• Search Search Please fill out this field.

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.

what is a business plan not used for

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 ."

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

what is a business plan not used for

  • Terms of Service
  • Editorial Policy
  • Privacy Policy
  • Your Privacy Choices

Tool graphics

0 results have been found for “”

 Return to blog home

What Is a Business Plan? Definition and Planning Essentials Explained

Posted february 21, 2022 by kody wirth.

what is a business plan not used for

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.

New call-to-action

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 .

Like this post? Share with a friend!

Kody Wirth

Posted in Business Plan Writing

Join over 1 million entrepreneurs who found success with liveplan, like this content sign up to receive more.

Subscribe for tips and guidance to help you grow a better, smarter business.

You're all set!

Exciting business insights and growth strategies will be coming your way each month.

We care about your privacy. See our privacy policy .

What is a Business Plan? Definition and Resources

Clipboard with paper, calculator, compass, and other similar tools laid out on a table. Represents the basics of what is a business plan.

9 min. read

Updated November 30, 2023

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?

Definition: Business plan is a description of a company's strategies, goals, and plans for achieving them.

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

Brought to you by

LivePlan Logo

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

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.

  • 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

Content Author: Tim Berry

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.

Check out LivePlan

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

Related Articles

what is a business plan not used for

7 Min. Read

Online boutique clothing store business plan

what is a business plan not used for

5 Min. Read

Highlight any risks and assumptions

what is a business plan not used for

9 Min. Read

Services business plan

what is a business plan not used for

1 Min. Read

12. Ask these questions before hiring a business plan writer

The LivePlan Newsletter

Become a smarter, more strategic entrepreneur.

Your first monthly newsetter will be delivered soon..

Unsubscribe anytime. Privacy policy .

Garrett's Bike Shop

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

LivePlan pitch example

Discover the world’s #1 plan building software

what is a business plan not used for

BUSINESS STRATEGIES

7 types of business plans every entrepreneur should know

  • Amanda Bellucco Chatham
  • Aug 3, 2023

representation of a business plan for a beverage brand

What’s the difference between a small business that achieves breakthrough growth and one that fizzles quickly after launch? Oftentimes, it’s having a solid business plan.

Business plans provide you with a roadmap that will take you from wantrepreneur to entrepreneur. It will guide nearly every decision you make, from the people you hire and the products or services you offer, to the look and feel of the business website you create.

But did you know that there are many different types of business plans? Some types are best for new businesses looking to attract funding. Others help to define the way your company will operate day-to-day. You can even create a plan that prepares your business for the unexpected.

Read on to learn the seven most common types of business plans and determine which one fits your immediate needs.

What is a business plan?

A business plan is a written document that defines your company’s goals and explains how you will achieve them. Putting this information down on paper brings valuable benefits. It gives you insight into your competitors, helps you develop a unique value proposition and lets you set metrics that will guide you to profitability. It’s also a necessity to obtain funding through banks or investors.

Keep in mind that a business plan isn’t a one-and-done exercise. It’s a living document that you should update regularly as your company evolves. But which type of plan is right for your business?

7 common types of business plans

Startup business plan

Feasibility business plan

One-page business plan

What-if business plan

Growth business plan

Operations business plan

Strategic business plan

7 types of business plans listed out

01. Startup business plan

The startup business plan is a comprehensive document that will set the foundation for your company’s success. It covers all aspects of a business, including a situation analysis, detailed financial information and a strategic marketing plan.

Startup plans serve two purposes: internally, they provide a step-by-step guide that you and your team can use to start a business and generate results on day one. Externally, they prove the validity of your business concept to banks and investors, whose capital you’ll likely need to make your entrepreneurial dreams a reality.

Elements of a startup business plan should include the following steps:

Executive summary : Write a brief synopsis of your company’s concept, potential audience, product or services, and the amount of funding required.

Company overview: Go into detail about your company’s location and its business goals. Be sure to include your company’s mission statement , which explains the “why” behind your business idea.

Products or services: Explain exactly what your business will offer to its customers. Include detailed descriptions and pricing.

Situation analysis: Use market research to explain the competitive landscape, key demographics and the current status of your industry.

Marketing plan: Discuss the strategies you’ll use to build awareness for your business and attract new customers or clients.

Management bios: Introduce the people who will lead your company. Include bios that detail their industry-specific background.

Financial projections: Be transparent about startup costs, cash flow projections and profit expectations.

Don’t be afraid to go into too much detail—a startup business plan can often run multiple pages long. Investors will expect and appreciate your thoroughness. However, if you have a hot new product idea and need to move fast, you can consider a lean business plan. It’s a popular type of business plan in the tech industry that focuses on creating a minimum viable product first, then scaling the business from there.

02. Feasibility business plan

Let’s say you started a boat rental company five years ago. You’ve steadily grown your business. Now, you want to explore expanding your inventory by renting out jet skis, kayaks and other water sports equipment. Will it be profitable? A feasibility business plan will let you know.

Often called a decision-making plan, a feasibility business plan will help you understand the viability of offering a new product or launching into a new market. These business plans are typically internal and focus on answering two questions: Does the market exist, and will you make a profit from it? You might use a feasibility plan externally, too, if you need funding to support your new product or service.

Because you don’t need to include high-level, strategic information about your company, your feasibility business plan will be much shorter and more focused than a startup business plan. Feasibility plans typically include:

A description of the new product or service you wish to launch

A market analysis using third-party data

The target market , or your ideal customer profile

Any additional technology or personnel needs required

Required capital or funding sources

Predicted return on investment

Standards to objectively measure feasibility

A conclusion that includes recommendations on whether or not to move forward

03. One-page business plan

Imagine you’re a software developer looking to launch a tech startup around an app that you created from scratch. You’ve already written a detailed business plan, but you’re not sure if your strategy is 100% right. How can you get feedback from potential partners, customers or friends without making them slog through all 32 pages of the complete plan?

That’s where a one-page business plan comes in handy. It compresses your full business plan into a brief summary. Think of it as a cross between a business plan and an elevator pitch—an ideal format if you’re still fine-tuning your business plan. It’s also a great way to test whether investors will embrace your company, its mission or its goals.

Ideally, a one-page business plan should give someone a snapshot of your company in just a few minutes. But while brevity is important, your plan should still hit all the high points from your startup business plan. To accomplish this, structure a one-page plan similar to an outline. Consider including:

A short situation analysis that shows the need for your product or service

Your unique value proposition

Your mission statement and vision statement

Your target market

Your management team

The funding you’ll need

Financial projections

Expected results

Because a one-page plan is primarily used to gather feedback, make sure the format you choose is easy to update. That way, you can keep it fresh for new audiences.

04. What-if business plan

Pretend that you’re an accountant who started their own financial consulting business. You’re rapidly signing clients and growing your business when, 18 months into your new venture, you’re given the opportunity to buy another established firm in a nearby town. Is it a risk worth taking?

The what-if business plan will help you find an answer. It’s perfect for entrepreneurs who are looking to take big risks, such as acquiring or merging with another company, testing a new pricing model or adding an influx of new staff.

A what-if plan is additionally a great way to test out a worst-case scenario. For example, if you’re in the restaurant business, you can create a plan that explores the potential business repercussions of a public health emergency (like the COVID-19 pandemic), and then develop strategies to mitigate its effects.

You can share your what-if plan internally to prepare your leadership team and staff. You can also share it externally with bankers and partners so that they know your business is built to withstand any hard times. Include in your plan:

A detailed description of the business risk or other scenario

The impact it will have on your business

Specific actions you’ll take in a worst-case scenario

Risk management strategies you’ll employ

05. Growth business plan

Let’s say you’re operating a hair salon (see how to create a hair salon business plan ). You see an opportunity to expand your business and make it a full-fledged beauty bar by adding skin care, massage and other sought-after services. By creating a growth business plan, you’ll have a blueprint that will take you from your current state to your future state.

Sometimes called an expansion plan, a growth business plan is something like a crystal ball. It will help you see one to two years into the future. Creating a growth plan lets you see how far—and how fast—you can scale your business. It lets you know what you’ll need to get there, whether it’s funding, materials, people or property.

The audience for your growth plan will depend on your expected sources of capital. If you’re funding your expansion from within, then the audience is internal. If you need to attract the attention of outside investors, then the audience is external.

Much like a startup plan, your growth business plan should be rather comprehensive, especially if the people reviewing it aren’t familiar with your company. Include items specific to your potential new venture, including:

A brief assessment of your business’s current state

Information about your management team

A thorough analysis of the growth opportunity you’re seeking

The target audience for your new venture

The current competitive landscape

Resources you’ll need to achieve growth

Detailed financial forecasts

A funding request

Specific action steps your company will take

A timeline for completing those action steps

Another helpful thing to include in a growth business plan is a SWOT analysis . SWOT stands for strengths, weaknesses, opportunities and threats. A SWOT analysis will help you evaluate your performance, and that of your competitors. Including this type of in-depth review will show your investors that you’re making an objective, data-driven decision to expand your business, helping to build confidence and trust.

06. Operations business plan

You’ve always had a knack for accessories and have chosen to start your own online jewelry store. Even better, you already have your eCommerce business plan written. Now, it’s time to create a plan for how your company will implement its business model on a day-to-day basis.

An operations business plan will help you do just that. This internal-focused document will explain how your leadership team and your employees will propel your company forward. It should include specific responsibilities for each department, such as human resources, finance and marketing.

When you sit down to write an operations plan, you should use your company’s overall goals as your guide. Then, consider how each area of your business will contribute to those goals. Be sure to include:

A high-level overview of your business and its goals

A clear layout of key employees, departments and reporting lines

Processes you’ll use (i.e., how you’ll source products and fulfill orders)

Facilities and equipment you’ll need to conduct business effectively

Departmental budgets required

Risk management strategies that will ensure business continuity

Compliance and legal considerations

Clear metrics for each department to achieve

Timelines to help you reach those metrics

A measurement process to keep your teams on track

07. Strategic business plan

Say you open a coffee shop, but you know that one store is just the start. Eventually, you want to open multiple locations throughout your region. A strategic business plan will serve as your guide, helping define your company’s direction and decision-making over the next three to five years.

You should use a strategic business plan to align all of your internal stakeholders and employees around your company’s mission, vision and future goals. Your strategic plan should be high-level enough to create a clear vision of future success, yet also detailed enough to ensure you reach your eventual destination.

Be sure to include:

An executive summary

A company overview

Your mission and vision statements

Market research

A SWOT analysis

Specific, measurable goals you wish to achieve

Strategies to meet those goals

Financial projections based on those goals

Timelines for goal attainment

Related Posts

What is a target market and how to define yours

21 powerful mission statement examples that stand out

Free business plan template for small businesses

Was this article helpful?

  • Credit cards
  • View all credit cards
  • Banking guide
  • Loans guide
  • Insurance guide
  • Personal finance
  • View all personal finance
  • Small business
  • View all small business
  • View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Write a Business Plan, Step by Step

Rosalie Murphy

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

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.

Bizee

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

what is a business plan not used for

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.

How much do you need?

with Fundera by NerdWallet

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

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

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.

On a similar note...

Find small-business financing

Compare multiple lenders that fit your business

One blue credit card on a flat surface with coins on both sides.

  • Starting a Business
  • Growing a Business
  • Business News
  • Science & Technology
  • Money & Finance
  • Subscribers For Subscribers
  • Store Entrepreneur Store
  • Spotlight Spotlight
  • United States
  • Asia Pacific
  • Middle East
  • South Africa

Copyright © 2024 Entrepreneur Media, LLC All rights reserved. Entrepreneur® and its related marks are registered trademarks of Entrepreneur Media LLC

JUST RELEASED: View the 2024 Franchise 500 Ranking

9 Ways to Use Your Business Plan It's not just for financing--your business plan can help you spot future success or failure, attract suppliers and employees, and more.

Sep 27, 2005

Editor's note: This article was excerpted from Business Plans Made Easy , a guide to creating a high-impact business plan.

The process of writing a business plan helps you take a thorough, careful and comprehensive look at the most important facets of your business, including the contexts in which it operates. Just raising questions can sometimes lead to a solution, or at least ensure that if conditions change you won't be forced to make decisions hastily. The ongoing "what if this or that happens?" inherent in the planning process keeps you alert. In other words, the planning process itself makes you a far more capable manager than you would be without it. For many, this is a more valuable result than securing funding.

In many ways, writing a business plan is an end in itself. The process will teach you a lot about your business that you are unlikely to learn by any other process. You'll spot future trouble areas, identify opportunities, and help your organization run smoothly, simply through the act of writing a plan.

Evaluating a New Venture Lisa Angowski Rogak is an entrepreneur who started several newsletters in much the same way. She devised a plan focusing on marketing strategy and cash flow projections to see if she could come up with a way to sell the newsletters while keeping her bills paid. She then prepared a sample issue to be used in a direct mail and publicity campaign. "Planning is the key to the success of your newsletter," says Rogak, whose latest venture is Williams Hill Publishing. "It's the single most important thing you can do to ensure the success of your newsletter."

That's the kind of encouragement that helps entrepreneurs persevere, whether they have an existing concern that's hitting a rough spot or a startup concept that nobody else seems to believe in. Numbers can lie, of course, and nobody can create a spreadsheet that really tells the future. But evaluating financial data is to entrepreneurship what evaluating lab results is to a medical doctor. If your vital signs are good, odds are your future will be as well

But what if the odds don't look so favorable? What if the first pass through your cash flow projection or income pro formas contains more red than a fire station paint locker? Sure, you can go back and look for an error or an overly pessimistic or conservative assumption. You can even try altering a few of the inevitable numbers that you really have no way of estimating accurately to see where the pressure points are, if nothing else.

But what if you do that, even pushing your alterations past the point of credibility, and your plan still doesn't make sense? Well, in that case, you've probably done yourself the really big favor of finding out something isn't going to work before you sink your money into it. Nobody knows exactly how often this happens, but it's safe to say that a lot of businesses are never attempted because the plan convincingly says that they shouldn't be.

Is that bad? Well, it may feel bad. But think how much worse you would feel if you went ahead with the venture, and things turned out as the plan forecast. Business planning is a powerful tool for evaluating the feasibility of business ventures. Use it.

It would be a shame to keep the benefits of a well-done plan to yourself. And you shouldn't. You can use your plan to find funding. But a good plan can also help sell your products, services, and your whole company to prospects and suppliers. Furthermore, a plan is a valuable tool for communicating your visions, goals and objectives to other managers and key employees in your firm.

Selling with Your Plan As a rule, your business plan is only likely to be required in the later stages of being selected as a supplier. Let the customer's process decide when or if you'll present your plan. As an added benefit, working your way through the early stages of vendor selection will give you a chance to rework your plan, if necessary, to stress the areas you've learned are more important to your potential customer. Informing Suppliers and Customers Increasingly, companies large and small have been trying to trim the number of suppliers and customers they deal with and develop deeper and stronger relationships with the ones they keep. An essential part of this is getting to know more about existing and prospective vendors and clients. So don't be surprised if one day, when you're trying to set up a new supplier relationship or pitch a deal to a big company, the person you're negotiating with asks to see your business plan.

Why do suppliers care about business plans? Suppliers only want to sell to people who can pay, which is one important reason a new supplier is likely to want to see your business plan before taking a big order. Remember, if a supplier is selling to you on credit--letting you take delivery of goods and pay for them later--that supplier is, in effect, your creditor. Suppliers who sell for other than cash on delivery have the same legitimate interest in your business's strategy and soundness as does a banker.

Say a supplier's analysis of customer records shows it has a knack for developing long-term profitable relationships with moderate-sized companies that emphasize excellent service, price at a premium level, and provide only the best merchandise. Business plans provide all the information such a company will need to find and clone its best customers. So if a supplier asks to see your plan, be willing to share it. It could be the start of a long and mutually beneficial relationship.

Customers are likely to be concerned about how well your respective strategies fit with theirs. For instance, say your mission statement says that you intend to produce the best-in-the-world example of your product no matter what the cost. Your customer, meanwhile, is a high-volume, low-price reseller of the type of products you make. Even if your offering fits the customer's need this time, odds are good that the relationship won't work out over the long haul. If, on the other hand, a look at your business plan reveals that your companies share the same kind of strategies and have similar objectives in type if not scope, it's an encouraging sign.

Managing With Your Plan

The spread of the open-book management theory means a lot more employees are seeing their companies' business plans than ever before. When employees get the key information managers are using to make decisions, they understand management better and make better decisions themselves, and efficiency and profitability often increase as a result.

Many companies hold annual meetings at which they present and discuss an edited version of their business plan to all employees. Others provide new hires with their business plan-type information as part of their indoctrination in company culture. Both are effective approaches. You can also use bulletin boards or company newsletters to publish smaller sections of your plan, such as your mission statement or some details of financial objectives and how you're progressing.

One drawback to using a plan to help inform and manage your employees is that many won't understand it. Some firms provide employees with rudimentary training in matters like how to read a financial report before they hand out the company's plans. Often this training is done by the CEO and can take considerable time. But don't be afraid to share details of your business plan with employees. They may turn out to understand it better than you.

Monitoring Your Business's Performance Using a business plan to monitor your performance has many benefits. If your cash flow is running much shorter than projected at the moment, even though you're not currently in trouble, that information may help you to spot disaster before it occurs. By comparing plan projections with actual results, you gain a deeper understanding of your business's pressure points or the components of your operation that have the most effect on results.

  • Spotting trouble early. A teenager taking driver's education is told to look through the rear window of the car in front to try to see the brake lights on the vehicle ahead of that one. The idea is that if the novice driver waits until the car immediately ahead slams on the brakes, it may be too late to stop. Looking forward, past the immediate future, helps traffic move more smoothly and averts countless accidents.

The same principle applies in business planning. You don't have to be a wizard to get some solid hints about the future beyond tomorrow, especially when it comes to the operations of your own business. You can look at virtually any page of your business plan and find an important concept or number describing some expected future event that, if it turns out to be diverging from reality, may hint at future trouble.

Say your profit margins are shrinking slowly but steadily and seemingly irreversibly. If you can see that within a few months your declining margins will push your break-even point too high to live with, you can take action now to fix the problem. You may need to add a new, higher-margin product; get rid of an old one; or begin marketing to a more profitable clientele. All these moves, and many more you could take, have a good chance of working if your careful comparison of plan projections with actual results warns you of impending danger. Wait until the last minute, and you could be peeling yourself off the windshield.

  • Understanding pressure points. Not all tips that come from comparing plans with results have to do with avoiding danger. Some help you identify profit opportunities. Others may show how seemingly minor tweaks can produce outsized improvements in sales or profitability. For example, the plan for a one-person professional service business indicated that rising sales were not, in general, accompanied by rising costs. Fixed items such as office rent and insurance stayed the same, and even semivariable costs such as phone bills went up only slightly. The bulk of any extra business went straight to the bottom line, showing up as profit improvement. But one cost that didn't seem especially variable went up sharply as business volume climbed. That was the number of transactions.

Ordinarily this would be a given and not necessarily a matter of grave concern. A large enterprise could absorb these costs, but for this single professional, however, added paperwork came at a very high cost--her own time. As a part of checking her plan against results, she noticed this unexpected increase in transactions and calculated that she spent around an hour on paperwork for each transaction no matter how large or small. She realized that one of the most important pressure points in her business was related to the size of a transaction. By refusing small engagements and seeking clients who could offer big jobs, she would reduce the amount of time spent on otherwise unproductive paperwork and increase the time she could spend completing client requirements.

Ultimately, she was able to trim what had been 100 annual transactions down to 75, while increasing the amount of her dollar revenue. The result was a free 25 hours to spend working on more business or just vacationing. If you can see and relieve a pressure point like that, you can really keep your business from boiling over.

There are few things to equal the sensation of filling in all the numbers on a cash flow projection, hitting the recalculate button, and scrolling to the bottom of your spreadsheet to see what the future holds. If the news is good and you see a steady string of positive cash balances across the bottom row, you know that, assuming your data is good and your assumptions reasonable, your business has a good chance of making it.

Do the Numbers Add Up?

Many businesses fail because of events that are impossible to foresee. If you'd begun a car dealership specializing in yacht-sized gas guzzlers right before the Arab oil embargo in the 1970s, you would be in the same position as a driver heading at 100 miles per hour into a brick wall--through no fault of your own. The same might go for a software startup that comes out with a new program just before Microsoft unveils a top-secret, long-term development effort to create something that does the same job for a lot less money.

It's probably not a bad idea, as part of your business planning process, to try to include some information in your business plan about the activities or intentions of the potential embargos and Microsofts. If nothing else, crafting a scenario in which the unthinkably awful occurs may help you to deal with it if it does. But some things are just wild cards and can't be predicted. For these you just have to trust the luck of the draw.

So what numbers have to add up? Certainly you have to be selling your products and services at a profit that will let you sustain the business long term. You'll also have to have a financial structure, including payables and receivables systems and financing, that will keep you from running out of cash even once. If you have investors who want to sell the company someday, you may need a plan with a big number in the field for shareholders' equity on the projected balance sheet.

When you're asking yourself whether the numbers add up, keep the needs of your business and your business partners, if you have any, in mind. Even if it looks like it'll take an air strike to keep your business from getting started, you don't want to do it if the numbers say that long-term it's headed nowhere.

Attracting Good People It takes money to make money, sure, but it also takes people to make a company, that is, unless you're a one-person company. Sometimes even then a plan can be an important part of your effort to attract the best partners, employees, suppliers and customers to you.

  • Prospective partners. Partners are like any other investors, and it would be a rare one who would come on board without some kind of plan. Partners want to know your basic business concept, the market and your strategy for attacking it; who else is on your team; what your financial performance, strengths and needs are; and what's in it for them. Luckily, these are exactly the same questions a business plan is designed to address, so you're likely to please even a demanding prospective partner by simply showing him or her a well-prepared plan. The one difference is a plan probably won't contain the details of a partnership agreement. And you'll need one of these to spell out the conditions of your partnership, no matter how well you and your prospective partner know, understand and trust one another.
  • Prospective employees. Although employees may not be making cash contributions to your business, they're making an investment of something equally important--their own irreplaceable time. The kinds of employees you probably want are careful, thorough, good at assessing problems and risks, and unwilling to leap into hazardous waters. As it happens, these are just the kind of people who are going to want to see a written plan of your business before they come on board.

Now, it's not going to be necessary, if you're running a restaurant, to show your full business plan to every waitperson or assistant dishwasher who fills out a job application. It's the most desirable employees--the talented technologists, the well-connected salespeople, the inspired creative types, and the grizzled, seen-it-all managers--who are most likely to feel they can and should demand to see details of your plan before they cast their lot with you.

So even if you don't show your plan to more than a few prospective employees, when you need it, you may really need it bad. Make sure you're ready when a promising but inquisitive job candidate shows up at your doorstep. Another thing, as we've pointed out, not all businesses have plans. So by having one, you'll be making yourself a more desirable employer.

Plan for the Possibility of Failure

There's no point in planning for failure, but there is a point in writing a business plan that's willing to admit the possibility of failure. It's only natural to create a plan that will describe a roaring success, but you have to be careful not to present an overly optimistic view, especially of such elements as sales, costs and profit margins.

It's tempting to noodle around with the numbers until you come up with the desired result. And if you only make small changes here and there, it may seem all right. What difference does it make? Say you increase your projected market share by 1 percent here, reduce expected costs by 2 percent there, and lower your estimate of required startup capital by a few percentage points as well.

A number of similarly small changes, in sum, can make a big difference in the bottom line of your plan and turn what otherwise looks like a loser into a projected winner. But don't be seduced. You may be asking for investments from friends and family you care about as well as putting your own life savings into the enterprise. Arm's-length investors' feelings may not be so important, but if you mislead them in your plan, you may open yourself up to accusation of misrepresentation.

Looking at things in your plan through rose-colored glasses may even doom your business to failure if it causes you to seek insufficient startup capital, underprice your product or service or expect unrealistically rapid growth. Temper your enthusiasm. If your plan indicates that the business idea isn't sound, by all means look for errors. But don't make the mistake of skewing your plan to fit an idea that isn't sound.

Update Your Plan Writing a business plan is one of those skills that improves with practice. The first one or two times you create one, you may feel a little unsure of yourself and even less certain that what you're doing has value.

If you go on to start several ventures during your career, you'll naturally write several business plans, and each one will be better than the last. It's likely as well that with better planning skills will come improved business skills, boosting the odds that each successive company you start will do better than the one before.

But there's no reason that only serial entrepreneurs should get the benefit of regular business planning sessions. If you start just one company or even if you never start a company at all, you can and should be constantly honing your business planning skills by updating and rewriting your business plan.

Updating a plan is normally easier than starting from scratch. Instead of trying to figure out what your basic business concept is, you only have to decide whether it's changing. Instead of wondering where you'll find the current market research you need, you just have to go back to the original source for updated figures. You'll usually be able to reuse the financial formulas, spreadsheets, management biographies and other more or less evergreen contents of your plan.

It's important, however, that a plan update not be a mechanical task, limited to plugging in the most recent sales figures. Take the time to challenge some of the core assumptions of your prior plan to see if they still hold up. Have profit margins been higher than you expected? Then start planning how to make the most of any extra cash you generate. Is your new retail store unit not performing as well as others or you expected? Then now's the time to figure out why. Has competition for your new product arisen sooner than you guessed? Take a look at other products with an eye to seeing if they are also more vulnerable than you think.

In large corporations with strict planning routines requiring annual, semiannual and quarterly plans and plan updates, managers spend at least part of their time working on or thinking about a new plan or plan update. All that information flowing up to senior managers in the form of plans helps keep the brass informed. It helps those in the trenches, too. It's a fact that everybody is judged by past performance. And the best way to ensure that a year from now you'll be looking back on your performance with satisfaction and pride is to plan now and often.

Here are eight reasons to think about updating your plan. If one applies to you, it's time for an update.

  • A new financial period is about to begin. You may update your plan annually, quarterly or even monthly if your industry is fast changing.
  • You need financing, or additional financing. Lenders and other financiers need an updated plan to make financing decisions.
  • Significant markets change. Shifting client tastes, consolidation trends among customers and altered regulatory climates can trigger a need for plan updates.
  • New or stronger competitors are looking to your customers for their growth.
  • Your firm develops or is about to develop a new product, technology, service or skill. If your business has changed a lot since you wrote your plan, it's time for an update.
  • You have had a change in management. New managers should get fresh information.
  • Your company has crossed a threshold, such as moving out of your home office, reaching $1 million in sales or employing 100 people.
  • Your old plan doesn't seem to reflect reality anymore. Maybe you did a poor job last time; maybe things have just changed faster than you expected. But if your plan seems irrelevant, redo it.

David H. Bangs has been working with small-business owners for more than 20 years and is the author of 11 small-business books.

Editor's Pick Red Arrow

  • For Years, This Black Founder Learned an Uncommon But Essential Craft on the Side. Now His Creations Are Beloved By Celebrity Chefs — and Can Sell for More Than $1,000 .
  • Three Buddies Wanted to Have a Better Time at an Outdoor Festival. Their Invention Turned Into a $43 Million Business .
  • Lock This Fun, Flexible Side Hustle Pays $35 an Hour and Gets You Into Exclusive CEO Summits, Music Festivals, and Sports Events
  • Lock This Retirement Trend Is Helping People Ease 'Financial Anxieties' and Avoid 'Loss of Purpose,' Workplace Expert Says
  • Lock These 3 Quotes From Jeff Bezos Will Change How You Run Your Business
  • The Job Is Finished, Now What? 7 Lessons and Cautionary Tales About Life After Power From Former Presidents .

Related Topics Red Arrow

Most popular red arrow, 10 expert insights for the optimal (and most effective) pr budget in 2024.

The age-old question "How much should a company spend on PR?" echoes through boardrooms, with organizations seeking a magic formula for budget allocation. Here are 10 things you need to consider.

A Former Disney Star Just Launched a Space Startup With $6.3 Million in Seed Funding. Here's Why She Did It.

Bridgit Mendler co-founded Northwood Space to bring data from space reliably down to Earth.

55 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

3 Mind-Changing Habits Every Leader Should Follow

As business leaders, we need reminders to focus on our mindset, not just the P&L. Here are three habits that I practice to create a more successful mindset.

Incorporating This Simple Activity Into Your Daily Routine Can Boost Your Productivity, Creativity and Business

This simple yet profound activity has transformed not just my health, but the way I do business. Here's how.

Expand Your Knowledge and Unlock Success With These Must-Read Business Books

Top business books to ignite your entrepreneurial journey.

Successfully copied link

comscore

File today and secure your full Child Tax Credit when legislation passes. Get started

  • Small Business Tax Prep

Small Business Services

  • Self-Employed

Small Business Owners

  • Block Advisors News Center
  • Build Your Business
  • Manage Your Business
  • All Categories

October 31, 2023

Block Advisors

How to Write a Business Plan Step-By-Step

October 31, 2023 • Block Advisors

QUICK ANSWER:

  • A business plan outlines your business’s goals, services, financing, and more.
  • Business plans vary in length and complexity but should always include an explanation of what your business will do and how it will do it.
  • Business plans serve as a guide for business owners and employees and are key to boosting investor confidence.

Whether you’re a serial entrepreneur or just getting your first small business idea off the ground, creating a business plan is an important step. Good business planning will help you clarify your goals and objectives, identify strategies, and note any potential issues or roadblocks you might face.

Not every business owner chooses to write a business plan, but many find it to be a valuable step to take when starting a business. Creating a business plan can seem daunting and confusing at first. But taking the time to plan and research can be very beneficial, especially for first-time small business owners.

If you want to learn how to create a business plan or if you feel you just need a little business plan help, read on!

What is a Business Plan?

A business plan serves as a comprehensive document that outlines your business’s goals, services, financing, leadership, and more details essential to its success. Think of the plan as the who, what, and why of your new business:

A small business owner learning how to write a business plan

Who are the major players in your business?

What goods or services do you offer and why are they important?

Why are you in business and why should customers choose you?

Business plans can range in complexity and length, but, at their core, all plans explain what the business will do and how it will do it. A business plan serves as a guide for business owners and employees and should boost investor confidence. Some important advantages of business plans include:

  • Shows investors you have an in-demand product or service, a solid team to achieve business goals, and the potential for growth and scalability.
  • Increases the likelihood of securing a business loan, locking in investments, or raising capital. >>Read: A Guide to Raising Capital as a Small Business Founder
  • Helps recognize partnership opportunities with other companies.
  • Identifies and defines competitors within your given industry.

Looking for an examples of a successful business plan? Check out the SBA’s business plan page for walkthroughs of different business plan outlines.

How to Write a Business Plan: 10 Simple Steps

Starting with a blank page is undoubtedly intimidating. So, begin with a structured business plan template including the key elements for each section. Once your outline is complete, it’ll be time to fill in the details. Don’t worry, you’ll know how to write a business plan in no time. We’ve broken each section down to help you write a business plan in a few simple steps.

1. Brainstorm and Draft an Executive Summary for Your Business Plan

This will be the first page of your business plan. Think of it as your business’ written elevator pitch. In this high level summary, include a mission statement, a short description of the products or services you will be providing, and a summary of your financial and growth projections.

This section will be the first part people read, but you may find it easier to write it last. Writing it after building out the rest of your plan may help you condense the most important information into a concise statement. You’ll need to streamline your thoughts from the other sections into a one page or less summary.

2. Create a Business Description

In this next section, describe your business. Add more specific details than the executive summary. You should include your business’s registered name, the address of your business’s location, basic information about your business structure , and the names of key people involved in the business.

The company description should also answer these two questions:

  • Who are you?
  • What do you plan to do?

Explain why you’re in business. Show how you are different from competitors. Tell investors why they should finance your company. This section is often more inspirational and emotional. Make sure you grab the reader’s attention. The goal is to get them to believe in your vision as much as you do.

What business structure is right for my company?

Answer these six questions to help you find your fit

3. Outline Your Business Goals

This section should serve as an objective statement. Explain what you want to accomplish and your timeline. Business goals and objectives give you a clear focus. They drive your business to success, so dream big. Include objectives that will help you reach each goal. Don’t forget to make your goals and objectives SMART – that is, they should be:

S pecific | M easurable | A ttainable | R elevant | T ime-bound

4. Conduct and Summarize Market Research

Next, outline your ideal customer with some research. Do the math to estimate the potential size of your target market. Make sure you are choosing the right market for your product, one with plenty of customers who want and need your product. Define your customer’s pain points. Explain your expertise in relation to the market. Show how your product or service fills an important gap and brings value to your customers. Use your findings to build out a value proposition statement.

5. Conduct a Competitive Analysis

In a similar way, you’ll also want to conduct and include a competitive analysis. The purpose of this analysis is to determine the strengths and weaknesses of competitors in your market, strategies that will give you a competitive advantage, and how your company is different. Some people choose to conduct a competitive analysis using the SWOT method .

6. Outline Your Marketing and Sales Strategies

Your marketing sales strategy can make or break your business. Your marketing plan should outline your current sales decisions as well as future marketing strategies. In this section, you should reiterate your value proposition, target markets, and customer segments. Then, include details such as:

  • A launch plan
  • Growth tactics and strategies
  • A customer retention plan
  • Advertising and promotion channels (i.e. social media, print, search engines, etc.)

7. Describe Your Product or Service

By this point, your products or services have probably been mentioned in several areas of the business plan. But it’s still important to include a separate section that outlines their key details. Describe what you’re offering and how it fits in the current market. Also include details about the benefits, production process, and life cycle of your products. If you have any trademarks or patents, include them here. This is also a good time to ask yourself, “Should my plan include visual aids?”

[ Read More Must-Have Tips to Start Your Small Business ]

8. Compile Financial Plans

Financial health is crucial to the success of any business. If you’re just starting your business, you likely won’t have financial data yet. However, you still need to prepare a budget and financial plan. If you have them, include income statements , balance sheets , and cash flow statements . You can also include reporting metrics such as net income and your ratio of liquidity to debt repayment ability.

If you haven’t launched your business yet, include realistic projections of the same information. Set clear financial goals and include projected milestones. Share information about the budget. What are the business operations costs? Ensure you are comprehensive when considering what costs you may need to prepare for.

9. Build a Management and Operations Plan

Identify your team members. Highlight their expertise and qualifications. Outline roles that still need to be filled now to establish your company and later as the business grows. Read More: 8 tax steps to take when hiring employees >>

Include a section detailing your logistics and operations plan. Consider all parts of your operation. Create a plan that provides details on suppliers, production, equipment, shipment and fulfillment, and inventory. This shows how your business will get done.

10. Create an Appendix – A Place for Additional Information and Documents

Lastly, assemble an organized appendix. This section can contain any other relevant information a reader might need to enhance their understanding of other sections. If you feel like the appendix is getting long, consider adding a table of contents at the beginning of this section. Appendices often include documents such as:

  • Licenses and permits
  • Bank statements
  • Resumes of key employees
  • Equipment leases

How to Create a Business Plan: The Bottom Line

A business plan helps you identify clear goals and provides your business direction. Many small business plans are 10-20 pages in length. But as long as the essentials are covered, feel empowered to build a plan that works for you and your company’s needs. Creating a business plan will help you identify your market and target customers, define business aims, and foster long-term financial health.

We’re ready to help you get your business started on the right foot today, and help you find long-term satisfaction as you pursue your business dream. Writing a business plan can be exciting. But if the steps to starting your business are feeling overwhelming, Block Advisors is here to help. Make an appointment today – our experts can assist you with tax prep , bookkeeping , payroll , business formation , and more .

Block Advisors by H&R Block logo

Recommended for you

Defining employee compensation and taxable wages, a guide to raising capital as a small business founder, how to onboard new employees for their first day, find tax help in your area..

what is a business plan not used for

What Is a Business Plan, and Why Is It Important?

What Is a Business Plan, and Why Is It Important?

If you’re planning to launch a business, the first thing you’ll need to do is develop a business plan. This can be a daunting task, especially if you’re launching your first business. 

But with a few important things in mind, writing a business plan can become much easier–in this article, we’ll discuss what a business plan is, why you need one, the components that make up a comprehensive plan, and how you can use it to grow your business. Let’s begin!

What Is a Business Plan?

A business plan is a document that outlines your business goals, strategies, and activities. It’s often used to attract investors or secure loans from banks. Even if you’re not looking for outside funding, a business plan can still be a helpful tool. It can help you develop a road map for your business and keep you on track as you grow.

When it comes to developing a business plan, there is no one-size-fits-all approach. The length and structure of your plan will vary depending on the type of business you’re starting, the market you’re entering, your own goals and objectives, and the business plan writer you hire. 

However, there are some key components that should be included in every business plan:

  • The executive summary : This is a brief overview of your business plan. It should include your company’s mission statement, a description of your products or services, an overview of your market analysis, and your financial goals. 

This is the most important part of your plan because it helps investors decide if they will continue reading your document, so be sure to learn how to write a good executive summary for your business plan .  

  • The company description : This section should provide more detail about your company, including its history, ownership structure, and location.
  • The product or service : In this section, you should describe the products or services your company will offer. You’ll also want to discuss your target market, how you plan to sell your product or service, and who your competition is.
  • The marketing strategy : Here, you’ll include details about how you plan to promote your business. This may include social media marketing efforts, public relations, advertising, and partnerships with other businesses.
  • The financials : This is where you’ll include information about your business’ finances, including sales forecasts, cash flow statements, and profit and loss reports.

As you can see, a business plan is more than just numbers and words on paper–it consists of everything that you stand for as an entrepreneur, including important details about your company, your goals, and the strategies you’ll use to achieve those goals. Because of this, it’s important to make sure your business plan is as thorough as possible.

Why Is a Business Plan Important?

There are many benefits of developing a business plan, including:

  • It helps you to clarify your goals and objectives.
  • It can help you identify any potential challenges or risks you’ll face as you grow your business.
  • It serves as a roadmap for your business, helping you stay on track as you develop new products, enter new markets, and hire more employees.
  • It gives potential investors or lenders an idea of what your business is all about and how you plan to achieve your goals.
  • It can help you stay organized and focused on your business, even when things get busy and hectic.
  • It can help you determine whether your new product or service is viable and how to best position it in the market.

How to Use Your Business Plan to Grow Your Business

Once you’ve written your business plan, it’s important to put it into action and use it as a tool to help you grow your business. It should be a living document that grows and changes with your business–as you gain new insights or identify new opportunities, be sure to update your plan so it always reflects your current business goals. 

Remember, your plan will serve as a map for you to navigate through the business world. If you start neglecting it because you’re making progress, your success will be short-lived and you’ll soon lose your way.

Additionally, if you’re looking for funding from investors or lenders, your business plan will be a key part of your pitch. Be sure to review your plan carefully before you meet with potential investors, as they’ll likely have questions about your business and your plans for growth, so be sure to have clear and detailed answers in mind.

How to Write an Executive Summary for a Business Plan

How to Write an Executive Summary for a Business Plan

Advantages of Django Over ASP.NET

Advantages of Django Over ASP.NET

Related posts.

What Are the Roles of Support Personnel?

What Are the Roles of Support Personnel?

what is a business plan not used for

What Is Remote Customer Service?

What Does a Customer Support Agent Do?

What Does a Customer Support Agent Do?

Write a comment cancel reply.

Save my name & email for next time.

  • How Guru Works
  • Work Agreements

wisebusinessplans logo

  • Customer Reviews
  • Net 30 Account
  • Wise Services
  • Steps & Timeline
  • Work at a Glance
  • Market Research at a Glance
  • Business Plan Writing Services
  • Bank Business Plan
  • Investor Business Plan
  • Franchise Business Plan
  • Cannabis Business Plan
  • Strategic Business Plan
  • Corporate Business Plan
  • Merge and Acquisition Business Plan (M&A)
  • Private Placement Memorandums (PPM)
  • Sample Business Plans
  • Professional Feasibility Study
  • PowerPoint Presentations
  • Pitch Deck Presentation Services
  • Business Plan Printing
  • Market Research
  • L-1 Business Plan
  • E-2 Business Plan
  • EB-5 Business Plan
  • EB-5 Regional Centers
  • Immigration Attorneys
  • Nonprofit Business Plan
  • Exit Business Planning
  • Business Planning
  • Business Formation
  • Business License
  • Business Website
  • Business Branding
  • Business Bank Account
  • Digital Marketing
  • Business Funding Resources
  • Small Business Loans
  • Venture Capital
  • Net 30 Apply

Wise Business plans logo

  • Frequently Asked Questions
  • Business Credit Cards
  • Talk to Us 1-800-496-1056

A Business Plan is a Roadmap for a Business to Achieve its Goals

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, executive summary, business description or overview, product and price, competitive analysis, target market, marketing plan, financial plan, funding requirements, 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?

Find professional business plan writers for your business success.

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.

What are the essential components of a business plan?

The Essential Components of a Business Plan

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.

Access specialized business plan writing service now!

Types of business plan.

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.

Need Guidance with Your Business Plan?

Access 14 free business plan samples!

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?

Reasons why Business Plans Dont Success

  • 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.

Leave a Reply

Your email address will not be published. Required fields are marked *

Quick Links

Made in USA

  • Investor Business Plans
  • M&A Business Plan
  • Private Placement
  • Feasibility Study
  • Hire a Business Plan Writer
  • Business Valuation Calculator
  • Business Plan Examples
  • Real Estate Business Plan
  • Business Plan Template
  • Business Plan Pricing Guide
  • Business Plan Makeover
  • SBA Loans, Bank Funding & Business Credit
  • Finding & Qualifying for Business Grants
  • Leadership for the New Manager
  • Content Marketing for Beginners
  • All About Crowdfunding
  • EB-5 Regional Centers, A Step-By-Step Guide
  • Logo Designer
  • Landing Page
  • PPC Advertising

Wise Business Plan New Logo White

  • Business Entity
  • Business Licensing
  • Virtual Assistant
  • Business Phone
  • Business Address
  • E-1 Visa Business Plan
  • EB1-A Visa Business Plan
  • EB1-C Visa Business Plan
  • EB2-NIW Business Plan
  • H1B Visa Business Plan
  • O1 Visa Business Plan
  • Business Brokers
  • Merger & Acquisition Advisors
  • Franchisors

Proud Sponsor of

  • 1-800-496-1056

US flag

  • (613) 800-0227

Canada flag

  • +44 (1549) 409190

UK flag

  • +61 (2) 72510077

Australia flag

Growthink logo white

Use This Business Plan Format to Expertly Write Your Plan

Written by Dave Lavinsky

Growthink.com Business Plan Format

In this guide, you’ll learn how to format your business plan professionally. Business plan structure and format helps readers look beyond distracting style to the real meat of your idea.

Download our Ultimate Business Plan Template here >

How to Format Your Business Plan: The Cover Sheet

Every business plan should begin with a simple business plan cover page including the business name, your name and contact information. An easy to read table of contents should follow.

Example Business Plan Table of Contents

I: Executive Summary      a. Business Overview      b. Success Factors      c. Financial Highlights

II: Company Overview      a. Who is [Company Name]?      b. [Company Name]’s History      c. [Company Name]’s Products & Services

III: Industry Analysis      a. Industry Trends

IV: Customer Analysis      a. Customer Segmentation

V: Competitive Analysis      a. Direct & Indirect Competitors      b. Competitive Advantage

VI: Marketing Plan      a. The [Company Name] Brand      b. Promotions Strategy      c. Pricing Strategy

VII: Operations Plan      a. Functional Roles      b. Goals and Milestones

VIII: Management Team      a. Management Team Members      b. Hiring Plan

IX: Financial Plan      a. Revenue Model      b. Revenue and Cost Drivers      c. Key Assumptions & Forecasts

X: Appendix

The cover sheet should leave no question for readers to be able to identify the business plan when it is in a stack with dozens of others on their desk. The table of contents allows them to easily refer to sections within the plan. For example, after reading the executive summary, some investors with an eye for numbers may turn directly to the financial plan and statements. Proper business plan format allows readers to quickly get the information they want.

Example Business Plan Format

There are 10 business plan components or sections that every entrepreneur and business owner must include in their plan. These include:

  • Executive summary
  • Company overview
  • Industry analysis
  • Customer analysis
  • Competitive analysis
  • Marketing plan
  • Operations plan
  • Management team
  • Financial plan

You should recognize these if you’ve ever worked with a business plan template .

Formatting your business plan with charts and graphs is welcomed to break up long blocks of text. However, charts and graphs shouldn’t be used for their own sake. They must make the information easier to pass on than text would.

The business plan format that investors and lenders expect includes the following 10 sections. You can download our business plan format pdf here, to help you get started. We’ve included important notes in each section specific to business plan formatting to help you as you write your plan.

1. Start with Your Executive Summary

An executive summary gives readers a crisp overview of your business at the start of your plan. This section should not be more than two pages long and should include the following:

  • What is the business about?
  • Where and why did the idea of the business originate?
  • Who are the owners?
  • Which industry is it operating in?
  • What is its core function?
  • Where is it located?
  • How is it going to make money?
  • How much money (if any) is it already making?
  • What are its financial projections?

The best format for your executive summary is paragraphs. Utilizing bullets and headings is also useful formatting within an executive summary, as it aids the reader in scanning the content on the page.

2. Company Overview Section

The company overview is the perfect place to highlight the strengths of your business. This section gives the reader additional information about your products and/or services and describes your company’s past accomplishments.

Including the below in this section will provide further clarity about your business:

  • What type of business you are (e.g., C-Corporation, sole proprietor)
  • When your business started
  • Business’ accomplishments to date

The best formatting to use in this section is paragraphs to describe your company’s strengths and products/services. You should also include a chart that outlines your company’s achievements to date.

3. Industry or Market Analysis

The industry or market analysis gives the reader a clear understanding of your industry and the audience it serves. It includes a detailed explanation of your market size and trends.

Typically, the format of this section should be paragraphs. Feel free to include charts and graphs to best convey the information to the reader.

4. The Customer Analysis States Who Your Customers Are and What They Need

In this section of your plan, explain who your target customers are and identify their specific needs. Doing this will help you better target and attract customers.

5. Competitive Analysis

The Competitive Analysis section identifies your direct and indirect competitors. It discusses who they are and their strengths and weaknesses. It then details your areas of competitive advantages.

Whether your competitors are small or large businesses, describe them. Telling investors there are no competitors (big or small) often gives the impression that a market does not exist for your company.

With regards to formatting, use paragraphs to describe each competitor. As appropriate, adding a competitor matrix to show similarities and differences between your company and the competition can be very powerful.

6. Your Marketing Plan is a Key Section

The marketing & sales section of your business plan should outline how you plan to attract new customers and retain old ones. This section should outline the ways customers can be introduced to and engage with your offerings and describe how you will convert these prospects into paying customers.

Set marketing objectives that include the following (if applicable):

  • Introducing new products
  • Extending the market reach
  • Exploring new markets
  • Boosting sales
  • Cross-selling
  • Creating a long-term partnership with clients
  • Increasing prices without affecting sales
  • Creating a content marketing strategy

Organize your Marketing Plan into the 4 P’s – Price, Product, Promotions and Place. If you have multiple products or services, include a menu with each key item and its price.

7. The Operations Plan Format

Your Operations Plan identifies your key operational processes and milestones you expect to accomplish. Using a Gantt chart is a great way to show your expected future milestones. You can also format this section with tables that document the dates of future milestones.

8. You Need to Prove Your Management Team Can Execute

“A company is only as good as the people it keeps.” – Mary Kay Ash, American Entrepreneur and Businesswoman

The Management Team section of your business plan focuses on the people who run the business.

Who are the decision-makers, who is the product expert, who is the operations head, and who is running the entire show? A glimpse into the expertise and capabilities of your team members and how their experiences will help grow your business will boost stakeholder confidence.

To improve the formatting and best convey your management team to readers, consider adding an organizational chart that shows your team members and reporting structure.

9. Format Your Financial Plan

The goal of this section is to convince the reader that your business is stable and will be financially successful. Arm this section with past and/or forecasted cash flow statements, balance sheets, profit & loss statements, expense budgeting and sales forecasts.

If you run an operational business, include 3 years of historical data to help investors gain an understanding of how feasible your funding request is and if your business is capable of generating good returns.

Also include your funding request, if applicable, in this section. You should mention how much investment is required to take your business to the next significant milestone and how the money will be spent. You should also define if you are seeking debt or equity funding. If you are seeking debt financing like an SBA loan, ensure your financial projections include the debt and show steady repayments of both the principal and return under reasonable loan terms.

If you are seeking equity financing, you don’t need to include your valuation expectations in the business plan, but you should be aligned within your ownership team on the amount of equity you are willing to exchange before you pitch investors.

Example Financial Plan

Projected sales, gross profit & net income.

Business Plan Format financial projections

5 Year Annual Income Statement

5 year annual balance sheet, 5 year annual cash flow statement, 10. appendix.

This section includes supporting documentation of your business case. This could include renderings of a planned store location, market research reports referenced in the plan, key supplier or buyer contracts that substantiate your financial projections or historical marketing and sales data.

Formatting Your Business Plan

Overall, business plans should use simple and standard formatting. Twelve point font size in a standard font like Arial or Times New Roman is best, as well as the standard margin size of one inch on each side. Pages should be numbered, and the name of the company should appear on each page in the header or footer.

Use charts whenever possible as it makes it much easier for readers to consume the information in your plan.

How to Finish Your Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Click here to finish your business plan today.

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide for Small Businesses

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

Clifford Chi

Published: February 06, 2024

Free Business Plan Template

what is a business plan not used for

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

Thank you for downloading the offer.

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

sample business plans and examples

hbspt.cta._relativeUrls=true;hbspt.cta.load(53, 'e9d2eacb-6b01-423a-bf7a-19d42ba77eaa', {"useNewLoader":"true","region":"na1"});

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

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

Table of Contents

Business Plan Format

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

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

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

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

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

what is a business plan not used for

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

You're all set!

Click this link to access this resource at any time.

Fill out the form to get your free template.

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

1. Executive Summary

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

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

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

Company Description

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

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

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

Products and Services

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

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

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

Executive Summary Business Plan Examples

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

business plan sample: Executive Summary Example

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

Business plans examples: Executive Summary

Image Source

Tips for Writing Your Executive Summary

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

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

2. Market Opportunity

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

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

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

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

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

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

Market Opportunity Business Plan Example

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

Business plans examples: Market Opportunity

Tips for Writing Your Market Opportunity Section

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

3. Competitive Landscape

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

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

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

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

Competitive Landscape Business Plan Example

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

Business plans examples: Competitive Landscape

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

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

Tips for Writing Your Competitive Landscape

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

4. Target Audience

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

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

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

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

Target Audience Business Plan Example

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

Business plans examples: Target Audience

Tips for Writing Your Target Audience Section

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

5. Marketing Strategy

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

  • Your brand positioning vision and how you'll cultivate it
  • The goal targets you aim to achieve
  • The metrics you'll use to measure success
  • The channels and distribution tactics you'll use

I think it’s helpful to have a marketing plan built out in advance to make this part of your business plan easier.

Marketing Strategy Business Plan Example

This business plan example includes the marketing strategy for the town of Gawler.

In my opinion, it really works because it offers a comprehensive picture of how they plan to use digital marketing to promote the community.

Business plans examples: Marketing Strategy

Tips for Writing Your Marketing Strategy

  • Include a section about how you believe your brand vision will appeal to customers.
  • Add the budget and resources you'll need to put your plan in place.
  • Outline strategies for specific marketing segments.
  • Connect strategies to earlier sections like target audience and competitive analysis.
  • Review how your marketing strategy will scale with the growth of your business.
  • Cover a range of channels and tactics to highlight your ability to adapt your plan in the face of change.

6. Key Features and Benefits

At some point in your business plan, you'll need to review the key features and benefits of your products and/or services.

Laying these out can give readers an idea of how you're positioning yourself in the market and the messaging you're likely to use. It can even help them gain better insight into your business model.

Key Features and Benefits Business Plan Example

In my opinion, the example below does a great job outlining products and services for this business, along with why these qualities will attract the audience.

Business plans examples: Key Features and Benefits

Tips for Writing Your Key Features and Benefits

  • Emphasize why and how your product or service offers value to customers.
  • Use metrics and testimonials to support the ideas in this section.
  • Talk about how your products and services have the potential to scale.
  • Think about including a product roadmap.
  • Focus on customer needs, and how the features and benefits you are sharing meet those needs.
  • Offer proof of concept for your ideas, like case studies or pilot program feedback.
  • Proofread this section carefully, and remove any jargon or complex language.

7. Pricing and Revenue

This is where you'll discuss your cost structure and various revenue streams. Your pricing strategy must be solid enough to turn a profit while staying competitive in the industry. 

For this reason, here’s what I’d might outline in this section:

  • The specific pricing breakdowns per product or service
  • Why your pricing is higher or lower than your competition's
  • (If higher) Why customers would be willing to pay more
  • (If lower) How you're able to offer your products or services at a lower cost
  • When you expect to break even, what margins do you expect, etc?

Pricing and Revenue Business Plan Example

I like how this business plan example begins with an overview of the business revenue model, then shows proposed pricing for key products.

Business plans examples: Pricing and Revenue

Tips for Writing Your Pricing and Revenue Section

  • Get specific about your pricing strategy. Specifically, how you connect that strategy to customer needs and product value.
  • If you are asking a premium price, share unique features or innovations that justify that price point.
  • Show how you plan to communicate pricing to customers.
  • Create an overview of every revenue stream for your business and how each stream adds to your business model as a whole.
  • Share plans to develop new revenue streams in the future.
  • Show how and whether pricing will vary by customer segment and how pricing aligns with marketing strategies.
  • Restate your value proposition and explain how it aligns with your revenue model.

8. Financials

To me, this section is particularly informative for investors and leadership teams to figure out funding strategies, investment opportunities, and more.

 According to Forbes , you'll want to include three main things:

  • Profit/Loss Statement - This answers the question of whether your business is currently profitable.
  • Cash Flow Statement - This details exactly how much cash is incoming and outgoing to give insight into how much cash a business has on hand.
  • Balance Sheet - This outlines assets, liabilities, and equity, which gives insight into how much a business is worth.

While some business plans might include more or less information, these are the key details I’d include in this section.

Financials Business Plan Example

This balance sheet is a great example of level of detail you’ll need to include in the financials section of your business plan.

Business plans examples: Financials

Tips for Writing Your Financials Section

  • Growth potential is important in this section too. Using your data, create a forecast of financial performance in the next three to five years.
  • Include any data that supports your projections to assure investors of the credibility of your proposal.
  • Add a break-even analysis to show that your business plan is financially practical. This information can also help you pivot quickly as your business grows.
  • Consider adding a section that reviews potential risks and how sensitive your plan is to changes in the market.
  • Triple-check all financial information in your plan for accuracy.
  • Show how any proposed funding needs align with your plans for growth.

As you create your business plan, keep in mind that each of these sections will be formatted differently. Some may be in paragraph format, while others could be charts or graphs.

The formats above apply to most types of business plans. That said, the format and structure of your plan will vary by your goals for that plan. 

So, I’ve added a quick review of different business plan types. For a more detailed overview, check out this post .

1. Startups

Startup business plans are for proposing new business ideas.

If you’re planning to start a small business, preparing a business plan is crucial. The plan should include all the major factors of your business.

You can check out this guide for more detailed business plan inspiration .

2. Feasibility Studies

Feasibility business plans focus on that business's product or service. Feasibility plans are sometimes added to startup business plans. They can also be a new business plan for an already thriving organization.

3. Internal Use

You can use internal business plans to share goals, strategies, or performance updates with stakeholders. In my opinion, internal business plans are useful for alignment and building support for ambitious goals.

4. Strategic Initiatives

Another business plan that's often for sharing internally is a strategic business plan. This plan covers long-term business objectives that might not have been included in the startup business plan.

5. Business Acquisition or Repositioning

When a business is moving forward with an acquisition or repositioning, it may need extra structure and support. These types of business plans expand on a company's acquisition or repositioning strategy.

Growth sometimes just happens as a business continues operations. But more often, a business needs to create a structure with specific targets to meet set goals for expansion. This business plan type can help a business focus on short-term growth goals and align resources with those goals.

Now that you know what's included and how to format a business plan, let's review some of my favorite templates.

1. HubSpot's One-Page Business Plan

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

The business plan linked above was created here at HubSpot and is perfect for businesses of any size — no matter how many strategies we still have to develop.

Fields such as Company Description, Required Funding, and Implementation Timeline give this one-page business plan a framework for how to build your brand and what tasks to keep track of as you grow.

Then, as the business matures, you can expand on your original business plan with a new iteration of the above document.

Why I Like It

This one-page business plan is a fantastic choice for the new business owner who doesn’t have the time or resources to draft a full-blown business plan. It includes all the essential sections in an accessible, bullet-point-friendly format. That way, you can get the broad strokes down before honing in on the details.

2. HubSpot's Downloadable Business Plan Template

Sample business plan: hubspot free editable pdf

We also created a business plan template for entrepreneurs.

The template is designed as a guide and checklist for starting your own business. You’ll learn what to include in each section of your business plan and how to do it.

There’s also a list for you to check off when you finish each section of your business plan.

Strong game plans help coaches win games and help businesses rocket to the top of their industries. So if you dedicate the time and effort required to write a workable and convincing business plan, you’ll boost your chances of success and even dominance in your market.

This business plan kit is essential for the budding entrepreneur who needs a more extensive document to share with investors and other stakeholders.

It not only includes sections for your executive summary, product line, market analysis, marketing plan, and sales plan, but it also offers hands-on guidance for filling out those sections.

3. LiveFlow’s Financial Planning Template with built-in automation

Sample Business Plan: LiveFLow

This free template from LiveFlow aims to make it easy for businesses to create a financial plan and track their progress on a monthly basis.

The P&L Budget versus Actual format allows users to track their revenue, cost of sales, operating expenses, operating profit margin, net profit, and more.

The summary dashboard aggregates all of the data put into the financial plan sheet and will automatically update when changes are made.

Instead of wasting hours manually importing your data to your spreadsheet, LiveFlow can also help you to automatically connect your accounting and banking data directly to your spreadsheet, so your numbers are always up-to-date.

With the dashboard, you can view your runway, cash balance, burn rate, gross margins, and other metrics. Having a simple way to track everything in one place will make it easier to complete the financials section of your business plan.

This is a fantastic template to track performance and alignment internally and to create a dependable process for documenting financial information across the business. It’s highly versatile and beginner-friendly.

It’s especially useful if you don’t have an accountant on the team. (I always recommend you do, but for new businesses, having one might not be possible.)

4. ThoughtCo’s Sample Business Plan

sample business plan: ThoughtCo.

One of the more financially oriented sample business plans in this list, BPlan’s free business plan template dedicates many of its pages to your business’s financial plan and financial statements.

After filling this business plan out, your company will truly understand its financial health and the steps you need to take to maintain or improve it.

I absolutely love this business plan template because of its ease-of-use and hands-on instructions (in addition to its finance-centric components). If you feel overwhelmed by the thought of writing an entire business plan, consider using this template to help you with the process.

6. Harvard Business Review’s "How to Write a Winning Business Plan"

Most sample business plans teach you what to include in your business plan, but this Harvard Business Review article will take your business plan to the next level — it teaches you the why and how behind writing a business plan.

With the guidance of Stanley Rich and Richard Gumpert, co-authors of " Business Plans That Win: Lessons From the MIT Enterprise Forum ", you'll learn how to write a convincing business plan that emphasizes the market demand for your product or service.

You’ll also learn the financial benefits investors can reap from putting money into your venture rather than trying to sell them on how great your product or service is.

This business plan guide focuses less on the individual parts of a business plan, and more on the overarching goal of writing one. For that reason, it’s one of my favorites to supplement any template you choose to use. Harvard Business Review’s guide is instrumental for both new and seasoned business owners.

7. HubSpot’s Complete Guide to Starting a Business

If you’re an entrepreneur, you know writing a business plan is one of the most challenging first steps to starting a business.

Fortunately, with HubSpot's comprehensive guide to starting a business, you'll learn how to map out all the details by understanding what to include in your business plan and why it’s important to include them. The guide also fleshes out an entire sample business plan for you.

If you need further guidance on starting a business, HubSpot's guide can teach you how to make your business legal, choose and register your business name, and fund your business. It will also give small business tax information and includes marketing, sales, and service tips.

This comprehensive guide will walk you through the process of starting a business, in addition to writing your business plan, with a high level of exactitude and detail. So if you’re in the midst of starting your business, this is an excellent guide for you.

It also offers other resources you might need, such as market analysis templates.

8. Panda Doc’s Free Business Plan Template

sample business plan: Panda Doc

PandaDoc’s free business plan template is one of the more detailed and fleshed-out sample business plans on this list. It describes what you should include in each section, so you don't have to come up with everything from scratch.

Once you fill it out, you’ll fully understand your business’ nitty-gritty details and how all of its moving parts should work together to contribute to its success.

This template has two things I love: comprehensiveness and in-depth instructions. Plus, it’s synced with PandaDoc’s e-signature software so that you and other stakeholders can sign it with ease. For that reason, I especially love it for those starting a business with a partner or with a board of directors.

9. Small Business Administration Free Business Plan Template

sample business plan: Small Business Administration

The Small Business Administration (SBA) offers several free business plan templates that can be used to inspire your own plan.

Before you get started, you can decide what type of business plan you need — a traditional or lean start-up plan.

Then, you can review the format for both of those plans and view examples of what they might look like.

We love both of the SBA’s templates because of their versatility. You can choose between two options and use the existing content in the templates to flesh out your own plan. Plus, if needed, you can get a free business counselor to help you along the way.

I’ve compiled some completed business plan samples to help you get an idea of how to customize a plan for your business.

I chose different types of business plan ideas to expand your imagination. Some are extensive, while others are fairly simple.

Let’s take a look.

1. LiveFlow

business plan example: liveflow

One of the major business expenses is marketing. How you handle your marketing reflects your company’s revenue.

I included this business plan to show you how you can ensure your marketing team is aligned with your overall business plan to get results. The plan also shows you how to track even the smallest metrics of your campaigns, like ROI and payback periods instead of just focusing on big metrics like gross and revenue.

Fintech startup, LiveFlow, allows users to sync real-time data from its accounting services, payment platforms, and banks into custom reports. This eliminates the task of pulling reports together manually, saving teams time and helping automate workflows.

"Using this framework over a traditional marketing plan will help you set a profitable marketing strategy taking things like CAC, LTV, Payback period, and P&L into consideration," explains LiveFlow co-founder, Lasse Kalkar .

When it came to including marketing strategy in its business plan, LiveFlow created a separate marketing profit and loss statement (P&L) to track how well the company was doing with its marketing initiatives.

This is a great approach, allowing businesses to focus on where their marketing dollars are making the most impact. Having this information handy will enable you to build out your business plan’s marketing section with confidence. LiveFlow has shared the template here . You can test it for yourself.

2. Lula Body

Business plan example: Lula body

Sometimes all you need is a solid mission statement and core values to guide you on how to go about everything. You do this by creating a business plan revolving around how to fulfill your statement best.

For example, Patagonia is an eco-friendly company, so their plan discusses how to make the best environmentally friendly products without causing harm.

A good mission statement  should not only resonate with consumers but should also serve as a core value compass for employees as well.

Patagonia has one of the most compelling mission statements I’ve seen:

"Together, let’s prioritise purpose over profit and protect this wondrous planet, our only home."

It reels you in from the start, and the environmentally friendly theme continues throughout the rest of the statement.

This mission goes on to explain that they are out to "Build the best product, cause no unnecessary harm, and use business to protect nature."

Their mission statement is compelling and detailed, with each section outlining how they will accomplish their goal.

4. Vesta Home Automation

business plan example: Vesta executive summary

This executive summary for a smart home device startup is part of a business plan created by students at Mount Royal University .

While it lacks some of the sleek visuals of the templates above, its executive summary does a great job of demonstrating how invested they are in the business.

Right away, they mention they’ve invested $200,000 into the company already, which shows investors they have skin in the game and aren’t just looking for someone else to foot the bill.

This is the kind of business plan you need when applying for business funds. It clearly illustrates the expected future of the company and how the business has been coming along over the years.

5. NALB Creative Center

business plan examples: nalb creative center

This fictional business plan for an art supply store includes everything one might need in a business plan: an executive summary, a company summary, a list of services, a market analysis summary, and more.

One of its most notable sections is its market analysis summary, which includes an overview of the population growth in the business’ target geographical area, as well as a breakdown of the types of potential customers they expect to welcome at the store. 

This sort of granular insight is essential for understanding and communicating your business’s growth potential. Plus, it lays a strong foundation for creating relevant and useful buyer personas .

It’s essential to keep this information up-to-date as your market and target buyer changes. For that reason, you should carry out market research as often as possible to ensure that you’re targeting the correct audience and sharing accurate information with your investors.

Due to its comprehensiveness, it’s an excellent example to follow if you’re opening a brick-and-mortar store and need to get external funding to start your business .

6. Curriculum Companion Suites (CSS)

business plan examples: curriculum companion suites

If you’re looking for a SaaS business plan example, look no further than this business plan for a fictional educational software company called Curriculum Companion Suites. 

Like the business plan for the NALB Creative Center, it includes plenty of information for prospective investors and other key stakeholders in the business.

One of the most notable features of this business plan is the executive summary, which includes an overview of the product, market, and mission.

The first two are essential for software companies because the product offering is so often at the forefront of the company’s strategy. Without that information being immediately available to investors and executives, then you risk writing an unfocused business plan.

It’s essential to front-load your company’s mission if it explains your "Why?" and this example does just that. In other words, why do you do what you do, and why should stakeholders care? This is an important section to include if you feel that your mission will drive interest in the business and its offerings.

7. Culina Sample Business Plan

sample business plan: Culina

Culina's sample business plan is an excellent example of how to lay out your business plan so that it flows naturally, engages readers, and provides the critical information investors and stakeholders need. 

You can use this template as a guide while you're gathering important information for your own business plan. You'll have a better understanding of the data and research you need to do since Culina’s plan outlines these details so flawlessly for inspiration.

8. Plum Sample Business Plan

Sample business plan: Plum

Don't forget to share this post!

Related articles.

How to Write a Powerful Executive Summary [+4 Top Examples]

How to Write a Powerful Executive Summary [+4 Top Examples]

19 Best Sample Business Plans & Examples to Help You Write Your Own

19 Best Sample Business Plans & Examples to Help You Write Your Own

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

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

Maximizing Your Social Media Strategy: The Top Aggregator Tools to Use

Maximizing Your Social Media Strategy: The Top Aggregator Tools to Use

The Content Aggregator Guide for 2023

The Content Aggregator Guide for 2023

7 Gantt Chart Examples You'll Want to Copy [+ 5 Steps to Make One]

7 Gantt Chart Examples You'll Want to Copy [+ 5 Steps to Make One]

The 8 Best Free Flowchart Templates [+ Examples]

The 8 Best Free Flowchart Templates [+ Examples]

15 Best Screen Recorders to Use for Collaboration

15 Best Screen Recorders to Use for Collaboration

The 25 Best Google Chrome Extensions for SEO

The 25 Best Google Chrome Extensions for SEO

Professional Invoice Design: 28 Samples & Templates to Inspire You

Professional Invoice Design: 28 Samples & Templates to Inspire You

2 Essential Templates For Starting Your Business

Marketing software that helps you drive revenue, save time and resources, and measure and optimize your investments — all on one easy-to-use platform

Circular economy: definition, importance and benefits

The circular economy: find out what it means, how it benefits you, the environment and our economy.

what is a business plan not used for

The European Union produces more than 2.2 billion tonnes of waste every year . It is currently updating its legislation on waste management to promote a shift to a more sustainable model known as the circular economy.

But what exactly does the circular economy mean? And what would be the benefits?

What is the circular economy?

The circular economy is a model of production and consumption , which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended.

In practice, it implies reducing waste to a minimum. When a product reaches the end of its life, its materials are kept within the economy wherever possible thanks to recycling. These can be productively used again and again, thereby creating further value .

This is a departure from the traditional, linear economic model, which is based on a take-make-consume-throw away pattern. This model relies on large quantities of cheap, easily accessible materials and energy.

Also part of this model is planned obsolescence , when a product has been designed to have a limited lifespan to encourage consumers to buy it again. The European Parliament has called for measures to tackle this practice.

Infographic explaining the circular economy model

Benefits: why do we need to switch to a circular economy?

To protect the environment.

Reusing and recycling products would slow down the use of natural resources, reduce landscape and habitat disruption and help to limit biodiversity loss .

Another benefit from the circular economy is a reduction in total annual greenhouse gas emissions . According to the European Environment Agency, industrial processes and product use are responsible for 9.10% of greenhouse gas emissions in the EU, while the management of waste accounts for 3.32%.

Creating more efficient and sustainable products from the start would help to reduce energy and resource consumption, as it is estimated that more than 80% of a product's environmental impact is determined during the design phase.

A shift to more reliable products that can be reused, upgraded and repaired would reduce the amount of waste. Packaging is a growing issue and, on average, the average European generates nearly 180 kilos of packaging waste per year . The aim is to tackle excessive packaging and improve its design to promote reuse and recycling.

Reduce raw material dependence

The world's population is growing and with it the demand for raw materials. However, the supply of crucial raw materials is limited.

Finite supplies also means some EU countries are dependent on other countries for their raw materials. According to Eurostat , the EU imports about half of the raw materials it consumes.

The total value of trade (import plus exports) of raw materials between the EU and the rest of the world has almost tripled since 2002, with exports growing faster than imports. Regardless, the EU still imports more than it exports. In 2021, this resulted in a trade deficit of €35.5 billion.

Recycling raw materials mitigates the risks associated with supply, such as price volatility, availability and import dependency.

This especially applies to critical raw materials , needed for the production of technologies that are crucial for achieving climate goals, such as batteries and electric engines.

Create jobs and save consumers money

Moving towards a more circular economy could increase competitiveness, stimulate innovation, boost economic growth and create jobs ( 700,000 jobs in the EU alone by 2030 ).

Redesigning materials and products for circular use would also boost innovation across different sectors of the economy.

Consumers will be provided with more durable and innovative products that will increase the quality of life and save them money in the long term.

What is the EU doing to become a circular economy?

  In March 2020, the European Commission presented the circular economy action plan,  which aims to promote more sustainable product design, reduce waste and empower consumers, for example by creating a right to repair ). There is a focus on resource intensive sectors, such as electronics and ICT , plastics , textiles and construction.

In February 2021, the Parliament adopted a resolution on the new circular economy action plan demanding additional measures to achieve a carbon-neutral, environmentally sustainable, toxic-free and fully circular economy by 2050, including tighter recycling rules and binding targets for materials use and consumption by 2030. In March 2022, the Commission released the first package of measures to speed up the transition towards a circular economy, as part of the circular economy action plan. The proposals include boosting sustainable products, empowering consumers for the green transition, reviewing construction product regulation, and creating a strategy on sustainable textiles.

In November 2022, the Commission proposed new EU-wide rules on packaging . It aims to reduce packaging waste and improve packaging design, with for example clear labelling to promote reuse and recycling; and calls for a transition to bio-based, biodegradable and compostable plastics.

Find out more

  • Infographic on the circular economy

Related articles

Moving towards a resource-efficient society, share this article on:.

  • Sign up for mail updates
  • PDF version

Cookies on GOV.UK

We use some essential cookies to make this website work.

We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services.

We also use cookies set by other sites to help us deliver content from their services.

You have accepted additional cookies. You can change your cookie settings at any time.

You have rejected additional cookies. You can change your cookie settings at any time.

what is a business plan not used for

  • Business and industry

Update on HMRC Double Cab Pick Up Guidance

HMRC has updated its guidance on the tax treatment of Double Cab Pick Ups

what is a business plan not used for

On Monday 12 February 2024 HMRC updated its guidance on the tax treatment of Double Cab Pick Ups ( DCPUs ), following a 2020 Court of Appeal judgment. The guidance had confirmed that, from 1 July 2024, DCPUs with a payload of one tonne or more would be treated as cars rather than goods vehicles for both capital allowances and benefit-in-kind purposes.

Since then, the government has listened carefully to views from farmers and the motoring industry on the potential impacts of the change in tax-treatment. The government has acknowledged that the 2020 court decision and resultant guidance update could have an impact on businesses and individuals in a way that is not consistent with the government’s wider aims to support businesses, including vital motoring and farming industries. 

HMRC have today announced that its existing guidance will be withdrawn, meaning that DCPUs will continue to be treated as goods vehicles rather than cars, and businesses and individuals can continue to benefit from its historic tax treatment.

This move is resultant of the government making clear that it will be legislating to ensure that DCPU vehicles continue to be treated as goods vehicles for tax purposes.

The government will consult on the draft legislation to ensure that it achieves that outcome before introducing it in the next available Finance Bill.

Nigel Huddleston, Financial Secretary to the Treasury, said:

“We will change the law at the next available Finance Bill in order to avoid tax outcomes that could inadvertently harm farmers, van drivers and the UK’s economy.”

Further information

  • The tax on the benefit-in-kind will now not increase when employers provide these vehicles to their employees; and the capital allowances available in the first year of use will now not be reduced when a business purchases this vehicle for use in their trade.
  • This will ensure a continued generous and consistent treatment of DCPUs for capital allowances, benefit in kind, and VAT purposes, maintaining simplicity in the tax system.
  • HMRC will withdraw its updated guidance during the afternoon of Monday 19 February 2024.
  • The Court of Appeal ruled that most multi-purpose vehicles, such as DCPUs , are cars in Payne & Ors (Coca-Cola) v R & C Commrs (2020) (BTC19).
  • Arrangements that HMRC announced on 12 February 2024 to help DCPU owners adapt to the updated guidance are now redundant because the tax-treatment is not changing.
  • This update is only with reference to DCPUs with a payload of one tonne or more. DCPUs with a payload of less than one tonne continue to be treated as cars.

Share this page

The following links open in a new tab

  • Share on Facebook (opens in new tab)
  • Share on Twitter (opens in new tab)

Is this page useful?

  • Yes this page is useful
  • No this page is not useful

Help us improve GOV.UK

Don’t include personal or financial information like your National Insurance number or credit card details.

To help us improve GOV.UK, we’d like to know more about your visit today. We’ll send you a link to a feedback form. It will take only 2 minutes to fill in. Don’t worry we won’t send you spam or share your email address with anyone.

what is a business plan not used for

Create a form in Word that users can complete or print

In Word, you can create a form that others can fill out and save or print.  To do this, you will start with baseline content in a document, potentially via a form template.  Then you can add content controls for elements such as check boxes, text boxes, date pickers, and drop-down lists. Optionally, these content controls can be linked to database information.  Following are the recommended action steps in sequence.  

Show the Developer tab

In Word, be sure you have the Developer tab displayed in the ribbon.  (See how here:  Show the developer tab .)

Open a template or a blank document on which to base the form

You can start with a template or just start from scratch with a blank document.

Start with a form template

Go to File > New .

In the  Search for online templates  field, type  Forms or the kind of form you want. Then press Enter .

In the displayed results, right-click any item, then select  Create. 

Start with a blank document 

Select Blank document .

Add content to the form

Go to the  Developer  tab Controls section where you can choose controls to add to your document or form. Hover over any icon therein to see what control type it represents. The various control types are described below. You can set properties on a control once it has been inserted.

To delete a content control, right-click it, then select Remove content control  in the pop-up menu. 

Note:  You can print a form that was created via content controls. However, the boxes around the content controls will not print.

Insert a text control

The rich text content control enables users to format text (e.g., bold, italic) and type multiple paragraphs. To limit these capabilities, use the plain text content control . 

Click or tap where you want to insert the control.

Rich text control button

To learn about setting specific properties on these controls, see Set or change properties for content controls .

Insert a picture control

A picture control is most often used for templates, but you can also add a picture control to a form.

Picture control button

Insert a building block control

Use a building block control  when you want users to choose a specific block of text. These are helpful when you need to add different boilerplate text depending on the document's specific purpose. You can create rich text content controls for each version of the boilerplate text, and then use a building block control as the container for the rich text content controls.

building block gallery control

Select Developer and content controls for the building block.

Developer tab showing content controls

Insert a combo box or a drop-down list

In a combo box, users can select from a list of choices that you provide or they can type in their own information. In a drop-down list, users can only select from the list of choices.

combo box button

Select the content control, and then select Properties .

To create a list of choices, select Add under Drop-Down List Properties .

Type a choice in Display Name , such as Yes , No , or Maybe .

Repeat this step until all of the choices are in the drop-down list.

Fill in any other properties that you want.

Note:  If you select the Contents cannot be edited check box, users won’t be able to click a choice.

Insert a date picker

Click or tap where you want to insert the date picker control.

Date picker button

Insert a check box

Click or tap where you want to insert the check box control.

Check box button

Use the legacy form controls

Legacy form controls are for compatibility with older versions of Word and consist of legacy form and Active X controls.

Click or tap where you want to insert a legacy control.

Legacy control button

Select the Legacy Form control or Active X Control that you want to include.

Set or change properties for content controls

Each content control has properties that you can set or change. For example, the Date Picker control offers options for the format you want to use to display the date.

Select the content control that you want to change.

Go to Developer > Properties .

Controls Properties  button

Change the properties that you want.

Add protection to a form

If you want to limit how much others can edit or format a form, use the Restrict Editing command:

Open the form that you want to lock or protect.

Select Developer > Restrict Editing .

Restrict editing button

After selecting restrictions, select Yes, Start Enforcing Protection .

Restrict editing panel

Advanced Tip:

If you want to protect only parts of the document, separate the document into sections and only protect the sections you want.

To do this, choose Select Sections in the Restrict Editing panel. For more info on sections, see Insert a section break .

Sections selector on Resrict sections panel

If the developer tab isn't displayed in the ribbon, see Show the Developer tab .

Open a template or use a blank document

To create a form in Word that others can fill out, start with a template or document and add content controls. Content controls include things like check boxes, text boxes, and drop-down lists. If you’re familiar with databases, these content controls can even be linked to data.

Go to File > New from Template .

New from template option

In Search, type form .

Double-click the template you want to use.

Select File > Save As , and pick a location to save the form.

In Save As , type a file name and then select Save .

Start with a blank document

Go to File > New Document .

New document option

Go to File > Save As .

Go to Developer , and then choose the controls that you want to add to the document or form. To remove a content control, select the control and press Delete. You can set Options on controls once inserted. From Options, you can add entry and exit macros to run when users interact with the controls, as well as list items for combo boxes, .

Adding content controls to your form

In the document, click or tap where you want to add a content control.

On Developer , select Text Box , Check Box , or Combo Box .

Developer tab with content controls

To set specific properties for the control, select Options , and set .

Repeat steps 1 through 3 for each control that you want to add.

Set options

Options let you set common settings, as well as control specific settings. Select a control and then select Options to set up or make changes.

Set common properties.

Select Macro to Run on lets you choose a recorded or custom macro to run on Entry or Exit from the field.

Bookmark Set a unique name or bookmark for each control.

Calculate on exit This forces Word to run or refresh any calculations, such as total price when the user exits the field.

Add Help Text Give hints or instructions for each field.

OK Saves settings and exits the panel.

Cancel Forgets changes and exits the panel.

Set specific properties for a Text box

Type Select form Regular text, Number, Date, Current Date, Current Time, or Calculation.

Default text sets optional instructional text that's displayed in the text box before the user types in the field. Set Text box enabled to allow the user to enter text into the field.

Maximum length sets the length of text that a user can enter. The default is Unlimited .

Text format can set whether text automatically formats to Uppercase , Lowercase , First capital, or Title case .

Text box enabled Lets the user enter text into a field. If there is default text, user text replaces it.

Set specific properties for a Check box .

Default Value Choose between Not checked or checked as default.

Checkbox size Set a size Exactly or Auto to change size as needed.

Check box enabled Lets the user check or clear the text box.

Set specific properties for a Combo box

Drop-down item Type in strings for the list box items. Press + or Enter to add an item to the list.

Items in drop-down list Shows your current list. Select an item and use the up or down arrows to change the order, Press - to remove a selected item.

Drop-down enabled Lets the user open the combo box and make selections.

Protect the form

Go to Developer > Protect Form .

Protect form button on the Developer tab

Note:  To unprotect the form and continue editing, select Protect Form again.

Save and close the form.

Test the form (optional)

If you want, you can test the form before you distribute it.

Protect the form.

Reopen the form, fill it out as the user would, and then save a copy.

Creating fillable forms isn’t available in Word for the web.

You can create the form with the desktop version of Word with the instructions in Create a fillable form .

When you save the document and reopen it in Word for the web, you’ll see the changes you made.

Facebook

Need more help?

Want more options.

Explore subscription benefits, browse training courses, learn how to secure your device, and more.

what is a business plan not used for

Microsoft 365 subscription benefits

what is a business plan not used for

Microsoft 365 training

what is a business plan not used for

Microsoft security

what is a business plan not used for

Accessibility center

Communities help you ask and answer questions, give feedback, and hear from experts with rich knowledge.

what is a business plan not used for

Ask the Microsoft Community

what is a business plan not used for

Microsoft Tech Community

what is a business plan not used for

Windows Insiders

Microsoft 365 Insiders

Was this information helpful?

Thank you for your feedback.

  • International edition
  • Australia edition
  • Europe edition

A man speaks outside court

How will Donald Trump pay the $438m he owes in penalties from civil trials?

Two giant penalties handed down in a matter of weeks will cost him millions – and that’s only part of what he could owe

  • Full report: Trump ordered to pay over $350m in New York fraud case
  • Trump fraud trial ruling – live updates

In a matter of weeks, Donald Trump was hit with two giant penalties from two civil trials in New York – $83m for defamation against the writer E Jean Carroll and $354.9m plus pre-judgment interest for inflating the value of his assets on government financial statements.

The verdicts combined will cost him some $438m, and that’s only part of what Trump could owe across numerous lawsuits. The payments will probably create a sizable dent in his wallet. Bloomberg’s billionaires’ list estimated that Trump’s net worth in 2021 was about $2.3bn, meaning these two rulings alone could take out almost a fifth of Trump’s net worth.

Trump’s finances have been notoriously opaque, not least because the Trump Organization is a private business, meaning it does not have to file public financial reports. But here’s what we know about what Trump has to pay and how it will affect his finances.

It all depends on the appeals

Trump is likely to appeal both cases, the outcomes of which could affect how much he ends up owing. It is unclear how long the appeals will take. For reference, an appeals court has yet to rule on a May 2023 ruling for a separate Carroll case that found Trump guilty of sexual abuse and defamation. Trump was ordered to pay $5m in damages in that case.

Also, the appeals court is technically considering two appeals coming out of Trump’s fraud trial. The first appeal came after a September pre-trial ruling found Trump guilty of fraud, ordering the removal of his business licenses. The second appeal is about the penalty the New York judge Arthur Engoron ordered Trump to pay after the months-long trial. It is unclear whether the appeals court will decide on the two appeals together or separately, but it will probably be at least a few months before any decision is announced.

Bankruptcy for Trump is unlikely

While $438m is no small sum, Trump is wealthy. Trump ally Rudy Giuliani declared bankruptcy after a jury ordered him to pay $148m to two Georgia election workers; the former New York mayor has declared he owes between $100m and $500m and has assets of between $1m and $10m.

To declare bankruptcy, Trump would have to prove that the verdict outweighs his assets, something that is highly unlikely.

During a deposition with prosecutors for the fraud trial in April 2023, Trump said that he had more than $400m in cash. However, last year, Forbes reported that Trump had since invested the bulk of his cash in bonds and treasuries, with a small portion kept in stocks and mutual funds. After his guilty verdicts, Trump will probably have to sell a good chunk of those investments.

A big question is whether Trump will have to touch anything in his real estate portfolio. Trump has gotten a cash boost from selling his properties before: he sold his golf club in the Bronx last year, and in 2022, he completed the sale of the Old Post Office building in Washington DC, which was converted into a hotel. Court documents showed that the sale of the Old Post Office netted $131.4m before taxes, according to the New York Times .

It will be a tough decision for a man who, just several years ago, claimed he was worth $10bn. This pride in his wealth has recently been used against him. In closing arguments in Carroll’s January trial, her lawyers told the jury that they should punish Trump with higher damages precisely because he claims he is so wealthy.

“A billionaire like Donald Trump could pay a million dollars a day for 10 years and still have money left in the bank,” Carroll attorney’s Roberta Kaplan told the jury on 26 January. “It will take an unusually high punitive damages award to have any hope of stopping Donald Trump.”

Trump will still have to pay the court, even as appeals go through

Even though Trump is waiting on multiple appeals decisions, he will have to give the court the money to hold on to. If Trump wins any of his appeals, he can get his money back.

after newsletter promotion

Trump has a few options in paying the court. He could pay up everything that he owes now in cash. Or he could try to get an appeal bond, meaning he wouldn’t have to pay all the cash up front in exchange for a premium and putting up collateral.

In his May 2023 Carroll case, Trump set aside the $5m he owed in cash, saving him about $55,500 in what would have been bond premiums. Though Trump may prefer to pay out the verdicts in cash, it is unclear whether he has enough on hand to avoid a bond this time.

Trump is rich with campaign money, but spending it on personal legal expenses will be complicated

Trump has been zealously fundraising off his legal troubles, probably because he has sizable legal fees for his two civil trials and four criminal trials.

What Trump can pay for using his campaign money is unclear. A federal law bans candidates from using campaign funds for personal use, making it unlikely that Trump can use campaign funds to help pay off some of the Carroll award and fraud penalty.

But Trump has not shied away from using campaign funds for some of his trials. The Associated Press reported in October that Trump’s Save America political action committee (Pac) had paid $37m in legal fees, more than half of the Pac’s total spending.

And the money keeps flowing in. Trump was the Republican candidate who received the most donations last fall, raising $45.5m in the third quarter. Ron DeSantis, who dropped out of the race in January, raised the second most, taking in about $30m.

  • Donald Trump
  • Real estate
  • E Jean Carroll

Most viewed

  • Share full article

For more audio journalism and storytelling, download New York Times Audio , a new iOS app available for news subscribers.

The Booming Business of Cutting Babies’ Tongues

One family’s story of “tongue-tie release” surgery on their newborn..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

From “The New York Times,” I’m Sabrina Tavernise, and this is “The Daily.”

A “Times” investigation has found that doctors are increasingly performing unnecessary medical procedures that generate huge profits while often harming patients.

Today, my colleague Katie Thomas — on the forces driving this emerging and troubling trend in American health care and the story of one family caught in the middle of it. It’s Monday, February 19.

So Katie, tell me about this investigation.

So I am a health care reporter who writes about the kind of intersection of health care and money. And I was working with two other colleagues, Sarah Kliff and Jessica Silver-Greenberg. And together, the three of us had long been interested in, are the medical procedures and the tests and other things that we get when we go to the doctor or into a hospital — are they always necessary?

But what we were really interested in exploring was not just are these procedures and are these tests, et cetera — are they necessary, but in some situations, could they actually be harmful to patients? And so that’s what we decided to try and take a look at. And so we had gotten started in our reporting when we got a tip. And it was from a mom in Boise, Idaho. And her name was Lauren Lavelle.

Nice to meet you.

Hi, how are you?

And my colleague Jessica Silver-Greenberg and I went to her house to meet with her.

And where does her story start?

I am a mom of two. I live in Boise. My daughter, June, is four, and I have a 17-month-old, Flora.

Her story starts when Lauren gets pregnant with her daughter, June.

So by the time we got pregnant with June, November of 2018, about eight months after we had the miscarriage, I think I was just more hesitant and nervous than anything.

Lauren and her husband had trouble conceiving, and so they were so happy when they learned that they were going to have June. And like most first-time parents, they were also a little bit nervous.

But being type-A and super prepared, I did all my homework. We hired a doula. I wanted an epidural. Having a natural childbirth absolutely was not for me.

And Lauren is very organized. She’s always on top of everything, and she makes all sorts of plans. And she gets a lot of different providers lined up ahead of time —

I didn’t know anything about breastfeeding, like zero things.

— including one that she has hired to help her with breastfeeding.

Where did you find out about her?

So I asked our doula for a list of recommendations, and she gave me a very short list. At the time, there were very few lactation consultants in the Valley. And Melanie was one of them.

She ended up deciding to work with Melanie Henstrom, who was a local lactation consultant in Boise.

She sold this package at the time. I don’t know if she still did, but it was like prenatal visit breastfeeding class. And then, she’ll come to the hospital and help you latch, and then she’ll come to the house a couple of times after. And I thought, well, this sounds perfect. Great. You know, I’m covered there.

So one week after her due date, she gives birth. And it was a difficult labor. It took 24 hours. Lauren was completely exhausted. But once June arrived, the family was very, very excited to have her.

And I remember June coming out and that surreal feeling have when you see your first baby for the first time, like oh, my God, there’s a baby in the room.

And June was a healthy baby, but she was having trouble breastfeeding.

She would not latch. Like, she wouldn’t even attempt. She would scream. It was the only time she ever cried — if you tried to make her to breastfeed.

And so as her pediatrician was making the rounds, they noticed that June was having trouble and said that June’s tongue is really tight.

We can clip it if you’d like.

And that they could clip it.

What does that mean exactly, Katie — clipping her tongue?

What it means is that there’s a small percentage of babies whose tongue is very tightly tethered to the bottom of their mouth. And for a very small percentage of babies, their tongue is almost tied so tightly down that they can’t nurse well.

So it makes breastfeeding very difficult if a baby has a tongue like this.

Exactly. If you bottle-feed your baby, the baby can basically adjust and make do. But if you want to breastfeed, some babies have trouble, basically, latching on to their mother when they don’t have that tongue motion. And so some version of clipping these tongue ties has been done for centuries. Midwives have been doing it. Pediatricians do it.

And traditionally, what it’s been is a very quick snip right underneath the tongue just to loosen up the tongue. And traditionally, that procedure is extremely straightforward. There’s little to no follow-up care. And basically, the baby naturally heals as it learns to breastfeed.

And so we said, OK. They explained that it was completely painless. They’d do it with scissors. She wouldn’t even feel it. And all of that was true. They clipped it. I don’t even think she woke up.

But in June’s case, it didn’t seem to help much, and she and Lauren were still having problems breastfeeding afterwards. So while she’s still in the hospital, she calls up the lactation consultant that she had hired — Melanie Henstrom — just to let her know what was going on. And from talking to her on the phone, Melanie said that the situation was actually much worse than Lauren had thought and that Lauren’s baby needed another tongue-tie procedure — a deeper cut under the tongue.

How did she make this diagnosis, Katie? Was it over the phone? How did she know this?

Yes, Lauren told us that it was from a phone conversation. And in addition to that, she also warned her that, basically, Lauren and her husband should really take this seriously and consider getting it done, because if she doesn’t get it fixed, it could lead to a whole host of problems beyond just problems breastfeeding.

She’ll have scoliosis, and she’ll suffer from migraines, and she’ll never eat, and she’ll have a speech impediment, and she won’t sleep — I mean, just, like, the long list of things over the phone.

And Lauren starts panicking.

I mean, first of all, I felt — I’ve never felt more terrible in my life than that first day or so after giving birth. Like, the comedown from the hormones, the drugs — all of it — the sleep deprivation. And then, here was this baby we’d wanted, we were told we probably would never have after one miscarriage. And she’s so perfect, like, the most beautiful baby I’d ever seen. And you think that she has some deformity that’s going to ruin her.

But Melanie says it’s OK. She has a solution. And she tells Lauren that there’s a dentist in town who can handle cases that are as severe as June’s.

A dentist? Why a dentist?

Well, there’s a procedure that’s done in a dentist’s office that’s a laser surgery. And dentists use this high-powered laser machine that can quickly cut the flesh that connects the lips and the cheeks to the gums. So according to Lauren, Melanie tells her that by chance, this dentist has an opening, because she said a family coming in from Oregon had just canceled their Saturday appointment.

So I thought, OK, wow, people are coming in from Oregon to see him. So we talked about it. We both felt unsure. But we said, well, let’s at least take the appointment, and then we can at least meet with the dentist, and also, someone can look at her mouth and assess.

And so Lauren agrees to go in and meet the dentist.

Like, I think some people, when they hear this story, think, like, why would you believe that? It just sounds so scammy. But to me, there is a lot of things that you hear in the hospital that sound insane. Like, it’s no different than someone saying, like, your baby’s orange because their bilirubin levels are too high, so we got to go put them under these lights. Like, that sounds insane. That sounds more insane than, your baby’s having a hard time eating because their tongue is too tight and it needs to be cut. Like, that seems rational, actually.

And all of this seemed really weird to Lauren at the time. But in the context of the hospital and having a baby, lots of things about health care are weird.

So one day after they got back home from the hospital, Lauren and her husband pack up the car and go to the office early in the morning.

You know, I was wearing my hospital diaper and an ice pack, took the elevator up to his office, and —

And what happens?

So Melanie greets them at the door. They sign some paperwork, and pretty soon, the dentist, Dr. Samuel Zink, arrives.

And then, he, like, very briefly — very briefly — looks in her mouth and is like, yeah, she’s got whatever — however he classified it — grade 4 or whatever he says — class 4 — and she has a lip tie, which — that had never been mentioned to us before, so it’s very much on the spot, this new piece of information.

You know, pretty quickly, the dentist diagnosed June as having a couple of ties. He confirmed that she had a tongue tie, and he said it was severe. He also said that she had tightness under her top lip, called a lip tie. And so the baby actually needed to get two cuts. And again, Lauren said that the dentist and the consultant told her how important it was for her to do this for her baby.

One of us says, like, what happens if we don’t do the procedure? , Like what are our alternatives? And it was basically like, there’s no alternative. Like, you have to do this. Otherwise, again, long —

So Lauren and her husband decided to do it. But before the procedure starts, Melanie actually stopped Lauren from coming into the room.

Melanie turned around and put a hand on my shoulder and said, oh, no. And I said, oh, am I not going with you? She goes, well, we can’t tell you no, but if you hear her cry, it’ll impact your milk supply, like, adversely.

What do I know? So I said, oh, OK. And she pulled out the white-noise machine and said, what do you want to listen to? And I had no idea what she was talking about. I had no idea what it was. And so then she just turned it on — white noise — and left.

What happens next is, Melanie turns on a white-noise machine in the room.

And that was the moment that I was like, get your baby and get out of here. And I didn’t listen to it. It was like all of my mom intuition firing, being like this isn’t right, you know. It’s like, I don’t know how to describe it, but your full body — you have to get your baby and get out of here. And I just ignored it.

She said her maternal instincts really kicked in, and she just had this instinctive fear about the procedure and whether June would be OK. But the procedure itself was very quick. Within just a couple of minutes, Melanie returns with June.

And she was screaming. Like, screaming, and so worked up. This was, like, hysterical, inconsolable. And she was also choking on something, like, gagging.

And June was so worked up. Lauren had only had her for a couple of days, but she said that this was on a different level than any other way she had ever seen June crying. And June just wouldn’t stop crying.

And she looked over to Melanie, and Lauren said that she remembered Melanie saying this was very typical. And so they pay the dentist. They pay $600 for the procedure, and then they go home.

Over the next several days, June did not get better as Melanie had assured them. You know, she was basically inconsolable, Lauren said — just crying hysterically. And Lauren and her husband — they don’t know how to comfort her. They’re new parents. They’ve only had a baby a couple of days. And they’re almost beside themselves.

There was nothing we could do. And I remember finally, I said, like, this is not normal. We’re going to an emergency room.

And they decided to go to the emergency room, where a doctor looks inside June’s mouth and finds a large sore in her mouth that he says is probably causing her so much pain.

And so he said, you know, it breaks my heart to see a sore that big in a baby this small. It was like the floodgates opened, and there was nothing but guilt and shame. Like, unmanageable guilt and shame.

Like, what have we done? Who are these people? What have I done to my baby? Will she ever be the same? Like, what did I do?

So at this point, Lauren is really understanding that her intuition about this surgery was probably right and that she and her husband may have really made a mistake with this. What does June’s recovery look like?

So June never did end up breastfeeding successfully, which was the main reason why Lauren and her husband had decided to do this procedure.

That was the whole point, right?

That was the whole point. Right. And over the next couple of years, June had a number of issues that there’s no official medical diagnosis for, but Lauren has attributed a lot of her behaviors to what had happened to her when she was just a few days old.

I mean, you couldn’t close a fridge door too loud, or else it would set her off. Or, we would attempt to take her for a stroller walk on the Greenbelt, which is the walking path, and she’d be asleep in her car seat, you know, stroller, and someone would try to pass us on their bike and ring their bell, and it would startle her, and it would just set her off. So she just was very, very, very fragile.

So Lauren just wanted to get answers, and she really wanted to hold Melanie and the dentist accountable. So she gathered all of the paperwork that she had — texts, emails, other correspondence — and she went to the Idaho Board of Dentistry, where she filed a complaint against the dentist. And then, she also went to a professional organization that certifies lactation consultants and filed a complaint with them as well.

And did she get anywhere with either of them?

At first, no. The Idaho dentistry board didn’t want to investigate, and Lauren appealed, and she lost her appeal. And she didn’t initially hear back at all from the lactation board.

No one wanted to take responsibility. That’s the thing. No one wanted to stick their neck out there. What’s the alternative? The story never gets told?

And that’s when she decided to reach out to us. And after our story came out, the lactation board finally told Lauren that they were investigating Melanie.

And Katie, you guys were reporting the story. I’m assuming you reached out to both the dentist and to Melanie. What did they say?

Beyond a very brief phone conversation that I had with Melanie in which she defended her work and she said that she had a number of very satisfied customers, she didn’t respond to detailed questions about Lauren’s story or the stories of her former clients. And Dr. Zink did not respond to our requests for comment, but he did tell the dentistry board that Lauren’s baby’s procedure was uneventful and that an extremely small percentage of patients do not respond well to the procedure.

And how big of an issue is this, Katie? I mean, how common is it for mothers to have an experience like Lauren’s?

So after we got the tip from Lauren and we dug deeper into her story, we found ourselves really surprised by how big this industry was for tongue-tie releases. And in part, it’s been driven by this movement for breastfeeding and the Breast is Best campaign and a growing number of parents who are choosing to breastfeed their children.

In turn, that has sparked this big boom in tongue-tie releases. One study that we found showed that these procedures have grown 800 percent in recent years.

Yeah. And also, as we started talking to other parents around the country, we learned that some of them had similar stories to what Lauren had told us. There’s plenty of instances where there’s no harm done to the baby at all when they get these procedures.

But we also found cases where babies were harmed, you know, where they developed oral aversions, which basically means that they don’t want to eat because they fear having anything put in their mouth, including a bottle. We found cases where babies became malnourished, had to be hospitalized. We found more than one instance in which babies had to be given a feeding tube just weeks after the procedure.

So these sounds so painful and awful for a newborn — these problems. But I guess there’s always a risk, Katie, in any medical procedure, right? I mean, how much of this is just the risk you sign up for when you agree that your baby should have a surgery?

Well, that’s true. I mean, there’s always a risk. But what you’re supposed to do is weigh the risks against what the potential benefits of a procedure are. And when we really started drilling down into what those benefits were and into the medical research, we found there just wasn’t a lot of potential benefit for these procedures, if at all, in many cases.

Really? So the procedures don’t have a medical reason to exist?

That’s right. We reviewed all of the best-quality medical research on this. And other than that old-fashioned snip under the tongue, which does show that in some cases, it can reduce pain for breastfeeding mothers, but otherwise, all of this growth and all of these other more invasive procedures — we found there just wasn’t good evidence that they helped babies. And the more we looked into tongue ties and started to connect it to the other reporting we were doing, we started to realize that it was driven by some really big forces in our health care system that really had the potential to harm patients.

We’ll be right back.

So Katie, we talked about this new surge in a procedure that surgically unties infants’ tongues from the bottom of their mouths, often needlessly, sometimes even harmfully. And you said your reporting found that this surgery was actually part of a broader trend. Tell me about this trend and what’s driving it.

So that’s what this investigation was really about — to find the procedures that are doing unnecessary harm to patients and to really understand why this is happening. You know, like, what’s driving the prevalence of these procedures? And there’s just a lot of unnecessary surgeries out there, but we decided to center our reporting on three particular surgeries that had the potential to harm patients, in addition to tongue ties. We focused on a particular hernia surgery, a bariatric surgery, which can be overdone and cause harm, and a vascular surgery done on patients’ legs to help us understand the forces that were at work that were driving all of this.

And what did you find when you dug deeper into those surgeries?

Well, it’s very complex, but we ultimately found three main drivers that were underlying all of these. First, there’s a financial incentive for the doctors to perform these surgeries. There’s also a real push from the medical device companies that make these surgeries possible. And last, there’s a huge information void for solid medical advice that a lot of these doctors and companies take advantage of in order to push the surgeries.

OK, so let’s start with the money, Katie. How exactly is that incentivizing doctors to perform a lot more of these procedures? Like, what are the mechanics of that?

So the reality of our health care industry today is that in many places, even in places like non-profit hospitals, the doctors who work there are not getting a salary, a straight salary that’s just kind of, you get paid for showing up to work that day. Instead, they’re actually getting paid based on the procedures that they’re doing, how complex those procedures are, or possibly how lucrative.

And it’s not every doctor. There are still doctors that get paid salaries. But it’s increasingly the case that doctors have — at least a part of their pay is tied to the procedures that they’re doing.

Interesting. So the procedure is growing in importance in terms of actual compensation for doctors.

Right. I mean, in part, it’s kind of baked into the health care system that we’ve always had. You can even think about it as the small-town doctor who operated his own independent practice or her own independent practice. It’s essentially a small business, and they would get paid based on the patients that they saw.

But increasingly, even in, for example, large hospital systems where you might think that a doctor is just getting paid a salary to work in a hospital, in fact, a chunk of their bonus, for example, can sometimes be tied to the procedures that they’re doing, and that is increasingly the case.

Interesting.

And so one particularly egregious example of this was at a hospital that’s in New York — Bellevue Hospital. And basically, what my colleagues found there was that they had basically turned their surgery department into an assembly line for bariatric surgery, which makes your stomach smaller and can lead to weight loss. But what we found was that they were greenlighting patients that, basically, didn’t meet the qualifications for the surgery, which is a serious surgery. And what they found was that there were several situations where people had very serious outcomes as a result of getting the bariatric surgery there.

OK, so this is an extreme case of a hospital turning to a particular surgery to drive profits. And it wasn’t uncommon in your reporting, it sounds like.

No, it wasn’t the only example, but it was the most striking. And when we reached out to Bellevue, they defended their work, and they said that their practices were helping patients who wouldn’t otherwise get care. But our reporting was pretty conclusive that the program was churning through a record number of surgeries.

So what else was driving this increase in harmful surgeries that you guys found?

So we found it wasn’t just the hospitals who were benefiting. The other major player that benefits are these companies that are making the tools and the products that doctors are using during the procedures. And in order for them to sell more of their products, a lot of time, what they end up doing is promoting the procedures themselves.

So like medical device makers, like the company that made the laser in June’s surgery.

Right. And they do this in a number of ways. They’re giving them loans to help them buy the equipment, and in some cases, they’re even lending them money to help set up those clinics where the procedures are performed.

So they’re really underwriting these doctors so that they can perform more surgeries and, ultimately, sell more machines.

Yes. And the other things that they do is — the laser companies, for example — they will host webinars where they will have dentists who frequently perform these procedures show other dentists how to do the procedures. We even discovered this conference that was created by one of the laser companies, and it had kind of a wild name. The name of the conference was Tongue Ties and Tequilas.

(CHUCKLING) Right. It brought in dentists to talk about how to make money off the procedures. You know, how to promote themselves on social media, how to actually perform the procedures, and of course, when they were all done, they got to celebrate with an open tequila bar.

OK, so a lot of this really amounts to these companies trying to popularize these procedures, basically, like, to get the word out, even if the procedures don’t really work or, in some cases, cause harm.

Right. But they also play a big role in the other factor that’s driving a lot of this, which is the information that they put out there about the surgeries. These companies often sponsor research, which doctors often rely on to guide their practices. And part of what we’ve found is that it can create this echo chamber where doctors feel more comfortable and justified in doing these procedures when they have this whole alternate universe that is telling them that it’s OK to do these procedures, and in fact, it’s beneficial to patients.

So tell me about this echo-chamber effect.

The best example of this we found was a doctor in Michigan named Dr. Jihad Mustapha. He calls himself “the Leg Saver.” And what we found was that he and several other doctors do these procedures called atherectomies, which is basically like inserting a tiny roto-rooter inside an artery to get the blood flowing.

And Dr. Mustapha in particular was not only a very prolific performer of these procedures, but he actually founded his own medical conference, and he even helped start a medical journal that was devoted to using these procedures. And you know, tongue ties — there’s really no good evidence that these are actually beneficial to patients. And in fact, despite his nickname as “the Leg Saver,” one insurance company told Michigan authorities that 45 people had lost their limbs after getting treated at Dr. Mustapha’s clinic over a four-year period.

45 people lost their limbs?

I mean, that is the ultimate version of harm, right?

Right. Now, he did speak to us, and he defended his work and said that he treats very sick people. And despite his best efforts, some of these patients are already so sick that they sometimes lose their limbs.

And how much did he receive for each procedure?

Doctors like him typically receive about $13,000 for each of these atherectomy procedures.

But we found that misinformation, or poor information, also applied when doctors were learning new types of surgeries.

Really? Like how?

So one of the areas we looked at was the area of hernia surgery that I mentioned. And there’s a particular type of surgery. It’s a very complex version of a hernia surgery, called component separation. And the expert surgeons that we spoke to said that it’s difficult to learn, and you have to practice it over and over and over again to get it right. But one recent survey of hernia surgeons said that one out of the four surgeons had taught themselves how to perform that operation.

Yeah, not by learning it from an experienced surgeon but by watching videos on Facebook and YouTube.

I mean, how unusual is that? I guess, to me, it strikes me as very unusual. I mean, I think of learning about how to take my kitchen faucet apart on YouTube, but I do not think of a doctor learning about how to perform a surgery on YouTube.

Right. And it has actually become increasingly popular in recent years, and there’s not good vetting of the quality of the instruction. We even found videos on a website run by a medical device company that was intended to be a how-to for how to do these surgeries, but the video contained serious mistakes.

Wow. And Katie, all of these videos — some of them with serious mistakes — I mean, is this something that would be subject to medical regulators? Like, is there any kind of rules of the road for this stuff?

You know, there’s less than you would expect. Sometimes hospitals have rules about what sort of education their doctors need before performing a surgery. But we were surprised that there was a lot less regulation than we thought there would be and much less vetting of these videos than we anticipated.

So essentially, what you found was this complex, oftentimes interconnected, group of forces — device companies pushing their products, hospitals bolstering their bottom line, and rampant misinformation that, as you said, all really trace back to the same motivating factor, which is money. But wouldn’t the fear of being sued for medical malpractice prevent a lot of this behavior?

You know, this kept popping up during the course of our reporting. I do think we have this idea that any time a doctor does anything wrong, they’re going to get sued. But it just wasn’t always the case in our reporting. There’s a lot of statutes of limitations, time limits on when somebody can file a lawsuit, and other ways that make it somewhat hard to really hold a doctor accountable.

One example is the regulatory organizations that oversee doctors. The one doctor that I mentioned earlier — Dr. Mustapha — state investigators had found that his overuse of procedures had led people to lose their legs. And yet, he ultimately settled with the state, and he was fined $25,000. That actually adds up to about two of these atherectomy procedures.

So it sounds like malpractice is not necessarily going to be the route to rectifying a lot of this. But I guess I’m wondering if the federal government could actually rein some of this in before the patients are harmed.

It’s possible. But this is just a very difficult issue. Some of the themes that we explored in this reporting are really just firmly embedded in our health care system in the way that it works. The fact is that we have a for-profit health care system, right? So everyone, from doctors to hospitals to the device companies, benefit when more procedures are done. All of the incentives are pointing in the same direction.

And so trying to find one or two simple solutions will probably not easily fix the issue, as much as we all hope that it could.

So is the lesson here, be much more discriminating and vigilant as a patient? I mean, to get a second opinion when you’re standing in front of a doctor — or a dentist — who’s telling you that you or your baby needs a procedure?

Yes. I think that is one of the takeaways. But look, we understood that even reporting on all of this was risky, because people could hear about these harmful surgeries and start wondering if everything that their doctors tells them is a scam. And of course, while some of these procedures are harmful, a lot of procedures are lifesaving. But ultimately, for now, patients are kind of left on their own to navigate what’s a pretty complex and opaque health care system. When you have somebody standing in front of you saying, you should do this, it can be very confusing.

And this is something that Lauren talked a lot about — just how confusing all of this was for her.

There’s a lot of information that you’re getting that is truly like someone is speaking a foreign language. And because they do it all day long, it’s not user-friendly. Like, it isn’t designed for the comfort or understanding of the person receiving the information.

There is so much blind trust and faith that you have in the system, in the providers who are giving you this information. You trust, like, this is what they do all day long. So there is no real reason to question. That is the system that we have in this country.

Katie, thank you.

Here’s what else you should know today. On Friday, the Russian authorities announced that opposition leader Alexei Navalny died in prison. He was 47.

Navalny, a charismatic anti-corruption activist, led the opposition to Vladimir Putin for more than a decade. His popularity was broad, extending far outside the realm of liberal Moscow. And that proved threatening to the Russian authorities, who attempted to poison him in 2020.

Navalny survived and later extracted a confession from his would-be assassin on tape. Navalny believed that Russia could be a free society, and he had the extraordinary ability, through sheer force of his personality, charisma, and confidence, to get others to believe it, too. Though he had been in prison since 2021, his death still came as a shock.

[SPEAKING RUSSIAN]

His wife, Yulia Navalnaya, made a surprise appearance at a security conference in Munich shortly after the Russian authorities announced her husband’s death.

She received an emotional standing ovation.

In Moscow, my colleague, Valerie Hopkins, spoke to Russians who were placing flowers in his honor —

— and expressing disbelief that he was gone.

Then I asked them if they believe in the beautiful Russia of the future that Navalny talked about. And they said, yes, but we don’t think we will survive to see it.

At least 400 people have been detained since his death, including a priest who had been scheduled to hold a memorial service in Saint Petersburg.

Today’s episode was produced by Asthaa Chaturvedi, Diana Nguyen, Will Reid, and Alex Stern, with help from Michael Simon Johnson. It was edited by Michael Benoist, with help from Brendan Klinkenberg, contains original music by Diane Wong and Dan Powell, and was engineered by Alyssa Moxley. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for “The Daily.” I’m Sabrina Tavernise. See you tomorrow.

The Daily logo

  • February 21, 2024   •   23:33 What Happens if America Turns Its Back on Its Allies in Europe
  • February 20, 2024   •   40:44 Stranded in Rafah as an Israeli Invasion Looms
  • February 19, 2024   •   35:50 The Booming Business of Cutting Babies’ Tongues
  • February 16, 2024   •   39:24 An Explosive Hearing in Trump’s Georgia Election Case
  • February 15, 2024   •   29:38 How China Broke One Man’s Dreams
  • February 14, 2024   •   33:06 The Biden Problem Democrats Can No Longer Ignore
  • February 13, 2024   •   27:23 Why the Race to Replace George Santos Is So Close
  • February 12, 2024   •   21:57 Why Boeing’s Top Airplanes Keep Failing
  • February 11, 2024   •   42:04 The Sunday Read: ‘The Unthinkable Mental Health Crisis That Shook a New England College’
  • February 9, 2024   •   34:05 Kick Trump Off the Ballot? Even Liberal Justices Are Skeptical.
  • February 8, 2024   •   36:53 A Guilty Verdict for a Mass Shooter’s Mother
  • February 7, 2024   •   29:15 El Salvador Decimated Gangs. But at What Cost?

Hosted by Sabrina Tavernise

Featuring Katie Thomas

Produced by Asthaa Chaturvedi ,  Diana Nguyen ,  Will Reid and Alex Stern

With Michael Simon Johnson

Edited by Michael Benoist and Brendan Klinkenberg

Original music by Diane Wong and Dan Powell

Engineered by Alyssa Moxley

Listen and follow The Daily Apple Podcasts | Spotify | Amazon Music

A Times investigation has found that dentists and lactation consultants around the country are pushing “tongue-tie releases” on new mothers struggling to breastfeed, generating huge profits while often harming patients.

Katie Thomas, an investigative health care reporter at The Times, discusses the forces driving this emerging trend in American health care and the story of one family in the middle of it.

On today’s episode

what is a business plan not used for

Katie Thomas , an investigative health care reporter at The New York Times.

A woman holding a toddler sits on a bed. The bed has white sheets and pink pillows.

Background reading

Inside the booming business of cutting babies’ tongues .

What parents should know about tongue-tie releases .

There are a lot of ways to listen to The Daily. Here’s how.

We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.

The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Renan Borelli, Maddy Masiello, Isabella Anderson and Nina Lassam.

Katie Thomas is an investigative health care reporter at The Times. More about Katie Thomas

Advertisement

IMAGES

  1. How to Write a Business Plan

    what is a business plan not used for

  2. 4.1 What is a business plan

    what is a business plan not used for

  3. Step-By-Step Guide to Write Your Business Plan + Template

    what is a business plan not used for

  4. Creating a Business Plan: Why it Matters and Where to Start

    what is a business plan not used for

  5. Business plan A practical example of how to do it when you don't know

    what is a business plan not used for

  6. A Complete Guide On Small Business Plan Examples (2022)

    what is a business plan not used for

COMMENTS

  1. Business Plan: What It Is, What's Included, and How to Write One

    Business Plan: A business plan is a written document that describes in detail how a business, usually a new one, is going to achieve its goals. A business plan lays out a written plan from a ...

  2. What Is a Business Plan? Definition and Essentials Explained

    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 ...

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

    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:

  4. Write your business plan

    Executive summary. Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company's leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing.

  5. 15 Ways to Use and Get Value From a Business Plan

    Here are the key ways you can use your business plan for effective business management and growth. 10. Establish a strategy and the tactics needed to execute it. Use your business plan to clarify your strategy, determine the tactics necessary to support it, and track your execution.

  6. What is a Business Plan? Definition + Resources

    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 ...

  7. 7 types of business plans every entrepreneur should know

    Growth business plan. Operations business plan. Strategic business plan. 01. Startup business plan. The startup business plan is a comprehensive document that will set the foundation for your company's success. It covers all aspects of a business, including a situation analysis, detailed financial information and a strategic marketing plan ...

  8. Business Plan: What It Is + How to Write One

    A business plan is a written document that defines your business goals and the tactics to achieve those goals. A business plan typically explores the competitive landscape of an industry, analyzes a market and different customer segments within it, describes the products and services, lists business strategies for success, and outlines ...

  9. How to Write a Business Plan, Step by Step

    7. Perform a business financial analysis. 8. Make financial projections. 9. Add additional information to an appendix. Business plan tips and resources. MORE LIKE THIS Small Business. A business ...

  10. What Is a Business Plan: An Introductory Guide

    Your plan can be used to communicate specific parts of your business to lock down potential partnerships. F. To Sell Your Business. In the event that you find yourself in acquisition discussions, your business plan can be instrumental in helping the buyer better understand the best possible price for the sale of your business.

  11. Business Plan

    A business plan is a document that contains the operational and financial plan of a business, and details how its objectives will be achieved. It serves as a road map for the business and can be used when pitching investors or financial institutions for debt or equity financing. A business plan should follow a standard format and contain all ...

  12. 9 Ways to Use Your Business Plan

    Attracting Good People. It takes money to make money, sure, but it also takes people to make a company, that is, unless you're a one-person company. Sometimes even then a plan can be an important ...

  13. How To Write A Business Plan (2024 Guide)

    The business plan should have a section that explains the services or products that you're offering. This is the part where you can also describe how they fit in the current market or are ...

  14. How to Write a Business Plan in 10 Steps

    Don't worry, you'll know how to write a business plan in no time. We've broken each section down to help you write a business plan in a few simple steps. 1. Brainstorm and Draft an Executive Summary for Your Business Plan. This will be the first page of your business plan.

  15. 7 Types of Business Plans

    The following list of business plans are the most commonly used: Startup plan A startup plan is a business plan a new company gives to potential investors in the hopes of receiving startup funding. Startup plans operate as initial plans that businesses can adjust as needed as a company grows. A comprehensive plan will include the following ...

  16. Business Plan

    A business plan is an executive document that acts as a blueprint or roadmap for a business. It is quite necessary for new ventures seeking capital, expansion activities, or projects requiring additional capital. It is also important to remind the management, employees, and partners of what they represent.

  17. Business Plan

    A business plan is an effective way of communicating with potential investors, and the level of expertise and time used in preparing a business plan also gives professional credibility to entrepreneurs. It analyzes and predicts the chances of success for the investor and helps to raise capital. Features of a Good Business Plan 1. Executive Summary

  18. What is a Business Plan?: Everything You Need to Know

    It is a written document describing your business idea and how you plan to turn it into reality. It talks about your new business goals, strategy, team, financial planning, and more. Writing a business plan is the first step to starting a new business. Existing businesses also need to update their business plans with recent data, a new business ...

  19. What Is a Business Plan, and Why Is It Important?

    A business plan is a document that outlines your business goals, strategies, and activities. It's often used to attract investors or secure loans from banks. Even if you're not looking for outside funding, a business plan can still be a helpful tool. It can help you develop a road map for your business and keep you on track as you grow.

  20. What is a business plan? Definition, Purpose, & Types

    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 ...

  21. Simple Business Plan Template (2024)

    This section of your simple business plan template explores how to structure and operate your business. Details include the type of business organization your startup will take, roles and ...

  22. Business Plan Format & Structure

    Organize your Marketing Plan into the 4 P's - Price, Product, Promotions and Place. If you have multiple products or services, include a menu with each key item and its price. 7. The Operations Plan Format. Your Operations Plan identifies your key operational processes and milestones you expect to accomplish.

  23. 24 of My Favorite Sample Business Plans & Examples For Your Inspiration

    This is a fantastic template for an existing business that's strategically shifting directions. If your company has been around for a while, and you're looking to improve your bottom line or revitalize your strategy, this is an excellent template to use and follow. 5. BPlan's Free Business Plan Template.

  24. Circular economy: definition, importance and benefits

    The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended. In practice, it implies reducing waste to a minimum. When a product reaches the end of its life ...

  25. What Is an MBA? About the Degree, Programs, Jobs, and More

    A Master of Business Administration, or MBA degree, is a graduate-level business and management degree with a focus on leadership and managerial skills. By earning this degree, you can equip yourself with the skills and knowledge to accelerate your career, transition to new industries, or even launch your own businesses.

  26. Update on HMRC Double Cab Pick Up Guidance

    On Monday 12 February 2024 HMRC updated its guidance on the tax treatment of Double Cab Pick Ups ( DCPUs ), following a 2020 Court of Appeal judgment. The guidance had confirmed that, from 1 July ...

  27. Create a form in Word that users can complete or print

    In Word, you can create a form that others can fill out and save or print. To do this, you will start with baseline content in a document, potentially via a form template. Then you can add content controls for elements such as check boxes, text boxes, date pickers, and drop-down lists. Optionally, these content controls can be linked to ...

  28. How will Donald Trump pay the $438m he owes in penalties from civil

    The first appeal came after a September pre-trial ruling found Trump guilty of fraud, ordering the removal of his business licenses. The second appeal is about the penalty the New York judge ...

  29. The Booming Business of Cutting Babies' Tongues

    Feb. 19, 2024. Hosted by Sabrina Tavernise. Featuring Katie Thomas. Produced by Asthaa Chaturvedi , Diana Nguyen , Will Reid and Alex Stern. With Michael Simon Johnson. Edited by Michael Benoist ...