marketing strategy. Now that you know who you’re targeting, how do you plan to reach them? Here you can list primary tactics for finding and maintaining an engaged client base.

Your core team . This section is all about people: do you have a team behind you already? If not, how will you build this team and what will the timeline be? Why are you the right group of people to bring this idea to the market? This section is incredibly important when seeking external investment — in most cases, passion can get you much further than professional experience.

Financial forecasts . Some investors will skim the executive summary and skip straight to the finances — so expect your forecasts to be scrutinized in a lot of detail. Writing a business plan for your eyes only? That’s fine, but you should still take time to map out your financial requirements: how much money do you need to start? How do you plan to keep money coming in? How long will it take to break even ? Remember, cash is king. So you need a cash flow forecast that is realistic, achievable and keeps your business afloat, especially in the tricky first few years.

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What is a Business Plan?

Home › Business Management › What is a Business Plan?

Definition:  A business plan is a detailed written steps and goals defined to guide a business’ course of action from its initial stages. A business plan provides a complete description and projection of the company as well as its core strategies and expected results.

• What Does Business Plan Mean?

The creation of a new organization or a new business requires coherent actions in order to achieve the desired outcomes. Following a business plan allows to link actions and resources to objectives and measurable goals. This plan can be used internally like a roadmap for the owner but also can be a requirement when looking for funding or partners.

A business plan is generally a precise, short document that commonly contains the following sections: executive summary, business description with its products or services, marketing plan, operational plan and financial plan with its forecasted financial statements for the first years of operation, often five to ten years. The initial business plan is later substituted by annual or bi-annual strategic plans.

Mark Tilson is a young professional that wants to start a new business. He has the idea of providing an innovative maintenance service to medium-size manufacturing companies but he needs funds to implement it. Mr. Tilson therefore decided to write a business plan to present the idea to some potential capital partners. He though that the ideas were already clear but soon realized that more analysis and pre-launching work was required.

How many employees the company will have? How the company will market its services? How much money the initial investment requires? How much profit the company is expected to generate at the end of the fifth year of operation? These and other questions must be answered and coherently written in the business plan. Finally, Mr. Tilson improved his ideas, presented the plan and found the required partner.

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Home » What Is Business Plan and How To Write It? [Template]

What Is Business Plan and How To Write It? [Template]

July 20, 2021 max 7min read.

This article covers:

What Is a Business Plan?

Who is in charge of writing a business plan.

• How To Write a Business Plan?

What Are the Advantages and Disadvantages of Writing a Business Plan?

• What Is the Skeleton of a Business Plan?

Business Plan Definition

A business plan is a document that outlines the strategies and objectives that a startup or organization wants to achieve and how they plan to achieve them.

A business plan is like a map for starting or growing your company. It lays out the essential details of your business and how you plan to succeed.

Simply put, a business plan is a written copy of the business idea, what financial model it will adopt, the product or service, who will be the target audience, their marketing strategies, etc. It is conducive in the initial stages of establishing your enterprise. 

The business plan is essential for the investment process. A detailed plan is crucial to attract stakeholders , venture capitalists, and investors or angel investors to pitch your business idea. In such a case, your business plan becomes your way of convincing them to invest their resources in your plan because it is worth it. 

The core of a good plan tells the story of your business idea – what problem you’re solving and for whom. Are you hoping to start a bakery downtown? Create a new software tool? The plan explains who your potential customers are and why they’ll love what you offer.

It also includes specifics like who’s on your team, what you’re selling or the service you provide, and how you’ll spread the word (marketing). You’ll want to estimate sales projections and costs so folks understand how you’ll make money. This shows profits down the road.

A big part is differentiating from the competition. What makes your approach unique? Why pick you over similar options? The plan convinces potential backers or partners that you’ve thought it through and have a clear path to profits.

Overall, taking time to craft a solid plan is super helpful in the long term. It guides you through launch and growth. Review it yearly to check if your assumptions are still tracked, or if changes are needed. A plan keeps momentum on your side.

Starting or developing a business plan isn’t a science or learned through a degree. Some companies develop through trial and error, while others are drafted from head to toe. 

Hence, the answer is No if we are talking about a particular person responsible for writing a business plan. Similarly, there is no need for an extended, lengthy business plan to be written with each plan elaborated. 

Irrespective of all this, there are still some conditions in which a business increases its chances of becoming successful by drafting a business plan. Such conditions are as follows: 

• For tech startups, a business plan can be a medium to gain long-term funding, especially with no trading history.
• When the market is new, untested, or volatile, a business plan can come in handy and serve as a document to fall back upon, mainly to tackle uncertainties and unclarity.
• If you have an excellent business idea and haven’t given it much thought or put it on paper, drafting a business plan can be a good option. Writing a business plan can help you carefully structure and evaluate your thoughts from different angles to spot risks.

How To Write a Business Plan? 

First and foremost, when writing a business plan, you need to identify the problem your business will aim to solve and the purpose your business serves. 

Once that is sorted, you need to consider who you are trying to attract with it, what kind of customers, and why. Following are some additional key points to consider while drafting your business plan: 

• Note how you plan to secure your funding through private investors, bank loans, etc.
• Write about your business history, the concept, and what products or services you are trying to sell.
• Ensure you are transparent with your investors and do not keep any information from them. Do not exaggerate or bluff about your experience and skills. Gaining trust is crucial.
• Explain the details about your product or service in layperson’s terms. Avoid jargon as much as possible to avoid confusing the reader.
• Focus on the business’s strengths, the problem it aims to solve, and the evidence you have to prove the same.
• Understanding the market you are penetrating is crucial, as is conducting competitor analysis, knowing who your competitors are, learning about your competitive advantage , and finding your unique selling proposition (USP) .
• Last but not least, ensure your business plan is brief. Instead, keep it as short and precise as possible. Your aim through the business plan is to deliver crucial information so the reader can decide.

It’s quite easier to write a business plan if you consider the given points. However, it’s still not a walk in the park. If you still have trouble drafting your plan, consider hiring a writer—an affordable business plan writer  who can help you put the first version of your plan on paper.

If you are still trying to decide whether or not you should dedicate your time to making a business plan, here are a few advantages and disadvantages of a business plan to help you make this decision. 

Advantages of a Business Plan

• A business plan can be your golden document to secure funding for your business . Initially, funding is crucial, especially for tech and SaaS startups.
• The strategic focus of your business is preserved after the first stage. You can read about scope creep and understand how a company occasionally diverges from its goal, which could lead to stagnancy. In such a case, it is essential to understand the success factors in a business and plan exactly to serve the purpose.
• Having a business plan on paper invites other passionate people on board . When you have a trading history, it is easier to get people on board. However, if you have a plan, it convinces potential investors that you are sure about what you are doing. 

Disadvantages of a Business Plan

• A business plan can hamper you from looking forward. This means you may depend too much on your plan without considering other external factors such as market conditions, trends, etc. Such a dependency can lead you to make mistakes and miss potential golden opportunities just because they were not in the plan.
• Analyzing performance can become time-consuming. A business plan can make you dwell on your past mistakes by focusing on the goals and objectives you could not achieve. Analyzing past performance could save time and resources by focusing on moving forward with strength.
• Constant change makes a business plan outdated as soon as it’s written. We know that the world is changing quickly, so your business plan will likely lose its relevance by the time you are ready to launch. A great alternative to the business plan is a strategic project roadmap . This is because a business plan has a lot of essential details, such as the mission statement , which are less likely to change either way. Moreover, a roadmap can help pave the most adaptable and actionable path.

What Is the Skeleton of a Business Plan? 

Since you are still reading, I am sure you’ll want to know what the skeleton of a business plan looks like. 

Remember that it can be frustrating because critical thinking is involved, and there is no hard-fast rule for a business plan. However, the best approach is to look at other business plan templates and write yours in a way that makes sense to any layman. 

Here is what a Business plan constitutes of: 

• Overview: In this section, you summarize your business concept and its execution.
• Detailed Description: In this section, you will describe the kind of product or service you are offering, what the unique selling point is, and how valuable your business is.
• Target audience: In this section, you will explain your market segmentation , the target market , their essential traits, etc., backed up by user research .
• Marketing strategy: Once you know your target audience well, you must document how you will reach them through a marketing strategy. A marketing strategy is often defined within the marketing plan , where primary establishment and engagement strategies are explained in detail. However, as a subsection in a business plan, it need not be as detailed as a market plan.
• Core team: This section will discuss your people and the team behind the development process. If you don’t have a team yet, you must discuss how team members will be selected, what candidates suit you, and the timeline. This section is critical to procure external investments such as passion and enthusiasm.
• Financial Predictions: Remember that investors are mainly concerned about finances because no one wants to invest in a loss-making company. Hence, your financial sedition is going to be scrutinized a lot more than anything else. Therefore, it is crucial to be thorough with the same. Make sure you talk about how much money you need to get started and how you plan to keep the money rolling in. Ensure that your cash flow forecast is realistic and achievable, which will help keep your business floating for the first few years.

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A business plan consists of the overview of your business idea, detailed descriptions of your product or service and its unique selling proposition, your target audience, your marketing strategy, the core team and how to hire it, and the financial model or predictions.

A business plan helps you pitch your business idea to potential investors and secure funding. When your business is on the brink of losing focus after a few initial years, a business plan helps you to stay on track. Lastly, it invites other potential employees, partners, or investors to invest their resources in your business.

A business plan expires fast because of our constantly evolving world. It is not dependable in the long run because of its ignorance towards changing marketing conditions. It can obstruct you from looking forward to external factors and golden opportunities since it compels you to focus on the plan, creating dependency.

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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 ).

• Bank of America launches income-focused retirement portfolios

What is an income-focused retirement planning?

What to watch out for, with worries about outliving retirement savings on the rise, merrill turns its attention to income-focused solutions.

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate investing products to write unbiased product reviews.

• Americans are increasingly worried they'll deplete their retirement savings too quickly.
• Income-focused plans encourage retirees to be confident when spending with a strategic budget and reliable source of income.
• Bank of America offers new income-focused portfolios through Merrill Edge accounts. 

You've diligently saved for decades, dreaming of a carefree retirement. Now you're faced with a new challenge: how to spend it. The freedom to travel the world or spend on exuberant hobbies is tempting. But what if your nest egg runs dry? 

The transition from saving to spending warrants concern. Bank of America's 2023 workplace benefits report  finds that 30% of employees are concerned about the switch, with 67% believing that the cost of living is outpacing their salary growth (a 9% increase from February 2022). 

"For people already in retirement, or nearing it, it's a stressful situation," said Emily Millsap, a CFP, manager and financial planner at Avantax Wealth Management , "But having a financial plan in place and being able to navigate what retirement will look like in the future can alleviate that anxiety."

The US faces a potential $1.3 trillion burden on federal and state public assistance programs over the next few decades, according to Pew Research. But Americans are also worried they'll outlive their retirement savings. Income-focused retirement planning offers a potential solution. Merrill is the latest to turn its attention there.

Check out Business Insider's guide to the best retirement plans >>

Merrill's income-focused retirement portfolios

Merrill, Bank of America's investment and wealth management division, has introduced new income-focused retirement portfolios to diminish retirees' anxieties around spending. They're designed to deliver predictable income for retirees over a 25-year period. You can set up monthly withdrawal amounts based on your evolving financial situation, risk tolerance, and long-term goals. 

"There's a prevailing fear that you may outlive your savings, so people try to measure how much money they'll need to maintain their lifestyle," said Matt Gellene, head of consumer investments and employee banking & investments at Bank of America . "Our retirement income portfolios create a way to manage retirement income, create a steady income stream, and have a realistic conversation based on savings and expectations."

The portfolios contain a diverse mix of low-risk bonds and equity to encourage growth and hedge against inflation . Investment strategies include "stable income" and "income and growth." Recurring distributions can be made to a Bank of America checking account or outside bank/investment account. 

Another benefit is that early withdrawals have no restrictions or penalties. In an emergency, you could take out as much money as needed to cover medical bills, home repairs, or other unexpected expenses. 

"We have to walk clients through retirement expectations realistically and have them understand where they are in their journey," said Gellene. "By having those conversations, people become much more comfortable and can start reasonably crafting a plan ."

Merrill Edge Guided Investing and Merrill Guided Investing with Advisor account holders get access to these portfolios for no additional fees. But you must have at least $50,000 in your eligible Merill Guide Investing account to access. 

Income-focused retirement strategies help future and current retirees transition from saving to spending. Instead of blindly budgeting, you get a predictable monthly income in an amount you choose. Similar to an annuity contract, income-focused retirement plans promote growth through low-risk investments. 

Unlike an annuity, you're not signing a contract with an insurance company but rather opt-in to an investment strategy aimed at increasing retirees' confidence in spending without jeopardizing your financial wellbeing down the line. 

Benefits of an income-focused retirement plan

Here's how an income-focused retirement helps retirees budget:

Prevents overspending

Retirement spending habits vary from person to person, but housing, healthcare, and pleasure activities tend to be the highest expenses. People fear they may spend too much too quickly and run out of money sooner rather than later. Yet, being overly conservative sacrifices some of the enjoyment that retirement can bring.

Income-focused retirement plans function like a paycheck, delivering consistent monthly income. You'll know how much money is coming in so you can create a more realistic and sustainable budget. Unlike blindly withdrawing cash, you'll have a set amount you can confidently spend, easing the anxiety about potentially making poor spending choices.

Reduces reliance on Social Security

Social Security is an essential source of income for millions of retirees in the US. However, fewer workers contribute to the system, creating an imbalance that threatens to run the program dry. Millennials, in particular, are expected to collect smaller portions of Social Security than previous generations. 

"Retirement has shifted drastically since Social Security first began in 1935," said Millsap. "Life expectancy is much longer, and people now need 15 to 25 years of savings to live off of. Then, you layer in rising housing and healthcare costs. It's hard to fit it all in while working, trying to buy a home, raise a family, and take a vacation every now and again."

Reliable income from your retirement investment portfolio  reduces your dependence on Social Security. You can also strategically allocate your Social Security benefits toward specific goals or as an emergency fund.

Promote growth and reduce risk

Some income-focused portfolios incorporate assets with growing capabilities to hedge against inflation and maintain their purchasing power over time. Moreover, retirees can generate regular investment income through assets such as dividend-paying stocks and bonds for improved financial security and peace of mind. 

While income-focused retirement plans and portfolios are a valued tool for workers, further education and professional guidance are critical for navigating the retirement landscape. Nearly half of all US households won't be able to maintain their current lifestyle during retirement, with low-income households at especially high risk, reports the Center for Retirement Research at Boston College .

"Money truly is the last taboo," said Millsap. "Thanks to social media, people talk about religion and politics all the time, but there's still this underlying cultural taboo that we're not supposed to talk about money. We're not supposed to ask people how much they make or if they are feeling anxious about retirement. The first way to break through this culture of secrecy and silence around money is to educate."

Every year, more people lose confidence in their ability to adequately save for their futures. The 2023 BofA reports found that financial insecurities are the highest since 2010, with only 42% of employees feeling confident in their financial situation. Employee optimism about retirement security dropped from 57% to 42% in just a few months.

"Retirement can be scary to talk about, but it's our job to open up that door and have candid conversations that help people plan," said Gellene. 

Similarly, whether you sign up for Merrill's new retirement portfolios or seek out alternative income-focused plans, ensure you can access the money without penalty in an emergency. Life is unpredictable, and an unexpected medical crisis or tragedy may suddenly pop up and nab a decent chunk of your retirement fund. 

Alternatives to BofA income-focused portfolios

If you don't want to open an account with Merrill, plenty of other banks and investment platforms offer income-focused retirement planning services. Fidelity, for example, offers a retirement-income plan for flexible spending on its website under its Planning and Guidance Center. 

Savant Wealth, an independent wealth management firm, has a library of retirement and pre-retirement resources to help people better equip themselves for their non-working years. Take advantage of Savant's Retirement Guidebook, or talk with a team of financial planning experts.

Annuities may also be worth considering as a means to receive reliable income over time with the potential to accrue value when invested. There are multiple kinds of annuities: fixed-rate or variable. Variable annuities pose a higher risk as they are linked more closely to the market, increasing the potential for greater gains or losses. But be mindful of potentially high fees and penalties. 

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What role will Caitlin Clark have with Team USA in Paris?

Also in this week’s olympic notebook, american weightlifter makes more history, swimmer who beat michael phelps announces retirement.

Keith Dunlap , Digital Content Team, Graham Media Group

We are 119 days from the Opening Ceremony of the 2024 Summer Olympics in Paris, which will be held on July 26. Each Friday from now until the torch is lit in Paris come back for a weekly update on all things Olympics, whether they are regarding the Paris games or future Olympics.

Caitlin Clark probably won’t attend Olympic evaluation camp, but it likely won’t matter

Expect Clark to be in Paris, even if that means a deserving older professional is left home. Fair or not fair, business is business. – Last week, Iowa phenom and generational women’s basketball player Caitlin Clark was invited to participate in an evaluation camp for prospective members of the U.S. women’s basketball team that will compete at this summer’s Paris Olympics.

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The camp will be held this weekend in Cleveland, which is also the site of the women’s Final Four in college basketball.

Clark likely won’t attend the camp because her Iowa team will be competing in the Final Four, but it’s not likely to matter. It’d be a complete stunner if Clark isn’t selected to the 12-player Team USA roster.

If it were a matter of sheer basketball, that might seem a bit absurd given she is a college player and the 13 others invited to the camp are established professionals. Even as great as Clark is, the national team has historically favored more veteran professional players.

Of course, this probably won’t be a decision solely about basketball. You think executives at NBC and the International Olympic Committee see the transformative TV ratings and sellout crowds Clark has brought and will have no problem if USA Basketball omits her from the roster?

Fat chance. Expect Clark to be in Paris, even if that means a deserving older professional is left home. Fair or not fair, business is business.

With that in mind, it will simply be a matter of what Clark’s role will be. Can she be a starter? Will she play a leading or support role? Will the professionals on the roster be willing to share shots with her and step aside while she gets limelight?

All that will be an interesting dynamic for a women’s national team that has been dominant at the Olympics. The Americans have won the gold medal at the last seven Olympics.

American weightlifter makes history at qualifier

The United States isn’t exactly known as a weightlifting power when it comes to the Olympics, which is why the public should get to know the name Hampton Morris before the Paris Games start.

Morris, a 20-year-old from Marietta, Georgia, made history on Tuesday by becoming the first American since 1969 to break a world senior weightlifting record.

Competing in the 61 kg class at the final qualifier event for the Olympics in Thailand, Morris successfully lifted 388 pounds in the clean and jerk competition.

Last September, Morris became the first American to win a world title since 1972 in the same event and weight class. The United States hasn’t had a male Olympic gold medalist in weightlifting since 1960.

Team USA at the moment has Morris and five women ranked in the top-10 in their respective classes . Each country is allowed to take six weightlifters to Paris.

The weightlifting qualifier event in Thailand will end on Thursday, but it won’t be the only sport having its final qualifier for the Olympics next week.

Olympic taekwondo hopefuls from the U.S. will join athletes from other nations within the Americas for the final Olympic qualification event in the Dominican Republic on Tuesday and Wednesday .

The finalists in each of the eight weight classes will comprise the 16 qualifiers out of the event who will advance to Paris.

Swimmer who upset Michael Phelps retires

Joseph Schooling was one of the more heartwarming stories of the 2016 Rio Olympics when he became the only athlete from Singapore to ever win an Olympic gold medal.

Even better was that he bested the most decorated Olympian ever in doing so. Schooling beat out Michael Phelps to win the 100-meter butterfly, and at the age of 21, seemed destined for more.

But Schooling, who attended the Boiles School in Jacksonville, Florida, when he was a teen and swam collegiately at the University of Texas, couldn’t duplicate that magical night in Rio, failing to get out of qualification heats at the Tokyo Olympics.

Now 28, Schooling announced on Monday that he was retiring from swimming . Still, beating out Phelps and still possessing your country’s only gold medal makes him a legend for life.

Graham Media Group 2024

About the Author

Keith dunlap.

Keith is a member of Graham Media Group's Digital Content Team, which produces content for all the company's news websites.

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Building a new Key Bridge could take years and cost at least $400 million, experts say

Crews were set to begin removing the wreckage of a collapsed highway bridge in Baltimore on Friday. Maryland Gov. Wes Moore said a large crane, which can lift up to 1,000 tons, would be one of at least two used to clear the channel of the twisted metal and concrete remains of the Francis Scott Key Bridge, and the cargo ship that collided with it this week.

A container ship rests against the wreckage of the Francis Scott Key Bridge on Thursday, March 28, 2024, in Baltimore, Md. After days of searching through murky water for the workers missing after the bridge collapsed, officials are turning their attention Thursday to what promises to be a massive salvage operation. (AP Photo/Matt Rourke)

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In this image released by the National Transportation and Safety Board, a NTSB investigator is seen on the cargo vessel Dali, which struck and collapsed the Francis Scott Key Bridge, Wednesday, March 27, 2024 in Baltimore. (Peter Knudson/NTSB via AP)

FILE - A section of the new I-35 bridge is raised from a barge in the foaming Mississippi River at Minneapolis, June 24, 2008. The I-35W bridge was rebuilt in less than 14 months. Experts say the rebuilding of Baltimore’s Francis Scott Key Bridge likely will take longer, with estimates ranging from 18 months to several years. (AP Photo/Andy King, File)

ANNAPOLIS, Md. (AP) — Rebuilding Baltimore’s collapsed Francis Scott Key Bridge could take anywhere from 18 months to several years, experts say, while the cost could be at least $400 million — or more than twice that.

It all depends on factors that are still mostly unknown. They range from the design of the new bridge to how swiftly government officials can navigate the bureaucracy of approving permits and awarding contracts.

Realistically, the project could take five to seven years, according to Ben Schafer, an engineering professor at Johns Hopkins University.

The Baltimore bridge collapse today:

• The latest: Cranes arriving to start removing wreckage from deadly Baltimore bridge collapse
• Cost : Building a new Key Bridge could take years and cost at least $400 million, experts say
• Environment : Activists watch for potential impact on environment as Key Bridge cleanup unfolds

“The lead time on air conditioning equipment right now for a home renovation is like 16 months, right?” Schafer said. He continued: “So it’s like you’re telling me they’re going to build a whole bridge in two years? I want it to be true, but I think empirically it doesn’t feel right to me.”

Others are more optimistic about the potential timeline: Sameh Badie, an engineering professor at George Washington University, said the project could take as little as 18 months to two years.

The Key Bridge collapsed Tuesday, killing six members of a crew that was working on the span, after the Dali cargo ship plowed into one its supports . Officials are scrambling to clean up and rebuild after the accident, which has shuttered the city’s busy port and a portion of the Baltimore beltway.

The disaster is in some ways similar to the deadly collapse of Florida’s Sunshine Skyway Bridge, which was was struck by a freighter in Tampa Bay in 1980. The new bridge took five years to build, was 19 months late and ran $20 million over budget when it opened in 1987.

But experts say it’s better to look to more recent bridge disasters for a sense of how quickly reconstruction may happen.

Jim Tymon, executive director of the American Association of State Highway and Transportation Officials, cited the case of the Interstate 35W bridge in Minnesota, which collapsed into the Mississippi River in 2007. The new span was up in less than 14 months.

“It’s the best comparison that we have for a project like this,” Tymon said. “They did outstanding work in being able to get the approvals necessary to be able to rebuild that as quickly as possible.”

Tymon expects various government agencies to work together to push through permits, environmental and otherwise.

“It doesn’t mean that all of the right boxes won’t get checked — they will,” Tymon said. “It’ll just be done more efficiently because everybody will know that this has to get done as quickly as possible.”

One looming issue is the source of funding. President Joe Biden has repeatedly said the federal government will pay for the new bridge, but that remains to be seen.

“Hopefully, Congress will be able to come together to provide those resources as soon as possible so that that does not become a source of delay,” Tymon said.

Minnesota Sen. Amy Klobuchar helped to obtain funding quickly to rebuild the I-35W bridge in her state. But she said replacing the Baltimore span could be more complicated.

She noted that the I-35W bridge, a federal interstate highway, was a much busier roadway with about 140,000 vehicle crossings a day, compared with about 31,000 for the Maryland bridge.

“But where there’s a will there’s a way, and you can get the emergency funding,” Klobuchar said. “It’s happened all over the country when disasters hit. And the fact that this is such a major port also makes it deserving of making sure that this all gets taken care of.”

Badie, of George Washington University, said the cost could be between $500 million and $1 billion, with the largest variable being the design.

For example a suspension bridge like San Francisco’s Golden Gate will cost more, while a cable-stayed span, like Florida’s Skyway Sunshine Bridge, which handles weight using cables and towers, would be less expensive.

Whatever is built, steel is expensive these days and there is a backlog for I-beams, Badie said. Plus, the limited number of construction companies that can tackle such a project are already busy on other jobs.

“A project like this is going to be expedited, so everything is going to cost a lot more,” Badie said.

Hota GangaRao, a West Virginia University engineering professor, said the project could cost as little as $400 million. But that’s only if the old bridge’s pier foundations are used; designers may want to locate the new supports farther away from the shipping channels to avoid another collision.

“That’s going to be more steel, more complicated construction and more checks and balances,” GangaRao said. “It all adds up.”

Norma Jean Mattei, an emeritus engineering professor at The University of New Orleans, said replacing the Key Bridge likely will take several years. Even if it’s a priority, the process of designing the span, getting permits and hiring contractors takes a lot of time. And then you have to build it.

“It’s quite a process to actually get a bridge of this type into operation,” she said.