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How to Write the Market Analysis Section of a Business Plan
Written by Dave Lavinsky
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What is the Market Analysis in a Business Plan?
The market analysis section of your business plan is where you discuss the size of the market in which you’re competing and market trends that might affect your future potential such as economic, political, social and/or technological shifts.
This helps you and readers understand if your market is big enough to support your business’ growth, and whether future conditions will help or hurt your business. For example, stating that your market size is $56 billion, has been growing by 10% for the last 10 years, and that trends are expected to further increase the market size bodes well for your company’s success.
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What Should a Market Analysis Include?
You’ll want to address these issues in your market analysis:
- Size of Industry – How big is the overall industry?
- Projected Growth Rate of Industry – Is the industry growing or shrinking? How fast?
- Target Market – Who are you targeting with this product or service?
- Competition – How many businesses are currently in the same industry?
Learn how to write the full market analysis below.
How to Write a Market Analysis
Here’s how to write the market analysis section of a business plan.
- Describe each industry that you are competing in or will be targeting.
- Identify direct competition, but don’t forget about indirect competition – this may include companies selling different products to the same potential customer segments.
- Highlight strengths and weaknesses for both direct and indirect competitors, along with how your company stacks up against them based on what makes your company uniquely positioned to succeed.
- Include specific data, statistics, graphs, or charts if possible to make the market analysis more convincing to investors or lenders.
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Industry overview.
In your industry overview, you will define the market in which you are competing (e.g., restaurant, medical devices, etc.).
You will then detail the sub-segment or niche of that market if applicable (e.g., within restaurants there are fast food restaurants, fine dining, etc.).
Next, you will describe the key characteristics of your industry. For example, discuss how big the market is in terms of units and revenues. Let the reader know if the market is growing or declining (and at what rate), and what key industry trends are facing your market.
Use third-party market research as much as possible to validate the discussion of your industry.
Here is a list of additional items you may analyze for a complete industry overview:
- An overview of the current state of the industry . How big is it, how much does it produce or sell? What are its key differentiators from competitors? What is its target customer base like – demographic information and psychographics? How has the industry performed over time (global, domestic)?
- Analyze the macro-economic factors impacting your industry . This includes items such as economic growth opportunities, inflation, exchange rates, interest rates, labor market trends, and technological improvements. You want to make sure that all of these are trending in a positive direction for you while also being realistic about them. For example, if the economy is in shambles you might want to wait before entering the particular market.
- Analyze the political factors impacting your industry . This is an often-overlooked section of any business plan, but it can be important depending on what type of company you are starting. If you’re in a highly regulated industry (such as medical devices), this is something that you’ll want to include.
- Analyze the social factors impacting your industry . This includes analyzing society’s interest in your product or service, historical trends in buying patterns in your industry, and any effects on the industry due to changes in culture. For example, if there is a growing counter-culture trend against big oil companies you might want to position yourself differently than a company in this industry.
- Analyze the technological factors impacting your industry . This includes analyzing new technologies being developed in software, hardware, or applications that can be used to improve your product or service. It also includes emerging consumer trends and will be highly dependent on your business type. In a technology-related venture, you would analyze how these changes are impacting consumers. For an educational-related venture, you would analyze how these changes are impacting students, teachers, and/or administrators.
For each of these items, you want to provide some detail about them including their current state as well as what external factors have played a role in the recent past. You can also include many other important factors if they apply to your business including demographic trends, legal issues, environmental concerns, and sustainability issues.
When you are done analyzing all of these factors, wrap it up by summing them up in a statement that includes your view on the future of the industry. This should be positive to attract investors, potential customers, and partners.
If you’re having trouble thinking about all of these factors then it might be helpful to first develop a SWOT analysis for your business.
Once you have an understanding of the market, you’ll need to think about how you will position yourself within that potential market.
Picking Your Niche
You want to think about how large your market is for this venture. You also want to consider whether you’d like to pick a niche within the overall industry or launch yourself into the mainstream.
If you have an innovative product it can be easier to enter the mainstream market – but at the same time, you might face some additional competition if there are similar products available.
You can choose to specialize in a niche market where you’ll face less competition – but might be able to sell your services at a higher price point (this could make it easier for you to get potential customers).
Of course, if your product or service is unique then there should be no competition. But, what happens if it isn’t unique? Will you be able to differentiate yourself enough to create a competitive advantage or edge?
If you are planning on entering the mainstream market, think about whether there are different sub-niches within your specific market. For example, within the technology industry, you can choose to specialize in laptops or smartphones or tablets, or other categories. While it will be more difficult to be unique in a mainstream market, you will still be able to focus on one type or category of products.
How Will You Stand Out?
Many companies are able to stand out – whether by offering a product that is unique or by marketing their products in a way that consumers notice. For example, Steve Jobs was able to take a business idea like the iPhone and make it into something that people talked about (while competitors struggled to play catch up).
You want your venture to stand out – whether with an innovative product or service or through marketing strategies. This might include a unique brand, name, or logo. It might also include packaging that stands out from competitors.
Write down how you will achieve this goal of standing out in the marketplace. If it’s a product, then what features do you have that other products don’t? If it’s a service, then what is it about this service that will make people want to use your company rather than your competition?
You also need to think about marketing. How are you going to promote yourself or sell your product or service? You’ll need a marketing plan for this – which might include writing copy, creating an advertisement, setting up a website, and several other activities. This should include a description of each of these strategies.
If you’re struggling with the details of any of these sections, it might be helpful to research what other companies in your market are doing and how they’ve been successful. You can use this business information to inform your own strategies and plans.
Relevant Market Size & Competition
In the second stage of your analysis, you must determine the size and competition in your specific market.
Target Market Section
Your company’s relevant market size is the amount of money it could make each year if it owned a complete market share.
It’s simple.
To begin, estimate how many consumers you expect to be interested in purchasing your products or services each year.
To generate a more precise estimate, enter the monetary amount these potential customers may be ready to spend on your goods or services each year.
The size of your market is the product of these two figures. Calculate this market value here so that your readers can see how big your market opportunity is (particularly if you are seeking debt or equity funding).
You’ll also want to include an analysis of your market conditions. Is this a growing or declining market? How fast is it growing (or declining)? What are the general trends in the market? How has your market shifted over time?
Include all of this information in your own business plan to give your readers a clear understanding of the market landscape you’re competing in.
The Competition
Next, you’ll need to create a comprehensive list of the competitors in your market. This competitive analysis includes:
- Direct Competitors – Companies that offer a similar product or service
- Indirect Competitors – Companies that sell products or services that are complementary to yours but not directly related
To show how large each competitor is, you can use metrics such as revenue, employees, number of locations, etc. If you have limited information about the company on hand then you may want to do some additional research or contact them directly for more information. You should also include their website so readers can learn more if they desire (along with social media profiles).
Once you complete this list, take a step back and try to determine how much market share each competitor has. You can use different methods to do this such as market research, surveys, or conduct focus groups or interviews with target customers.
You should also take into account the barriers to entry that exist in your market. What would it take for a new company to enter the market and start competing with you? This could be anything from capital requirements to licensing and permits.
When you have all of this information, you’ll want to create a table like the one below:
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Once you have this data, you can start developing strategies to compete with the other companies which will be used again later to help you develop your marketing strategy and plan.
Writing a Market Analysis Tips
- Include an explanation of how you determined the size of the market and how much share competitors have.
- Include tables like the one above that show competitor size, barriers to entry, etc.
- Decide where you’re going to place this section in your business plan – before or after your SWOT analysis. You can use other sections as well such as your company summary or product/service description. Make sure you consider which information should come first for the reader to make the most sense.
- Brainstorm how you’re going to stand out in this competitive market.
Formatting the Market Analysis Section of Your Business Plan
Now that you understand the different components of the market analysis, let’s take a look at how you should structure this section in your business plan.
Your market analysis should be divided into two sections: the industry overview and market size & competition.
Each section should include detailed information about the topic and supporting evidence to back up your claims.
You’ll also want to make sure that all of your data is up-to-date. Be sure to include the date of the analysis in your business plan so readers know when it was conducted and if there have been any major changes since then.
In addition, you should also provide a short summary of what this section covers at the beginning of each paragraph or page. You can do this by using a title such as “Industry Overview” or another descriptive phrase that is easy to follow.
As with all sections in a business plan, make sure your market analysis is concise and includes only the most relevant information to keep your audience engaged until they reach your conclusion.
A strong market analysis can give your company a competitive edge over other businesses in its industry, which is why it’s essential to include this section in your business plan. By providing detailed information about the market you’re competing in, you can show your readers that you understand the industry and know how to capitalize on current and future trends.
Business Plan Market Analysis Examples
The following are examples of how to write the market analysis section of a business plan:
Business Plan Market Analysis Example #1 – Hosmer Sunglasses, a sunglasses manufacturer based in California
According to the Sunglass Association of America, the retail sales volume of Plano (non-prescription) sunglasses, clip-on sunglasses, and children’s sunglasses (hereinafter collectively referred to as “Sunwear”) totaled $2.9 billion last year. Premium-priced sunglasses are driving the Plano Sunwear market. Plano sunglasses priced at $100 or more accounted for more than 49% of all Sunwear sales among independent retail locations last year.
The Sunglass Association of America has projected that the dollar volume for retail sales of Plano Sunwear will grow 1.7% next year. Plano sunglass vendors are also bullish about sales in this year and beyond as a result of the growth of technology, particularly the growth of laser surgery and e-commerce.
Business Plan Market Analysis Example #2 – Nailed It!, a family-owned restaurant in Omaha, NE
According to the Nebraska Restaurant Association, last year total restaurant sales in Nebraska grew by 4.3%, reaching a record high of $2.8 billion. Sales at full-service restaurants were particularly strong, growing 7% over 2012 figures. This steady increase is being driven by population growth throughout the state. The Average Annual Growth Rate (AGR) since 2009 is 2.89%.
This fast growth has also encouraged the opening of new restaurants, with 3,035 operating statewide as of this year. The restaurant industry employs more than 41,000 workers in Nebraska and contributes nearly $3 billion to the state economy every year.
Nebraska’s population continues to increase – reaching 1.9 million in 2012, a 1.5% growth rate. In addition to population, the state has experienced record low unemployment every year since 2009 – with an average of 4.7% in 2013 and 2014.
Business Plan Market Analysis Example #3 – American Insurance Company (AIC), a chain of insurance agencies in Maine
American Insurance Company (AIC) offers high-quality insurance at low prices through its chain of retail outlets in the state of Maine. Since its inception, AIC has created an extensive network of agents and brokers across the country with expanding online, call center and retail business operations.
AIC is entering a market that will more than double in size over the next 50 years according to some industry forecasts. The insurance industry is enjoying low inflation rates, steady income growth, and improving standards of living for most Americans during what has been a difficult period for much of American business. This makes this a good time to enter the insurance industry as it enjoys higher margins because customers are purchasing more coverage due to increased costs from medical care and higher liability claims.
American Insurance Company provides affordable homeowners, auto, and business insurance through high-quality fulfillment centers across America that have earned a reputation for top-notch customer service.
AIC will face significant competition from both direct and indirect competitors. The indirect competition will come from a variety of businesses, including banks, other insurance companies, and online retailers. The direct competition will come from other well-funded start-ups as well as incumbents in the industry. AIC’s competitive advantages include its low prices, high quality, and excellent customer service.
AIC plans to grow at a rate that is above average for the industry as a whole. The company has identified a market that is expected to grow by more than 100% in the next decade. This growth is due to several factors: the increase in the number of two-income households, the aging population, and the impending retirement of many baby boomers will lead to an increase in the number of people who are purchasing insurance.
AIC projects revenues of $20M in year one, which is equivalent to 100% growth over the previous year. AIC forecasts revenue growth of 40%-60% each year on average for 10 years. After that, revenue growth is expected to slow down significantly due to market saturation.
The following table illustrates these projections:
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Competitive Landscape
Direct Competition: P&C Insurance Market Leaders
Indirect Competition: Banks, Other Insurance Companies, Retailers
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Market Analysis Conclusion
When writing the market analysis section, it is important to provide specific data and forecasts about the industry that your company operates in. This information can help make your business plan more convincing to potential investors.
If it’s helpful, you should also discuss how your company stacks up against its competitors based on what makes it unique. In addition, you can identify any strengths or weaknesses that your company has compared to its competitors.
Based on this data, provide projections for how much revenue your company expects to generate over the next few years. Providing this information early on in the business plan will help convince investors that you know what you are talking about and your company is well-positioned to succeed.
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Other Resources for Writing Your Business Plan
How to Write a Great Business Plan Executive Summary How to Expertly Write the Company Description in Your Business Plan The Customer Analysis Section of Your Business Plan Completing the Competitive Analysis Section of Your Business Plan The Management Team Section of Your Business Plan Financial Assumptions and Your Business Plan How to Create Financial Projections for Your Business Plan Everything You Need to Know about the Business Plan Appendix Best Business Plan Software Business Plan Conclusion: Summary & Recap
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How to Write a Market Analysis for a Business Plan
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A lot of preparation goes into starting a business before you can open your doors to the public or launch your online store. One of your first steps should be to write a business plan . A business plan will serve as your roadmap when building your business.
Within your business plan, there’s an important section you should pay careful attention to: your market analysis. Your market analysis helps you understand your target market and how you can thrive within it.
Simply put, your market analysis shows that you’ve done your research. It also contributes to your marketing strategy by defining your target customer and researching their buying habits. Overall, a market analysis will yield invaluable data if you have limited knowledge about your market, the market has fierce competition, and if you require a business loan. In this guide, we'll explore how to conduct your own market analysis.
How to conduct a market analysis: A step-by-step guide
In your market analysis, you can expect to cover the following:
Industry outlook
Target market
Market value
Competition
Barriers to entry
Let’s dive into an in-depth look into each section:
Step 1: Define your objective
Before you begin your market analysis, it’s important to define your objective for writing a market analysis. Are you writing it for internal purposes or for external purposes?
If you were doing a market analysis for internal purposes, you might be brainstorming new products to launch or adjusting your marketing tactics. An example of an external purpose might be that you need a market analysis to get approved for a business loan .
The comprehensiveness of your market analysis will depend on your objective. If you’re preparing for a new product launch, you might focus more heavily on researching the competition. A market analysis for a loan approval would require heavy data and research into market size and growth, share potential, and pricing.
Step 2: Provide an industry outlook
An industry outlook is a general direction of where your industry is heading. Lenders want to know whether you’re targeting a growing industry or declining industry. For example, if you’re looking to sell VCRs in 2020, it’s unlikely that your business will succeed.
Starting your market analysis with an industry outlook offers a preliminary view of the market and what to expect in your market analysis. When writing this section, you'll want to include:
Market size
Are you chasing big markets or are you targeting very niche markets? If you’re targeting a niche market, are there enough customers to support your business and buy your product?
Product life cycle
If you develop a product, what will its life cycle look like? Lenders want an overview of how your product will come into fruition after it’s developed and launched. In this section, you can discuss your product’s:
Research and development
Projected growth
How do you see your company performing over time? Calculating your year-over-year growth will help you and lenders see how your business has grown thus far. Calculating your projected growth shows how your business will fare in future projected market conditions.
Step 3: Determine your target market
This section of your market analysis is dedicated to your potential customer. Who is your ideal target customer? How can you cater your product to serve them specifically?
Don’t make the mistake of wanting to sell your product to everybody. Your target customer should be specific. For example, if you’re selling mittens, you wouldn’t want to market to warmer climates like Hawaii. You should target customers who live in colder regions. The more nuanced your target market is, the more information you’ll have to inform your business and marketing strategy.
With that in mind, your target market section should include the following points:
Demographics
This is where you leave nothing to mystery about your ideal customer. You want to know every aspect of your customer so you can best serve them. Dedicate time to researching the following demographics:
Income level
Create a customer persona
Creating a customer persona can help you better understand your customer. It can be easier to market to a person than data on paper. You can give this persona a name, background, and job. Mold this persona into your target customer.
What are your customer’s pain points? How do these pain points influence how they buy products? What matters most to them? Why do they choose one brand over another?
Research and supporting material
Information without data are just claims. To add credibility to your market analysis, you need to include data. Some methods for collecting data include:
Target group surveys
Focus groups
Reading reviews
Feedback surveys
You can also consult resources online. For example, the U.S. Census Bureau can help you find demographics in calculating your market share. The U.S. Department of Commerce and the U.S. Small Business Administration also offer general data that can help you research your target industry.
Step 4: Calculate market value
You can use either top-down analysis or bottom-up analysis to calculate an estimate of your market value.
A top-down analysis tends to be the easier option of the two. It requires for you to calculate the entire market and then estimate how much of a share you expect your business to get. For example, let’s assume your target market consists of 100,000 people. If you’re optimistic and manage to get 1% of that market, you can expect to make 1,000 sales.
A bottom-up analysis is more data-driven and requires more research. You calculate the individual factors of your business and then estimate how high you can scale them to arrive at a projected market share. Some factors to consider when doing a bottom-up analysis include:
Where products are sold
Who your competition is
The price per unit
How many consumers you expect to reach
The average amount a customer would buy over time
While a bottom-up analysis requires more data than a top-down analysis, you can usually arrive at a more accurate calculation.
Step 5: Get to know your competition
Before you start a business, you need to research the level of competition within your market. Are there certain companies getting the lion’s share of the market? How can you position yourself to stand out from the competition?
There are two types of competitors that you should be aware of: direct competitors and indirect competitors.
Direct competitors are other businesses who sell the same product as you. If you and the company across town both sell apples, you are direct competitors.
An indirect competitor sells a different but similar product to yours. If that company across town sells oranges instead, they are an indirect competitor. Apples and oranges are different but they still target a similar market: people who eat fruits.
Also, here are some questions you want to answer when writing this section of your market analysis:
What are your competitor’s strengths?
What are your competitor’s weaknesses?
How can you cover your competitor’s weaknesses in your own business?
How can you solve the same problems better or differently than your competitors?
How can you leverage technology to better serve your customers?
How big of a threat are your competitors if you open your business?
Step 6: Identify your barriers
Writing a market analysis can help you identify some glaring barriers to starting your business. Researching these barriers will help you avoid any costly legal or business mistakes down the line. Some entry barriers to address in your marketing analysis include:
Technology: How rapid is technology advancing and can it render your product obsolete within the next five years?
Branding: You need to establish your brand identity to stand out in a saturated market.
Cost of entry: Startup costs, like renting a space and hiring employees, are expensive. Also, specialty equipment often comes with hefty price tags. (Consider researching equipment financing to help finance these purchases.)
Location: You need to secure a prime location if you’re opening a physical store.
Competition: A market with fierce competition can be a steep uphill battle (like attempting to go toe-to-toe with Apple or Amazon).
Step 7: Know the regulations
When starting a business, it’s your responsibility to research governmental and state business regulations within your market. Some regulations to keep in mind include (but aren’t limited to):
Employment and labor laws
Advertising
Environmental regulations
If you’re a newer entrepreneur and this is your first business, this part can be daunting so you might want to consult with a business attorney. A legal professional will help you identify the legal requirements specific to your business. You can also check online legal help sites like LegalZoom or Rocket Lawyer.
Tips when writing your market analysis
We wouldn’t be surprised if you feel overwhelmed by the sheer volume of information needed in a market analysis. Keep in mind, though, this research is key to launching a successful business. You don’t want to cut corners, but here are a few tips to help you out when writing your market analysis:
Use visual aids
Nobody likes 30 pages of nothing but text. Using visual aids can break up those text blocks, making your market analysis more visually appealing. When discussing statistics and metrics, charts and graphs will help you better communicate your data.
Include a summary
If you’ve ever read an article from an academic journal, you’ll notice that writers include an abstract that offers the reader a preview.
Use this same tactic when writing your market analysis. It will prime the reader of your market highlights before they dive into the hard data.
Get to the point
It’s better to keep your market analysis concise than to stuff it with fluff and repetition. You’ll want to present your data, analyze it, and then tie it back into how your business can thrive within your target market.
Revisit your market analysis regularly
Markets are always changing and it's important that your business changes with your target market. Revisiting your market analysis ensures that your business operations align with changing market conditions. The best businesses are the ones that can adapt.
Why should you write a market analysis?
Your market analysis helps you look at factors within your market to determine if it’s a good fit for your business model. A market analysis will help you:
1. Learn how to analyze the market need
Markets are always shifting and it’s a good idea to identify current and projected market conditions. These trends will help you understand the size of your market and whether there are paying customers waiting for you. Doing a market analysis helps you confirm that your target market is a lucrative market.
2. Learn about your customers
The best way to serve your customer is to understand them. A market analysis will examine your customer’s buying habits, pain points, and desires. This information will aid you in developing a business that addresses those points.
3. Get approved for a business loan
Starting a business, especially if it’s your first one, requires startup funding. A good first step is to apply for a business loan with your bank or other financial institution.
A thorough market analysis shows that you’re professional, prepared, and worth the investment from lenders. This preparation inspires confidence within the lender that you can build a business and repay the loan.
4. Beat the competition
Your research will offer valuable insight and certain advantages that the competition might not have. For example, thoroughly understanding your customer’s pain points and desires will help you develop a superior product or service than your competitors. If your business is already up and running, an updated market analysis can upgrade your marketing strategy or help you launch a new product.
Final thoughts
There is a saying that the first step to cutting down a tree is to sharpen an axe. In other words, preparation is the key to success. In business, preparation increases the chances that your business will succeed, even in a competitive market.
The market analysis section of your business plan separates the entrepreneurs who have done their homework from those who haven’t. Now that you’ve learned how to write a market analysis, it’s time for you to sharpen your axe and grow a successful business. And keep in mind, if you need help crafting your business plan, you can always turn to business plan software or a free template to help you stay organized.
This article originally appeared on JustBusiness, a subsidiary of NerdWallet.
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The Market Analysis section of a business plan is crucial, providing detailed insights into the business environment. It helps entrepreneurs understand their industry, target markets , competition, and the broader economic landscape. This analysis is essential for informed decision-making, strategic planning, risk mitigation, and building investor or banker confidence.
However, before diving into the details of market analysis, it’s imperative for entrepreneurs to have a profound understanding of their target customer.
This foundational step is crucial as it shapes the entire market analysis process, ensuring that the insights gained are relevant and actionable for your specific business idea.
Divergent Paths to Understanding Your Customer
- Model-Based Planning®: Ideal for experienced entrepreneurs in well-defined industries, Model-Based Planning® offers a structured, model-specific framework. It includes pre-developed customer profiles that guide focused market analysis.
- Pre-Vision Interviews: Suited for entrepreneurs at the idea phase or those entering new markets, Pre-Vision Interviews establish deep customer understanding. This approach is crucial for businesses that aim to be first-movers or fast-followers and is often vital for those seeking investor capital. For entrepreneurs at the idea stage or entering new markets, delve into the detailed customer insights with Pre-Vision Interviews by clicking here .
With a clear understanding of your customers, through either Model-Based Planning® or Pre-Vision Interviews , you’re now ready to delve into the various components of Market Analysis, as detailed in the following sections of this webpage.
Components of Market Analysis
Market analysis summary.
- Role as a Synthesis of Findings: The Market Analysis Summary encapsulates the key findings from your market research . It serves as an executive overview, providing a snapshot of the market’s health, potential, and challenges. This summary should highlight significant points such as market size, growth projections, key trends, and competitive landscape.
- Writing it Last: It’s recommended to write the summary after completing all other sections of the market analysis. This approach ensures that the summary accurately reflects the comprehensive understanding gained from detailed research.
Detailed Market Analysis
- Understanding Market Size, Growth Rate, and Trends: Assess the size of the market, its growth rate over time, and key trends affecting it. This includes demographic shifts, technological advancements, and changes in consumer behavior. Use reliable data sources and forecasting methods to provide a well-rounded view of the market.
- Identifying Target Market Segments: Define the specific customer segments within the market that your business will target. Consider factors like demographics , psychographics, geographic location, and buying behaviors. Tailor your marketing strategies to these segments to maximize impact and efficiency.
Industry Analysis
- Current State of the Industry: Provide an overview of the industry, including its history, current status, and major players. Discuss the industry’s regulatory environment and any recent changes that might affect the business.
- Industry Structure and Dynamics: Analyze the industry’s structure, including its supply chain , distribution channels , and major competitors. Evaluate the industry’s competitive dynamics, market entry barriers, and typical profit margins.
Trends Analysis
- Identifying and Evaluating Trends: Identify current and emerging trends within the industry and market. These could be technological advancements, changes in consumer preferences, or shifts in regulatory policies. Analyze how these trends will impact the industry and your business specifically.
- Impact of Trends on Industry and Target Market: Discuss the potential opportunities and threats these trends present. Plan strategies to leverage opportunities and mitigate risks associated with these trends.
Competitor Analysis
- Identifying Key Competitors: List the major competitors in your market, focusing on those directly competing with your business. Assess their market share, strengths, weaknesses, and strategic positioning.
- Assessing Competitors’ Strengths, Weaknesses, and Strategies: Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) for each key competitor. Understand their strategies and how they have been successful or fallen short in the market.
Utilizing Research Tools in Market Analysis
Role of ibis world, esri, and statista in market research.
- IBIS World: IBIS World is renowned for its comprehensive collection of industry reports and business environment profiles. It offers detailed insights into market conditions, industry trends, and competitive landscapes. These reports are pivotal for understanding industry dynamics and forecasting future market developments.
- ESRI: ESRI , particularly through its ArcGIS platform, provides a wealth of location-based data and analytics. ESRI’s Market Potential data, for example, offers insights into consumer behavior and demand across various product and service categories. This data is instrumental in understanding geographical market trends and potential customer bases, making it invaluable for businesses seeking to target specific locations or demographics.
- Statista: Statista is a leading statistics portal, offering access to data from market and opinion research institutions, as well as from business entities and government institutions. It’s a versatile tool for market analysis, providing up-to-date data on various industries, including market sizes, trends, and forecasts.
Leverage These Tools for Quality Research
- Deep Dive into Industry Reports: Utilize IBIS World for in-depth industry reports to understand your market’s size, trends, and competitive landscape.
- Geographical and Demographic Analysis: Use ESRI’s tools to analyze market potential based on location and demographics, helping to identify where your customers are and their spending behaviors.
- Statistical Data for Market Trends: Leverage Statista for comprehensive statistical data to support your market size estimates, trend analysis, and forecasting.
Identifying Industry-Specific Resources
- Look for sources that provide up-to-date, comprehensive, and accurate data.
- Ensure the sources are recognized and respected within the industry.
- Consider the depth of information provided; more detailed reports often offer better insights.
- Trade associations often publish detailed reports on industry trends.
- Government databases can provide reliable statistics on various industries.
- Academic journals and publications can offer in-depth analysis and forecasts.
Incorporating these tools into your market analysis process will enhance the quality of your research, providing a solid foundation for your business plan.
Conducting Competitor Analysis
Importance of personal involvement in competitor research.
Engaging in competitor research personally offers invaluable insights. It allows you to observe and understand your competitors’ strengths and weaknesses from a customer’s perspective. This direct engagement is crucial for developing strategies to differentiate and compete effectively.
Techniques for Effective Competitive Analysis
- Talk to Competitors’ Customers: Engaging with the customers of your competitors can provide candid insights into what they value and their experiences. This feedback is often more unfiltered and honest than promotional materials or sales pitches.
- Experience Competitors’ Offerings: Purchase and use the products or services of your competitors. This firsthand experience can reveal strengths to emulate and weaknesses to exploit in your own offerings.
- Visit Competitor Locations: If applicable, visit their physical establishments. Observe their customer service, store layout, product presentation, and overall customer experience.
- Analyze Competitor Websites: Review their online presence, noting their branding, communication style, customer engagement, and online services. Look for areas where they excel or lack, providing opportunities for your business to stand out.
- Examine Online Reviews: While being cautious of potentially manipulated reviews, pay special attention to less-than-perfect ratings. Trends in these reviews can highlight areas that customers feel need improvement.
- Market Positioning: Understand how your competitors position themselves in the market. Analyze their marketing materials, advertising strategies, and any unique selling propositions they highlight.
- Pricing Strategies: Observe their pricing models. Are they competing on price, quality, service, or innovation? Understanding their approach can guide your own pricing strategy.
- Supplier and Partner Relationships: Investigate their supply chain and partnerships. This might give insights into their operational efficiencies or dependencies.
- Customer Service Analysis: Evaluate their customer service approach. Are there gaps in their customer support that your business could fill?
- Social Media Engagement: Analyze their social media presence. How do they interact with customers online? What kind of content generates the most engagement?
- Employee Feedback: If possible, gain insights from current or former employees about the internal workings of the competitor’s business. This can provide a unique perspective on their operations, culture, and challenges.
Outsourcing Market Analysis
When to consider outsourcing.
Outsourcing market analysis can be a strategic decision for businesses, especially when internal resources are limited or when specialized expertise is required. Consider outsourcing when:
- Lack of In-House Expertise: If your team lacks the skills or experience in conducting in-depth market research.
- Time Constraints: When you’re under tight timelines to develop a business plan and need to expedite the research process.
- Need for Specialized Knowledge: Certain industries or markets may require specialized knowledge that an external expert or agency can provide.
- Objective Perspective: Sometimes, an external perspective can provide unbiased and fresh insights that internal teams might overlook.
Business Plan Writer Reviews
For guidance on choosing the right professional or agency for outsourcing your market analysis, check out our Business Plan Writer Reviews .
Essential Qualifications of Professional Business Plan Writers
When hiring a professional for market analysis, ensure they possess the following qualifications:
- Active Subscriptions to Key Research Organizations: Verify that they have access to essential market research tools like IBIS World, ESRI, Statista, and others relevant to your industry. Active subscriptions indicate that they can provide current and comprehensive data.
- Experience and Expertise in Diverse Industry Research: Look for professionals with a proven track record in conducting market analysis across various industries. This experience demonstrates their ability to adapt research methods to different business models and market conditions.
- Understanding of Different Business Models: The consultant should understand various business models, especially if your business falls into a niche or emerging market. Their ability to adapt their research methodology to fit different models is crucial.
- Analytical Skills: They should possess strong analytical skills to interpret data effectively and provide actionable insights.
- Communication Skills: Good communication skills are essential for them to convey complex information in an understandable manner, aligning with your business needs.
- References and Past Work Samples: Ask for references or samples of their past work to assess the quality and relevance of their research.
Market Analysis in Your Business Plan
Conducting a thorough market analysis is an indispensable part of developing a robust business plan. It provides critical insights into the market size, growth potential, industry trends, competitive landscape, and customer preferences. This analysis forms the foundation upon which strategic decisions are made, risks are assessed, and opportunities are identified.
The insights gained from the market analysis should be seamlessly integrated into your business plan.
A well-executed market analysis can significantly enhance the effectiveness and persuasiveness of your business plan, especially in the eyes of stakeholders, bankers, or potential investors.
Up Next: Developing the Organizational Structure
Having completed the market analysis, the next step in your business planning journey is to develop the organizational structure of your business. This involves outlining the management team, defining roles and responsibilities, and establishing the operational framework of your organization. A clear and efficient organizational structure is crucial for effective management and smooth operation.
Proceed to Organizational Structure
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- Building Your Business
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- Business Plans
The Marketing Plan Section of the Business Plan
Writing The Business Plan: Section 5
Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.
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- Products, Services, and Your USP
Pricing and Positioning Strategy
Sales and distribution plan, advertising and promotion plan.
The marketing plan section of the business plan explains how you're going to get your customers to buy your products or services. The marketing plan, then, will include sections detailing your:
- Products and services and your unique selling proposition (USP)
- Pricing strategy
- Sales and distribution plan
- Advertising and promotions plan
The easiest way to develop your marketing plan is to work through each of these sections, referring to the market research you completed when you were writing the previous sections of the business plan . (Note that if you are developing a marketing plan on its own, rather than as part of a business plan, you will also need to include a target market and a competitors' analysis section.)
Let's look at each of these four sections in detail.
Products, Services, and Your Unique Selling Proposition
Focus on the uniqueness of your product or service and how the customer will benefit from what you're offering. Use these questions to write a paragraph summarizing these aspects for your marketing plan:
- What are the features of your product or service?
- Describe the physical attributes of your product or service and any other relevant features such as what it does or how it differs from competitors' offerings.
- How will your product or service benefit the customer?
- Remember that benefits can be intangible as well as tangible; for instance, if you're selling a cleaning product, your customers will benefit by having a cleaner house, but they may also benefit by enjoying better health. Brainstorm as many benefits as possible to begin with, then choose to emphasize the benefits that your targeted customers will most appreciate in your marketing plan.
- What is it that sets your product or service apart from all the rest? In other words, what is your USP, the message you want your customers to receive about your product or service? This will be at the heart of your marketing plan.
Examples of Unique Selling Propositions
Unique selling propositions should be short (no more than a sentence) and concise. Here are a few great examples:
- Domino's Pizza : "We deliver hot, fresh pizza in 30 minutes or less, or it's free."
- FedEx Corporation : "When it absolutely, positively has to be there overnight."
- M&Ms : "The milk chocolate melts in your mouth, not in your hand ."
- Dollar Shave Club: “Everything you need in the bathroom—from razor blades to grooming products—automatically delivered to your door. It doesn’t get any simpler than that.”
The pricing strategy portion of the marketing plan involves determining how you will price your product or service. The price you charge has to be competitive but still allow you to make a reasonable profit.
Being reasonable is key—you can charge any price you want to, but for every product or service there's a limit to how much the consumer is willing to pay. Your pricing strategy needs to take this consumer threshold into account.
The most common question small business people have about the pricing strategy section of the marketing plan is, "How do you know what price to charge?" Basically, you set your pricing through a process of calculating your costs, estimating the benefits to consumers, and comparing your products, services, and prices to others that are similar.
Set your pricing by examining how much it cost you to produce the product or service and adding a fair price for the benefits that the customer will enjoy. You may find it useful to conduct a breakeven analysis to determine your minimum threshold. Competitor pricing will also help guide you toward the fair market value and help you determine how high you can reasonably go.
The pricing strategy you outline in your marketing plan will answer the following questions:
- What is the cost of your product or service? Make sure you include all your fixed and variable costs when you're calculating this. The costs of labor and materials are obvious, but you may also need to include freight costs, administrative costs, and selling costs, for example.
- How does the pricing of your product or service compare to the market price of similar products or services?
- Explain how the pricing of your product or service is competitive. For instance, if the price you plan to charge is lower, why are you able to do this? If it's higher, why would your customers be willing to pay more? This is where the strategy aspect comes into play; will your business be more competitive if you charge more, less, or the same as your competitors, and why?
- What kind of return on investment (ROI) are you expecting with this pricing strategy, and within what time frame?
Remember, the primary goal of the marketing plan is to get people to buy your products or services. Here's where you detail how this is going to happen.
There are usually three parts to the sales and distribution section, although all three parts may not apply to your business.
Distribution Methods
- How is your product or service going to get to the customer? Will you distribute your product or service through a website, through the mail, through sales representatives, home delivery, or through retail?
- What distribution channel is going to be used? In a direct distribution channel, the product or service goes directly from the manufacturer to the consumer. In a one-stage distribution channel, it goes from manufacturer to retailer to consumer. The traditional distribution channel is from manufacturer to wholesaler to retailer to consumer. Outline all the different companies, people and technologies that will be involved in the process of getting your product or service to your customer.
- What are the costs associated with distribution?
- What are the delivery terms?
- How will the distribution methods affect production time frames or delivery? How long will it take to get your product or service to your customer?
If your business involves selling a product, you should also include information about inventory levels and packaging in this part of your marketing plan. For instance:
- How are your products to be packaged for shipping and for display?
- Does the packaging meet all regulatory requirements (such as labeling)?
- Is the packaging appropriately coded, priced, and complementary to the product?
- What minimum inventory levels must be maintained to ensure that there is no loss of sales due to problems such as late shipments and backorders?
Transaction Process
- What system will be used for processing orders, shipping, and billing?
- What methods of payment will customers be able to use?
- What credit terms will customers be offered? If you will offer discounts for early payment or impose penalties for late payment, they should be mentioned in this part of your marketing plan.
- What is your return policy?
- What warranties will the customer be offered? Describe these or any other service guarantees.
- What after-sale support will you offer customers and what will you charge (if anything) for this support?
- Is there a system for customer feedback so customer satisfaction (or the lack of it) can be tracked and addressed?
Sales Strategy
- What types of salespeople will be involved (commissioned salespeople, product demonstrators, telephone solicitors, etc.)?
- Describe your expectations of these salespeople and how sales effectiveness will be measured.
- Will a sales training program be offered? If so, describe it in this section of the marketing plan.
- Describe the incentives salespeople will be offered to encourage their achievements (such as getting new accounts, the most orders, etc.).
Essentially the advertising and promotion section of the marketing plan describes how you're going to deliver your USP to your prospective customers. While there are literally thousands of different promotion avenues available to you, what distinguishes a successful plan from an unsuccessful one is the focus—and that's what your USP provides.
So think first of the message that you want to send to your target audience. Then look at these promotion possibilities and decide which to emphasize in your marketing plan:
Advertising
The best approach to advertising is to think of it in terms of media—specifically, which media will be most effective in reaching your target market. Then you can make decisions about how much of your annual advertising budget you're going to spend on each medium.
What percentage of your annual advertising budget will you invest in applicable methods of advertising, such as:
- The internet (including business website, email, social media campaigns, etc.)
- Direct mail
- Door-to-door flyer delivery
- Cooperative advertising with wholesalers, retailers, or other businesses
- Directories
- Bench/bus/subway ads
Include not only the cost of the advertising but your projections about how much business the advertising will bring in.
Sales Promotion
If it's appropriate to your business, you may want to incorporate sales promotional activities into your advertising and promotion plan, such as:
- Offering free samples
- Point of purchase displays
- Product demonstrations
Marketing Materials
Every business will include some of these in its promotion plans. The most common marketing material is the business card, but brochures, pamphlets, and service sheets are also popular.
This is another avenue of promotion that every business should use. Describe how you plan to generate publicity. While press releases spring to mind, that's only one way to get people spreading the word about your business. Consider:
- Product launches
- Social media
- Special events, including community involvement
- Writing articles
- Getting and using testimonials
Your Business's Website
If your business has or will have a website and a business Facebook page, describe how these fit into your advertising and promotion plan.
Trade Shows
Trade shows can be incredibly effective promotion and sales opportunities if you pick the right ones and go equipped to put your promotion plan into action.
Other Promotion Activities
Your promotion activities are limited only by your imagination. But whether you plan to teach a course, sponsor a community event, or conduct an email campaign, you'll want to include it in your advertising and promotion plan. Sporadic, disconnected attempts to promote your product or service are bound to fail. Your goal is to plan and carry out a sequence of focused promotion activities that will communicate the message you want to send about your products or services.
No business is too small to have a marketing plan. After all, no business is too small for customers or clients. And if you have these, you need to communicate with them about what you have to offer.
Harvard Business Review. " How to Find Out What Customers Will Pay ." Accessed Jan. 16, 2020.
More From Forbes
Preparing a great marketing section for your business plan.
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Every business needs a marketing plan – a systematic approach to attracting the consumers you hope will become your customers. A marketing plan is a prime component of your business plan; your business can’t survive unless people buy your product or service, and they can’t buy your product or service if they don’t know it exists.
As with any other section of your business plan, the marketing component will be highly specific to the nature of your business and industry. Still, there are guidelines that can get you started and shape how you approach your marketing research and choices.
In this article, I’d like to share an overview of the process of developing a great marketing section that will make your business plan stand out to potential investors, partners and loan officers.
In the marketing section of your business plan, your overarching goal is to show how you’re going to expose your potential customers to your product or service, and show how you’re going to get those potential customers buy what you’re offering. That means fleshing out the “four P’s” of marketing:
• Product (or service): What exactly are you selling, and why will people want it?
• Pricing: How much will you charge, and why?
• Place: How and where will customers buy your product or service?
• Promotion: How will you attract those customers (and keep them coming back)?
1. Describe your product/service and target market.
The idea is to paint a picture of your product or service as valuable to the customers in your target market. This component details what you’re offering to customers, how they’ll benefit from it and why it’s better than what everyone else is offering to that market.
You’ll detail topics such as:
• Your product/service’s traits and features.
• Your target market and ideal customer.
• How your product/service benefits that target market/ideal customer.
• How your branding strategy relates to that target market/ideal customer.
• New products/services you’ll offer the same market down the road.
Tie all of the elements together to show that your product, strategy and target market are in perfect alignment.
2. Explain your pricing strategy.
Pricing is a huge consideration. In involves balancing value, competitiveness and profit, and it affects other aspects of your marketing plan, including your budget and where you advertise.
To come up with the ideal price for your product, consider factors including:
• Your target market’s needs and finances.
• Your costs to produce and sell your product or service, both fixed and variable (materials, shipping, labor, rent, utilities, administration, promotion).
• Product availability.
• Pricing of similar products.
Include information on your profit margin, and explain how your pricing choices relate to your target market, providing detailed information that shows your strategy is on the mark.
3. Lay out your sales and distribution methods.
For the “place” component, you’ll show how and where your customers will access and buy your product or service. The basic components are product distribution and sales transactions.
Describe your plan to get your product or service to your customer, including information on distribution channels and customer transactions. You’ll address topics including:
• Distribution channels: Will you sell the product directly to the customer, or indirectly, through an outside distributor?
• Customer transactions: Where/how will the customer have a chance to buy the product or service (retail location, home delivery, sales representatives)? What are your payment methods and terms? What are your warranty and return policies?
If your distribution involves sales representatives, the "place" component should also include details on any sales-related training, metrics and incentives involved in your strategy. Either way, include how much you expect to pay for all of the distribution elements.
4. Show how you’ll get the word out.
Detail your approach to advertising and promotion. Explain the reasoning behind that approach, and project your return on investment (ROI) if you utilize your strategy.
There are myriad options available when it comes to getting a product or service in the public eye, including:
• Internet, newspapers, magazine, TV, podcast, or radio advertising.
• Billboards, bus or subway ads.
• Direct mail, telemarketing or flyer distribution.
• Trade shows, press releases or product-launch events.
• Online presence (web site, social media, email marketing).
• Local directories or coupon books.
• Promotions (contests, giveaways, two-for-one deals).
• Community involvement (sponsoring a local fundraiser, hosting a community barbecue).
Don’t try to do some of everything; focus is the key. Use your understanding of your target market and your unique selling proposition, along with research into the costs associated with various promotional approaches, to develop a strategy to most efficiently convey that message to that market.
In the process, you’ll gain the knowledge to estimate your ROI and develop your advertising/promotions budget, in which you’ll indicate the percentage you’ll devote to each method employed in your strategy.
Effective marketing is critical to the survival of any business, so take the time to get it right and convey it clearly. It should be obvious to anyone reading your business plan that you know your customers, what they want and the perfect amount to charge for it.
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What is a Marketing Plan & How to Write One [+ Examples]
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Published: August 07, 2024
One of my favorite ways to break through writer’s block, whether the assignment is a marketing plan or a short story, is simply reading more examples. (I also recommend taking a long walk; you’d be surprised.)
![market section of business plan A woman thinks with her finger to her chin. A colorful calendar is next to her.](https://www.hubspot.com/hs-fs/hubfs/marketing-strategy-examples-1-20240801-4880441-1.webp?width=595&height=400&name=marketing-strategy-examples-1-20240801-4880441-1.webp)
I can’t take you on a walk, but I can give you some examples, some inspiration, and some guidelines to get your creativity humming.
If you don’t know where to start, we’ve curated lists of marketing plans and marketing strategies to help you write a concrete plan that will produce results.
Let’s start by understanding the differences between the two.
Featured Resource: Free Marketing Plan Template
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Looking to develop a marketing plan for your business? Click here to download HubSpot's free Marketing Plan Template to get started .
Table of Contents
Marketing Strategy Examples
What is a marketing plan, marketing plan vs. business plan, how to write a marketing plan, types of marketing plans, marketing plan examples, marketing plan faqs, sample marketing plan.
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A marketing plan is a strategic road map that businesses use to organize, execute, and track their marketing strategy over a given period. Marketing plans can include different marketing strategies for various marketing teams across the company, all working toward the same business goals.
The purpose of a marketing plan is to write down strategies in an organized manner. This will help keep you on track and measure the success of your campaigns.
Your marketing plan lays out each campaign‘s mission, buyer personas, budget, tactics, and deliverables. With all this information in one place, you’ll have an easier time staying on track with a campaign, and you can figure out what works and what doesn’t.
To learn more about creating your marketing plan, keep reading or jump to the relevant section:
![market section of business plan What is a marketing plan? A marketing plan is a strategic roadmap that businesses use to organize, execute, and track their marketing strategy over a given period. Marketing Plan vs. Business Plan: Marketing plans and business plans are both strategic documents. But a business plan covers all business operations while a marketing plan is limited to marketing. Marketing Plan vs. Marketing Strategy: A marketing strategy describes how a business will accomplish a particular goal or mission. A marketing plan contains one or more marketing strategies.](https://www.hubspot.com/hs-fs/hubfs/marketing-strategy-examples_17a.webp?width=650&height=450&name=marketing-strategy-examples_17a.webp)
A marketing plan is a strategic document that outlines marketing objectives, strategies, and tactics.
A business plan is also a strategic document. But this plan covers all aspects of a company's operations, including finance, operations, and more. It can also help your business decide how to distribute resources and make decisions as your business grows.
A marketing plan is a subset of a business plan; it shows how marketing strategies and objectives can support overall business goals. And if you need an assist executing a marketing plan, might I recommend HubSpot’s marketing hub ?
Marketing Strategy vs. Marketing Plan
A marketing strategy is the part of your marketing plan that describes how a business will accomplish a particular goal or mission.
This includes which campaigns, content, channels, and marketing software you’ll use to execute that mission and track its success.
A marketing plan contains one or more marketing strategies. It's the framework from which all your marketing strategies are created, and it helps you connect each strategy to a larger marketing operation and business goal.
For example, suppose your company is launching a new software product, and it wants customers to sign up. The marketing department needs to develop a marketing plan that'll help introduce this product to the industry and drive the desired sign-ups.
The department decides to launch a topical blog, debut a YouTube series to establish expertise, and create new X and Instagram accounts to join the conversation around this subject. All this serves to attract an audience and convert this audience into software users.
To summarize, a business' marketing plan is dedicated to introducing a new software product to the marketplace and driving sign-ups for that product. The business will execute that plan with three marketing strategies : a new industry blog, a YouTube video series, and an X account.
Of course, the business might consider these three things as one giant marketing strategy, each with its own specific content strategies. How granular you want your marketing plan to get is up to you. Nonetheless, every marketing plan goes through a particular set of steps in its creation.
- State your business' mission.
- Determine the KPIs for this mission.
- Identify your buyer personas.
- Describe your content initiatives and strategies.
- Clearly define your plan's omissions.
- Define your marketing budget.
- Identify your competition.
- Outline your plan's contributors and their responsibilities.
1. State your business' mission.
Your first step in writing a marketing plan is to state your mission. Although this mission is specific to your marketing department, it should serve as your business' main mission statement.
In my experience, you want to be specific, but not too specific. You have plenty of space left in this marketing plan to elaborate on how you'll acquire new customers and accomplish this mission.
For those of you running startups or small businesses, HubSpot’s starter bundle is a great all-in-one solution — it can help you find and win customers, execute content marketing plans, and more.
If your business' mission is “to make booking travel a delightful experience,” your marketing mission might be “to attract an audience of travelers, educate them on the tourism industry, and convert them into users of our bookings platform.”
Need help building your mission statement? Download this guide for examples and templates and write the ideal mission statement.
2. Determine the KPIs for this mission.
Every good marketing plan describes how the department will track its mission‘s progress. To do so, you need to decide on your key performance indicators (KPIs) .
KPIs are individual metrics that measure the various elements of a marketing campaign. These units help you establish short-term goals within your mission and communicate your progress to business leaders.
Let's take our example of a marketing mission from the above step. If part of our mission is “to attract an audience of travelers,” we might track website visits using organic page views. In this case, “organic page views” is one KPI, and we can see our number of page views grow over time.
Also, make sure to check whether your current reporting software facilitates the KPIs you need. Some reporting tools can only measure a set of pre-defined metrics, which can cause massive headaches in particular marketing campaigns.
However, other tools, like HubSpot’s analytics software , can offer full flexibility over the KPIs you wish to track.
You can generate custom reports that reveal average website engagement rates, page visits, email, social media traffic, and more.
These KPIs will come into the conversation again in step 4.
3. Identify your buyer personas.
A buyer persona is a description of who you want to attract. This can include age, sex, location, family size, and job title.
Each buyer persona should directly reflect your business' current and potential customers. All business leaders must agree on your buyer personas.
4. Describe your content initiatives and strategies.
Here‘s where you’ll include the main points of your marketing and content strategy.
Because there‘s a laundry list of content types and channels available today, you must choose wisely and explain how you’ll use your content and channels in this section of your marketing plan.
When I write this section, I like to stipulate:
- What types of content I'll create. These might include blog posts, YouTube videos, infographics, and ebooks.
- How much I'll create. I typically describe content volume in daily, weekly, monthly, or even quarterly intervals. It all depends on my workflow and the short-term goals for my content.
- The goals (and KPIs) I'll use to track each type. KPIs can include organic traffic, social media traffic, email traffic, and referral traffic. Your goals should also include which pages you want to drive that traffic to, such as product pages, blog pages, or landing pages.
- The channels on which I'll distribute my content. Popular channels include Facebook, X, LinkedIn, YouTube, Pinterest, and Instagram.
- Any paid advertising that will take place on these channels.
5. Clearly define your plan's omissions.
A marketing plan explains the marketing team's focus. It also explains what the marketing team will not focus on.
If there are other aspects of your business that you aren‘t serving in this particular plan, include them in this section. These omissions help to justify your mission, buyer personas, KPIs, and content.
You can’t please everyone in a single marketing campaign, and if your team isn’t on the hook for something, you need to make it known.
In my experience, this section is particularly important for stakeholders to help them understand why certain decisions were made.
6. Define your marketing budget.
Whether it's freelance fees, sponsorships, or a new full-time marketing hire, use these costs to develop a marketing budget and outline each expense in this section of your marketing plan.
You can establish your marketing budget with these 8 free marketing budget templates .
7. Identify your competition.
Part of marketing is knowing your competition. Research the key players in your industry and consider profiling each one.
Keep in mind that not every competitor will pose the same challenges to your business. For example, while one competitor might rank highly on search engines for keywords that you’re also chasing, another competitor might have a heavy footprint on a social network where you plan to launch an account.
Easily track and analyze your competitors with this collection of 10 free competitive analysis templates .
8. Outline your plan's contributors and their responsibilities.
With your marketing plan fully fleshed out, it‘s time to explain who’s doing what.
I don’t like to delve too deeply into my employees’ day-to-day projects, but I know which teams and team leaders are in charge of specific content types, channels, KPIs, and more.
Now that you know why you need to build an effective marketing plan, it’s time to get to work.
Starting a plan from scratch can be overwhelming if you haven't done it before.
That’s why there are many helpful resources that can support your first steps. We’ll share some of the best guides and templates to help you build effective results-driven plans for your marketing strategies.
Ready to make your own marketing plan? Get started with this free template.
The kind of marketing plan you create will depend on your company, your industry, and your business goals. We compiled different samples to suit your needs:
1. Quarterly or Annual Marketing Plans
![market section of business plan Screencap of Forbes’ “How To Write A Marketing Plan.](https://knowledge.hubspot.com/hubfs/marketing-strategy-examples-3-20240801-8729929.webp)
This marketing plan by Visit Oxnard, a convention and visitors bureau, is packed with information: target markets, key performance indicators, selling points, personas, marketing tactics by channel, and much more.
It also articulates the organization’s strategic plans for the upcoming fiscal year, especially as it grapples with the aftereffects of the pandemic.
Lastly, it has impeccable visual appeal, with color-coded sections and strong branding elements.
- It states clear and actionable goals for the coming year.
- It includes data and other research that shows how the team made its decisions.
- It outlines how the team will measure the plan’s success.
4. Safe Haven Family Shelter
![market section of business plan Alt text: Screencap of Safe Haven Family Shelter's marketing plan. "Goals, Objectives, Action Steps."](https://www.hubspot.com/hs-fs/hubfs/marketing-strategy-examples_9a-2.webp?width=650&height=457&name=marketing-strategy-examples_9a-2.webp)
This marketing plan by a nonprofit organization is an excellent example to follow if your plan will be presented to internal stakeholders at all levels of your organization.
It includes SMART marketing goals , deadlines, action steps, long-term objectives, target audiences, core marketing messages , and metrics.
The plan is detailed yet scannable. By the end of it, one can walk away with a strong understanding of the organization’s strategic direction for its upcoming marketing efforts.
- It confirms ongoing marketing strategies and objectives while introducing new initiatives.
- It uses colors, fonts, and formatting to emphasize key parts.
- It closes with long-term goals, key themes, and other overarching topics to set the stage for the future.
5. Wright County Economic Development
![market section of business plan Screencap of Wright County Economic Development’s Marketing Plan 2024](https://knowledge.hubspot.com/hubfs/marketing-strategy-examples-12-20240801-4814392.webp)
- “Going viral” isn’t a goal; it’s an outcome.
- Be surprising. Subvert expectations.
- Be weird and niche if you want to be weird and niche, but establishing a shared cultural understanding might result in a bigger audience.
Pridemore Properties’ Instagram smash hit is unexpected, to say the least. You think you’re getting a home tour that takes your figurative breath away; you get a home tour that takes the agent’s literal breath away.
![market section of business plan Screen cap of FckOatly.com. An illustrated sign reads, “Sued by the Spanish milk lobby.”](https://knowledge.hubspot.com/hubfs/marketing-strategy-examples-19-20240801-8964502.webp)
Verizon’s toe-tapping, hip-shaking Totalmente (aka Total by Verizon, a contractless phone plan) ad debuted during Univision’s Spanish-language broadcast of Super Bowl LVIII. The ad reinvents the 1998 Elvis Crespo song “Suavemente,” an earworm if I’ve ever heard one, replacing the lyrics with Total by Verizon features.
Verizon Value’s CMO and VP of Marketing, Cheryl Gresham, has admitted that she didn’t know much about marketing to a majority-Latinx audience.
In an interview with Campaign Live , she said she didn’t think the idea would have gotten off the ground “if it had just been me and a lot of other people that had a background like myself in that room.”
CampaignLive wrote, “Gresham says the team opted for a creative concept that spoke to all the Latinos in the room — despite Gresham herself not understanding the connection.”
Gresham’s marketing strategy hinged on knowing her audience and, just as importantly, trusting her fellow marketers who knew how to reach that audience.
Strategic Takeaways for Demographic Marketing
- Know what you don’t know.
- Foster diversity in marketing leadership and staff.
- Know your audience.
The catchy tune and the great storytelling certainly don’t hurt.
But more than that, Ogilvy and Verizon dug deep into Latinx culture — more than 25 years deep — to craft an ad that doesn’t feel like it’s just responding to the latest trend. They also tapped Venezuelan American comedian, musician, and producer Fred Armisen to direct the spot.
6. Chappell Roan
![market section of business plan Screencap of Chappell Roan’s Instagram. A woman in drag makeup and red curls stares at the camera.](https://knowledge.hubspot.com/hubfs/marketing-strategy-examples-21-20240801-1566915.webp)
The Ultimate Guide to Marketing Strategies & How to Improve Your Digital Presence
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Marketing software that helps you drive revenue, save time and resources, and measure and optimize your investments — all on one easy-to-use platform
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Blog Marketing What is a Marketing Plan & How to Create One [with Examples]
What is a Marketing Plan & How to Create One [with Examples]
Written by: Sara McGuire Oct 26, 2023
![market section of business plan Marketing Plan Venngage](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/What-is-a-Marketing-Plan-and-How-to-Make-One-Blog-Header.png)
A marketing plan is a blueprint that outlines your strategies to attract and convert your ideal customers as a part of your customer acquisition strategy. It’s a comprehensive document that details your:
- Target audience: Who you’re trying to reach
- Marketing goals: What you want to achieve
- Strategies and tactics: How you’ll reach your goals
- Budget: Resources you’ll allocate
- Metrics: How you’ll measure success
In this article, I’ll explain everything you need to know about creating a marketing plan . If you need a little extra help, there are professionally designed marketing plan templates that’ll make the process much easier. So, let’s ditch the confusion and get started!
Click to jump ahead:
What is a marketing plan?
How to write a marketing plan , 9 marketing plan examples to inspire your growth strategy.
- Marketing plan v.s. business plan
- Types of marketing plans
Marketing plan FAQs
A marketing plan is a report that outlines your marketing strategy for your products or services, which could be applicable for the coming year, quarter or month.
Watch this quick, 13-minute video for more details on what a marketing plan is and how to make one yourself:
Typically, a marketing plan includes:
- An overview of your business’s marketing and advertising goals
- A description of your business’s current marketing position
- A timeline of when tasks within your strategy will be completed
- Key performance indicators (KPIs) you will be tracking
- A description of your business’s target market and customer needs
- A description of how you will measure marketing plan performance
For example, this marketing plan template provides a high-level overview of the business and competitors before diving deep into specific goals, KPIs and tactics:
![market section of business plan Orange Content Marketing Plan Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Content-Marketing-Plan.png)
Learning how to write a marketing plan forces you to think through the important steps that lead to an effective marketing strategy . And a well-defined plan will help you stay focused on your high-level marketing goals.
With Venngage’s extensive catalog of marketing plan templates, creating your marketing plan isn’t going to be hard or tedious. In fact, Venngage has plenty of helpful communications and design resources for marketers. If you’re ready to get started, sign up for Venngage for Marketers now. It’s free to register and start designing.
Whether you’re a team trying to set smarter marketing goals, a consultant trying to set your client in the right direction, or a one-person team hustling it out, Venngage for Marketers helps you get things done.
As mentioned above, the scope of your marketing plan varies depending on its purpose or the type of organization it’s for.
For example, you could look for performance marketing agency to create a marketing plan that provides an overview of a company’s entire marketing strategy:
![market section of business plan 30 60 90 Day Plan Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2024/08/marketing-plan-template-1024x791.png)
A typical outline of a marketing plan includes:
- Executive summary
- Goals and objectives
- User personas
- Competitor analysis/SWOT analysis
- Baseline metrics
- Marketing strategy
- Tracking guidelines
Below you will see in details how to write each section as well as some examples of how you can design each section in a marketing plan.
Let’s look at how to create a successful marketing plan (click to jump ahead):
- Write a simple executive summary
- Set metric-driven marketing goals
- Outline your user personas
- Research all of your competitors
- Set accurate key baselines & metrics
- Create an actionable marketing strategy
- Set tracking or reporting guidelines
1. Write a simple executive summary
Starting your marketing plan off on the right foot is important. You want to pull people into your amazing plan for marketing domination. Not bore them to tears.
![market section of business plan Creative Marketing Plan Executive Summary Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Creative-Marketing-Plan-Executive-Summary.jpeg)
One of the best ways to get people excited to read your marketing plan is with a well-written executive summary. An executive summary introduces readers to your company goals, marketing triumphs, future plans, and other important contextual facts.
![market section of business plan Standard Business Proposal Executive Summary Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Standard-Business-Proposal-Executive-Summary.jpeg)
Basically, you can use the Executive Summary as a primer for the rest of your marketing plan.
Include things like:
- Simple marketing goals
- High-level metrics
- Important company milestones
- Facts about your brand
- Employee anecdotes
- Future goals & plans
Try to keep your executive summary rather brief and to the point. You aren’t writing a novel, so try to keep it under three to four paragraphs.
Take a look at the executive summary in the marketing plan example below:
![market section of business plan Content Marketing Proposal Executive Summary Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Content-Marketing-Proposal-Executive-Summary.jpeg)
The executive summary is only two paragraphs long — short but effective.
The executive summary tells readers about the company’s growth, and how they are about to overtake one of their competitors. But there’s no mention of specific metrics or figures. That will be highlighted in the next section of the marketing plan.
An effective executive summary should have enough information to pique the reader’s interest, but not bog them down with specifics yet. That’s what the rest of your marketing plan is for!
The executive summary also sets the tone for your marketing plan. Think about what tone will fit your brand ? Friendly and humorous? Professional and reliable? Inspiring and visionary?
2. Set metric-driven marketing goals
After you perfect your executive summary, it’s time to outline your marketing goals.
(If you’ve never set data-driven goals like this before, it would be worth reading this growth strategy guide ).
This is one of the most important parts of the entire marketing plan, so be sure to take your time and be as clear as possible. Moreover, optimizing your marketing funnel is key. Employing effective funnel software can simplify operations and provide valuable customer insights. It facilitates lead tracking, conversion rate analysis, and efficient marketing optimization .
As a rule of thumb, be as specific as possible. The folks over at VoyMedia advise that you should set goals that impact website traffic, conversions, and customer success — and to use real numbers. Complement your goals with website optimization tools (e.g., A/B testing speed with Nostra – check Nostra AI review to learn more) to further improve conversions.
Avoid outlining vague goals like:
- Get more Twitter followers
- Write more articles
- Create more YouTube videos (like educational or Explainer videos )
- Increase retention rate
- Decrease bounce rate
Instead, identify key performance metrics (KPI) you want to impact and the percentage you want to increase them by.
Take a look at the goals page in the marketing plan example below:
![market section of business plan Creative Marketing Plan Goals Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Creative-Marketing-Plan-Goals.jpeg)
They not only identify a specific metric in each of their goals, but they also set a timeline for when they will be increased.
The same vague goals listed earlier become much clearer when specific numbers and timelines are applied to them:
- Get 100 new Twitter followers per month
- Write 5 more articles per week
- Create 10 YouTube videos each year
- Increase retention rate by 15% by 2020
- Decrease bounce rate by 5% by Q1
- Create an online course and get 1,000 new leads
- Focus more on local SEO strategies
- Conduct a monthly social media report to track progress
You can dive even deeper into your marketing goals if you want (generally, the more specific, the better). Here’s a marketing plan example that shows how to outline your growth goals:
![market section of business plan Growth Goals Roadmap Template for a Marketing Plan](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Growth-Goals-Roadmap-Template-for-a-Marketing-Plan.png)
3. Outline your user personas
Now, this may not seem like the most important part of your marketing plan, but I think it holds a ton of value.
Outlining your user personas is an important part of a marketing plan that should not be overlooked.
You should be asking not just how you can get the most visitors to your business, but how you can get the right visitors.
Who are your ideal customers? What are their goals? What are their biggest problems? How does your business solve customer problems?
Answering these questions will take lots of research, but it’s essential information to get.
Some ways to conduct user research are:
- Interviewing your users (either in person or on the phone)
- Conducting focus groups
- Researching other businesses in the same industry
- Surveying your audience
Then, you will need to compile your user data into a user persona guide.
Take a look at how detailed this user persona template is below:
![market section of business plan Persona Marketing Report Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Persona-Marketing-Report-Template-1.png)
Taking the time to identify specific demographic traits, habits and goals will make it easier for you to cater your marketing plan to them.
Here’s how you can create a user persona guide:
The first thing you should add is a profile picture or icon for each user persona. It can help to put a face to your personas, so they seem more real.
![market section of business plan Marketing Persona Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Marketing-Persona.png)
Next, list demographic information like:
- Identifiers
- Activities/Hobbies
The user persona example above uses sliding scales to identify personality traits like introversion vs. extroversion and thinking vs. feeling. Identifying what type of personality your target users tend to have an influence on the messaging you use in your marketing content.
Meanwhile, this user persona guide identifies specific challenges the user faces each day:
![market section of business plan Content Marketing Proposal Audience Personas Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Content-Marketing-Proposal-Audience-Personas.jpeg)
But if you don’t want to go into such precise detail, you can stick to basic information, like in this marketing plan example:
![market section of business plan Social Media Plan Proposal Template Ideal Customers](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Social-Media-Plan-Proposal-Template-Ideal-Customers.jpeg)
Most businesses will have a few different types of target users. That’s why it’s pertinent to identify and create several different user personas . That way, you can better segment your marketing campaigns and set separate goals, if necessary.
Here’s a marketing plan example with a segmented user persona guide:
![market section of business plan Mobile App Market Report Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Mobile-App-Market-Report.jpeg)
The important thing is for your team or client to have a clear picture of who their target user is and how they can appeal to their specific problems.
Start creating robust user personas using Venngage’s user persona guide .
4. Conduct an extensive competitor analysis
Next, on the marketing plan checklist, we have the competitor research section. This section will help you identify who your competitors are, what they’re doing, and how you could carve yourself a place alongside them in your niche — and ideally, surpass them. It’s something you can learn to do with rank tracking software .
Competitor research is also incredibly important if you are starting a blog .
Typically, your competitor research should include:
- Who their marketing team is
- Who their leadership team is
- What their marketing strategy and strategic marketing plan are (this will probably revolve some reverse-engineering)
- What their sales strategy is (same deal)
- Social Media strategy (are they using discounting strategies such as coupon marketing to get conversions)
- Their market cap/financials
- Their yearly growth (you will probably need to use a marketing tool like Ahrefs to do this)
- The number of customers they have & their user personas
Also, take as deep a dive as you can into the strategies they use across their:
- Blog/Content marketing
- Social media marketing
- SEO Marketing
- Video marketing
- And any other marketing tactics they use
Research their strengths and weaknesses in all parts of their company, and you will find some great opportunities. Bookmark has a great guide to different marketing strategies for small businesses if you need some more information there.
You can use this simple SWOT analysis worksheet to quickly work through all parts of their strategy as well:
![market section of business plan Competitive SWOT Analysis Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Competitive-SWOT-Analysis.png)
Click the template above to create a SWOT chart . Customize the template to your liking — no design know-how needed.
Since you have already done all the research beforehand, adding this information to your marketing plan shouldn’t be that hard.
In this marketing plan example, some high-level research is outlined for 3 competing brands:
![market section of business plan Content Marketing Proposal Competitive Research Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Content-Marketing-Proposal-Competitive-Research.jpeg)
But you could take a deeper dive into different facets of your competitors’ strategies. This marketing plan example analyses a competitor’s inbound marketing strategy :
![market section of business plan Competitor Analysis Content-Marketing Plan Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Competitor-Analysis-Content-Marketing-Plan-Template.jpeg)
It can also be helpful to divide your competitors into Primary and Secondary groups. For example, Apple’s primary competitor may be Dell for computers, but its secondary competitor could be a company that makes tablets.
Your most dangerous competitors may not even be in the same industry as you. Like the CEO of Netflix said, “Sleep is our competition.”
5. Set accurate key baselines & metrics
It’s pretty hard to plan for the future if you don’t know where your business stands right now.
Before we do anything at Venngage, we find the baselines so we can compare future results to something. We do it so much it’s almost like second nature now!
Setting baselines will allow you to more accurately track your progress. You will also be able to better analyze what worked and what didn’t work, so you can build a stronger strategy. It will definitely help them clearly understand your goals and strategy as well.
Here’s a marketing plan example where the baselines are visualized:
![market section of business plan Social Media Marketing Proposal Success Metrics Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Social-Media-Marketing-Proposal-Success-Metrics.jpeg)
Another way to include baselines in your plan is with a simple chart, like in the marketing plan example below:
![market section of business plan Simple Blue Social Media Marketin Plan Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Simple-Blue-Social-Media-Marketing-Plan.jpeg)
Because data can be intimidating to a lot of people, visualizing your data using charts and infographics will help demystify the information.
6. Create an actionable marketing strategy
After pulling all the contextual information and relevant metrics into your marketing plan, it’s time to break down your marketing strategy.
Once again, it’s easier to communicate your information to your team or clients using visuals .
Mind maps are an effective way to show how a strategy with many moving parts ties together. For example, this mind map shows how the four main components of a marketing strategy interact together:
![market section of business plan Marketing Plan Mind Map Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Marketing-Plan-Mind-Map-Template.png)
You can also use a flow chart to map out your strategy by objectives:
![market section of business plan Action Plan Mind Map](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Action-Plan-Mind-Map.png)
However you choose to visualize your strategy, your team should know exactly what they need to do. This is not the time to keep your cards close to your chest.
Your strategy section may need to take up a few pages to explain, like in the marketing plan example below:
![market section of business plan Creative Modern Content Marketing Plan Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Creative-Modern-Content-Marketing-Plan-Template.jpg)
With all of this information, even someone from the development team will understand what the marketing team is working on.
This minimalistic marketing plan example uses color blocks to make the different parts of the strategy easy to scan:
![market section of business plan Blue Simple Social Media Marketin Plan Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Blue-Simple-Social-Media-Marketing-Plan-Template.jpg)
Breaking your strategy down into tasks will make it easier to tackle.
Another important way to visualize your marketing strategy is to create a project roadmap. A project roadmap visualizes the timeline of your product with individual tasks. Our roadmap maker can help you with this.
For example, this project roadmap shows how tasks on both the marketing and web design side run parallel to each other:
![market section of business plan Simple Product Roadmap Plan Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2018/03/Simple-Product-Roadmap-Plan-Template.jpeg)
A simple timeline can also be used in your marketing plan:
![market section of business plan Strategy Timeline Infographic Marketing Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Strategy-Timeline-Infographic.png)
Or a mind map, if you want to include a ton of information in a more organized way:
![market section of business plan Business Strategy Mindmap Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Business-Strategy-Mindmap-Template.png)
Even a simple “Next, Now, Later” chart can help visualize your strategy:
![market section of business plan 3 Step Product Roadmap Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/3-Step-Product-Roadmap-Template.png)
7. Set tracking or reporting guidelines
Close your marketing plan with a brief explanation of how you plan to track or measure your results. This will save you a lot of frustration down the line by standardizing how you track results across your team.
Like the other sections of your marketing plan, you can choose how in-depth you want to go. But there need to be some clear guidelines on how to measure the progress and results of your marketing plan.
At the bare minimum, your results tracking guidelines should specify:
- What you plan to track
- How you plan to track results
- How often you plan to measure
But you can more add tracking guidelines to your marketing plan if you see the need to. You may also want to include a template that your team or client can follow, for client reporting , ensure that the right metrics are being tracked.
![market section of business plan Marketing Checklist Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Marketing-Checklist.png)
The marketing plan example below dedicates a whole page to tracking criteria:
![market section of business plan SEO Marketing Proposal Measuring Results Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/SEO-Marketing-Proposal-Measuring-Results.jpeg)
Use a task tracker to track tasks and marketing results, and a checklist maker to note down tasks, important life events, or tracking your daily life.
Similarly, the marketing plan example below talks about tracking content marketing instead:
![market section of business plan Social Media Marketing Proposal Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Social-Media-Marketing-Proposal.jpeg)
Marketing plan vs. marketing strategy
Although often used interchangeably, the terms “marketing plan” and “marketing strategy” do have some differences.
Simply speaking, a marketing strategy presents what the business will do in order to reach a certain goal. A marketing plan outlines the specific daily, weekly, monthly or yearly activities that the marketing strategy calls for. As a business, you can create a marketing proposal for the marketing strategies defined in your company’s marketing plan. There are various marketing proposal examples that you can look at to help with this.
A company’s extended marketing strategy can be like this:
![market section of business plan marketing strategy mind map template](https://venngage-wordpress.s3.amazonaws.com/uploads/2022/06/marketing-strategy.png)
Notice how it’s more general and doesn’t include the actual activities required to complete each strategy or the timeframe those marketing activities will take place. That kind of information is included in a marketing plan, like this marketing plan template which talks about the content strategy in detail:
![market section of business plan Content Marketing Proposal Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Content-Marketing-Proposal-1.png)
1. Nonprofit marketing plan
Here’s a free nonprofit marketing plan example that is ideal for organizations with a comprehensive vision to share. It’s a simple plan that is incredibly effective. Not only does the plan outline the core values of the company, it also shares the ideal buyer persona.
![market section of business plan market section of business plan](https://venngage-wordpress.s3.amazonaws.com/uploads/2023/10/image-121.png)
Note how the branding is consistent throughout this example so there is no doubt which company is presenting this plan. The content plan is an added incentive for anyone viewing the document to go ahead and give the team the green light.
2. Social media marketing plan
Two-page marketing plan samples aren’t very common, but this free template proves how effective they are. There’s a dedicated section for business goals as well as for project planning.
![market section of business plan Pastel Social Media Marketing Plan Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Pastel-Social-Media-Marketing-Plan-Template.png)
The milestones for the marketing campaign are clearly laid out, which is a great way to show how organized this business strategy is.
3. Small business marketing plan
This marketing plan template is perfect for small businesses who set out to develop an overarching marketing strategy for the whole year:
![market section of business plan marketing strategy template marketing plan](https://venngage-wordpress.s3.amazonaws.com/uploads/2022/06/marketing-strategy-template-marketing-plan.png)
Notice how this aligns pretty well with the marketing plan outline we discussed in previous sections.
In terms of specific tactics for the company’s marketing strategy, the template only discusses SEO strategy, but you can certainly expand on that section to discuss any other strategies — such as link building , that you would like to build out a complete marketing plan for.
4. Orange simple marketing proposal template
Marketing plans, like the sample below, are a great way to highlight what your business strategy and the proposal you wan to put forward to win potential customers.
![market section of business plan Orange Simple Marketing Proposal Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Orange-Simple-Marketing-Proposal-Template.png)
5. One-page marketing plan
This one-page marketing plan example is great for showcasing marketing efforts in a persuasive presentation or to print out for an in-person meeting.
![market section of business plan Nonprofit Healthcare Company Fact Sheet Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Nonprofit-Healthcare-Company-Fact-Sheet-Template.png)
Note how the fact sheet breaks down the marketing budget as well as the key metrics for the organization. You can win over clients and partners with a plan like this.
6. Light company business fact sheet template
This one-page sample marketing plan clearly outlines the marketing objectives for the organization. It’s a simple but effective way to share a large amount of information in a short amount of time.
![market section of business plan Light Company Business Fact Sheet Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Light-Company-Business-Fact-Sheet-Template.png)
What really works with this example is that includes a mission statement, key contact information alongside all the key metrics.
7. Marketing media press kit template
This press kit marketing plan template is bright and unmistakable as belonging to the Cloud Nine marketing agency . The way the brand colors are used also helps diversify the layouts for each page, making the plan easier to read.
![market section of business plan Marketing Media Press Kit Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Marketing-Media-Press-Kit-Template.png)
We like the way the marketing department has outlined the important facts about the organization. The bold and large numbers draw the eye and look impressive.
8. Professional marketing proposal template
Start your marketing campaign on a promising note with this marketing plan template. It’s short, sharp and to the point. The table of contents sets out the agenda, and there’s a page for the company overview and mission statement.
![market section of business plan Professional Marketing Proposal Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Professional-Marketing-Proposal-Template.png)
9. Social media marketing proposal template
A complete marketing plan example, like the one below, not only breaks down the business goals to be achieved but a whole lot more. Note how the terms and conditions and payment schedule are included, which makes this one of the most comprehensive marketing plans on our list.
![market section of business plan Checkered Social Media Marketing Proposal Template](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Checkered-Social-Media-Marketing-Proposal-Template.png)
Marketing plan vs. business plan
While both marketing plans and business plans are crucial documents for businesses, they serve distinct purposes and have different scopes. Here’s a breakdown of the key differences:
Business plan is a comprehensive document that outlines all aspects of your business, including:
- Mission and vision
- Products or services
- Target market
- Competition
- Management team
- Financial projections
- Marketing strategy (including a marketing plan)
- Operations plan
Marketing plan on the other hand, dives deep into the specific strategies and tactics related to your marketing efforts. It expands on the marketing section of a business plan by detailing:
- Specific marketing goals (e.g., brand awareness, lead generation, sales)
- Target audience analysis (detailed understanding of their needs and behaviors)
- Product: Features, benefits, positioning
- Price: Pricing strategy, discounts
- Place: Distribution channels (online, offline)
- Promotion: Advertising, social media, content marketing, public relations
- Budget allocation for different marketing activities
- Metrics and measurement to track progress and success
In short, business plans paint the entire business picture, while marketing plans zoom in on the specific strategies used to reach your target audience and achieve marketing goals.
Types of marketing plans that can transform your business strategy
Let’s take a look at several types of marketing plans you can create, along with specific examples for each.
1. General marketing strategic plan / Annual marketing plan
This is a good example of a marketing plan that covers the overarching annual marketing strategy for a company:
Another good example would be this Starbucks marketing plan:
![market section of business plan Starbucks marketing plan example](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/07/Starbucks-marketing-plan-example.png)
This one-page marketing plan example from coffee chain Starbucks has everything at a glance. The bold headers and subheadings make it easier to segment the sections so readers can focus on the area most relevant to them.
What we like about this example is how much it covers. From the ideal buyer persona to actional activities, as well as positioning and metrics, this marketing plan has it all.
Another marketing plan example that caught our eye is this one from Cengage. Although a bit text-heavy and traditional, it explains the various sections well. The clean layout makes this plan easy to read and absorb.
![market section of business plan Cengage marketing plan example](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Cengage-marketing-plan-example.png)
The last marketing plan example we would like to feature in this section is this one from Lush cosmetics.
It is a long one but it’s also very detailed. The plan outlines numerous areas, including the company mission, SWOT analysis , brand positioning, packaging, geographical criteria, and much more.
![market section of business plan Lush marketing plan](https://venngage-wordpress.s3.amazonaws.com/uploads/2022/06/Lush-marketing-plan-example.png)
2. Content marketing plan
A content marketing plan highlights different strategies , campaigns or tactics you can use for your content to help your business reach its goals.
This one-page marketing plan example from Contently outlines a content strategy and workflow using simple colors and blocks. The bullet points detail more information but this plan can easily be understood at a glance, which makes it so effective.
![market section of business plan contently marketing plan](https://venngage-wordpress.s3.amazonaws.com/uploads/2021/12/Screen_Shot_2018-03-24_at_2.29.31_PM.png)
For a more detailed content marketing plan example, take a look at this template which features an editorial calendar you can share with the whole team:
![market section of business plan nonprofit content marketing plan. template](https://venngage-wordpress.s3.amazonaws.com/uploads/2022/06/nonprofit-content-marketing-plan.png)
3. SEO marketing plan
Your SEO marketing plan highlights what you plan to do for your SEO marketing strategy . This could include tactics for website on-page optimization , off-page optimization using AI SEO , and link building using an SEO PowerSuite backlink API for quick backlink profile checks. Additionally, incorporating a rank tracker can help monitor keyword performance and track the impact of your optimization efforts.
This SEO marketing plan example discusses in detail the target audience of the business and the SEO plan laid out in different stages:
![market section of business plan SEO marketing plan template](https://venngage-wordpress.s3.amazonaws.com/uploads/2022/06/SEO-marketing-plan.png)
4. Social media marketing plan
Your social media marketing plan presents what you’ll do to reach your marketing goal through social media. This could include tactics specific to each social media channel that you own, recommendations on developing a new channel, specific campaigns you want to run, and so on, like how B2B channels use Linkedin to generate leads with automation tools and expand their customer base; or like making use of Twitter walls that could display live Twitter feeds from Twitter in real-time on digital screens.
For B2C brands, you can target Facebook and Instagram. Gain Instagram likes to build trust for your brand’s profile and post engaging content on both platforms. Leverage AI social media tools to automate and scale your content plan..
Edit this social media marketing plan example easily with Venngage’s drag-and-drop editor:
![market section of business plan social media marketing plan example](https://venngage-wordpress.s3.amazonaws.com/uploads/2022/06/social-media-marketing-plan.png)
5. Demand generation marketing plan
This could cover your paid marketing strategy (which can include search ads, paid social media ads, traditional advertisements, etc.), email marketing strategy and more. Here’s an example:
![market section of business plan promotional marketing plan template](https://venngage-wordpress.s3.amazonaws.com/uploads/2022/06/promotional-marketing-plan.png)
What should marketing plans include?
Marketing plans should include:
- A detailed analysis of the target market and customer segments.
- Clear and achievable marketing objectives and goals.
- Strategies and tactics for product promotion and distribution.
- Budget allocation for various marketing activities.
- Timelines and milestones for the implementation of marketing strategies.
- Evaluation metrics and methods for tracking the success of the marketing plan.
What is an executive summary in a marketing plan and what is its main goal?
An executive summary in a marketing plan is a brief overview of the entire document, summarizing the key points, goals, and strategies. Its main goal is to provide readers with a quick understanding of the plan’s purpose and to entice them to read further.
What are the results when a marketing plan is effective?
When a marketing plan is effective, businesses can experience increased brand visibility, higher customer engagement , improved sales and revenue, and strengthened customer loyalty.
What is the first section of a marketing plan?
The first section of a marketing plan is typically the “Executive Summary,” which provides a concise overview of the entire plan, including the business’s goals and the strategies to achieve them.
Now that you have the basics for designing your own marketing plan, it’s time to get started:
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How to Write a Business Plan for a Small Business
![market section of business plan Determined female African-American entrepreneur scaling a mountain while wearing a large backpack. Represents the journey to starting and growing a business and needi](https://pas-bp-wp-cdn.s3.amazonaws.com/bplans/content/uploads/2023/11/07155325/how-to-write-a-business-plan-1.png)
Noah Parsons
24 min. read
Updated September 2, 2024
![market section of business plan Download Now: Free Business Plan Template →](https://no-cache.hubspot.com/cta/default/467363/interactive-174330637568.png)
Writing a business plan doesn’t have to be complicated.
In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.
- The basics of writing a business plan
If you’re reading this guide, then you already know why you need a business plan .
You understand that writing a business plan helps you:
- Raise money
- Grow strategically
- Keep your business on the right track
As you start to write your business plan, it’s useful to zoom out and remember what a business plan is .
At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.
Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow.
A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals.
After writing your business plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business.
We’ll dive into how to use your plan later in this article.
There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create.
It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.
Dig deeper : How to write a one-page business plan
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- What to include in your business plan
Executive summary
The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.
Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan.
In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .
Your executive summary should include:
- A summary of the problem you are solving
- A description of your product or service
- An overview of your target market
- A brief description of your team
- A summary of your financials
- Your funding requirements (if you are raising money)
Dig Deeper: How to write an effective executive summary
Products and services description
When writing a business plan, the produces and services section is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service.
This is usually called a problem and solution statement .
To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.
This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.
Market analysis
Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business.
A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .
Try to be as specific as possible when you describe your market.
Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.”
Related: Target market examples
Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.
Next, provide any additional information you have about your market.
What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.
Dig Deeper: Learn how to write a market analysis
Competitive analysis
Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers.
Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service.
For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.
A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.
Dig Deeper: How to write a competitive analysis for your business plan
![](http://blog10.website/777/templates/cheerup2/res/banner1.gif)
Marketing and sales plan
The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics.
The best place to start with a marketing plan is with a positioning statement .
This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning.
For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.
Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy .
This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services.
While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer.
If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process.
A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.
Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.
Dig deeper: What to include in your sales and marketing plan
Business operations
When writing a business plan, the operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like.
Depending on how your business is structured, your operations plan may include elements of the business like:
- Supply chain management
- Manufacturing processes
- Equipment and technology
- Distribution
Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains.
These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.
If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.
For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.
Dig Deeper: Learn how to write the operations chapter of your plan
Key milestones and metrics
Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.
Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:
- A description of each task
- The proposed due date
- Who is responsible for each task
If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap.
Possible milestones might be:
- Website launch date
- Store or office opening date
- First significant sales
- Break even date
- Business licenses and approvals
You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:
- Conversion rates
- Customer acquisition costs
- Profit per customer
- Repeat purchases
It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.
Dig Deeper: How to use milestones in your business plan
Organization and management team
Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.
Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality.
Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before?
If you still need to hire key team members, that’s OK. Just note those gaps in this section.
Your company overview should also include a summary of your company’s current business structure . The most common business structures include:
- Sole proprietor
- Partnership
Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided?
Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.
Dig Deeper: How to write about your company structure and team
Financial plan
The last section of your business plan is your financial plan and forecasts.
Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast.
A typical financial forecast in a business plan includes the following:
- Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
- Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
- Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
- Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
- Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business.
A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.
Dig Deeper: How to create financial forecasts and budgets
This is the place for additional data, charts, or other information that supports your plan.
Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.
Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.
Dig Deeper : What to include in your business plan appendix
Optional: Business plan cover page
Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.
Your cover page should be simple and include:
- Company logo
- Business name
- Value proposition (optional)
- Business plan title
- Completion and/or update date
- Address and contact information
- Confidentiality statement
Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.
Dig Deeper: How to create a business plan cover page
How to use AI to help write your business plan
Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.
The best way to use AI to write a business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity.
AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers.
There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.
Learn more: 10 AI prompts you need to write a business plan
- Writing tips and strategies
To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .
Determine why you are writing a business plan
Knowing why you are writing a business plan will determine your approach to your planning project.
For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure.
If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.
Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.
Keep things concise
Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it.
So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.
Have someone review your business plan
Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.
Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.
If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.
Use a free business plan template and business plan examples to get started
Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template.
There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).
But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses.
Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples .
We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.
Common pitfalls and how to avoid them
It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started.
Here are a few common mistakes and how to avoid them:
Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.
- Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality.
- Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
- Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
- Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
- Presenting your business plan
The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.
With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas.
A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.
Dig Deeper: Learn what key slides should be included in your pitch deck
Use your business plan to manage your business
One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.
And yet, nothing ever goes exactly as planned – it’s the nature of business.
That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.
Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:
- Did you meet your sales goals?
- Is spending following your budget?
- Has anything gone differently than what you expected?
Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets.
Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees.
Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.
A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.
Learn More: How to run a regular plan review
How to write a business plan FAQ
What is a business plan?
A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.
What are the benefits of writing a business plan?
A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.
Writing a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.
What are the 7 steps of writing a business plan?
The seven steps to writing a business plan include:
- Write a brief executive summary
- Describe your products and services.
- Conduct market research and compile data into a cohesive market analysis.
- Describe your marketing and sales strategy.
- Outline your organizational structure and management team.
- Develop financial projections for sales, revenue, and cash flow.
- Add any additional documents to your appendix.
What are the 5 most common business plan mistakes?
There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:
- 1. Not taking the planning process seriously.
- Having unrealistic financial projections or incomplete financial information.
- Inconsistent information or simple mistakes.
- Failing to establish a sound business model.
- Not having a defined purpose for your business plan.
What questions should be answered in a business plan?
Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.
However, these are the key questions you should ask and answer with your business plan:
- How will your business make money?
- Is there a need for your product or service?
- Who are your customers?
- How are you different from the competition?
- How will you reach your customers?
- How will you measure success?
How long should a business plan be?
The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.
If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.
What are the different types of business plans?
While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.
Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.
Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.
One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.
Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.
What’s the difference between a business plan and a strategic plan?
A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.
However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.
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Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.
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Table of Contents
- Use AI to help write your plan
- Common planning mistakes
- Manage with your business plan
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First Steps: Writing the Marketing Section of Your Business Plan This quick guide offers tips that will help you create the marketing section for your business plan.
By Teresa Ciulla Jan 4, 2015
Opinions expressed by Entrepreneur contributors are their own.
In their book Write Your Business Plan , the staff of Entrepreneur Media, Inc. offer an in-depth understanding of what's essential to any business plan, what's appropriate for your venture, and what it takes to ensure success. In this edited excerpt, the authors discuss the information you should include in the marketing section of your business plan.
The marketing information you need to include in your business plan has to show that you know your target market and understand how to make sure those customers know where they can find you. You need to define what you're selling, at what price(s), from where, and how you're going to spread the word. To simplify, you can use the four Ps of marketing: product, price, place, and promotion.
Product, the first of the four Ps, refers to the features and benefits of what you have to sell (as usual, we're using the term as shorthand for products and services). There are a number of issues you need to address in your product section. You need to first break out the core product from the actual product. Say you're selling snow cones. A snow cone is your core product. But your actual product includes napkins, an air-conditioned seating area, parking spaces for customers and so forth.
In the product section, you need to define your target audience and talk about your ideal customer as if he or she is someone you know very well. For example, your ideal customer could be 25 to 29 years old, earning x amount of money, has no children yet and earned a college degree.
It's important to quantify your market's size if possible. In addition, you may want to describe how you come up with ideas, screen them, test them, produce prototypes and so on.
You may need to discuss the life cycle of the product you're selling. This may be crucial in the case of quickly consumed products such as corn chips and in longer-lasting items like household appliances. Understanding the product's life cycle has a powerful effect on your marketing plan, as does knowing logical buying habits. For example, one popular department store was offering a buy-one-get-one-at-half-price deal on fine jewelry. The deal wasn't generating a strong response because most people don't shop for expensive jewelry in "bulk" quantities but instead take a personalized approach.
Other aspects of the product section may include a branding strategy, a plan for follow-up products or line extensions. Keeping these various angles on products in mind while writing this section will help you describe your product fully and persuasively.
One of the most important decisions you have to make in a business plan is what price to charge for what you're selling. Pricing determines many things, from your profit margin per unit to your overall sales volume. It influences decisions in other areas, such as what level of service you will provide and how much you will spend on marketing. Pricing has to be a process you conduct concurrently with other jobs, including estimating sales volume, determining market trends and calculating costs.
Place refers to channels of distribution, or the means you'll use to put your product where people can buy it. This can be very simple: Retailers and many service businesses (restaurants, personal services, business services) rely primarily on location. For manufacturers, conventional distribution systems have three steps: producer, wholesaler and retailer. You may occupy or sell to members of any one of these steps.
Manufacturers require certain basic conditions for their sites, but retailers and some service firms are exquisitely sensitive to a wide variety of location factors. In some cases, a few feet can make the difference between a location that is viable and one that is not.
Site selection plans for retailers should include traffic data, demographics of nearby populations, estimated sales per square foot, rental rates, and other important economic indicators. Service firms such as restaurants will want many of the same things. Service firms such as pest control services and bookkeeping businesses will want to provide information about local income levels, housing, and business activity.
Store design also must be addressed. Retailing can be as much about entertaining shoppers as it is about displaying goods, so store design becomes very important. Retailers may want to include photos or illustrations of striking displays, in-store boutiques and the like.
Then there's the Internet and e-commerce, where physical location gives way to driving traffic to the site. For businesses that are strictly web driven, you'll need to show how the site works and all that's set up behind the site for taking orders, shipping them and handling customer service, which is especially important for online businesses where buyers cannot walk in and return an item face to face. You'll also need to show how you'll drive traffic to the site.
Promotion is virtually everything you do to bring your company and your product in front of consumers. Promotional activities include picking your company name, going to trade shows, buying advertisements, making telemarketing calls, using billboards, arranging co-op marketing, offering free giveaways, building and maintaining your online presence, and more.
Not all promotions are suitable for all products, of course, so your plan should select the ones that will work best for you, explain why they were chosen, and tell how you're going to use them. Promotion aims to inform, persuade, and remind customers to buy your products. It uses a mix that includes four elements: advertising, personal selling, sales promotion, and publicity or public relations.
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Marketing Plan
A document that lays out the marketing efforts of a business in an upcoming period
What is a Marketing Plan?
A marketing plan is a document that lays out the marketing efforts of a business in an upcoming period, which is usually a year. It outlines the marketing strategy, promotional, and advertising activities planned for the period.
![market section of business plan Marketing Plan](https://cdn.corporatefinanceinstitute.com/assets/marketing-plan-1024x419.jpeg)
Elements of a Marketing Plan
A marketing plan will typically include the following elements:
Marketing objectives of the business : The objectives should be attainable and measurable – two goals associated with SMART, which stands for Specific, Measurable, Attainable, Relevant, and Time-bound.
Current business marketing positioning : An analysis of the current state of the organization concerning its marketing positioning.
Market research : Detailed research about current market trends, customer needs, industry sales volumes, and expected direction.
Outline of the business target market : Business target market demographics.
Marketing activities : A list of any actions concerning marketing goals that are scheduled for the period and the indicated timelines.
Key performance indicators (KPIs) to be tracked
Marketing mix : A combination of factors that may influence customers to purchase products. It should be appropriate for the organization and will largely be centered on the 4Ps of marketing – i.e., product, price, promotion, and place.
Competition : Identify the organization’s competitors and their strategies, along with ways to counter competition and gain market share .
Marketing strategies : The development of marketing strategies to be employed in the coming period. These strategies will include promotional strategies, advertising, and other marketing tools at the disposal of the organization.
Marketing budget : A detailed outline of the organization’s allocation of financial resources to marketing activities. The activities will need to be carried out within the marketing budget .
Monitoring and performance mechanism : A plan should be in place to identify if the marketing tools in place are bearing fruit or need to be revised based on the past, current, and expected future state of the organization, industry, and the overall business environment.
A marketing plan should observe the 80:20 rule – i.e., for maximum impact, it should focus on the 20% of products and services that account for 80% of volumes and the 20% of customers that bring in 80% of revenue.
Purpose of a Marketing Plan
The purpose of a marketing plan includes the following:
- To clearly define the marketing objectives of the business that align with the corporate mission and vision of the organization. The marketing objectives indicate where the organization wishes to be at any specific period in the future.
- The marketing plan usually assists in the growth of the business by stating appropriate marketing strategies, such as plans for increasing the customer base.
- State and review the marketing mix in terms of the 8Ps of marketing – Product, Price, Place, Promotion, People, Process, Physical Evidence, and Performance.
- Strategies to increase market share, enter new niche markets, and increase brand awareness are also encompassed within the marketing plan.
- The marketing plan will contain a detailed budget for the funds and resources required to carry out activities indicated in the marketing plan.
- The assignment of tasks and responsibilities of marketing activities is well enunciated in the marketing plan.
- The identification of business opportunities and any strategies crafted to exploit them is important.
- A marketing plan fosters the review and analysis of the marketing environment, which entails market research, customer needs assessment, competitor analysis, PEST analysis , studying new business trends, and continuous environmental scanning.
- A marketing plan integrates business functions to operate with consistency – notably sales, production, finance, human resources, and marketing.
Structure of a Marketing Plan
The structure of a marketing plan can include the following sections:
Marketing Plan Objectives
This section outlines the expected outcome of the marketing plan with clear, concise, realistic, and attainable objectives. It contains specific targets and time frames.
Metrics, such as target market share, the target number of customers to be attained, penetration rate, usage rate, sales volumes targeted, etc. should be used.
Market Research – Market Analysis/Consumer Analysis
Market analysis includes topics such as market definition, market size, industry structure, market share and trends, and competitor analysis. Consumer analysis includes the target market demographics and what influences their buying decisions – e.g., loyalty, motivation, and expectations.
Target Market
This defines the target customers by their demographic profile, such as gender, race, age, and psychographic profile, such as their interests. This will assist in the correct marketing mix for the target market segments.
SWOT Analysis
A SWOT analysis will look at the organization’s internal strengths and weaknesses and external opportunities and threats. SWOT analysis includes the following:
- Strengths are the organization’s competitive advantages that are not easily duplicated. They represent the skills, expertise, and efficiencies that an organization possesses over its competitors.
- Weaknesses are impediments found in the operations of an organization, and they stifle growth. These can include outdated machinery, inadequate working capital, and inefficient production methods.
- Opportunities are prospects for growth in the business through the adoption of ways to take advantage of the chances. They could include entry into new markets, adopting digital marketing strategies, or following new trends.
- Threats are external factors that can affect the business negatively, such as a new powerful competitor, legislative changes, natural disasters, or political situations.
Marketing Strategy
The marketing strategy section covers actual strategies to be included according to the marketing mix. The strategy centers on the 8Ps of marketing. However, firms are also at liberty to use the traditional 4 P’s of marketing – product, price, place, and promotion. The 8 P’s are illustrated below.
The correct marketing mix is determined by the target market. The most expensive options are advertising, sales promotions, and PR campaigns. Networking and referrals are less costly.
Marketers also need to pay attention to digital marketing strategies that make use of technology to reach a wider market and have also proven to be cost-effective.
Digital marketing channels, which became popular in the early 21 st century, may eventually overtake traditional marketing methods. Digital marketing encompasses trending methods, such as the use of social media for business.
Other strategies within the marketing strategy include pricing and positioning strategy, distribution strategy, conversion strategy, and retention strategy.
Marketing Budget
The marketing budget or projection outlines the budgeted expenditure for the marketing activities documented in the marketing plan. The marketing budget consists of revenues and costs stated in the marketing plan in one document.
It balances expenditures on marketing activities and what the organization can afford. It’s a financial plan of marketing activities to be carried out – e.g., promotional activities, cost of marketing materials and advertising, and so on. Other considerations include expected product volume and price, production and delivery costs, and operating and financing costs.
The effectiveness of the marketing plan depends on the budget allocated for marketing expenditure. The cost of marketing should be able to make the company break even and make profits.
Performance Analysis
Performance analysis aims to look at the variances of metrics or components documented in the marketing plan. These include:
Revenue variance analysis : An analysis of positive or negative variance of revenue. A negative variance is worrisome, and reasons should be available to explain the cause of deviations.
Market share analysis : An analysis of whether the organization attained its target market share. Sales may be increasing whilst the organization’s share of the market is decreasing; hence, it is paramount to track this metric.
Expense analysis : An analysis of marketing expense to sales ratio . This ratio needs to be compared to industry standards to make informed comparisons.
The ratio enables the organization to track actual expenditures versus the budget. It is also compared to other metrics, such as revenue analysis and market share analysis. It can be dissected into individual expenditures to sales to get a clearer picture.
Administration of a Marketing Plan
The marketing plan should be revised and adapted to changes in the environment periodically. The use of metrics, budgets, and schedules to measure progress towards the goals set in the marketing plan is a continuous process by marketing personnel.
There should be a continuous assessment to verify that the goals of the marketing plan are being achieved. The marketing manager should be able to review if the strategies documented are being effective, given the operating environment.
It is irrational for the marketing manager to notice anomalies and wait to review at year-end when the situation might have already deteriorated.
Changes in the environment may necessitate a review of plans, projections, strategies, and targets. Therefore, a formal periodical review – such as monthly or quarterly – may need to be in place. This may mean preparing an annual marketing plan but reviewing the plan quarterly to keep targets and plans aligned closely to environmental changes. It goes without saying that plans are as good as their feasibility to succeed in the given environment.
More Resources
Thank you for reading CFI’s guide to Marketing Plan. To keep learning and advancing your career, the additional CFI resources below will be useful:
- 4 P’s of Marketing
- Market Research
- Return on Ad Spend (ROAS)
- Competitive Advantage
- See all management & strategy resources
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How to Write the Marketing Plan in Business Plan?
A marketing plan in business plan is one of the very important sections of a business plan. Marketing is done to spread awareness about your business and its product/service.
An effective marketing strategy helps you achieve early success.
Use this article to write an effective marketing plan section in a business plan.
What is a marketing plan?
A marketing section of a business plan gives you a roadmap to organize, execute and track the progress of your marketing efforts.
Your marketing plan helps you align your marketing efforts with your business goals. It gives your marketing effort a direction and you can evaluate your efforts at any point.
Types of marketing plan
A perfect type of marketing plan in business plan will depend on your business, your goals, and how soon you want to achieve them.
We have outlined some marketing plans that most businesses need to use. Since this is the age of the internet, we have also included online marketing plans and digital marketing plans.
Want to write a business plan?
Hire our professional business plan writers to prepare your business plan!
Quarterly or Annual Marketing Plans
These are your business marketing plans with a timeline. Every business has its quarterly, bi-yearly, and yearly goals. You will use these goals to monitor the effectiveness of your marketing efforts over time.
Paid Marketing Plans
Paid marketing plans include online advertising, buying billboards, or marketing on vehicles. Pay Per Click marketing and social media marketing for your small business.
Social Media Marketing Plan
Social media marketing plan for business plan can be done in two ways. You can hire a team and raise awareness about your business by sharing regular updates.
You can also do paid marketing on social media. You will need to invest in buying ads on that social media platform and pay for a team of social media marketers.
You can also leverage these effective digital marketing channels for your business.
Content Marketing Plan
A content marketing plan is about attracting potential customers to your website with the help of SEO. You create value for your potential customer first and then by extension, market your business. It can be offline in the form of free workshops etc or online in the form of guides and resources.
Product Launch Marketing Plan
A product lunch sales and marketing plan in business plan will help you decide on the marketing tools, tactics, and tracking you will do when launching a new product or service.
You can also hire WiseBusinessPlans Digital Marketing Services to run successful marketing campaigns for your business.
Marketing Plan vs Marketing Strategy
The difference between a marketing plan and a marketing strategy is simple; a marketing plan is what methods, tools, and tactics you will use for marketing, and a market strategy in business plan is how you will implement your plan.
Learn how to develop an effective marketing strategy with this detailed guide.
Access our free business plan examples now!
How to write a marketing plan for a business plan.
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Follow these simple steps to write a marketing plan in business plan.
Business Mission
Write your business mission statement and translate it into the efforts the marketing department will make.
For example, your business mission is to help people with home gardening. Your marketing department version will be to attract people who want to do home gardening.
These are performance indicators. These metrics will help you evaluate performance and progress. An example of KPIs for marketing is customer visits to your website, social media page, or brick-and-mortar store.
Create Buyer Personas
A buyer persona is a short description of your average customer. When you have no data, a buyer persona will describe the customer you want to attract.
Decide on Marketing Strategies and Content
Go through the marketing strategies you can use and select the one that will produce the best return on investment for your business.
Similarly, think about the content type that is attractive to your target audience . For example, video format may attract your audience or you may need to share more about your business on social media to grab their attention.
Define Marketing Plan Scope
Define the scope and limits of your marketing plan. Clearly mention what your marketing team will do and will not do.
This will help you save time, cost, and effort in wasted resources.
Set Marketing Budget
You can only spend a set amount on marketing. Set your marketing budget and be creative in that budget to produce the best return.
Your budget is directly related to your marketing goals. Set your marketing budget in a way that does not hamper marketing efforts.
Know your Competition
Knowing and profiling your customer helps you market better. See what are strong spots of competitors’ marketing plans, are and how they are attracting audiences to make a plan to compete effectively.
Appoint your Team & their Responsibilities
Decide on job roles for your team. Set their KPIs, marketing channels they will manage, what content they will create, etc.
Bonus Tip: Here is a step by step guide on how to write a marketing plan executive summary with example and template.
Example of Marketing Plan in Business Plan PDF
See this example of a marketing plan in a business plan to understand how it is done. You can create your marketing plan in the same way.
In the marketing plan section, include details about your target market, competition analysis, marketing strategies, pricing, promotion, and distribution channels. It should outline your approach to reaching and engaging your target audience.
Conduct market research by analyzing your target audience, understanding their needs and preferences, studying your competitors, and identifying market trends. Use surveys, interviews, and industry reports to gather relevant data for your marketing plan.
Consider including a mix of marketing strategies such as digital marketing, social media marketing, content marketing, email marketing, advertising, public relations, and networking. Choose strategies that align with your target audience and business goals.
Determine pricing by considering factors such as production costs, competitor pricing, market demand, and perceived value. Conduct a pricing analysis to ensure your prices are competitive and profitable for your business.
It is recommended to review and update your marketing plan regularly, at least annually or whenever there are significant changes in your business or market conditions. This allows you to adapt your strategies, stay relevant, and capitalize on new opportunities.
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Plan Projections
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Home > Business Plan > Marketing Strategy in a Business Plan
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Marketing Strategy in a Business Plan
… we will get this market share by …
- Product USP : Why buy our product? What characteristics does the product have to meet customer needs?
- Promotion : What marketing activities will be undertaken? What means of communication will the business use to persuade customers of the benefits of the product? Will it use above the line promotion or below the line promotion?
- Place : What are the distribution channels? How is the business going to reach customers with its product?
- Price : What price will the business charge for the product, and what goal is it pursuing with the pricing strategy? Will the business use premium, penetration, economy or skimming pricing strategies.
Marketing Strategy Presentation
The marketing strategy section of the business plan can be presented in four sections relating to each of the four P’s product, promotion, place, and price as shown in the example layout below.
The marketing strategy is a key section of the business plan, at this stage you are not trying to present a complete marketing plan, but simply trying to show the investor that each major section of the marketing strategy has been thought about and that you have a good marketing mix.
All of the four sections should be consistent with and support each other, for example, if you are planning to adopt a high price strategy, then the product would be aimed at an upmarket target customer, distributed at high end stores, and make use of one to one personal selling.
This is part of the financial projections and Contents of a Business Plan Guide , a series of posts on what each section of a simple business plan should include. The next post in this series sets out the business model which the business intends to use to generate revenue.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.
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Business Plan Section 5: Market Analysis
Find out the 9 components to include in the market analysis portion of your business plan, plus 6 sources for market analysis information.
![market section of business plan Market Analysis](https://aofund.org/app/uploads/2021/01/typing-849806-1024x576.jpg)
This is the part of your business plan where you really get to shine and show off that awesome idea you have. Of course, your product or service is the best! Now, let’s talk about how you know it’s a hit. Be prepared to show you know your market AND that it’s big enough for you to build a sustainable, successful business .
In writing up your market analysis, you’ll get to demonstrate the knowledge you’ve gained about the industry, the target market you’re planning to sell to, your competition, and how you plan to make yourself stand out.
A market analysis is just that: a look at what the relevant business environment is and where you fit in. It should give a potential lender, investor, or employee no doubt that there is a solid niche for what you’re offering, and you are definitely the person to fill it. It’s both quantitative, spelling out sales projections and other pertinent figures, and qualitative, giving a thoughtful overview of how you fit in with the competition. It needs to look into the potential size of the market, the possible customers you’ll target, and what kind of difficulties you might face as you try to become successful. Let’s break down how to do that.
What Goes Into A Business Plan Market Analysis?
Industry description and outlook.
Describe the industry with enough background so that someone who isn’t familiar with it can understand what it’s like, what the challenges are, and what the outlook is. Talk about its size, how it’s growing, and what the outlook is for the future.
Target Market
Who have you identified as your ideal client or customer ? Include demographic information on the group you’re targeting, including age, gender and income level. This is the place to talk about the size of your potential market, how much it might spend, and how you’ll reach potential customers. For example, if women aged 18 to 54 are your target market, you need to know how many of them there are in your market. Are there 500 or 500,000? It’s imperative to know. Similarly, if your product or service is geared toward a high-end clientele, you need to make sure you’re located in an area that can support it.
Market Need
What factors influence the need for your product or service? Did the need exist before or are you trying to create it? Why will customers want to do business with you, possibly choosing you over someone else? This is where you can briefly introduce the competitive edge you have, although you’ll get into that in more depth in following sections. Focus on how the product or service you’re offering satisfies what’s needed in the market.
Market Growth
While no one can predict the future, it’s important to get a possible idea of what business may be like down the road and make sales projections. Have the number of people in your target market been increasing or decreasing over the last several years? By how much per year? To make an intelligent forecast, you have to start with current conditions, then project changes over the next three to five years.
Market Trends
You need to take a look at trends the same way you look at population and demographics. Is there a shift to more natural or organic ingredients that might impact your business? How might energy prices figure in? The easy availability of the internet and smartphone technology? The questions will be different for every type of business, but it’s important to think about the types of changes that could affect your specific market. In this section, you can cite experts from the research you’ve done-a market expert, market research firm, trade association, or credible journalist.
Market Research Testing
Talk about what kind of testing and information gathering you’ve done to figure out where you stand in the market. Who have you spoken to about the viability of your product? Why are you confident of its success? Again, if you can, cite experts to back up your information.
Competitive Analysis
There’s no way to succeed unless you’ve examined your competition. It might be helpful to try analyzing your position in the market by performing a SWOT analysis. You need to figure out their strengths and the weaknesses you can exploit as you work to build your own business. You do need to be brutally honest here, and also look at what the potential roadblocks are-anything that might potentially stand in your way as you try to meet your goals and grow your business.
Barriers to Entry
Lenders and investors need to have a reasonable assurance they’ll be paid back, so they’ll want to know what would stop someone else from swooping in, doing what you do, and grabbing half the available business. Do you have technical knowledge that’s difficult to get? A specialized product no one else can manufacture? A service that takes years to perfect? It’s possible your industry has strict regulations and licensing requirements. All of these help protect you from new competition, and they’re all selling points for you.
Regulations
As we touched on above, you should cover regulations as a barrier to entry. If your field is covered by regulations, you do need to talk about how they apply to your business and how you’ll comply with them.
Six Sources for Market Analysis Information
The Market Analysis section of your business plan is far more than a theoretical exercise. Doing an analysis of the market really gives YOU the information you need to figure out whether your plans are viable, and tweak them in the early stages before you go wrong.
So, where do you start? Research is the key here, and there are several sources available.
1. The Internet
Some of the first information you need is about population and demographics: who your potential customers are, how many there are, and where they live or work. The U.S. Census Bureau has an impressive amount of these statistics available. USA.gov’s small business site is another good source for links to the U.S. Departments of Labor and Commerce, among others.
2. Local Chamber of Commerce
A lot of local information can be gotten from the chamber of commerce in the area where you plan to operate. Often, they can provide details into what the general business climate is like, and get even more specific about how many and what type of businesses are operating in their jurisdiction.
3. Other Resources
When actual statistical information isn’t available, you’ll often be able to put together a good picture of the market from a variety of other sources. Real estate agents can be a source of information on demographics and population trends in an area. Catalogs and marketing materials from your competition are useful. Many industry associations have a great amount of relevant information to use in putting your analysis together. Trade publications and annual reports from public corporations in your industry also contain a wealth of relevant information.
4. Customer Mindset
Take yourself out of the equation as the owner and stand in your customer’s shoes when you look at the business. As a customer, what problems do you have that need to be solved? What would you like to be able to do better, faster, or cheaper that you can’t do now? How does the competition work to solve those issues? How could this business solve them better?
5. the Competition
If you have a clothing store, visit others in your area. If you’d like to open a pizzeria, try pies from surrounding restaurants. If you’re a salon owner, park across the street and see what the store traffic is like and how customers look when they come out. Check out websites for pricing and other marketing information. Follow their Facebook pages. If you can’t be a customer of the competition, ask your customers and suppliers about them. Always be aware of what’s going on in the market.
6. Traditional Market Research
While you can gather a lot of data online, your best information will come from potential customers themselves. Send out surveys, ask for input and feedback, and conduct focus groups. You can do this yourself or hire a market research firm to do it for you.
What to Do With All That Data
Now that you’ve gathered the statistics and information and you’ve done the math to know there’s a need and customer base for your product or service, you have to show it off to your best advantage. You can start the market analysis section with a simple summary that describes your target customers and explains why you have chosen this as your market. You can also summarize how you see the market growing, and highlight one or two projections for the future.
If your information is dense with numbers and statistics, someone who reads your business plan will probably find it easier to understand if you present it as a chart or graph. You can generate them fairly easily with tools built into Google docs and free infographic apps and software .
Don’t assume that your readers have an understanding of your market, but don’t belabor simple points, either. You want to include pertinent, important information, but you don’t want to drown the reader in facts. Be concise and compelling with the market analysis, and remember that a good graphic can cover a lot of text, and help you make your point. It’s great to say you project sales to increase by 250% over the next five years, but it makes an even bigger wow when you show it in a graphic.
Always relate the data back to your business. Statistics about the market don’t mean much unless you describe how and where you fit in. As you talk about the needs of your target market, remember to focus on how you are uniquely positioned to fill them.
Don’t hesitate to break down your target market into smaller segments, especially if each is likely to respond to a different message about your product or service. You may have one market that consists of homes and another of small businesses. Perhaps you sell to both wholesale and retail customers. Talk about this in the market analysis, and describe briefly how you’ll approach each. (You will have more of an opportunity to do this in detail later in the plan.) Segmentation can help you target specific messages to specific areas, focusing in on the existing needs and how you fill them.
Remember to tailor your information to the purpose at hand. If your business plan is for internal use, you may not have to go into as much detail about the market since you and your team may already know it well. Remember, however, that the very act of doing the research may help you learn things you didn’t know, so don’t skimp on doing the work. This is a great opportunity to get information from outside that might affect your business.
It’s not about your ability to do professional-level market research; a plan intended for a bank or other lender needs to show your understanding of where your business fits into the grand scheme of things. Yes, you need to detail the information, but your main goal is to show how you’ve incorporated that knowledge into making solid decisions about the direction of your company. Use this section of your business plan to explain your understanding of your industry, your market and your individual business so that lenders and investors feel comfortable with your possibility for success.
NEXT ARTICLE > BUSINESS PLAN SECTION 6: SALES AND MARKETING
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How to Write a Business Plan in 9 Steps (+ Template and Examples)
Every successful business has one thing in common, a good and well-executed business plan. A business plan is more than a document, it is a complete guide that outlines the goals your business wants to achieve, including its financial goals . It helps you analyze results, make strategic decisions, show your business operations and growth.
If you want to start a business or already have one and need to pitch it to investors for funding, writing a good business plan improves your chances of attracting financiers. As a startup, if you want to secure loans from financial institutions, part of the requirements involve submitting your business plan.
Writing a business plan does not have to be a complicated or time-consuming process. In this article, you will learn the step-by-step process for writing a successful business plan.
You will also learn what you need a business plan for, tips and strategies for writing a convincing business plan, business plan examples and templates that will save you tons of time, and the alternatives to the traditional business plan.
Let’s get started.
What Do You Need A Business Plan For?
Businesses create business plans for different purposes such as to secure funds, monitor business growth, measure your marketing strategies, and measure your business success.
1. Secure Funds
One of the primary reasons for writing a business plan is to secure funds, either from financial institutions/agencies or investors.
For you to effectively acquire funds, your business plan must contain the key elements of your business plan . For example, your business plan should include your growth plans, goals you want to achieve, and milestones you have recorded.
A business plan can also attract new business partners that are willing to contribute financially and intellectually. If you are writing a business plan to a bank, your project must show your traction , that is, the proof that you can pay back any loan borrowed.
Also, if you are writing to an investor, your plan must contain evidence that you can effectively utilize the funds you want them to invest in your business. Here, you are using your business plan to persuade a group or an individual that your business is a source of a good investment.
2. Monitor Business Growth
A business plan can help you track cash flows in your business. It steers your business to greater heights. A business plan capable of tracking business growth should contain:
- The business goals
- Methods to achieve the goals
- Time-frame for attaining those goals
A good business plan should guide you through every step in achieving your goals. It can also track the allocation of assets to every aspect of the business. You can tell when you are spending more than you should on a project.
You can compare a business plan to a written GPS. It helps you manage your business and hints at the right time to expand your business.
3. Measure Business Success
A business plan can help you measure your business success rate. Some small-scale businesses are thriving better than more prominent companies because of their track record of success.
Right from the onset of your business operation, set goals and work towards them. Write a plan to guide you through your procedures. Use your plan to measure how much you have achieved and how much is left to attain.
You can also weigh your success by monitoring the position of your brand relative to competitors. On the other hand, a business plan can also show you why you have not achieved a goal. It can tell if you have elapsed the time frame you set to attain a goal.
4. Document Your Marketing Strategies
You can use a business plan to document your marketing plans. Every business should have an effective marketing plan.
Competition mandates every business owner to go the extraordinary mile to remain relevant in the market. Your business plan should contain your marketing strategies that work. You can measure the success rate of your marketing plans.
In your business plan, your marketing strategy must answer the questions:
- How do you want to reach your target audience?
- How do you plan to retain your customers?
- What is/are your pricing plans?
- What is your budget for marketing?
![market section of business plan Business Plan Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/Business-Plan-Infographic.jpg)
How to Write a Business Plan Step-by-Step
1. create your executive summary.
The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans . Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.
![market section of business plan Executive Summary of the business plan](https://www.founderjar.com/wp-content/uploads/2021/07/Executive-Summary-of-the-business-plan.jpg)
Generally, there are nine sections in a business plan, the executive summary should condense essential ideas from the other eight sections.
A good executive summary should do the following:
- A Snapshot of Growth Potential. Briefly inform the reader about your company and why it will be successful)
- Contain your Mission Statement which explains what the main objective or focus of your business is.
- Product Description and Differentiation. Brief description of your products or services and why it is different from other solutions in the market.
- The Team. Basic information about your company’s leadership team and employees
- Business Concept. A solid description of what your business does.
- Target Market. The customers you plan to sell to.
- Marketing Strategy. Your plans on reaching and selling to your customers
- Current Financial State. Brief information about what revenue your business currently generates.
- Projected Financial State. Brief information about what you foresee your business revenue to be in the future.
The executive summary is the make-or-break section of your business plan. If your summary cannot in less than two pages cannot clearly describe how your business will solve a particular problem of your target audience and make a profit, your business plan is set on a faulty foundation.
Avoid using the executive summary to hype your business, instead, focus on helping the reader understand the what and how of your plan.
View the executive summary as an opportunity to introduce your vision for your company. You know your executive summary is powerful when it can answer these key questions:
- Who is your target audience?
- What sector or industry are you in?
- What are your products and services?
- What is the future of your industry?
- Is your company scaleable?
- Who are the owners and leaders of your company? What are their backgrounds and experience levels?
- What is the motivation for starting your company?
- What are the next steps?
Writing the executive summary last although it is the most important section of your business plan is an excellent idea. The reason why is because it is a high-level overview of your business plan. It is the section that determines whether potential investors and lenders will read further or not.
The executive summary can be a stand-alone document that covers everything in your business plan. It is not uncommon for investors to request only the executive summary when evaluating your business. If the information in the executive summary impresses them, they will ask for the complete business plan.
If you are writing your business plan for your planning purposes, you do not need to write the executive summary.
2. Add Your Company Overview
The company overview or description is the next section in your business plan after the executive summary. It describes what your business does.
Adding your company overview can be tricky especially when your business is still in the planning stages. Existing businesses can easily summarize their current operations but may encounter difficulties trying to explain what they plan to become.
Your company overview should contain the following:
- What products and services you will provide
- Geographical markets and locations your company have a presence
- What you need to run your business
- Who your target audience or customers are
- Who will service your customers
- Your company’s purpose, mission, and vision
- Information about your company’s founders
- Who the founders are
- Notable achievements of your company so far
When creating a company overview, you have to focus on three basics: identifying your industry, identifying your customer, and explaining the problem you solve.
If you are stuck when creating your company overview, try to answer some of these questions that pertain to you.
- Who are you targeting? (The answer is not everyone)
- What pain point does your product or service solve for your customers that they will be willing to spend money on resolving?
- How does your product or service overcome that pain point?
- Where is the location of your business?
- What products, equipment, and services do you need to run your business?
- How is your company’s product or service different from your competition in the eyes of your customers?
- How many employees do you need and what skills do you require them to have?
After answering some or all of these questions, you will get more than enough information you need to write your company overview or description section. When writing this section, describe what your company does for your customers.
![market section of business plan It describes what your business does](https://www.founderjar.com/wp-content/uploads/2021/07/Company-Description-describes-what-your-business-does.jpg)
The company description or overview section contains three elements: mission statement, history, and objectives.
- Mission Statement
The mission statement refers to the reason why your business or company is existing. It goes beyond what you do or sell, it is about the ‘why’. A good mission statement should be emotional and inspirational.
Your mission statement should follow the KISS rule (Keep It Simple, Stupid). For example, Shopify’s mission statement is “Make commerce better for everyone.”
When describing your company’s history, make it simple and avoid the temptation of tying it to a defensive narrative. Write it in the manner you would a profile. Your company’s history should include the following information:
- Founding Date
- Major Milestones
- Location(s)
- Flagship Products or Services
- Number of Employees
- Executive Leadership Roles
When you fill in this information, you use it to write one or two paragraphs about your company’s history.
Business Objectives
Your business objective must be SMART (specific, measurable, achievable, realistic, and time-bound.) Failure to clearly identify your business objectives does not inspire confidence and makes it hard for your team members to work towards a common purpose.
3. Perform Market and Competitive Analyses to Proof a Big Enough Business Opportunity
The third step in writing a business plan is the market and competitive analysis section. Every business, no matter the size, needs to perform comprehensive market and competitive analyses before it enters into a market.
Performing market and competitive analyses are critical for the success of your business. It helps you avoid entering the right market with the wrong product, or vice versa. Anyone reading your business plans, especially financiers and financial institutions will want to see proof that there is a big enough business opportunity you are targeting.
This section is where you describe the market and industry you want to operate in and show the big opportunities in the market that your business can leverage to make a profit. If you noticed any unique trends when doing your research, show them in this section.
Market analysis alone is not enough, you have to add competitive analysis to strengthen this section. There are already businesses in the industry or market, how do you plan to take a share of the market from them?
You have to clearly illustrate the competitive landscape in your business plan. Are there areas your competitors are doing well? Are there areas where they are not doing so well? Show it.
Make it clear in this section why you are moving into the industry and what weaknesses are present there that you plan to explain. How are your competitors going to react to your market entry? How do you plan to get customers? Do you plan on taking your competitors' competitors, tap into other sources for customers, or both?
Illustrate the competitive landscape as well. What are your competitors doing well and not so well?
Answering these questions and thoughts will aid your market and competitive analysis of the opportunities in your space. Depending on how sophisticated your industry is, or the expectations of your financiers, you may need to carry out a more comprehensive market and competitive analysis to prove that big business opportunity.
Instead of looking at the market and competitive analyses as one entity, separating them will make the research even more comprehensive.
Market Analysis
Market analysis, boarding speaking, refers to research a business carried out on its industry, market, and competitors. It helps businesses gain a good understanding of their target market and the outlook of their industry. Before starting a company, it is vital to carry out market research to find out if the market is viable.
![market section of business plan Market Analysis for Online Business](https://www.founderjar.com/wp-content/uploads/2021/07/Market-Analysis-for-Online-Business.jpg)
The market analysis section is a key part of the business plan. It is the section where you identify who your best clients or customers are. You cannot omit this section, without it your business plan is incomplete.
A good market analysis will tell your readers how you fit into the existing market and what makes you stand out. This section requires in-depth research, it will probably be the most time-consuming part of the business plan to write.
- Market Research
To create a compelling market analysis that will win over investors and financial institutions, you have to carry out thorough market research . Your market research should be targeted at your primary target market for your products or services. Here is what you want to find out about your target market.
- Your target market’s needs or pain points
- The existing solutions for their pain points
- Geographic Location
- Demographics
The purpose of carrying out a marketing analysis is to get all the information you need to show that you have a solid and thorough understanding of your target audience.
Only after you have fully understood the people you plan to sell your products or services to, can you evaluate correctly if your target market will be interested in your products or services.
You can easily convince interested parties to invest in your business if you can show them you thoroughly understand the market and show them that there is a market for your products or services.
How to Quantify Your Target Market
One of the goals of your marketing research is to understand who your ideal customers are and their purchasing power. To quantify your target market, you have to determine the following:
- Your Potential Customers: They are the people you plan to target. For example, if you sell accounting software for small businesses , then anyone who runs an enterprise or large business is unlikely to be your customers. Also, individuals who do not have a business will most likely not be interested in your product.
- Total Households: If you are selling household products such as heating and air conditioning systems, determining the number of total households is more important than finding out the total population in the area you want to sell to. The logic is simple, people buy the product but it is the household that uses it.
- Median Income: You need to know the median income of your target market. If you target a market that cannot afford to buy your products and services, your business will not last long.
- Income by Demographics: If your potential customers belong to a certain age group or gender, determining income levels by demographics is necessary. For example, if you sell men's clothes, your target audience is men.
What Does a Good Market Analysis Entail?
Your business does not exist on its own, it can only flourish within an industry and alongside competitors. Market analysis takes into consideration your industry, target market, and competitors. Understanding these three entities will drastically improve your company’s chances of success.
![market section of business plan Market Analysis Steps](https://www.founderjar.com/wp-content/uploads/2021/07/Market-Analysis-Steps.jpg)
You can view your market analysis as an examination of the market you want to break into and an education on the emerging trends and themes in that market. Good market analyses include the following:
- Industry Description. You find out about the history of your industry, the current and future market size, and who the largest players/companies are in your industry.
- Overview of Target Market. You research your target market and its characteristics. Who are you targeting? Note, it cannot be everyone, it has to be a specific group. You also have to find out all information possible about your customers that can help you understand how and why they make buying decisions.
- Size of Target Market: You need to know the size of your target market, how frequently they buy, and the expected quantity they buy so you do not risk overproducing and having lots of bad inventory. Researching the size of your target market will help you determine if it is big enough for sustained business or not.
- Growth Potential: Before picking a target market, you want to be sure there are lots of potential for future growth. You want to avoid going for an industry that is declining slowly or rapidly with almost zero growth potential.
- Market Share Potential: Does your business stand a good chance of taking a good share of the market?
- Market Pricing and Promotional Strategies: Your market analysis should give you an idea of the price point you can expect to charge for your products and services. Researching your target market will also give you ideas of pricing strategies you can implement to break into the market or to enjoy maximum profits.
- Potential Barriers to Entry: One of the biggest benefits of conducting market analysis is that it shows you every potential barrier to entry your business will likely encounter. It is a good idea to discuss potential barriers to entry such as changing technology. It informs readers of your business plan that you understand the market.
- Research on Competitors: You need to know the strengths and weaknesses of your competitors and how you can exploit them for the benefit of your business. Find patterns and trends among your competitors that make them successful, discover what works and what doesn’t, and see what you can do better.
The market analysis section is not just for talking about your target market, industry, and competitors. You also have to explain how your company can fill the hole you have identified in the market.
Here are some questions you can answer that can help you position your product or service in a positive light to your readers.
- Is your product or service of superior quality?
- What additional features do you offer that your competitors do not offer?
- Are you targeting a ‘new’ market?
Basically, your market analysis should include an analysis of what already exists in the market and an explanation of how your company fits into the market.
Competitive Analysis
In the competitive analysis section, y ou have to understand who your direct and indirect competitions are, and how successful they are in the marketplace. It is the section where you assess the strengths and weaknesses of your competitors, the advantage(s) they possess in the market and show the unique features or qualities that make you different from your competitors.
![market section of business plan Four Steps to Create a Competitive Marketing Analysis](https://www.founderjar.com/wp-content/uploads/2021/07/Four-Steps-to-Create-a-Competitive-Marketing-Analysis.jpg)
Many businesses do market analysis and competitive analysis together. However, to fully understand what the competitive analysis entails, it is essential to separate it from the market analysis.
Competitive analysis for your business can also include analysis on how to overcome barriers to entry in your target market.
The primary goal of conducting a competitive analysis is to distinguish your business from your competitors. A strong competitive analysis is essential if you want to convince potential funding sources to invest in your business. You have to show potential investors and lenders that your business has what it takes to compete in the marketplace successfully.
Competitive analysis will s how you what the strengths of your competition are and what they are doing to maintain that advantage.
When doing your competitive research, you first have to identify your competitor and then get all the information you can about them. The idea of spending time to identify your competitor and learn everything about them may seem daunting but it is well worth it.
Find answers to the following questions after you have identified who your competitors are.
- What are your successful competitors doing?
- Why is what they are doing working?
- Can your business do it better?
- What are the weaknesses of your successful competitors?
- What are they not doing well?
- Can your business turn its weaknesses into strengths?
- How good is your competitors’ customer service?
- Where do your competitors invest in advertising?
- What sales and pricing strategies are they using?
- What marketing strategies are they using?
- What kind of press coverage do they get?
- What are their customers saying about your competitors (both the positive and negative)?
If your competitors have a website, it is a good idea to visit their websites for more competitors’ research. Check their “About Us” page for more information.
![market section of business plan How to Perform Competitive Analysis](https://www.founderjar.com/wp-content/uploads/2021/07/How-to-Perform-Competitive-Analysis.jpg)
If you are presenting your business plan to investors, you need to clearly distinguish yourself from your competitors. Investors can easily tell when you have not properly researched your competitors.
Take time to think about what unique qualities or features set you apart from your competitors. If you do not have any direct competition offering your product to the market, it does not mean you leave out the competitor analysis section blank. Instead research on other companies that are providing a similar product, or whose product is solving the problem your product solves.
The next step is to create a table listing the top competitors you want to include in your business plan. Ensure you list your business as the last and on the right. What you just created is known as the competitor analysis table.
Direct vs Indirect Competition
You cannot know if your product or service will be a fit for your target market if you have not understood your business and the competitive landscape.
There is no market you want to target where you will not encounter competition, even if your product is innovative. Including competitive analysis in your business plan is essential.
If you are entering an established market, you need to explain how you plan to differentiate your products from the available options in the market. Also, include a list of few companies that you view as your direct competitors The competition you face in an established market is your direct competition.
In situations where you are entering a market with no direct competition, it does not mean there is no competition there. Consider your indirect competition that offers substitutes for the products or services you offer.
For example, if you sell an innovative SaaS product, let us say a project management software , a company offering time management software is your indirect competition.
There is an easy way to find out who your indirect competitors are in the absence of no direct competitors. You simply have to research how your potential customers are solving the problems that your product or service seeks to solve. That is your direct competition.
Factors that Differentiate Your Business from the Competition
There are three main factors that any business can use to differentiate itself from its competition. They are cost leadership, product differentiation, and market segmentation.
1. Cost Leadership
A strategy you can impose to maximize your profits and gain an edge over your competitors. It involves offering lower prices than what the majority of your competitors are offering.
A common practice among businesses looking to enter into a market where there are dominant players is to use free trials or pricing to attract as many customers as possible to their offer.
2. Product Differentiation
Your product or service should have a unique selling proposition (USP) that your competitors do not have or do not stress in their marketing.
Part of the marketing strategy should involve making your products unique and different from your competitors. It does not have to be different from your competitors, it can be the addition to a feature or benefit that your competitors do not currently have.
3. Market Segmentation
As a new business seeking to break into an industry, you will gain more success from focusing on a specific niche or target market, and not the whole industry.
If your competitors are focused on a general need or target market, you can differentiate yourself from them by having a small and hyper-targeted audience. For example, if your competitors are selling men’s clothes in their online stores , you can sell hoodies for men.
4. Define Your Business and Management Structure
The next step in your business plan is your business and management structure. It is the section where you describe the legal structure of your business and the team running it.
Your business is only as good as the management team that runs it, while the management team can only strive when there is a proper business and management structure in place.
If your company is a sole proprietor or a limited liability company (LLC), a general or limited partnership, or a C or an S corporation, state it clearly in this section.
Use an organizational chart to show the management structure in your business. Clearly show who is in charge of what area in your company. It is where you show how each key manager or team leader’s unique experience can contribute immensely to the success of your company. You can also opt to add the resumes and CVs of the key players in your company.
The business and management structure section should show who the owner is, and other owners of the businesses (if the business has other owners). For businesses or companies with multiple owners, include the percent ownership of the various owners and clearly show the extent of each others’ involvement in the company.
Investors want to know who is behind the company and the team running it to determine if it has the right management to achieve its set goals.
Management Team
The management team section is where you show that you have the right team in place to successfully execute the business operations and ideas. Take time to create the management structure for your business. Think about all the important roles and responsibilities that you need managers for to grow your business.
Include brief bios of each key team member and ensure you highlight only the relevant information that is needed. If your team members have background industry experience or have held top positions for other companies and achieved success while filling that role, highlight it in this section.
![market section of business plan Create Management Team For Business Plan](https://www.founderjar.com/wp-content/uploads/2021/07/Create-Management-Team-For-Business-Plan.jpg)
A common mistake that many startups make is assigning C-level titles such as (CMO and CEO) to everyone on their team. It is unrealistic for a small business to have those titles. While it may look good on paper for the ego of your team members, it can prevent investors from investing in your business.
Instead of building an unrealistic management structure that does not fit your business reality, it is best to allow business titles to grow as the business grows. Starting everyone at the top leaves no room for future change or growth, which is bad for productivity.
Your management team does not have to be complete before you start writing your business plan. You can have a complete business plan even when there are managerial positions that are empty and need filling.
If you have management gaps in your team, simply show the gaps and indicate you are searching for the right candidates for the role(s). Investors do not expect you to have a full management team when you are just starting your business.
Key Questions to Answer When Structuring Your Management Team
- Who are the key leaders?
- What experiences, skills, and educational backgrounds do you expect your key leaders to have?
- Do your key leaders have industry experience?
- What positions will they fill and what duties will they perform in those positions?
- What level of authority do the key leaders have and what are their responsibilities?
- What is the salary for the various management positions that will attract the ideal candidates?
Additional Tips for Writing the Management Structure Section
1. Avoid Adding ‘Ghost’ Names to Your Management Team
There is always that temptation to include a ‘ghost’ name to your management team to attract and influence investors to invest in your business. Although the presence of these celebrity management team members may attract the attention of investors, it can cause your business to lose any credibility if you get found out.
Seasoned investors will investigate further the members of your management team before committing fully to your business If they find out that the celebrity name used does not play any actual role in your business, they will not invest and may write you off as dishonest.
2. Focus on Credentials But Pay Extra Attention to the Roles
Investors want to know the experience that your key team members have to determine if they can successfully reach the company’s growth and financial goals.
While it is an excellent boost for your key management team to have the right credentials, you also want to pay extra attention to the roles they will play in your company.
Organizational Chart
![market section of business plan Organizational chart Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/An-organizational-chart-helps-to-identify-how-best-to-structure-your-management-team.jpg)
Adding an organizational chart in this section of your business plan is not necessary, you can do it in your business plan’s appendix.
If you are exploring funding options, it is not uncommon to get asked for your organizational chart. The function of an organizational chart goes beyond raising money, you can also use it as a useful planning tool for your business.
An organizational chart can help you identify how best to structure your management team for maximum productivity and point you towards key roles you need to fill in the future.
You can use the organizational chart to show your company’s internal management structure such as the roles and responsibilities of your management team, and relationships that exist between them.
5. Describe Your Product and Service Offering
In your business plan, you have to describe what you sell or the service you plan to offer. It is the next step after defining your business and management structure. The products and services section is where you sell the benefits of your business.
Here you have to explain how your product or service will benefit your customers and describe your product lifecycle. It is also the section where you write down your plans for intellectual property like patent filings and copyrighting.
The research and development that you are undertaking for your product or service need to be explained in detail in this section. However, do not get too technical, sell the general idea and its benefits.
If you have any diagrams or intricate designs of your product or service, do not include them in the products and services section. Instead, leave them for the addendum page. Also, if you are leaving out diagrams or designs for the addendum, ensure you add this phrase “For more detail, visit the addendum Page #.”
Your product and service section in your business plan should include the following:
- A detailed explanation that clearly shows how your product or service works.
- The pricing model for your product or service.
- Your business’ sales and distribution strategy.
- The ideal customers that want your product or service.
- The benefits of your products and services.
- Reason(s) why your product or service is a better alternative to what your competitors are currently offering in the market.
- Plans for filling the orders you receive
- If you have current or pending patents, copyrights, and trademarks for your product or service, you can also discuss them in this section.
What to Focus On When Describing the Benefits, Lifecycle, and Production Process of Your Products or Services
In the products and services section, you have to distill the benefits, lifecycle, and production process of your products and services.
When describing the benefits of your products or services, here are some key factors to focus on.
- Unique features
- Translating the unique features into benefits
- The emotional, psychological, and practical payoffs to attract customers
- Intellectual property rights or any patents
When describing the product life cycle of your products or services, here are some key factors to focus on.
- Upsells, cross-sells, and down-sells
- Time between purchases
- Plans for research and development.
When describing the production process for your products or services, you need to think about the following:
- The creation of new or existing products and services.
- The sources for the raw materials or components you need for production.
- Assembling the products
- Maintaining quality control
- Supply-chain logistics (receiving the raw materials and delivering the finished products)
- The day-to-day management of the production processes, bookkeeping, and inventory.
Tips for Writing the Products or Services Section of Your Business Plan
1. Avoid Technical Descriptions and Industry Buzzwords
The products and services section of your business plan should clearly describe the products and services that your company provides. However, it is not a section to include technical jargons that anyone outside your industry will not understand.
A good practice is to remove highly detailed or technical descriptions in favor of simple terms. Industry buzzwords are not necessary, if there are simpler terms you can use, then use them. If you plan to use your business plan to source funds, making the product or service section so technical will do you no favors.
2. Describe How Your Products or Services Differ from Your Competitors
When potential investors look at your business plan, they want to know how the products and services you are offering differ from that of your competition. Differentiating your products or services from your competition in a way that makes your solution more attractive is critical.
If you are going the innovative path and there is no market currently for your product or service, you need to describe in this section why the market needs your product or service.
For example, overnight delivery was a niche business that only a few companies were participating in. Federal Express (FedEx) had to show in its business plan that there was a large opportunity for that service and they justified why the market needed that service.
3. Long or Short Products or Services Section
Should your products or services section be short? Does the long products or services section attract more investors?
There are no straightforward answers to these questions. Whether your products or services section should be long or relatively short depends on the nature of your business.
If your business is product-focused, then automatically you need to use more space to describe the details of your products. However, if the product your business sells is a commodity item that relies on competitive pricing or other pricing strategies, you do not have to use up so much space to provide significant details about the product.
Likewise, if you are selling a commodity that is available in numerous outlets, then you do not have to spend time on writing a long products or services section.
The key to the success of your business is most likely the effectiveness of your marketing strategies compared to your competitors. Use more space to address that section.
If you are creating a new product or service that the market does not know about, your products or services section can be lengthy. The reason why is because you need to explain everything about the product or service such as the nature of the product, its use case, and values.
A short products or services section for an innovative product or service will not give the readers enough information to properly evaluate your business.
4. Describe Your Relationships with Vendors or Suppliers
Your business will rely on vendors or suppliers to supply raw materials or the components needed to make your products. In your products and services section, describe your relationships with your vendors and suppliers fully.
Avoid the mistake of relying on only one supplier or vendor. If that supplier or vendor fails to supply or goes out of business, you can easily face supply problems and struggle to meet your demands. Plan to set up multiple vendor or supplier relationships for better business stability.
5. Your Primary Goal Is to Convince Your Readers
The primary goal of your business plan is to convince your readers that your business is viable and to create a guide for your business to follow. It applies to the products and services section.
When drafting this section, think like the reader. See your reader as someone who has no idea about your products and services. You are using the products and services section to provide the needed information to help your reader understand your products and services. As a result, you have to be clear and to the point.
While you want to educate your readers about your products or services, you also do not want to bore them with lots of technical details. Show your products and services and not your fancy choice of words.
Your products and services section should provide the answer to the “what” question for your business. You and your management team may run the business, but it is your products and services that are the lifeblood of the business.
Key Questions to Answer When Writing your Products and Services Section
Answering these questions can help you write your products and services section quickly and in a way that will appeal to your readers.
- Are your products existing on the market or are they still in the development stage?
- What is your timeline for adding new products and services to the market?
- What are the positives that make your products and services different from your competitors?
- Do your products and services have any competitive advantage that your competitors’ products and services do not currently have?
- Do your products or services have any competitive disadvantages that you need to overcome to compete with your competitors? If your answer is yes, state how you plan to overcome them,
- How much does it cost to produce your products or services? How much do you plan to sell it for?
- What is the price for your products and services compared to your competitors? Is pricing an issue?
- What are your operating costs and will it be low enough for you to compete with your competitors and still take home a reasonable profit margin?
- What is your plan for acquiring your products? Are you involved in the production of your products or services?
- Are you the manufacturer and produce all the components you need to create your products? Do you assemble your products by using components supplied by other manufacturers? Do you purchase your products directly from suppliers or wholesalers?
- Do you have a steady supply of products that you need to start your business? (If your business is yet to kick-off)
- How do you plan to distribute your products or services to the market?
You can also hint at the marketing or promotion plans you have for your products or services such as how you plan to build awareness or retain customers. The next section is where you can go fully into details about your business’s marketing and sales plan.
6. Show and Explain Your Marketing and Sales Plan
Providing great products and services is wonderful, but it means nothing if you do not have a marketing and sales plan to inform your customers about them. Your marketing and sales plan is critical to the success of your business.
The sales and marketing section is where you show and offer a detailed explanation of your marketing and sales plan and how you plan to execute it. It covers your pricing plan, proposed advertising and promotion activities, activities and partnerships you need to make your business a success, and the benefits of your products and services.
There are several ways you can approach your marketing and sales strategy. Ideally, your marketing and sales strategy has to fit the unique needs of your business.
In this section, you describe how the plans your business has for attracting and retaining customers, and the exact process for making a sale happen. It is essential to thoroughly describe your complete marketing and sales plans because you are still going to reference this section when you are making financial projections for your business.
Outline Your Business’ Unique Selling Proposition (USP)
![market section of business plan Unique Selling Proposition (USP)](https://www.founderjar.com/wp-content/uploads/2021/07/Unique-Selling-Proposition-USP.jpg)
The sales and marketing section is where you outline your business’s unique selling proposition (USP). When you are developing your unique selling proposition, think about the strongest reasons why people should buy from you over your competition. That reason(s) is most likely a good fit to serve as your unique selling proposition (USP).
Target Market and Target Audience
Plans on how to get your products or services to your target market and how to get your target audience to buy them go into this section. You also highlight the strengths of your business here, particularly what sets them apart from your competition.
![market section of business plan Target Market Vs Target Audience](https://www.founderjar.com/wp-content/uploads/2021/07/Target-Market-Vs-Target-Audience.jpg)
Before you start writing your marketing and sales plan, you need to have properly defined your target audience and fleshed out your buyer persona. If you do not first understand the individual you are marketing to, your marketing and sales plan will lack any substance and easily fall.
Creating a Smart Marketing and Sales Plan
Marketing your products and services is an investment that requires you to spend money. Like any other investment, you have to generate a good return on investment (ROI) to justify using that marketing and sales plan. Good marketing and sales plans bring in high sales and profits to your company.
Avoid spending money on unproductive marketing channels. Do your research and find out the best marketing and sales plan that works best for your company.
Your marketing and sales plan can be broken into different parts: your positioning statement, pricing, promotion, packaging, advertising, public relations, content marketing, social media, and strategic alliances.
Your Positioning Statement
Your positioning statement is the first part of your marketing and sales plan. It refers to the way you present your company to your customers.
Are you the premium solution, the low-price solution, or are you the intermediary between the two extremes in the market? What do you offer that your competitors do not that can give you leverage in the market?
Before you start writing your positioning statement, you need to spend some time evaluating the current market conditions. Here are some questions that can help you to evaluate the market
- What are the unique features or benefits that you offer that your competitors lack?
- What are your customers’ primary needs and wants?
- Why should a customer choose you over your competition? How do you plan to differentiate yourself from the competition?
- How does your company’s solution compare with other solutions in the market?
After answering these questions, then you can start writing your positioning statement. Your positioning statement does not have to be in-depth or too long.
All you need to explain with your positioning statement are two focus areas. The first is the position of your company within the competitive landscape. The other focus area is the core value proposition that sets your company apart from other alternatives that your ideal customer might consider.
Here is a simple template you can use to develop a positioning statement.
For [description of target market] who [need of target market], [product or service] [how it meets the need]. Unlike [top competition], it [most essential distinguishing feature].
For example, let’s create the positioning statement for fictional accounting software and QuickBooks alternative , TBooks.
“For small business owners who need accounting services, TBooks is an accounting software that helps small businesses handle their small business bookkeeping basics quickly and easily. Unlike Wave, TBooks gives small businesses access to live sessions with top accountants.”
You can edit this positioning statement sample and fill it with your business details.
After writing your positioning statement, the next step is the pricing of your offerings. The overall positioning strategy you set in your positioning statement will often determine how you price your products or services.
Pricing is a powerful tool that sends a strong message to your customers. Failure to get your pricing strategy right can make or mar your business. If you are targeting a low-income audience, setting a premium price can result in low sales.
You can use pricing to communicate your positioning to your customers. For example, if you are offering a product at a premium price, you are sending a message to your customers that the product belongs to the premium category.
Basic Rules to Follow When Pricing Your Offering
Setting a price for your offering involves more than just putting a price tag on it. Deciding on the right pricing for your offering requires following some basic rules. They include covering your costs, primary and secondary profit center pricing, and matching the market rate.
- Covering Your Costs: The price you set for your products or service should be more than it costs you to produce and deliver them. Every business has the same goal, to make a profit. Depending on the strategy you want to use, there are exceptions to this rule. However, the vast majority of businesses follow this rule.
- Primary and Secondary Profit Center Pricing: When a company sets its price above the cost of production, it is making that product its primary profit center. A company can also decide not to make its initial price its primary profit center by selling below or at even with its production cost. It rather depends on the support product or even maintenance that is associated with the initial purchase to make its profit. The initial price thus became its secondary profit center.
- Matching the Market Rate: A good rule to follow when pricing your products or services is to match your pricing with consumer demand and expectations. If you price your products or services beyond the price your customer perceives as the ideal price range, you may end up with no customers. Pricing your products too low below what your customer perceives as the ideal price range may lead to them undervaluing your offering.
Pricing Strategy
Your pricing strategy influences the price of your offering. There are several pricing strategies available for you to choose from when examining the right pricing strategy for your business. They include cost-plus pricing, market-based pricing, value pricing, and more.
![market section of business plan Pricing strategy influences the price of offering](https://www.founderjar.com/wp-content/uploads/2021/07/Pricing-strategy-influences-the-price-of-offering.jpg)
- Cost-plus Pricing: This strategy is one of the simplest and oldest pricing strategies. Here you consider the cost of producing a unit of your product and then add a profit to it to arrive at your market price. It is an effective pricing strategy for manufacturers because it helps them cover their initial costs. Another name for the cost-plus pricing strategy is the markup pricing strategy.
- Market-based Pricing: This pricing strategy analyses the market including competitors’ pricing and then sets a price based on what the market is expecting. With this pricing strategy, you can either set your price at the low-end or high-end of the market.
- Value Pricing: This pricing strategy involves setting a price based on the value you are providing to your customer. When adopting a value-based pricing strategy, you have to set a price that your customers are willing to pay. Service-based businesses such as small business insurance providers , luxury goods sellers, and the fashion industry use this pricing strategy.
After carefully sorting out your positioning statement and pricing, the next item to look at is your promotional strategy. Your promotional strategy explains how you plan on communicating with your customers and prospects.
As a business, you must measure all your costs, including the cost of your promotions. You also want to measure how much sales your promotions bring for your business to determine its usefulness. Promotional strategies or programs that do not lead to profit need to be removed.
There are different types of promotional strategies you can adopt for your business, they include advertising, public relations, and content marketing.
Advertising
Your business plan should include your advertising plan which can be found in the marketing and sales plan section. You need to include an overview of your advertising plans such as the areas you plan to spend money on to advertise your business and offers.
Ensure that you make it clear in this section if your business will be advertising online or using the more traditional offline media, or the combination of both online and offline media. You can also include the advertising medium you want to use to raise awareness about your business and offers.
Some common online advertising mediums you can use include social media ads, landing pages, sales pages, SEO, Pay-Per-Click, emails, Google Ads, and others. Some common traditional and offline advertising mediums include word of mouth, radios, direct mail, televisions, flyers, billboards, posters, and others.
A key component of your advertising strategy is how you plan to measure the effectiveness and success of your advertising campaign. There is no point in sticking with an advertising plan or medium that does not produce results for your business in the long run.
Public Relations
A great way to reach your customers is to get the media to cover your business or product. Publicity, especially good ones, should be a part of your marketing and sales plan. In this section, show your plans for getting prominent reviews of your product from reputable publications and sources.
Your business needs that exposure to grow. If public relations is a crucial part of your promotional strategy, provide details about your public relations plan here.
Content Marketing
Content marketing is a popular promotional strategy used by businesses to inform and attract their customers. It is about teaching and educating your prospects on various topics of interest in your niche, it does not just involve informing them about the benefits and features of the products and services you have,
![market section of business plan The Benefits of Content Marketing](https://www.founderjar.com/wp-content/uploads/2021/07/The-Benefits-of-Content-Marketing.jpg)
Businesses publish content usually for free where they provide useful information, tips, and advice so that their target market can be made aware of the importance of their products and services. Content marketing strategies seek to nurture prospects into buyers over time by simply providing value.
Your company can create a blog where it will be publishing content for its target market. You will need to use the best website builder such as Wix and Squarespace and the best web hosting services such as Bluehost, Hostinger, and other Bluehost alternatives to create a functional blog or website.
If content marketing is a crucial part of your promotional strategy (as it should be), detail your plans under promotions.
Including high-quality images of the packaging of your product in your business plan is a lovely idea. You can add the images of the packaging of that product in the marketing and sales plan section. If you are not selling a product, then you do not need to include any worry about the physical packaging of your product.
When organizing the packaging section of your business plan, you can answer the following questions to make maximum use of this section.
- Is your choice of packaging consistent with your positioning strategy?
- What key value proposition does your packaging communicate? (It should reflect the key value proposition of your business)
- How does your packaging compare to that of your competitors?
Social Media
Your 21st-century business needs to have a good social media presence. Not having one is leaving out opportunities for growth and reaching out to your prospect.
You do not have to join the thousands of social media platforms out there. What you need to do is join the ones that your customers are active on and be active there.
![market section of business plan Most popular social media platforms](https://www.founderjar.com/wp-content/uploads/2021/07/Most-popular-social-media-platforms.jpg)
Businesses use social media to provide information about their products such as promotions, discounts, the benefits of their products, and content on their blogs.
Social media is also a platform for engaging with your customers and getting feedback about your products or services. Make no mistake, more and more of your prospects are using social media channels to find more information about companies.
You need to consider the social media channels you want to prioritize your business (prioritize the ones your customers are active in) and your branding plans in this section.
![market section of business plan Choosing the right social media platform](https://www.founderjar.com/wp-content/uploads/2021/07/Choosing-the-right-social-media-platform.jpg)
Strategic Alliances
If your company plans to work closely with other companies as part of your sales and marketing plan, include it in this section. Prove details about those partnerships in your business plan if you have already established them.
Strategic alliances can be beneficial for all parties involved including your company. Working closely with another company in the form of a partnership can provide access to a different target market segment for your company.
The company you are partnering with may also gain access to your target market or simply offer a new product or service (that of your company) to its customers.
Mutually beneficial partnerships can cover the weaknesses of one company with the strength of another. You should consider strategic alliances with companies that sell complimentary products to yours. For example, if you provide printers, you can partner with a company that produces ink since the customers that buy printers from you will also need inks for printing.
Steps Involved in Creating a Marketing and Sales Plan
1. Focus on Your Target Market
Identify who your customers are, the market you want to target. Then determine the best ways to get your products or services to your potential customers.
2. Evaluate Your Competition
One of the goals of having a marketing plan is to distinguish yourself from your competition. You cannot stand out from them without first knowing them in and out.
You can know your competitors by gathering information about their products, pricing, service, and advertising campaigns.
These questions can help you know your competition.
- What makes your competition successful?
- What are their weaknesses?
- What are customers saying about your competition?
3. Consider Your Brand
Customers' perception of your brand has a strong impact on your sales. Your marketing and sales plan should seek to bolster the image of your brand. Before you start marketing your business, think about the message you want to pass across about your business and your products and services.
4. Focus on Benefits
The majority of your customers do not view your product in terms of features, what they want to know is the benefits and solutions your product offers. Think about the problems your product solves and the benefits it delivers, and use it to create the right sales and marketing message.
Your marketing plan should focus on what you want your customer to get instead of what you provide. Identify those benefits in your marketing and sales plan.
5. Focus on Differentiation
Your marketing and sales plan should look for a unique angle they can take that differentiates your business from the competition, even if the products offered are similar. Some good areas of differentiation you can use are your benefits, pricing, and features.
Key Questions to Answer When Writing Your Marketing and Sales Plan
- What is your company’s budget for sales and marketing campaigns?
- What key metrics will you use to determine if your marketing plans are successful?
- What are your alternatives if your initial marketing efforts do not succeed?
- Who are the sales representatives you need to promote your products or services?
- What are the marketing and sales channels you plan to use? How do you plan to get your products in front of your ideal customers?
- Where will you sell your products?
You may want to include samples of marketing materials you plan to use such as print ads, website descriptions, and social media ads. While it is not compulsory to include these samples, it can help you better communicate your marketing and sales plan and objectives.
The purpose of the marketing and sales section is to answer this question “How will you reach your customers?” If you cannot convincingly provide an answer to this question, you need to rework your marketing and sales section.
7. Clearly Show Your Funding Request
If you are writing your business plan to ask for funding from investors or financial institutions, the funding request section is where you will outline your funding requirements. The funding request section should answer the question ‘How much money will your business need in the near future (3 to 5 years)?’
A good funding request section will clearly outline and explain the amount of funding your business needs over the next five years. You need to know the amount of money your business needs to make an accurate funding request.
Also, when writing your funding request, provide details of how the funds will be used over the period. Specify if you want to use the funds to buy raw materials or machinery, pay salaries, pay for advertisements, and cover specific bills such as rent and electricity.
In addition to explaining what you want to use the funds requested for, you need to clearly state the projected return on investment (ROI) . Investors and creditors want to know if your business can generate profit for them if they put funds into it.
Ensure you do not inflate the figures and stay as realistic as possible. Investors and financial institutions you are seeking funds from will do their research before investing money in your business.
If you are not sure of an exact number to request from, you can use some range of numbers as rough estimates. Add a best-case scenario and a work-case scenario to your funding request. Also, include a description of your strategic future financial plans such as selling your business or paying off debts.
Funding Request: Debt or Equity?
When making your funding request, specify the type of funding you want. Do you want debt or equity? Draw out the terms that will be applicable for the funding, and the length of time the funding request will cover.
Case for Equity
If your new business has not yet started generating profits, you are most likely preparing to sell equity in your business to raise capital at the early stage. Equity here refers to ownership. In this case, you are selling a portion of your company to raise capital.
Although this method of raising capital for your business does not put your business in debt, keep in mind that an equity owner may expect to play a key role in company decisions even if he does not hold a major stake in the company.
Most equity sales for startups are usually private transactions . If you are making a funding request by offering equity in exchange for funding, let the investor know that they will be paid a dividend (a share of the company’s profit). Also, let the investor know the process for selling their equity in your business.
Case for Debt
You may decide not to offer equity in exchange for funds, instead, you make a funding request with the promise to pay back the money borrowed at the agreed time frame.
When making a funding request with an agreement to pay back, note that you will have to repay your creditors both the principal amount borrowed and the interest on it. Financial institutions offer this type of funding for businesses.
Large companies combine both equity and debt in their capital structure. When drafting your business plan, decide if you want to offer both or one over the other.
Before you sell equity in exchange for funding in your business, consider if you are willing to accept not being in total control of your business. Also, before you seek loans in your funding request section, ensure that the terms of repayment are favorable.
You should set a clear timeline in your funding request so that potential investors and creditors can know what you are expecting. Some investors and creditors may agree to your funding request and then delay payment for longer than 30 days, meanwhile, your business needs an immediate cash injection to operate efficiently.
Additional Tips for Writing the Funding Request Section of your Business Plan
The funding request section is not necessary for every business, it is only needed by businesses who plan to use their business plan to secure funding.
If you are adding the funding request section to your business plan, provide an itemized summary of how you plan to use the funds requested. Hiring a lawyer, accountant, or other professionals may be necessary for the proper development of this section.
You should also gather and use financial statements that add credibility and support to your funding requests. Ensure that the financial statements you use should include your projected financial data such as projected cash flows, forecast statements, and expenditure budgets.
If you are an existing business, include all historical financial statements such as cash flow statements, balance sheets and income statements .
Provide monthly and quarterly financial statements for a year. If your business has records that date back beyond the one-year mark, add the yearly statements of those years. These documents are for the appendix section of your business plan.
8. Detail Your Financial Plan, Metrics, and Projections
If you used the funding request section in your business plan, supplement it with a financial plan, metrics, and projections. This section paints a picture of the past performance of your business and then goes ahead to make an informed projection about its future.
The goal of this section is to convince readers that your business is going to be a financial success. It outlines your business plan to generate enough profit to repay the loan (with interest if applicable) and to generate a decent return on investment for investors.
If you have an existing business already in operation, use this section to demonstrate stability through finance. This section should include your cash flow statements, balance sheets, and income statements covering the last three to five years. If your business has some acceptable collateral that you can use to acquire loans, list it in the financial plan, metrics, and projection section.
Apart from current financial statements, this section should also contain a prospective financial outlook that spans the next five years. Include forecasted income statements, cash flow statements, balance sheets, and capital expenditure budget.
If your business is new and is not yet generating profit, use clear and realistic projections to show the potentials of your business.
When drafting this section, research industry norms and the performance of comparable businesses. Your financial projections should cover at least five years. State the logic behind your financial projections. Remember you can always make adjustments to this section as the variables change.
The financial plan, metrics, and projection section create a baseline which your business can either exceed or fail to reach. If your business fails to reach your projections in this section, you need to understand why it failed.
Investors and loan managers spend a lot of time going through the financial plan, metrics, and projection section compared to other parts of the business plan. Ensure you spend time creating credible financial analyses for your business in this section.
Many entrepreneurs find this section daunting to write. You do not need a business degree to create a solid financial forecast for your business. Business finances, especially for startups, are not as complicated as they seem. There are several online tools and templates that make writing this section so much easier.
Use Graphs and Charts
The financial plan, metrics, and projection section is a great place to use graphs and charts to tell the financial story of your business. Charts and images make it easier to communicate your finances.
Accuracy in this section is key, ensure you carefully analyze your past financial statements properly before making financial projects.
Address the Risk Factors and Show Realistic Financial Projections
Keep your financial plan, metrics, and projection realistic. It is okay to be optimistic in your financial projection, however, you have to justify it.
You should also address the various risk factors associated with your business in this section. Investors want to know the potential risks involved, show them. You should also show your plans for mitigating those risks.
What You Should In The Financial Plan, Metrics, and Projection Section of Your Business Plan
The financial plan, metrics, and projection section of your business plan should have monthly sales and revenue forecasts for the first year. It should also include annual projections that cover 3 to 5 years.
A three-year projection is a basic requirement to have in your business plan. However, some investors may request a five-year forecast.
Your business plan should include the following financial statements: sales forecast, personnel plan, income statement, income statement, cash flow statement, balance sheet, and an exit strategy.
1. Sales Forecast
Sales forecast refers to your projections about the number of sales your business is going to record over the next few years. It is typically broken into several rows, with each row assigned to a core product or service that your business is offering.
One common mistake people make in their business plan is to break down the sales forecast section into long details. A sales forecast should forecast the high-level details.
For example, if you are forecasting sales for a payroll software provider, you could break down your forecast into target market segments or subscription categories.
![market section of business plan Benefits of Sales Forecasting](https://www.founderjar.com/wp-content/uploads/2021/07/Benefits-of-Sales-Forecasting.jpg)
Your sales forecast section should also have a corresponding row for each sales row to cover the direct cost or Cost of Goods Sold (COGS). The objective of these rows is to show the expenses that your business incurs in making and delivering your product or service.
Note that your Cost of Goods Sold (COGS) should only cover those direct costs incurred when making your products. Other indirect expenses such as insurance, salaries, payroll tax, and rent should not be included.
For example, the Cost of Goods Sold (COGS) for a restaurant is the cost of ingredients while for a consulting company it will be the cost of paper and other presentation materials.
![market section of business plan Factors that affect sales forecasting](https://www.founderjar.com/wp-content/uploads/2021/07/Factors-that-affect-sales-forecasting.jpg)
2. Personnel Plan
The personnel plan section is where you provide details about the payment plan for your employees. For a small business, you can easily list every position in your company and how much you plan to pay in the personnel plan.
However, for larger businesses, you have to break the personnel plan into functional groups such as sales and marketing.
The personnel plan will also include the cost of an employee beyond salary, commonly referred to as the employee burden. These costs include insurance, payroll taxes , and other essential costs incurred monthly as a result of having employees on your payroll.
![market section of business plan True HR Cost Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/True-HR-Cost.jpg)
3. Income Statement
The income statement section shows if your business is making a profit or taking a loss. Another name for the income statement is the profit and loss (P&L). It takes data from your sales forecast and personnel plan and adds other ongoing expenses you incur while running your business.
![market section of business plan The income statement section](https://www.founderjar.com/wp-content/uploads/2021/07/The-income-statement-section.jpg)
Every business plan should have an income statement. It subtracts your business expenses from its earnings to show if your business is generating profit or incurring losses.
The income statement has the following items: sales, Cost of Goods Sold (COGS), gross margin, operating expenses, total operating expenses, operating income , total expenses, and net profit.
- Sales refer to the revenue your business generates from selling its products or services. Other names for sales are income or revenue.
- Cost of Goods Sold (COGS) refers to the total cost of selling your products. Other names for COGS are direct costs or cost of sales. Manufacturing businesses use the Costs of Goods Manufactured (COGM) .
- Gross Margin is the figure you get when you subtract your COGS from your sales. In your income statement, you can express it as a percentage of total sales (Gross margin / Sales = Gross Margin Percent).
- Operating Expenses refer to all the expenses you incur from running your business. It exempts the COGS because it stands alone as a core part of your income statement. You also have to exclude taxes, depreciation, and amortization. Your operating expenses include salaries, marketing expenses, research and development (R&D) expenses, and other expenses.
- Total Operating Expenses refers to the sum of all your operating expenses including those exemptions named above under operating expenses.
- Operating Income refers to earnings before interest, taxes, depreciation, and amortization. It is simply known as the acronym EBITDA (earnings before interest, taxes, depreciation, and amortization). Calculating your operating income is simple, all you need to do is to subtract your COGS and total operating expenses from your sales.
- Total Expenses refer to the sum of your operating expenses and your business’ interest, taxes, depreciation, and amortization.
- Net profit shows whether your business has made a profit or taken a loss during a given timeframe.
4. Cash Flow Statement
The cash flow statement tracks the money you have in the bank at any given point. It is often confused with the income statement or the profit and loss statement. They are both different types of financial statements. The income statement calculates your profits and losses while the cash flow statement shows you how much you have in the bank.
![market section of business plan Cash Flow Statement Example](https://www.founderjar.com/wp-content/uploads/2021/07/Cash-Flow-Statement-Example.jpg)
5. Balance Sheet
The balance sheet is a financial statement that provides an overview of the financial health of your business. It contains information about the assets and liabilities of your company, and owner’s or shareholders’ equity.
You can get the net worth of your company by subtracting your company’s liabilities from its assets.
![market section of business plan Balance sheet Formula](https://www.founderjar.com/wp-content/uploads/2021/07/Balance-sheet-Formula.jpg)
6. Exit Strategy
The exit strategy refers to a probable plan for selling your business either to the public in an IPO or to another company. It is the last thing you include in the financial plan, metrics, and projection section.
You can choose to omit the exit strategy from your business plan if you plan to maintain full ownership of your business and do not plan on seeking angel investment or virtual capitalist (VC) funding.
Investors may want to know what your exit plan is. They invest in your business to get a good return on investment.
Your exit strategy does not have to include long and boring details. Ensure you identify some interested parties who may be interested in buying the company if it becomes a success.
![market section of business plan Exit Strategy Section of Business Plan Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/Exit-Strategy-Section-of-Business-Plan-Infographic.jpg)
Key Questions to Answer with Your Financial Plan, Metrics, and Projection
Your financial plan, metrics, and projection section helps investors, creditors, or your internal managers to understand what your expenses are, the amount of cash you need, and what it takes to make your company profitable. It also shows what you will be doing with any funding.
You do not need to show actual financial data if you do not have one. Adding forecasts and projections to your financial statements is added proof that your strategy is feasible and shows investors you have planned properly.
Here are some key questions to answer to help you develop this section.
- What is your sales forecast for the next year?
- When will your company achieve a positive cash flow?
- What are the core expenses you need to operate?
- How much money do you need upfront to operate or grow your company?
- How will you use the loans or investments?
9. Add an Appendix to Your Business Plan
Adding an appendix to your business plan is optional. It is a useful place to put any charts, tables, legal notes, definitions, permits, résumés, and other critical information that do not fit into other sections of your business plan.
The appendix section is where you would want to include details of a patent or patent-pending if you have one. You can always add illustrations or images of your products here. It is the last section of your business plan.
When writing your business plan, there are details you cut short or remove to prevent the entire section from becoming too lengthy. There are also details you want to include in the business plan but are not a good fit for any of the previous sections. You can add that additional information to the appendix section.
Businesses also use the appendix section to include supporting documents or other materials specially requested by investors or lenders.
You can include just about any information that supports the assumptions and statements you made in the business plan under the appendix. It is the one place in the business plan where unrelated data and information can coexist amicably.
If your appendix section is lengthy, try organizing it by adding a table of contents at the beginning of the appendix section. It is also advisable to group similar information to make it easier for the reader to access them.
A well-organized appendix section makes it easier to share your information clearly and concisely. Add footnotes throughout the rest of the business plan or make references in the plan to the documents in the appendix.
The appendix section is usually only necessary if you are seeking funding from investors or lenders, or hoping to attract partners.
People reading business plans do not want to spend time going through a heap of backup information, numbers, and charts. Keep these documents or information in the Appendix section in case the reader wants to dig deeper.
Common Items to Include in the Appendix Section of Your Business Plan
The appendix section includes documents that supplement or support the information or claims given in other sections of the business plans. Common items you can include in the appendix section include:
- Additional data about the process of manufacturing or creation
- Additional description of products or services such as product schematics
- Additional financial documents or projections
- Articles of incorporation and status
- Backup for market research or competitive analysis
- Bank statements
- Business registries
- Client testimonials (if your business is already running)
- Copies of insurances
- Credit histories (personal or/and business)
- Deeds and permits
- Equipment leases
- Examples of marketing and advertising collateral
- Industry associations and memberships
- Images of product
- Intellectual property
- Key customer contracts
- Legal documents and other contracts
- Letters of reference
- Links to references
- Market research data
- Organizational charts
- Photographs of potential facilities
- Professional licenses pertaining to your legal structure or type of business
- Purchase orders
- Resumes of the founder(s) and key managers
- State and federal identification numbers or codes
- Trademarks or patents’ registrations
Avoid using the appendix section as a place to dump any document or information you feel like adding. Only add documents or information that you support or increase the credibility of your business plan.
Tips and Strategies for Writing a Convincing Business Plan
To achieve a perfect business plan, you need to consider some key tips and strategies. These tips will raise the efficiency of your business plan above average.
1. Know Your Audience
When writing a business plan, you need to know your audience . Business owners write business plans for different reasons. Your business plan has to be specific. For example, you can write business plans to potential investors, banks, and even fellow board members of the company.
The audience you are writing to determines the structure of the business plan. As a business owner, you have to know your audience. Not everyone will be your audience. Knowing your audience will help you to narrow the scope of your business plan.
Consider what your audience wants to see in your projects, the likely questions they might ask, and what interests them.
- A business plan used to address a company's board members will center on its employment schemes, internal affairs, projects, stakeholders, etc.
- A business plan for financial institutions will talk about the size of your market and the chances for you to pay back any loans you demand.
- A business plan for investors will show proof that you can return the investment capital within a specific time. In addition, it discusses your financial projections, tractions, and market size.
2. Get Inspiration from People
Writing a business plan from scratch as an entrepreneur can be daunting. That is why you need the right inspiration to push you to write one. You can gain inspiration from the successful business plans of other businesses. Look at their business plans, the style they use, the structure of the project, etc.
To make your business plan easier to create, search companies related to your business to get an exact copy of what you need to create an effective business plan. You can also make references while citing examples in your business plans.
When drafting your business plan, get as much help from others as you possibly can. By getting inspiration from people, you can create something better than what they have.
3. Avoid Being Over Optimistic
Many business owners make use of strong adjectives to qualify their content. One of the big mistakes entrepreneurs make when preparing a business plan is promising too much.
The use of superlatives and over-optimistic claims can prepare the audience for more than you can offer. In the end, you disappoint the confidence they have in you.
In most cases, the best option is to be realistic with your claims and statistics. Most of the investors can sense a bit of incompetency from the overuse of superlatives. As a new entrepreneur, do not be tempted to over-promise to get the interests of investors.
The concept of entrepreneurship centers on risks, nothing is certain when you make future analyses. What separates the best is the ability to do careful research and work towards achieving that, not promising more than you can achieve.
To make an excellent first impression as an entrepreneur, replace superlatives with compelling data-driven content. In this way, you are more specific than someone promising a huge ROI from an investment.
4. Keep it Simple and Short
When writing business plans, ensure you keep them simple throughout. Irrespective of the purpose of the business plan, your goal is to convince the audience.
One way to achieve this goal is to make them understand your proposal. Therefore, it would be best if you avoid the use of complex grammar to express yourself. It would be a huge turn-off if the people you want to convince are not familiar with your use of words.
Another thing to note is the length of your business plan. It would be best if you made it as brief as possible.
You hardly see investors or agencies that read through an extremely long document. In that case, if your first few pages can’t convince them, then you have lost it. The more pages you write, the higher the chances of you derailing from the essential contents.
To ensure your business plan has a high conversion rate, you need to dispose of every unnecessary information. For example, if you have a strategy that you are not sure of, it would be best to leave it out of the plan.
5. Make an Outline and Follow Through
A perfect business plan must have touched every part needed to convince the audience. Business owners get easily tempted to concentrate more on their products than on other sections. Doing this can be detrimental to the efficiency of the business plan.
For example, imagine you talking about a product but omitting or providing very little information about the target audience. You will leave your clients confused.
To ensure that your business plan communicates your full business model to readers, you have to input all the necessary information in it. One of the best ways to achieve this is to design a structure and stick to it.
This structure is what guides you throughout the writing. To make your work easier, you can assign an estimated word count or page limit to every section to avoid making it too bulky for easy reading. As a guide, the necessary things your business plan must contain are:
- Table of contents
- Introduction
- Product or service description
- Target audience
- Market size
- Competition analysis
- Financial projections
Some specific businesses can include some other essential sections, but these are the key sections that must be in every business plan.
6. Ask a Professional to Proofread
When writing a business plan, you must tie all loose ends to get a perfect result. When you are done with writing, call a professional to go through the document for you. You are bound to make mistakes, and the way to correct them is to get external help.
You should get a professional in your field who can relate to every section of your business plan. It would be easier for the professional to notice the inner flaws in the document than an editor with no knowledge of your business.
In addition to getting a professional to proofread, get an editor to proofread and edit your document. The editor will help you identify grammatical errors, spelling mistakes, and inappropriate writing styles.
Writing a business plan can be daunting, but you can surmount that obstacle and get the best out of it with these tips.
Business Plan Examples and Templates That’ll Save You Tons of Time
1. hubspot's one-page business plan.
![market section of business plan HubSpot's One Page Business Plan](https://www.founderjar.com/wp-content/uploads/2021/07/HubSpots-One-Page-Business-Plan.jpg)
The one-page business plan template by HubSpot is the perfect guide for businesses of any size, irrespective of their business strategy. Although the template is condensed into a page, your final business plan should not be a page long! The template is designed to ask helpful questions that can help you develop your business plan.
Hubspot’s one-page business plan template is divided into nine fields:
- Business opportunity
- Company description
- Industry analysis
- Target market
- Implementation timeline
- Marketing plan
- Financial summary
- Funding required
2. Bplan’s Free Business Plan Template
![market section of business plan Bplan’s Free Business Plan Template](https://www.founderjar.com/wp-content/uploads/2021/07/Bplans-Free-Business-Plan-Template.jpg)
Bplans' free business plan template is investor-approved. It is a rich template used by prestigious educational institutions such as Babson College and Princeton University to teach entrepreneurs how to create a business plan.
The template has six sections: the executive summary, opportunity, execution, company, financial plan, and appendix. There is a step-by-step guide for writing every little detail in the business plan. Follow the instructions each step of the way and you will create a business plan that impresses investors or lenders easily.
3. HubSpot's Downloadable Business Plan Template
![market section of business plan HubSpot's Downloadable Business Plan Template](https://www.founderjar.com/wp-content/uploads/2021/07/HubSpots-Downloadable-Business-Plan-Template.jpg)
HubSpot’s downloadable business plan template is a more comprehensive option compared to the one-page business template by HubSpot. This free and downloadable business plan template is designed for entrepreneurs.
The template is a comprehensive guide and checklist for business owners just starting their businesses. It tells you everything you need to fill in each section of the business plan and how to do it.
There are nine sections in this business plan template: an executive summary, company and business description, product and services line, market analysis, marketing plan, sales plan, legal notes, financial considerations, and appendix.
4. Business Plan by My Own Business Institute
![market section of business plan The Business Profile](https://www.founderjar.com/wp-content/uploads/2021/07/The-Business-Profile.jpg)
My Own Business Institute (MOBI) which is a part of Santa Clara University's Center for Innovation and Entrepreneurship offers a free business plan template. You can either copy the free business template from the link provided above or download it as a Word document.
The comprehensive template consists of a whopping 15 sections.
- The Business Profile
- The Vision and the People
- Home-Based Business and Freelance Business Opportunities
- Organization
- Licenses and Permits
- Business Insurance
- Communication Tools
- Acquisitions
- Location and Leasing
- Accounting and Cash Flow
- Opening and Marketing
- Managing Employees
- Expanding and Handling Problems
There are lots of helpful tips on how to fill each section in the free business plan template by MOBI.
5. Score's Business Plan Template for Startups
![market section of business plan Score's Business Plan Template for Startups](https://www.founderjar.com/wp-content/uploads/2021/07/Scores-Business-Plan-Template-for-Startups.jpg)
Score is an American nonprofit organization that helps entrepreneurs build successful companies. This business plan template for startups by Score is available for free download. The business plan template asks a whooping 150 generic questions that help entrepreneurs from different fields to set up the perfect business plan.
The business plan template for startups contains clear instructions and worksheets, all you have to do is answer the questions and fill the worksheets.
There are nine sections in the business plan template: executive summary, company description, products and services, marketing plan, operational plan, management and organization, startup expenses and capitalization, financial plan, and appendices.
The ‘refining the plan’ resource contains instructions that help you modify your business plan to suit your specific needs, industry, and target audience. After you have completed Score’s business plan template, you can work with a SCORE mentor for expert advice in business planning.
6. Minimalist Architecture Business Plan Template by Venngage
![market section of business plan Minimalist Architecture Business Plan Template by Venngage](https://www.founderjar.com/wp-content/uploads/2021/07/Minimalist-Architecture-Business-Plan-Template-by-Venngage.jpg)
The minimalist architecture business plan template is a simple template by Venngage that you can customize to suit your business needs .
There are five sections in the template: an executive summary, statement of problem, approach and methodology, qualifications, and schedule and benchmark. The business plan template has instructions that guide users on what to fill in each section.
7. Small Business Administration Free Business Plan Template
![market section of business plan Small Business Administration Free Business Plan Template](https://www.founderjar.com/wp-content/uploads/2021/07/Small-Business-Administration-Free-Business-Plan-Template.jpg)
The Small Business Administration (SBA) offers two free business plan templates, filled with practical real-life examples that you can model to create your business plan. Both free business plan templates are written by fictional business owners: Rebecca who owns a consulting firm, and Andrew who owns a toy company.
There are five sections in the two SBA’s free business plan templates.
- Executive Summary
- Company Description
- Service Line
- Marketing and Sales
8. The $100 Startup's One-Page Business Plan
![market section of business plan The $100 Startup's One Page Business Plan](https://www.founderjar.com/wp-content/uploads/2021/07/The-100-Startups-One-Page-Business-Plan.jpg)
The one-page business plan by the $100 startup is a simple business plan template for entrepreneurs who do not want to create a long and complicated plan . You can include more details in the appendices for funders who want more information beyond what you can put in the one-page business plan.
There are five sections in the one-page business plan such as overview, ka-ching, hustling, success, and obstacles or challenges or open questions. You can answer all the questions using one or two sentences.
9. PandaDoc’s Free Business Plan Template
![market section of business plan PandaDoc’s Free Business Plan Template](https://www.founderjar.com/wp-content/uploads/2021/07/PandaDocs-Free-Business-Plan-Template.jpg)
The free business plan template by PandaDoc is a comprehensive 15-page document that describes the information you should include in every section.
There are 11 sections in PandaDoc’s free business plan template.
- Executive summary
- Business description
- Products and services
- Operations plan
- Management organization
- Financial plan
- Conclusion / Call to action
- Confidentiality statement
You have to sign up for its 14-day free trial to access the template. You will find different business plan templates on PandaDoc once you sign up (including templates for general businesses and specific businesses such as bakeries, startups, restaurants, salons, hotels, and coffee shops)
PandaDoc allows you to customize its business plan templates to fit the needs of your business. After editing the template, you can send it to interested parties and track opens and views through PandaDoc.
10. Invoiceberry Templates for Word, Open Office, Excel, or PPT
![market section of business plan Invoiceberry Templates Business Concept](https://www.founderjar.com/wp-content/uploads/2021/07/Invoiceberry-Templates-Business-Concept.jpg)
InvoiceBerry is a U.K based online invoicing and tracking platform that offers free business plan templates in .docx, .odt, .xlsx, and .pptx formats for freelancers and small businesses.
Before you can download the free business plan template, it will ask you to give it your email address. After you complete the little task, it will send the download link to your inbox for you to download. It also provides a business plan checklist in .xlsx file format that ensures you add the right information to the business plan.
Alternatives to the Traditional Business Plan
A business plan is very important in mapping out how one expects their business to grow over a set number of years, particularly when they need external investment in their business. However, many investors do not have the time to watch you present your business plan. It is a long and boring read.
Luckily, there are three alternatives to the traditional business plan (the Business Model Canvas, Lean Canvas, and Startup Pitch Deck). These alternatives are less laborious and easier and quicker to present to investors.
Business Model Canvas (BMC)
The business model canvas is a business tool used to present all the important components of setting up a business, such as customers, route to market, value proposition, and finance in a single sheet. It provides a very focused blueprint that defines your business initially which you can later expand on if needed.
![market section of business plan Business Model Canvas (BMC) Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/Business-Model-Canvas-BMC.jpg)
The sheet is divided mainly into company, industry, and consumer models that are interconnected in how they find problems and proffer solutions.
Segments of the Business Model Canvas
The business model canvas was developed by founder Alexander Osterwalder to answer important business questions. It contains nine segments.
![market section of business plan Segments of the Business Model Canvas](https://www.founderjar.com/wp-content/uploads/2021/07/Segments-of-the-Business-Model-Canvas.jpg)
- Key Partners: Who will be occupying important executive positions in your business? What do they bring to the table? Will there be a third party involved with the company?
- Key Activities: What important activities will production entail? What activities will be carried out to ensure the smooth running of the company?
- The Product’s Value Propositions: What does your product do? How will it be different from other products?
- Customer Segments: What demography of consumers are you targeting? What are the habits of these consumers? Who are the MVPs of your target consumers?
- Customer Relationships: How will the team support and work with its customer base? How do you intend to build and maintain trust with the customer?
- Key Resources: What type of personnel and tools will be needed? What size of the budget will they need access to?
- Channels: How do you plan to create awareness of your products? How do you intend to transport your product to the customer?
- Cost Structure: What is the estimated cost of production? How much will distribution cost?
- Revenue Streams: For what value are customers willing to pay? How do they prefer to pay for the product? Are there any external revenues attached apart from the main source? How do the revenue streams contribute to the overall revenue?
Lean Canvas
The lean canvas is a problem-oriented alternative to the standard business model canvas. It was proposed by Ash Maurya, creator of Lean Stack as a development of the business model generation. It uses a more problem-focused approach and it majorly targets entrepreneurs and startup businesses.
![market section of business plan The lean canvas is a problem oriented alternative to the standard business model canvas](https://www.founderjar.com/wp-content/uploads/2021/07/The-lean-canvas-is-a-problem-oriented-alternative-to-the-standard-business-model-canvas.jpg)
Lean Canvas uses the same 9 blocks concept as the business model canvas, however, they have been modified slightly to suit the needs and purpose of a small startup. The key partners, key activities, customer relationships, and key resources are replaced by new segments which are:
- Problem: Simple and straightforward number of problems you have identified, ideally three.
- Solution: The solutions to each problem.
- Unfair Advantage: Something you possess that can't be easily bought or replicated.
- Key Metrics: Important numbers that will tell how your business is doing.
Startup Pitch Deck
While the business model canvas compresses into a factual sheet, startup pitch decks expand flamboyantly.
Pitch decks, through slides, convey your business plan, often through graphs and images used to emphasize estimations and observations in your presentation. Entrepreneurs often use pitch decks to fully convince their target audience of their plans before discussing funding arrangements.
![market section of business plan Startup Pitch Deck Presentation](https://www.founderjar.com/wp-content/uploads/2021/07/Startup-Pitch-Deck-Presentation.jpg)
Considering the likelihood of it being used in a small time frame, a good startup pitch deck should ideally contain 20 slides or less to have enough time to answer questions from the audience.
Unlike the standard and lean business model canvases, a pitch deck doesn't have a set template on how to present your business plan but there are still important components to it. These components often mirror those of the business model canvas except that they are in slide form and contain more details.
![market section of business plan Airbnb Pitch Deck](https://www.founderjar.com/wp-content/uploads/2021/07/Airbnb-Pitch-Deck.jpg)
Using Airbnb (one of the most successful start-ups in recent history) for reference, the important components of a good slide are listed below.
- Cover/Introduction Slide: Here, you should include your company's name and mission statement. Your mission statement should be a very catchy tagline. Also, include personal information and contact details to provide an easy link for potential investors.
- Problem Slide: This slide requires you to create a connection with the audience or the investor that you are pitching. For example in their pitch, Airbnb summarized the most important problems it would solve in three brief points – pricing of hotels, disconnection from city culture, and connection problems for local bookings.
- Solution Slide: This slide includes your core value proposition. List simple and direct solutions to the problems you have mentioned
- Customer Analysis: Here you will provide information on the customers you will be offering your service to. The identity of your customers plays an important part in fundraising as well as the long-run viability of the business.
- Market Validation: Use competitive analysis to show numbers that prove the presence of a market for your product, industry behavior in the present and the long run, as well as the percentage of the market you aim to attract. It shows that you understand your competitors and customers and convinces investors of the opportunities presented in the market.
- Business Model: Your business model is the hook of your presentation. It may vary in complexity but it should generally include a pricing system informed by your market analysis. The goal of the slide is to confirm your business model is easy to implement.
- Marketing Strategy: This slide should summarize a few customer acquisition methods that you plan to use to grow the business.
- Competitive Advantage: What this slide will do is provide information on what will set you apart and make you a more attractive option to customers. It could be the possession of technology that is not widely known in the market.
- Team Slide: Here you will give a brief description of your team. Include your key management personnel here and their specific roles in the company. Include their educational background, job history, and skillsets. Also, talk about their accomplishments in their careers so far to build investors' confidence in members of your team.
- Traction Slide: This validates the company’s business model by showing growth through early sales and support. The slide aims to reduce any lingering fears in potential investors by showing realistic periodic milestones and profit margins. It can include current sales, growth, valuable customers, pre-orders, or data from surveys outlining current consumer interest.
- Funding Slide: This slide is popularly referred to as ‘the ask'. Here you will include important details like how much is needed to get your business off the ground and how the funding will be spent to help the company reach its goals.
- Appendix Slides: Your pitch deck appendix should always be included alongside a standard pitch presentation. It consists of additional slides you could not show in the pitch deck but you need to complement your presentation.
It is important to support your calculations with pictorial renditions. Infographics, such as pie charts or bar graphs, will be more effective in presenting the information than just listing numbers. For example, a six-month graph that shows rising profit margins will easily look more impressive than merely writing it.
Lastly, since a pitch deck is primarily used to secure meetings and you may be sharing your pitch with several investors, it is advisable to keep a separate public version that doesn't include financials. Only disclose the one with projections once you have secured a link with an investor.
Advantages of the Business Model Canvas, Lean Canvas, and Startup Pitch Deck over the Traditional Business Plan
- Time-Saving: Writing a detailed traditional business plan could take weeks or months. On the other hand, all three alternatives can be done in a few days or even one night of brainstorming if you have a comprehensive understanding of your business.
- Easier to Understand: Since the information presented is almost entirely factual, it puts focus on what is most important in running the business. They cut away the excess pages of fillers in a traditional business plan and allow investors to see what is driving the business and what is getting in the way.
- Easy to Update: Businesses typically present their business plans to many potential investors before they secure funding. What this means is that you may regularly have to amend your presentation to update statistics or adjust to audience-specific needs. For a traditional business plan, this could mean rewriting a whole section of your plan. For the three alternatives, updating is much easier because they are not voluminous.
- Guide for a More In-depth Business Plan: All three alternatives have the added benefit of being able to double as a sketch of your business plan if the need to create one arises in the future.
Business Plan FAQ
Business plans are important for any entrepreneur who is looking for a framework to run their company over some time or seeking external support. Although they are essential for new businesses, every company should ideally have a business plan to track their growth from time to time. They can be used by startups seeking investments or loans to convey their business ideas or an employee to convince his boss of the feasibility of starting a new project. They can also be used by companies seeking to recruit high-profile employee targets into key positions or trying to secure partnerships with other firms.
Business plans often vary depending on your target audience, the scope, and the goals for the plan. Startup plans are the most common among the different types of business plans. A start-up plan is used by a new business to present all the necessary information to help get the business up and running. They are usually used by entrepreneurs who are seeking funding from investors or bank loans. The established company alternative to a start-up plan is a feasibility plan. A feasibility plan is often used by an established company looking for new business opportunities. They are used to show the upsides of creating a new product for a consumer base. Because the audience is usually company people, it requires less company analysis. The third type of business plan is the lean business plan. A lean business plan is a brief, straight-to-the-point breakdown of your ideas and analysis for your business. It does not contain details of your proposal and can be written on one page. Finally, you have the what-if plan. As it implies, a what-if plan is a preparation for the worst-case scenario. You must always be prepared for the possibility of your original plan being rejected. A good what-if plan will serve as a good plan B to the original.
A good business plan has 10 key components. They include an executive plan, product analysis, desired customer base, company analysis, industry analysis, marketing strategy, sales strategy, financial projection, funding, and appendix. Executive Plan Your business should begin with your executive plan. An executive plan will provide early insight into what you are planning to achieve with your business. It should include your mission statement and highlight some of the important points which you will explain later. Product Analysis The next component of your business plan is your product analysis. A key part of this section is explaining the type of item or service you are going to offer as well as the market problems your product will solve. Desired Consumer Base Your product analysis should be supplemented with a detailed breakdown of your desired consumer base. Investors are always interested in knowing the economic power of your market as well as potential MVP customers. Company Analysis The next component of your business plan is your company analysis. Here, you explain how you want to run your business. It will include your operational strategy, an insight into the workforce needed to keep the company running, and important executive positions. It will also provide a calculation of expected operational costs. Industry Analysis A good business plan should also contain well laid out industry analysis. It is important to convince potential investors you know the companies you will be competing with, as well as your plans to gain an edge on the competition. Marketing Strategy Your business plan should also include your marketing strategy. This is how you intend to spread awareness of your product. It should include a detailed explanation of the company brand as well as your advertising methods. Sales Strategy Your sales strategy comes after the market strategy. Here you give an overview of your company's pricing strategy and how you aim to maximize profits. You can also explain how your prices will adapt to market behaviors. Financial Projection The financial projection is the next component of your business plan. It explains your company's expected running cost and revenue earned during the tenure of the business plan. Financial projection gives a clear idea of how your company will develop in the future. Funding The next component of your business plan is funding. You have to detail how much external investment you need to get your business idea off the ground here. Appendix The last component of your plan is the appendix. This is where you put licenses, graphs, or key information that does not fit in any of the other components.
The business model canvas is a business management tool used to quickly define your business idea and model. It is often used when investors need you to pitch your business idea during a brief window.
A pitch deck is similar to a business model canvas except that it makes use of slides in its presentation. A pitch is not primarily used to secure funding, rather its main purpose is to entice potential investors by selling a very optimistic outlook on the business.
Business plan competitions help you evaluate the strength of your business plan. By participating in business plan competitions, you are improving your experience. The experience provides you with a degree of validation while practicing important skills. The main motivation for entering into the competitions is often to secure funding by finishing in podium positions. There is also the chance that you may catch the eye of a casual observer outside of the competition. These competitions also provide good networking opportunities. You could meet mentors who will take a keen interest in guiding you in your business journey. You also have the opportunity to meet other entrepreneurs whose ideas can complement yours.
Exlore Further
- 12 Key Elements of a Business Plan (Top Components Explained)
- 13 Sources of Business Finance For Companies & Sole Traders
- 5 Common Types of Business Structures (+ Pros & Cons)
- How to Buy a Business in 8 Steps (+ Due Diligence Checklist)
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Martin luenendonk.
Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.
This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.
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Marketing Business Plan
![market section of business plan market section of business plan](https://images.examples.com/wp-content/uploads/2019/05/Marketing-Business-Plans.jpg)
A marketing business plan refers to a document detailing how you will implement your marketing strategies, and often covers a specific duration of time. This document explains not only your current situation but also your future plans. If writing a marketing business plan scares you, the efficiency of using a marketing business plan template is sure to appeal to you.
To help in your planning process, we’ve provided 11+ templates below, and they are specifically designed for marketing. Also, you can check out these sales and marketing business plan samples .
Marketing Business Plan Examples & Templates
1. digital marketing business plan.
![market section of business plan Digital Marketing Business Plan Template](https://images.examples.com/wp-content/uploads/2019/05/Digital-Marketing-Business-Plan-Template.jpg)
- Google Docs
Size: A4 & US
If you want to create a comprehensive marketing plan for your digital campaign, you might be served well by this template. It contains sections for media relations, online marketing plan, trade shows and events, sales campaigns, and other branding efforts. The template helps you to identify objectives, as well as the target market and a summation of costs. It makes creating a business plan for your marketing department very easy.
2. Sample Marketing Business Plan
![market section of business plan Sample Marketing Business Plan Template](https://images.examples.com/wp-content/uploads/2019/05/Sample-Marketing-Business-Plan-Template.jpg)
This sample marketing plan template enables you to plan your marketing activities for the year and track your goals on a month-by-month basis. The template is comprehensive and covers all activities of marketing like advertising, research, online marketing and research. The template is available on instant download and lets you prepare a professional document that will get the nod of your bosses.
3. Marketing Agency Business Plan
![market section of business plan Marketing Agency Business Plan Template](https://images.examples.com/wp-content/uploads/2019/05/Marketing-Agency-Business-Plan-Template.jpg)
This marketing agency business plan is professionally designed and created, and offers the best guide to use when drawing your own plan. It covers all the types of promotional activities for the year, as well as the goals. With this template, it’s much easier to write your own plan than starting from scratch. The template is easily editable and is compatible with Google Docs, Word and Pages. Download it today to experience the stress-free way of writing a marketing business plan. Also, see these market analysis business plan examples .
4. Small Business Marketing Plan Template
![market section of business plan Small Business Marketing Plan Template](https://images.examples.com/wp-content/uploads/2019/05/Small-Business-Marketing-Plan-Template.jpg)
Even as small as your business is, it needs a marketing plan. But how do you create yours? Thankfully, this readymade template is designed exactly for people like you. Featuring the standard layout and structure, the plan gives you a formal way to draft your plan fast and hassle-freely. Also, the template gives you lots of room to modify the document so you have a marketing plan that’s tailored to your specific needs.
5. Business Consultant Marketing Plan Template
![market section of business plan Business consultant Marketing Plan Template](https://images.examples.com/wp-content/uploads/2019/05/Business-consultant-Marketing-Plan-Template.jpg)
A well prepared marketing plan can act as your organization’s roadmap. Therefore, taking your time to compile a formal plan, instead of relying on vague or esoteric strategy, can accelerate your marketing effort’s overall success. This template is professionally created and offers the perfect guide for writing your own plan. It comes in a PDF document file that you can download instantly, and is also easily editable without requiring special programs. Download it today to realize the many benefits this template brings.
6. Marketing Plan for Small Business
![market section of business plan Marketing Plan for Small Business Template](https://images.examples.com/wp-content/uploads/2019/05/Marketing-Plan-for-Small-Business-Template.jpg)
Of course, writing a marketing plan for your business requires a lot of effort and time. Therefore, if you are pressed for time but want to create a professional-looking document to guide your marketing activities for the year, just use this template. It simplifies the process of preparing a marketing plan, and also ensures that you end up with a high-quality document. It is accessible on instant download and comes in a PDF document file that you can easily edit and customize.
7. Marketing Business Plan
![market section of business plan Marketing Business Plan](https://images.examples.com/wp-content/uploads/2019/05/Marketing-Business-Plan.jpg)
Size: 22 KB
Using this marketing business plan template has many benefits. It saves time, enhances communication within the marketing team and provides organization. But the biggest benefit is how it makes the process of creating a business plan so easy. Since it covers almost everything, your only task will be adding the requested details. You will be done before you know it.
8. Marketing Department Business Plan
![market section of business plan Marketing Department Business Plan](https://images.examples.com/wp-content/uploads/2019/05/Marketing-Department-Business-Plan.jpg)
Size: 96 KB
This detailed, thoroughly researched and professionally created marketing department business plan template offers great insights into how your document should be like when it is finished. It is properly proofed and comprehensive meaning it doesn’t have any mistakes and also doesn’t leave anything out. When you use this template, you can be sure that you will end up with a document that meets the highest standards.
9. Market Business Plan Assessment
![market section of business plan Market Business Plan Assessment](https://images.examples.com/wp-content/uploads/2019/05/Market-Business-Plan-Assessment.jpg)
Size: 246 KB
The list of things involved in creating a marketing business plan look quite detailed, but thanks to this template, you won’t have to remember each one of them. This is because they are already covered in the template, and you only have to provide information. The template will walk you through the process, and you won’t think like you need any help. It is comprehensive and therefore there is no chance that you can forget an important element.
10. Sales Marketing Business Plan
![market section of business plan Sales Marketing Business Plan](https://images.examples.com/wp-content/uploads/2019/05/Sales-Marketing-Business-Plan-.jpg)
This sales marketing business template helps to ease your work of creating a marketing business plan. It comes prefilled with all the important elements of a marketing plan, and your only work will be to plug in your details. Available on instant download, this template is easily editable and you can customize it so that it matches your exact campaign. Download the template today and enjoy stress-free generation of high-quality marketing business plan.
11. Marketing Business Planning Sample
![market section of business plan Marketing Business Planning](https://images.examples.com/wp-content/uploads/2019/05/Marketing-Business-Planning-.jpg)
Size: 165 KB
A marketing plan is central to your marketing strategy. It guides you on how to go about the different promotional activities and within what timeframe. But the problem often is that drawing up this document is tedious and takes a lot of time. With this template however, you can be done generating a professional-grade business marketing plan in only a couple of minutes. It does pretty much everything for you. Download the template today to discover the smarter way of creating quality marketing plans.
12. Financial Marketing Business Plan
![market section of business plan Financial Marketing Business Plan](https://images.examples.com/wp-content/uploads/2019/05/Financial-Marketing-Business-Plan.jpg)
Size: 29 KB
When you need to create a marketing business plan, you don’t always have to go the tedious, time-consuming and boring route. Thanks to this template, you can generate formal document to act as a guide on how your marketing strategies will be implemented. The template can be downloaded easily from the internet and is easy to edit using common programs.
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The University of Chicago The Law School
Innovation clinic—significant achievements for 2023-24.
The Innovation Clinic continued its track record of success during the 2023-2024 school year, facing unprecedented demand for our pro bono services as our reputation for providing high caliber transactional and regulatory representation spread. The overwhelming number of assistance requests we received from the University of Chicago, City of Chicago, and even national startup and venture capital communities enabled our students to cherry-pick the most interesting, pedagogically valuable assignments offered to them. Our focus on serving startups, rather than all small- to medium-sized businesses, and our specialization in the needs and considerations that these companies have, which differ substantially from the needs of more traditional small businesses, has proven to be a strong differentiator for the program both in terms of business development and prospective and current student interest, as has our further focus on tackling idiosyncratic, complex regulatory challenges for first-of-their kind startups. We are also beginning to enjoy more long-term relationships with clients who repeatedly engage us for multiple projects over the course of a year or more as their legal needs develop.
This year’s twelve students completed over twenty projects and represented clients in a very broad range of industries: mental health and wellbeing, content creation, medical education, biotech and drug discovery, chemistry, food and beverage, art, personal finance, renewable energy, fintech, consumer products and services, artificial intelligence (“AI”), and others. The matters that the students handled gave them an unparalleled view into the emerging companies and venture capital space, at a level of complexity and agency that most junior lawyers will not experience until several years into their careers.
Representative Engagements
While the Innovation Clinic’s engagements are highly confidential and cannot be described in detail, a high-level description of a representative sample of projects undertaken by the Innovation Clinic this year includes:
Transactional/Commercial Work
- A previous client developing a symptom-tracking wellness app for chronic disease sufferers engaged the Innovation Clinic again, this time to restructure its cap table by moving one founder’s interest in the company to a foreign holding company and subjecting the holding company to appropriate protections in favor of the startup.
- Another client with whom the Innovation Clinic had already worked several times engaged us for several new projects, including (1) restructuring their cap table and issuing equity to an additional, new founder, (2) drafting several different forms of license agreements that the company could use when generating content for the platform, covering situations in which the company would license existing content from other providers, jointly develop new content together with contractors or specialists that would then be jointly owned by all creators, or commission contractors to make content solely owned by the company, (3) drafting simple agreements for future equity (“Safes”) for the company to use in its seed stage fundraising round, and (4) drafting terms of service and a privacy policy for the platform.
- Yet another repeat client, an internet platform that supports independent artists by creating short films featuring the artists to promote their work and facilitates sales of the artists’ art through its platform, retained us this year to draft a form of independent contractor agreement that could be used when the company hires artists to be featured in content that the company’s Fortune 500 brand partners commission from the company, and to create capsule art collections that could be sold by these Fortune 500 brand partners in conjunction with the content promotion.
- We worked with a platform using AI to accelerate the Investigational New Drug (IND) approval and application process to draft a form of license agreement for use with its customers and an NDA for prospective investors.
- A novel personal finance platform for young, high-earning individuals engaged the Innovation Clinic to form an entity for the platform, including helping the founders to negotiate a deal among them with respect to roles and equity, terms that the equity would be subject to, and other post-incorporation matters, as well as to draft terms of service and a privacy policy for the platform.
- Students also formed an entity for a biotech therapeutics company founded by University of Chicago faculty members and an AI-powered legal billing management platform founded by University of Chicago students.
- A founder the Innovation Clinic had represented in connection with one venture engaged us on behalf of his other venture team to draft an equity incentive plan for the company as well as other required implementing documentation. His venture with which we previously worked also engaged us this year to draft Safes to be used with over twenty investors in a seed financing round.
More information regarding other types of transactional projects that we typically take on can be found here .
Regulatory Research and Advice
- A team of Innovation Clinic students invested a substantial portion of our regulatory time this year performing highly detailed and complicated research into public utilities laws of several states to advise a groundbreaking renewable energy technology company as to how its product might be regulated in these states and its clearest path to market. This project involved a review of not only the relevant state statutes but also an analysis of the interplay between state and federal statutes as it relates to public utilities law, the administrative codes of the relevant state executive branch agencies, and binding and non-binding administrative orders, decisions and guidance from such agencies in other contexts that could shed light on how such states would regulate this never-before-seen product that their laws clearly never contemplated could exist. The highly varied approach to utilities regulation in all states examined led to a nuanced set of analysis and recommendations for the client.
- In another significant research project, a separate team of Innovation Clinic students undertook a comprehensive review of all settlement orders and court decisions related to actions brought by the Consumer Financial Protection Bureau for violations of the prohibition on unfair, deceptive, or abusive acts and practices under the Consumer Financial Protection Act, as well as selected relevant settlement orders, court decisions, and other formal and informal guidance documents related to actions brought by the Federal Trade Commission for violations of the prohibition on unfair or deceptive acts or practices under Section 5 of the Federal Trade Commission Act, to assemble a playbook for a fintech company regarding compliance. This playbook, which distilled very complicated, voluminous legal decisions and concepts into a series of bullet points with clear, easy-to-follow rules and best practices, designed to be distributed to non-lawyers in many different facets of this business, covered all aspects of operations that could subject a company like this one to liability under the laws examined, including with respect to asset purchase transactions, marketing and consumer onboarding, usage of certain terms of art in advertising, disclosure requirements, fee structures, communications with customers, legal documentation requirements, customer service and support, debt collection practices, arrangements with third parties who act on the company’s behalf, and more.
Miscellaneous
- Last year’s students built upon the Innovation Clinic’s progress in shaping the rules promulgated by the Financial Crimes Enforcement Network (“FinCEN”) pursuant to the Corporate Transparency Act to create a client alert summarizing the final rule, its impact on startups, and what startups need to know in order to comply. When FinCEN issued additional guidance with respect to that final rule and changed portions of the final rule including timelines for compliance, this year’s students updated the alert, then distributed it to current and former clients to notify them of the need to comply. The final bulletin is available here .
- In furtherance of that work, additional Innovation Clinic students this year analyzed the impact of the final rule not just on the Innovation Clinic’s clients but also its impact on the Innovation Clinic, and how the Innovation Clinic should change its practices to ensure compliance and minimize risk to the Innovation Clinic. This also involved putting together a comprehensive filing guide for companies that are ready to file their certificates of incorporation to show them procedurally how to do so and explain the choices they must make during the filing process, so that the Innovation Clinic would not be involved in directing or controlling the filings and thus would not be considered a “company applicant” on any client’s Corporate Transparency Act filings with FinCEN.
- The Innovation Clinic also began producing thought leadership pieces regarding AI, leveraging our distinct and uniquely University of Chicago expertise in structuring early-stage companies and analyzing complex regulatory issues with a law and economics lens to add our voice to those speaking on this important topic. One student wrote about whether non-profits are really the most desirable form of entity for mitigating risks associated with AI development, and another team of students prepared an analysis of the EU’s AI Act, comparing it to the Executive Order on AI from President Biden, and recommended a path forward for an AI regulatory environment in the United States. Both pieces can be found here , with more to come!
Innovation Trek
Thanks to another generous gift from Douglas Clark, ’89, and managing partner of Wilson, Sonsini, Goodrich & Rosati, we were able to operationalize the second Innovation Trek over Spring Break 2024. The Innovation Trek provides University of Chicago Law School students with a rare opportunity to explore the innovation and venture capital ecosystem in its epicenter, Silicon Valley. The program enables participating students to learn from business and legal experts in a variety of different industries and roles within the ecosystem to see how the law and economics principles that students learn about in the classroom play out in the real world, and facilitates meaningful connections between alumni, students, and other speakers who are leaders in their fields. This year, we took twenty-three students (as opposed to twelve during the first Trek) and expanded the offering to include not just Innovation Clinic students but also interested students from our JD/MBA Program and Doctoroff Business Leadership Program. We also enjoyed four jam-packed days in Silicon Valley, expanding the trip from the two and a half days that we spent in the Bay Area during our 2022 Trek.
The substantive sessions of the Trek were varied and impactful, and enabled in no small part thanks to substantial contributions from numerous alumni of the Law School. Students were fortunate to visit Coinbase’s Mountain View headquarters to learn from legal leaders at the company on all things Coinbase, crypto, and in-house, Plug & Play Tech Center’s Sunnyvale location to learn more about its investment thesis and accelerator programming, and Google’s Moonshot Factory, X, where we heard from lawyers at a number of different Alphabet companies about their lives as in-house counsel and the varied roles that in-house lawyers can have. We were also hosted by Wilson, Sonsini, Goodrich & Rosati and Fenwick & West LLP where we held sessions featuring lawyers from those firms, alumni from within and outside of those firms, and non-lawyer industry experts on topics such as artificial intelligence, climate tech and renewables, intellectual property, biotech, investing in Silicon Valley, and growth stage companies, and general advice on career trajectories and strategies. We further held a young alumni roundtable, where our students got to speak with alumni who graduated in the past five years for intimate, candid discussions about life as junior associates. In total, our students heard from more than forty speakers, including over twenty University of Chicago alumni from various divisions.
The Trek didn’t stop with education, though. Throughout the week students also had the opportunity to network with speakers to learn more from them outside the confines of panel presentations and to grow their networks. We had a networking dinner with Kirkland & Ellis, a closing dinner with all Trek participants, and for the first time hosted an event for admitted students, Trek participants, and alumni to come together to share experiences and recruit the next generation of Law School students. Several speakers and students stayed in touch following the Trek, and this resulted not just in meaningful relationships but also in employment for some students who attended.
More information on the purposes of the Trek is available here , the full itinerary is available here , and one student participant’s story describing her reflections on and descriptions of her experience on the Trek is available here .
The Innovation Clinic is grateful to all of its clients for continuing to provide its students with challenging, high-quality legal work, and to the many alumni who engage with us for providing an irreplaceable client pipeline and for sharing their time and energy with our students. Our clients are breaking the mold and bringing innovations to market that will improve the lives of people around the world in numerous ways. We are glad to aid in their success in any way that we can. We look forward to another productive year in 2024-2025!
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The market analysis section of your small business plan should include the following: Industry Description and Outlook: Describe your industry both qualitatively and quantitatively by laying out the factors that make your industry an attractive place to start and grow a business. Be sure to include detailed statistics that define the industry ...
Defining your target market is key to your business plan and your new business. Learn how to write the Market Analysis section of the business plan.
Use our guide to expertly complete the Market Analysis section of your business plan to grow and/or raise funding for your business.
A business plan will serve as your roadmap when building your business. Within your business plan, there's an important section you should pay careful attention to: your market analysis.
A target market analysis is a key part of any business plan. Let's walk you through some examples.
The Market Analysis section of a business plan is crucial, providing detailed insights into the business environment. It helps entrepreneurs understand their industry, target markets, competition, and the broader economic landscape. This analysis is essential for informed decision-making, strategic planning, risk mitigation, and building ...
Pricing strategy, sales plan, marketing strategies—learn how to put together a complete marketing plan for your products and services.
The marketing and sales section of your business plan dives into how you're going to accomplish your goals. You'll be answering questions like: Based on your audience, how will you position your product or service in the current market? What marketing channels, messaging, and sales tactics will you implement? What's your business model ...
As with any other section of your business plan, the marketing component will be highly specific to the nature of your business and industry. Still, there are guidelines that can get you started ...
How to do a market analysis for a business plan? A key part of any business plan is market analysis. This section needs to demonstrate both your expertise in your particular market and the attractiveness of the market from a financial standpoint.
A marketing plan is a strategic document that outlines marketing objectives, strategies, and tactics. A business plan is also a strategic document. But this plan covers all aspects of a company's operations, including finance, operations, and more. It can also help your business decide how to distribute resources and make decisions as your ...
A comprehensive marketing plan can keep your business focused on your goals. Use these marketing plan templates to best present your plan.
Products and services description. When writing a business plan, the produces and services section is where you describe exactly what you're selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers.
This quick guide offers tips that will help you create the marketing section for your business plan.
A good business plan guides you through each stage of starting and managing your business. You'll use your business plan as a roadmap for how to structure, run, and grow your new business. It's a way to think through the key elements of your business. Business plans can help you get funding or bring on new business partners.
A marketing plan is a document that lays out the marketing efforts of a business in an upcoming period, which is usually a year.
A marketing plan in business plan is one of the very important sections of a business plan. Marketing is done to spread awareness about your business and its product/service. [lwptoc] An effective marketing strategy helps you achieve early success. Use this article to write an effective marketing plan section in a business plan.
Business plan: The marketing strategy section shows how the business plans to use the four P's, product, place, pricing, and promotion to win market share.
Find out the 9 components to include in the market analysis portion of your business plan, plus 6 sources for market analysis information.
How to Write a Business Plan Step-by-Step. 1. Create Your Executive Summary. The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans. Although the executive summary is the first section in your business plan, most people write it last.
A marketing business plan refers to a document detailing how you will implement your marketing strategies, and often covers a specific duration of time. This document explains not only your current situation but also your future plans. If writing a marketing business plan scares you, the efficiency of using a marketing business plan template is ...
This section of your business plan should describe the actions you'll take to persuade customers to buy your products or services, following a well-defined sales process. ... To identify your target market in a business plan, conduct detailed market research to understand industry trends, consumer behavior, and economic factors, which will ...
The artificial intelligence chip giant saw $279bn wiped off its stock market value in New York. ... Volvo gives up plan to sell only EVs by 2030. 16 hrs ago. Business. AI's solution to the ...
Market research helps you find customers for your business. Competitive analysis helps you make your business unique. Combine them to find a competitive advantage for your small business.
SAN ANTONIO, TX - (NewMediaWire) - September 5, 2024 - Wytec International, Inc. (OTCQB: WYTC), an Artificial Intelligence (AI) 5G company, announced today the commencement of its SEC 506(c) 9.5% $10,000,000 Convertible Secured Note Offering (Secured by its Patents), utilized to complete the funding of its AI Gunshot/Sensor technology in support of protecting America's children from ...
Stock market today: The Indian share market is likely to open flat. At 6:40 AM GIFT Nifty futures were up 19.2 points at 25,357.5. On Monday, September 2, the Sensex and Nifty50 finished the week's first trading session at record high closing levels. The BSE Sensex added 194.07 points or 0.24 per ...
General The Innovation Clinic continued its track record of success during the 2023-2024 school year, facing unprecedented demand for our pro bono services as our reputation for providing high caliber transactional and regulatory representation spread. The overwhelming number of assistance requests we received from the University of Chicago, City of Chicago, and even national startup and ...