author profile for business plan

Kindlepreneur

Book Marketing for Self-Publishing Authors

Home / Book Publishing / How to Write an Author Bio [With Examples and Templates]

How to Write an Author Bio [With Examples and Templates]

To write a great author bio, you need to know your target audience, cater to your genre, brag (but not too much), keep it brief, and call the reader to action.

When you’re self-publishing on Amazon , you need to put some serious thought into the author bio on your Amazon book page. Don’t haphazardly throw together some sentences and hit the publish button.

The author bio isn’t your most important tool. (The most essential tools are the book reviews , book cover , and synopsis/blurb .) But the author bio is another critical tool that you shouldn’t leave out.

Can I just leave my author bio out? No, you cannot just leave out your author bio, even if you wrote a short story or novella. It looks unprofessional, scares away potential readers, foregoes an opportunity to connect with your target audience, and leads to fewer book sales.

Plus, writing a good author bio doesn’t take that long.

If you’re not Grisham, or Godin, or Ferriss, or Fleming, very few people will buy a novel by you purely based on name recognition. So put a little work into your bio, and you won’t regret it.

Note: The Author Bio is just one of many parts of a book. I have a whole series of posts on the subject, and I highly recommend you check those out as well!

• What is an author bio?
• Examples of phenomenal author bios
• Tips on making a persuasive, engaging author bio
• How to add the bio to your book page
• An author bio template checklist

Table of contents

• What should an author's bio include?
• Is an author bio actually important?
• What’s your book about?
• Who are you writing for?
• 4 Writing Tips For Creating an Author Bio:
• Step 3: Add the Bio to Your Book Page
• Podcast Episode: The Perfect Picture For Your Author Bio
• 6 Examples of Phenomenal Author Bios
• Can you hire a freelancer to write your author bio?
• How to Write a Bio for Your Author Website
• Author Bio Template
• Where does your author bio go?
• How often should you update your “About the Author” page?

For clarification, on Amazon, there are 2 kinds of bio:

• The generic bio on your “ Author Page ”
• Separate bios for each of your books

The advice in this post is aimed at your bio on your individual book pages, although much of it will still be relevant to your main Author Page.

Why Should You Trust Me?

I've actually been writing and formatting books for a long time. Over 10 years so far, and counting.

But that's not the real reason, because there are plenty of authors who have lots of experience, but know next to nothing about the different parts of a book, or book formatting in general.

The real reason you should trust me is because I actually created my own formatting software that solved all my problems. I called it Atticus.

But this isn't meant to be a sales pitch. I just want to make sure it's clear that I know what I'm talking about. The amount of research that went into not only formatting my own books, but also creating a formatting software is huge.

I researched everything, which led me to learn all about every. single. part. of. a. book. And there were a lot more than I realized.

And of course, that includes the Author Bio.

So if all that makes sense, hopefully you'll come along with me as show you everything I've learned.

Also called “About the Author,” an author bio is:

• A paragraph about you as a writer
• Your credentials
• Your interests
• A call to action
• Other relevant information you want to share with your target audience

An author biography is your chance to connect with readers beyond just a byline.

Everyone needs a stellar front cover design, an attention-grabbing book title , and a sophisticated keyword strategy . But those book marketing musts simply draw users to see your book’s product page.

A good author bio (and book reviews and book description ) compels them to actually buy the book.

The author bio establishes you as the kind of writer whom your target market ought to read. It’s where you forge a connection with potential readers and get them to trust you. Readers should want to know what you have to say based on your author bio.

If you take the author bio seriously and get it right, you’ll sell more books.

You should include your name, relevant accomplishments, and a call to action in your author’s bio. Aim for a bio of 60-90 words in length.

If your book is humorous, inject humor. If your book is melodramatic, add a little melodrama. Tailor your bio to your genre, target audience, and the individual book it’s for.

If possible, include links to your website or social media , so people can find out more about you.

Include a picture when possible. This picture should be a professional headshot of you smiling or looking serious, depending on your genre. Do not skimp on the headshot. An unprofessional author headshot screams low-quality content.

Yes, a good author bio is actually important because:

• It builds credibility
• It affirms whether what you have to say is worth reading
• It tells your target audience that you have written a book for them
• Readers may relate to your personal story
• You will sell more books

“No one reads the author bio,” I hear you say. But you’re wrong. While not everyone cares about the author’s bio, some care a lot.

First of all, unless you’re a household name, you must build credibility with the reader. If a reader doesn’t think you’re credible, they will read your book with a cynical eye and judge every mistake they find. Or worse, they won’t buy your book in the first place.

Second of all, more than ever, consumers are buying books from writers they want to support. If someone learns more about and relates to the author, they are much more likely to buy.

Increase Your Book Marketing

See the Publisher Rocket effect, when you use the right keywords and categories to help get your book seen more on Amazon.

How to Write a Powerful Author Bio for Your Book

Here are 3 steps to write an awesome author bio (About the Author) and upload it onto Amazon:

• Figure out your genre and target audience
• Write the bio
• Add the bio to your book page

How do you write a bio for a first-time author? First-time authors might not be able to include any literary accomplishments, like other best-selling books and prestigious awards. But first-time writers can include relevant expertise that pertains to your book. Also, any author can inject personality and a call to action, no matter if this is their first book.

Step 1 : Figure Out Your Genre and Target Audience

Answer these 2 crucial questions to understand your genre and target audience:

Your author bio needs to compliment the genre and subject matter of your book. Bios irrelevant to the book confuse potential readers.

While this may seem like obvious advice, a lot of irrelevant content finds its way into many author bios. Consider:

• If your nightmare-inducing horror novel contains a perky and cheerful author description about your love for puppies and former career as a glassblower, you forfeit an opportunity to connect readers with your writing.
• If your middle-grade comedy has an author bio that reads like a middle school textbook , your audience may be confused whether you’re able to write comedy.
• If your book is a contemporary romance novel with a middle-aged female protagonist, your author bio’s personality and content should relate to the right target audience.
• If you’re writing about tax-deduction strategies for real estate investors, your bio should present your expertise — why anyone should listen to you on the subject.
• If your book is a spiritual guide to personal growth, some life-affirming positivity will improve your bio.

You need to think about your target reader. Hopefully, you had a type of reader in mind when writing the book . You always need to know who would want to buy and read your book.

Figure out your target reader, then write your author bio for that person.

For non-fiction authors, your ideal reader probably wants to read your credentials, your life experience, and what qualifies you to speak on a particular topic.

For fiction writers, your ideal reader may be looking for a unique, exciting personality to come out through the bio. You may briefly include credibility-building credentials, such as if you earned an MFA in Creative Writing.

In many cases, creating an “avatar” of your customer — with a name, location, and personality — is a valuable way to both develop your author bio and strategically target your book marketing efforts. Check out this guide on how to create a customer avatar.

Don’t add information “just in case” a different kind of reader might appreciate it. You end up with a behemoth of a bio that no one reads because it’s too daunting and unfocused.

Step 2 : Write the Bio

Now you need to write the actual words of the bio. Stick to this checklist on how to write an author bio:

• Begin with a punchy, impactful first sentence.
• Introduce your area of expertise or your unique personality, depending on the genre.
• Build credibility without overly bragging.
• Add a personal touch, such as a relatable profession or quirky hobby.
• Finish on a call to action (check out the new book, follow you on social media, etc.).

While you’re writing, always ask yourself, “Is this relevant to my reader?”

Most readers won’t care where you were born (unless it’s a book about where you live), what high school you went to, or that you always wanted to become a full-time writer.

This isn’t to say that your bio should be impersonal. On the contrary! This is your opportunity to make readers feel like they know you. Your personality and/or expertise should make them want to read what you wrote.

• Write in the third person. “About the author” demands the third person. While it may feel a bit weird to write “he” or “she” rather than “I” in the first person, there’s one significant benefit: Your relevant accomplishments and accolades will sound far less boastful.
• Don’t brag too much . Don't go overboard showing off because everyone knows you wrote it. Even if the author bio is in the third person, state your achievements, but don’t become a braggart. Sprinkle in a bit of humility and modesty as well.
• Keep your author bio short. The faster they can read about you, the faster they can buy your book. Aim for 60-90 words and don’t go above 150. It takes effort and practice to distill everything into such a short space. Once you’ve nailed it, you can fit a great deal of personality and information into those 60-90 words.
• Use the bio like a business card . Give readers a way to interact with you by adding your website or social media info. At the very least, they’ll be able to find out more about you and explore your other works. Adding this info at the end is the most common call to action in author bios.

Step 3 : Add the Bio to Your Book Page

You can add your author bio to your Amazon book page by visiting Amazon Author Central , select your book, and add it in the “About the Author” section.

You can add the “About the Author” page into your back matter for a physical book. On most word processors like Scrivener or Vellum, you should be able to generate the author bio into your print-ready file.

But one really annoying bit about adding an author bio to most books is that you have to copy and paste it for every book. This gets cumbersome when you have ten books and need to make one tiny change in each of them.

Unfortunately, most programs like Vellum and Scrivener do not have a way to do “templates” where you update a single Author Bio page, and it gets updated across all your books.

But Atticus can.

In Atticus you can save as a template and then reuse that template wherever you want. And the best part is, if you change the template, it will change it for all your books. Check it out!

Here are some real-life author bios from Amazon or on a back cover that combine most or all of the tips above:

Forgotten Legacy : Robin Perini, the Publisher’s Weekly and internationally bestselling author of Forgotten Secrets, is devoted to giving her readers fast-paced, high-stakes adventures with a love story sure to melt their hearts. A RITA Award finalist and winner of the prestigious Romance Writers of America Golden Heart Award in 2011, she is also a nationally acclaimed writing instructor. By day, she’s an analyst for an advanced technology corporation, but in honor of her mother, Robin has become a passionate advocate for those who battle Alzheimer’s disease. She loves to hear from readers. Visit her web­site at www.robinperini.com.

[Length: 97 words]

D a mn Delicious Meal Prep: 115 Easy Recipes for Low-Calories, High-Energy Living : Chungah Rhee is the founder, recipe developer, and photographer of Damn Delicious. What began as a grad school hobby is now a top food blog, with millions of readers coming to her site for easy weeknight recipes and simplified gourmet meals. She lives and continues to cook non-stop in Los Angeles, with her corgi, Butters. Her first cookbook was published in 2016 by Oxmoor House. Visit her at damndelicious.net.

[Length: 70 words]

Long Range Shooting Handbook: Complete Beginner's Guide to Long Range Shooting : “Ryan Cleckner served as a special operations sniper team leader with the U.S. Army's elite 1st Ranger Bn. on multiple combat deployments. He is a graduate of the premier Special Operations Target Interdiction Course (SOTIC), among other military training courses, and has taught snipers and police sharpshooters from around the world. Ryan has a series of online instructional videos known for their ability to explain complex topics in a simple and digestible way. Ryan is currently a firearms industry professional and an attorney.”

[Length: 83 words]

Diary of a Farting Creeper: Why Does the Creeper Fart When He Should Explode? (Volume 1) : Who is Wimpy Fart? Wimpy Fart loves Minecraft and writes awesome Minecraft books for YOU because you are the best Minecraft fans in the world. You can email Wimpy Fart to tell him about your favorite Minecraft books, or to talk about really loud farts. [email protected] Oh – Wimpy Fart reads all your awesome Amazon reviews and likes to know what you want to read about in Minecraft books!

[Length: 68 words]

Joanna Penn writes non-fiction books for authors and is an award-nominated, New York Times and USA Today bestselling thriller author as J.F. Penn. She’s a podcaster and an award-winning creative entrepreneur. Her site, TheCreativePenn.com has been voted in the Top 100 sites for writers by Writer's Digest.

[Length: 49 words]

John Scalzi writes books, which, considering where you’re reading this, makes perfect sense. He’s best known for writing science fiction, including the New York Times bestseller Redshirts, which won the Hugo Award for Best Novel. He also writes non-fiction, on subjects ranging from personal finance to astronomy to film, was the Creative Consultant for the Stargate: Universe television series. He enjoys pie, as should all right thinking people. You can get to his blog by typing the word “Whatever” into Google. No, seriously, try it.

[Length: 85 words]

If you're looking for author bio perfection, Scalzi’s is as close as you're gonna find. His bio lends himself credibility, demonstrates his personality, and has one of the most unique calls to action you'll ever read. How many of you actually googled “whatever” just now?

Yes, you can hire a freelance writer or a ghostwriter to write your author bio to make sure it’s as amazing as it should be. Their creative writing know-how can produce a bio worthy of a good read and help you better connect with your audience if you’re having a hard time with the bio.

Hopefully, because you’re a writer, you’re able to follow the steps in this article to create your own bio. But in many cases, writing about yourself is more challenging than writing any other prose. (No shame, I promise!)

To write an author bio for your website, follow these 8 tips and tricks:

• Determine what your book’s about, and tailor your bio to compliment the style and tone.
• Determine your target audience, and tailor your bio to attract those specific readers.
• Begin your bio with a punchy first sentence.
• Build credibility by demonstrating your accomplishments, but don’t brag too much.
• Add links to relevant interviews (on NPR or PBS, for example), news articles (ever been featured in The Wall Street Journal ?), and Amazon sales pages.
• Finish with a call to action — perhaps a link to your sales page.
• Make sure your word count is 60-90 words.
• When you review it, take out all irrelevant words. Will your target audience care about each word? If not, take that word out.

On an author’s website , you can go into more detail, list more important works or achievements, and link to other pages on your website to find more info.

Also, an author website bio lends itself more to the first-person than a book page bio. Feel free to use first person or third person, as long as you stick to one or the other.

There's no one-size-fits-all approach, but the following checklist provides a structure you can use as an author bio template:

• Add a personal touch, such as a hobby or favorite TV show.
• Finish on a call to action (check out the new book, follow on social media, etc.).

If you browse bestselling author bios, you'll notice they tend to follow this sequence.

The content and tone you include in your author bio will depend on several factors:

• Content and tone of your book
• Genre (or multiple genres)
• Previous works
• Previous achievements
• Personal preference
• Medium (eBook only, literary magazine, etc.)

In a print book, your author bio should go in the back matter of your book or on the dust jacket sleeve.

You should also place an author bio on your website that goes into a little more detail than the bio in your book.

For an eBook on Amazon, your author bio goes below the suggested books. Here are the headings that appear before the “About the Author” section:

You should update your “About the Author” page or individual author bios any time something significant changes in your life or career, especially honors and awards or when your next book comes out.

Publish a new book? Update all your old bios.

Win an award? Update all your old bios.

Featured on a famous talk show? You may want to update all your old bios.

Going through a divorce or other major family issues? If you mention your spouse or now-estranged children in your bio, you may want to change that. (I know that’s dark, but it happens and is worth considering.)

Earn a prestigious honor or academic position? You know what you should do.

I’ll show you mine…

In summary, the steps in this post take you through everything you need when writing your own author bio. Refer to them when you start writing – and you’ll have an engaging author bio that should easily sell more books.

My own author bio is listed just below for reference (and ridicule, if you like).

I don't have to tell you, I'm pretty much a techy goofball. Hopefully, my bio does a great job of conveying just that. Using humor and an upbeat tone, I want to let Kindlepreneur readers know exactly who I am as a content writer in 34 words.

Special thanks to John Scalzi for inspiring me to write this specific type of bio.

Dave Chesson

When I’m not sipping tea with princesses or lightsaber dueling with little Jedi, I’m a book marketing nut. Having consulted multiple publishing companies and NYT best-selling authors, I created Kindlepreneur to help authors sell more books. I’ve even been called “The Kindlepreneur” by Amazon publicly, and I’m here to help you with your author journey.

Related Posts

What is an isbn 11 facts for self-publishing authors, amazon book keyword rules explained (2024 update), how to write a book description that captivates readers (and sell books), sell more books on amazon, amazon kindle rankings e-book.

Learn how to rank your Kindle book #1 on Amazon with our collection of time-tested tips and tricks.

67 thoughts on “ How to Write an Author Bio [With Examples and Templates] ”

After one year locked at home because of COVID-19, I decided to have as much fun as I had when teaching at school. That’s how “A Modern Superhero” was born. I enjoy good food, that’s why I need to do some exercise. By the way, run to my social media for some free perks.

Should I or should I not say what my day job is? Yes it has and no it hasn’t to do with my books. As I am an architect, I have well-structured novels! Lol. But is that boring? As I am not a van driver or pizza delivery girl, why would it interest anyone. I don’t know what’s boring anymore. Please help! Thanks.

Depending on your niche or subject, not sure. I’ll guess that you’re writing some sort of fiction. If that is the case, a mention of something that is important to you is fine, but don’t drag it on and focus on it. If you’ve used levity in your writing, then you can say something like “Architect by day, crime novelist by night.”

Comments are closed.

Join the community

Join 111,585 other authors who receive weekly emails from us to help them make more money selling books.

• Good Writing Habits
• Inspiration
• Writing Groups, Tools, & Software
• Writing Tips
• Book Design & Formatting
• Book Distribution
• Printed Books 101
• Publishing Industry News
• Self-Publishing
• Book Launch
• Book Promotion & Publicity
• Online Book Marketing
• BookBaby.com
• Publish My Book
• Free Catalog

For a self-published author, a business plan begins with a mission statement that will help direct your decision making at every stage of the book writing, book promotion, and book selling processes.

As a self-published author, your business plan, even a short one, will help set expectations and reach your goals. Creating a business plan requires that you study the marketplace, research a competitive analysis, and make financial projections.

If you are a one-book author, your business plan might consist of one simple document. If you are planning many books, or your book is tied to a product or service, it will necessarily be more complicated. There are many business plan templates on the web and in books that help.

Your mission and goals

Possibly the most valuable thing a business plan can do is to help you articulate your mission. Whenever you have to make a decision, you can return to your mission statement to help determine if the action you are about to take serves it. You may be tempted to skip this step and just blindly jump into publishing your book, but think it out, write it down and modify it as you become more aware of the challenges of becoming an author.

Authors have told me again and again that this step has helped give them a reality check and eased their mind about writing and publishing.

For example, why are you writing this book? Is your mission to change the world, to make money, to support your business, to leave a family legacy? Your goal may be to entertain or inform a small audience‚ a family or community‚ or a larger audience in a geographic area, profession, lifestyle, or interest group. Maybe you are writing to establish yourself as an expert in your field or to promote other products and services you offer. (Do you envision spinoff DVDs, workshops, a line of gourmet cookware?) Perhaps you are shooting for an international bestseller? It has been known to happen!

Perhaps you are among the many traditionally published authors disillusioned with the industry who are turning to self-publishing and creating your own small press. Will you use your book as part of a book proposal to try to attract an agent and publisher?

Raising funds

While it may be difficult to make a living as an author, it’s actually not all that hard to raise enough funds to create, produce, and publish your book. You may self-fund with your day job, or perhaps you’re retired with a small income. There are other ways to raise funds, too. Pre-selling is an option and crowdfunding has enabled lots of authors to finish their books and spread their message. Pre-selling is rather easier than crowdfunding, which requires lots of thought, planning, and marketing.

If you have a store on your website, you can begin pre-selling whenever you like, and you keep the profits (minus shipping and any store merchant account fees you may incur). Gumroad, Sellfy, and Selz are great storefronts with widgets that you can embed on your site to sell beta and final versions of your eBook and print book. They’re easier to use than PayPal, eJunkie, Amazon’s solutions.

Author crowdfunding

Many authors are choosing to crowdfund their work, and there are now many platforms to choose from. The most well known are Kickstarter, IndieGoGo, and PubLaunch. To explore the pros and cons of each platform, I interviewed successful authors from each of them to find out why they chose it and to get tips for you from their success. Publisher-crowdfunded platforms have also cropped up and below I describe Inkshares and Unbound. The information here is adapted from my in-depth PBS MediaShift series on author crowdfunding. [Ed. note: we also profiled Publishizer in a previous blog post.]

Kickstarter

Since Kickstarter ’s launch in 2009, more than 5.2 million people have pledged more than $900 million, funding nearly 53,000 creative projects like films, games, books, music, art, design and technology. Project creators set a funding goal and deadline. If people like a project, they can pledge money to make it happen. Funding on Kickstarter is all-or-nothing. Projects must reach their funding goals to receive any money. To date, nearly 44% of projects have reached their funding goals. Kickstarter takes 5% of the funds raised. Funders pay via Amazon Payments (only), which then will apply credit card processing fees (between 3% and 5%).

PubLaunch acquired PubSlush this year and will officially relaunch in February 2016. I don’t know how much of PubSlush’s business model they will keep, but it’s clear that their crowdfunding platform will remain focused on authors, so stay tuned. So far they promise a crowdfunding service and a vetted industry marketplace where you can find the right publishing professionals for your book.

IndieGoGo was founded in 2007 as a place where people who want to raise money can create fundraising campaigns to tell their story and get the word out. It charges 4% of the money you raise if you meet your goal or 9% if you do not.

Other good crowdfunding programs are Inkshares (San Francisco) and Unbound (in the UK). The Leanpub iterative publishing platform allows you to sell as you write your book, or to serialize your book.

Your sales strategy

Your bookselling journey may be a short one, or it might be a long, fluid, and creative process. It can sometimes take years for a book to take off, so set up good channels, good relationships, and good communities. Never stop marketing. There are many ways to sell.

POD sales. By printing and distributing with a POD service, your print book is mailed to customers on-demand when they order from online retailers in their expanded distribution program.

eBook sales. Create and sell eBooks in many formats for many eBook readers, for sales and distribution in the widest possible array of online markets.

Direct. Use your website for direct sales in your own on-line store for both print and digital books. You can sell using PayPal , eJunkie , Gumroad , Selz , Sellfy or by using any number of integrated payment systems.

Mailing physical books. Books fit nicely in a free USPS Priority Mail envelope, and a stamp costs about $5. (You can charge the customer for shipping.) Customers will receive the book in two days, which makes them very happy, especially during the holidays, and especially if it’s autographed. Do send your books priority or first-class mail. The drastically lower cost of media mail might be tempting, but it can take a very long time to deliver, and sometimes (especially during the holidays) your book is likely to arrive to the customer later than they want. It also may be damaged, as media mail bangs around at the bottom of the pile.

Retail sales. Sell to brick-and-mortar booksellers and retailers in your niche. When you sell direct to retailers, you can negotiate their discount. 40 to 50% is standard. You will probably be asked to sell on consignment, which means you won’t be paid until the books are sold.

Back-of-room sales. Take advantage of back-of-room sales at personal appearances to earn 100% of profits. At some events, you may be asked to pay a small percentage to the organization or tip a cashier.

Specialty distribution. It’s also possible to sell through specialty distributors‚ for example, someone who travels to conferences and sells books for you. Expect to discount your book 50 to 55%.

Exclusive distribution

If you’ve written a book to boost your business you may want to offload sales and distribution to a company who specializes in these tasks. These kinds of companies only take on books they think they can sell, so you’ll need to pitch them. They also take a lot of your profits, 65% and up. The most popular solution for indie authors with commercially viable projects is IPG’s Small Press United (SPU). SPU was formed as a branch of IPG’s distribution service for traditional publishers to serve self-publishers. All the authors I know who have used them like them a lot. You may also choose a specialty small press to serve as your distributor. The sooner in the book creation process you can contact them, the better. They may have valuable insights and advice on editing, design, and production.

Pricing your book

You may be tempted to calculate the price of your book based on what it cost to produce it. That doesn’t work; you really need to price your book to compete in the marketplace. eBook prices are all over the place, but are becoming standardized at 20% to 25% less than the least expensive print edition. $9.99 also seems to be a consumer-accepted price for eBooks.

Image vis ShutterStock.com .

This post was excerpted and adapted from Carla King’s Self Publishing Boot Camp guide for authors. Published with permission.

[…] Read the full article here: Developing A Business Plan As A Self-Published Author […]

[…] We recommend checking out this article: https://blog.bookbaby.com/2015/12/developing-a-business-plan-as-a-self-published-author/ […]

LEAVE A REPLY Cancel reply

Save my name, email, and website in this browser for the next time I comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Recent Articles

How to Market a Self-Help Book to Boost Sales

Generate Greater Book Profits in 4 Easy Steps

How To Make Money From Poetry in 7 Ways

Setting Up Your Book for Future Growth

© BookBaby Blog. All Rights Reserved.

The 3 Pieces To An Author Business Plan

Author Business Foundations

The 3 Pieces To An Author's Business Plan

Are you just getting started with indie authorship and want to get started on the right foot by crafting together an author business plan? Or maybe you're already further along and feeling the need to get your formal plan down on paper. If so, you are definitely in the right place because this is going to be the first in a 4 part series all about crafting a business plan as a self publishing fiction author. In this post, I'm going to talk about the three different puzzle pieces that come together to give you a holistic indie author business plan.

Do authors really need a business plan?

Before I jump in, I want to address the first question you may be wondering - do I need a business plan as an indie author? And the answer is - yes!

But maybe not in the way you are thinking. It's true that as an indie author, you are an entrepreneur. You are developing products (your books) and selling them in exchange for money. And if you got into authorship because you want a career that can support your lifestyle and bring in profit, you’ll want a business plan. Many authors are VERY hard workers and still wonder why their efforts aren’t creating more success. They feel like they’re trying their hardest, but really not being rewarded. Why is this!? We’ve all heard the infamous Benjamin Franklin quote, “If you fail to plan, you are planning to fail.” And this is truer in business than just about anywhere else!

“If you fail to plan, you are planning to fail.”

- benjamin franklin.

You need to have a plan of how you will achieve success, or else your chances of doing so are pretty slim.

Now let's get back to where I said that your business plan as an author might not look how you are imagining it. All of this isn’t to say that you need to go out and spend two weeks typing up a 50 page document. Your business plan can be as simple or elaborate as you’d like. After all, we all function differently in life and our approach to our work - and any plan is better than none at all.

What to put in an author business plan?

So what is a business plan? And what should you include in one as an idea author? Simply put, a business plan is a plan of how you will run your business and how you will make money. It’s about that top-level stuff though, so as much as I love a good goal setting strategy session, that’s not what this is. When I help authors put together their business plan, there are three main components or “puzzle pieces” I encourage them to look at.

The Business Foundation

Think of this as the core of your author business. This is the part many people think of when you hear the phrase "business plan".

Your business foundation consists of your business legalities, financial processes, your core values as an author, the types of books you will write and publish, what readers you are writing for (AKA - your ideal reader ), how you fit into your market, as well as the types of avenues you will use to make sales.

This piece is important to put together because it becomes a sort of “guide” as you maneuver your way through authorship. You’ll have this important information to fall back on as you plan your goals and decide on projects to pursue.

Your Business Model

There are actually many different ways for indie authors to structure their business. Some of them include strictly writing fiction books and publishing them, while others incorporate other products and services into their business plan.

This is important to decide on because it allows you to keep your focus and avoid shiny object syndrome but it also can help you make a big-picture vision of what you want your author journey to look like.

Your Book Release Plan

The different elements you’ll want to include here are your book production process - as in what steps will you take to develop the final product - and what that ideal timeline looks like.

You’ll want to include your release strategy. How often do you plan to release a new book? Once a month? Once a year? Again this varies greatly from author to author so knowing what your plan is here can help you develop a book production schedule that helps you reach that release goal.

The final thing here in your book release plan would be to develop a pricing strategy. Will you be doing a perma-free book or reader magnet? Will your new releases launch at .99 or 4.99? What about sales prices and seasonal promos?

The book release plan is important because it saves you from simply going through your author journey winging it. You’ll know how many books you want to release each year as well as the process you’ll go through to get there.

How to create an author business plan?

There are many ways to create your business plan, depending on how in-depth you want to be. You can scribble it all out on a piece of paper in your planner , write yours out in Google Docs, or integrate it into your project management system somehow.

So that’s the general overview of an indie author business plan and the 3 pieces you need to put together - your foundation, your business model, and your release plan. Throughout the rest of this series, I’ll be diving more into each one of these to help you craft your indie author business plan.

Part 1 - The 3 Pieces To An Author's Business Plan

Part 2 - The Key Components of Your Indie Author Business Foundation

Part 3 - Business Models For Indie Authors

Part 4 - Indie Author Release Strategies

Next up in this series on indie author business plans, we’ll be diving into how to create the first part of your business plan - your business foundation. You’ll find the links to the other posts in this series above once they release.

I’d love for you to tell me in the comments - did you create a business plan for your author business? Are you working on one now? What’s something you’ve struggled with in the process?

Need help writing a business plan

Session expired

Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page.

How to create a business plan for writers

Business plans for writers are valuable documents for setting, tracking and learning from goals and strategies for selling books. Read 9 steps for developing a thorough plan.

• Post author By Jordan
• 9 Comments on How to create a business plan for writers

The business of writing has as many moving parts as writing craft. This brief guide on how to create a business plan for writers will help you take steps to plan and adhere to SMART writing goals while keeping the business of writing (selling books and marketing your novels or non-fiction) firmly in mind.

What is a business plan for writers?

If you’ve ever watched a reality show about business investment such as the UK show Dragon’s Den (aired as Shark Tank in the US), you’ll know that start-ups that win big backing have one thing in common: a clear plan .

A classic business plan is:

• A comprehensive document stating future business objectives plus strategies for achieving them
• A guide to each stage of starting and/or managing a business over a future term used to record goals (and stay on track or rein in scope)
• A reference document to use towards measuring outcomes (for example, whether or not the goals in the plan were met, the strategies used, and how effective they were)

A good business plan goes hand in hand with other essentials: Knowing your niche, your value, and your target market . Make forming one an integral part of your story planning process .

Standard business plans vs business plans for writers

A business plan for writers differs from the type of plan a start-up would use to pitch investors:

• If you are an indie author (or hoping to become one), there will be less emphasis on proving your business case (its commercial viability). Your plan won’t need to convince investors to part with their cash in exchange for specific forecast returns (ROI)
• Your plan will feature aspects that are highly specific to the business of writing (such as book cover design and costs, editing, and other professional writing overheads)

Let’s explore 9 steps for building a business plan for a book or series:

9 steps to create a kickass writing plan for your business:

• Begin building your platform and audience.
• Brainstorm business-phase-specific writing goals.
• Prioritize goals by need, not wish.
• Create a living writing business plan.
• Itemize your planned expenses.
• Calculate what you need to sell to break even.
• Explore and choose strategies for selling.
• Create a compelling showcase for your brand.
• Measure results and adjust as you go.

Begin building your platform and audience

Why does building a platform/audience come first? Because it’s never too early to start connecting with others who may value, enjoy, and be willing to pay to further enjoy your voice.

Ways to build your writing platform:

• Create an author site that will be home to your future publications. To keep costs down you can use an all-in-one website design and hosting service such as Wix . Keep in mind that using designers and developers provides even more customization potential and design/functionality freedom, but may cost more.
• Blog about topics relevant to potential readers in your target audience.
• Create author pages on social media for sharing writing snippets, promo and news.
• Build a newsletter for your author site and offer giveaways (such as short stories or guides).
• Host or co-host webinars or lives on social media with other writers.

These are just some ideas.

Indie publishing expert Joanna Penn raises an important platform – building caveat . If you are in the early stages of writing a book, the types of platform available to you (and what is most popular with netizens) may have changed a lot by the time your book is out . (TikTok, for example, now hugely popular, was only started in 2016.)

Penn’s advice is to at least have a simple website with some form of email-gathering function. Email remains an effective way to spread the word about your newest and existing releases.

Brainstorm business-phase-specific writing goals

The first, proper step of creating a business plan for writers is to brainstorm goals specific to the phase of writing you’re in .

For example, if you’re working on your debut novel and are not yet published (traditionally or independently), your goals will likely look substantially different to a so-called ‘Midlist Author’ (an author who publishes consistently profitable books, but is not yet a publishing sensation landing seven-figure deals).

For midlist to top-tier authors, goals often focus on expansion oriented tasks such as speaking engagements or tapping new audiences by branching out into other genres or subgenres (for example, the way She-Who-Must-Not-Be-Named moved into writing thrillers as Robert Galbraith after her fantasy success). Now Novel writing coach Romy Sommer discusses tailoring strategy to your professional phase in our writing webinar on building a writing career.

Examples of goals specific to the current phase of your professional writing life might be:

• Finding and hiring a fiction editor for a recently completed draft
• Shortlisting agents open for queries who are interested in your genre and/or subject matter niche
• Creating a website that will provide a showcase and selling tool for your future publications

FINISH YOUR BOOK IN 6 MONTHS

Stay accountable, in a structured program with writing sprints, coach Q&As, webinars and feedback in an intimate writing group.

Prioritize goals by need, not wish

Once you’ve brainstormed a list of specific goals that may be relevant to your writing business plan, it’s time to finesse these down to the most important, SMART goals.

SMART goals are goals that are specific, measurable, attainable, realistic, and time-based.

Prioritize goals by their relevance to tangible objectives. For example, formatting your book for X platform by Y date.

These are more practical than ‘nice to haves’ that have hard-to-predict impact on finances. For example, ‘becoming a bestseller’ – a ‘bestseller’ after all may mean radically different sales numbers in different countries or genres.

Examples of SMART business plan goals for writers

‘Research and write a list of ten agents currently open to queries in my genre/subject matter and start querying next Monday’ is a SMART goal.

It’s relevant to a specific business phase (having a manuscript to publish, in this example, traditionally). It’s attainable, actionable, and time-based .

‘Become a bestselling author’ is not (there are too many variables and moving parts; it lacks specificity). This is not to say that big dreams are invalid or not worth holding! But … they’re the driving, desiring force behind a good business plan, not the main content.

What do you need to do most urgently to get to a point where you have books to sell to an audience that’s dying to read them?

Angela Ackerman, in a helpful article for Jane Friedman’s publishing blog on the first steps in creating a writing business plans, says:

Sometimes desire (wanting to be published right now, for example) can get in the way of what we actually need (to hone our craft further). To be objective, set emotion aside. Ask yourself hard questions about what your career really needs. Angela Ackerman, in ‘The 7-Step Business Plan for Writers’, via Jane Friedman’s blog.

Create a living writing business plan

So you’ve prioritized goals for the next six months to a year ahead. You’ve made sure they’re SMART and tailored to where you’re at now. The next step is to create a living business plan for your writing.

Why a ‘living’ plan? There are times in any strategic process such as selling your work where you may want to reflect on how things are going, what’s working, and what isn’t, and regroup.

Begin your plan with a mission statement. Try to keep this to a sentence or two at most. For example:

‘Hire a cover designer, editors and formatting professional for my urban fantasy debut, create author profiles on Goodreads, Amazon and Wattpad, and self-publish my book by next June.’

Create a checklist of action items or ‘jobs to be done’ for your plan, prioritized by urgency. The satisfaction of ticking off checklist items is great motivation.

Itemize your planned expenses

Whether you want to sell enough books in a year’s trade to quit your day job or just see how many copies you can sell if you are systematic, it’s important to tracks costs vs returns.

For example, for a typical 80,000 word genre fiction debut, you might create a table in your business plan that looks something like this:

Cover design and editing are essential if you want your book to stand out, and to do the utmost to win over first-time readers.

As in the table above, you may have expenses such as website hosting and design requiring further research, because there are just so many options. The same goes for turning your manuscript into an audiobook .

The promo spend of $150 above is based on the minimum daily spend for Instagram ads being $5 (assuming, for this example, that you wanted to pay to promote your indie book to a niche reader audience matching your genre on Instagram for 30 days).

The above example of costs is a rough example, of course. You may well find cover designers whose services cost less than a lower- mid-priced professional who has more experience. Ditto for editing (remember the caveat though: ‘You get what you pay for’). Having a good estimate of costs for your business plan (and replacing these with hard figures as quotes come in and you choose which to accept) will help you budget and work out what you need to sell to break even:

Calculate what you need to sell to break even

Going off the above table (which does only include copy-editing, and not a manuscript evaluation , developmental editing or proofreading, and leaves out other costs such as print copies), you would need to sell 2182 digital copies of your book at a promo price of $0.99 to earn back your (known) expenses, or 1086 copies at a launch/promo price of $1.99 per copy ($2160 of known expenses divided by your selling price and rounded up).

Having this figure is vital as it gives you an exact target for sales, as well as an idea of the sweet spot for promo pricing to at least recoup your expenses in the first push.

Will you sell your book cheaply to start for the sake of a lower barrier to entry for potential readers with whom you have not yet proven your entertainment value?

This is a particularly helpful strategy for selling a new series, as you can up your pricing for sequels.

As part of working out selling price and launch strategies, read publishing experts’ blogs and thoughts on the matter. Joanna Penn has a helpful article on the benefits of selling with platform exclusivity versus ‘going wide’ (selling on multiple platforms), for example.

Explore and choose strategies for selling

There are many platforms, models and strategies for selling your stories.

Long gone are the days of book chains, indie stores and physical libraries being the main way to find your favorite stories.

The mix of in-store and digital gives you many ways to promote your writing and find an audience that may be hungry for the exact themes, topics, and experiences your work explores.

Some selling strategies to explore and choose from to add to your growing business plan include:

• Platform-specific promo services (such as KDP Select , Amazon’s promotional program for authors willing to sign over exclusive publishing rights to their platform for 90 days)
• Book blog tours and giveaways (partnering with writing sites that have blogs to talk about your book – for example, we interview members who have new releases to share here on Now Novel)

If your marketing knowledge and experience is scant, it may be worth taking a book marketing course (remember to add this to the expenses portion of your writing business plan). Coursera is a fantastic resource for university-run short learning courses, and may help you grasp marketing fundamentals or how to use tools for understanding how to convert website visitors into customers/readers.

Create a compelling showcase for your brand

Many artists and writers are allergic to marketing terms such as ‘brand’. They tend to sound clinical, the kind of buzzwords that people throw out a mile a minute at conferences.

Yet branding is a helpful concept to think about as you create your writing business plan.

What is an author’s brand?

If you look at a major brand such as Nike’s advertising, a specific ‘brand persona’ becomes clear. Nike is all about the ‘mentor/coach’ archetype (from their slogan ‘Just Do It’ to their visual choices such as the tick-like swoosh logo), their brand is all about helping the customer reach their own potential.

An author brand differs in several ways (authors don’t have catchphrases or slogans, of course). Yet having a clear author brand can (like Nike) differentiate what is unique and wonderful about your work in a crowded bookshelf or marketplace. From cover design choices to titling, how you represent your work infers a certain tone and persona. In the podcast with Joanna Penn mentioned above, Penn shares that she’s interested in the spooky and how she shares pictures of eerie environs because she knows these appeal to a certain type of reader who would fall within her target audience – that’s a branding decision.

Ways to build showcasing your brand into your writing business plan

• Plan the language and tone of your newsletter and social media posts. If you write cozy mysteries, for example, what cozy language or mystery can you carry over into what you share?
• Plan how you’ll incorporate the emotion your writing intends to stir in readers into your visual design language , on your author site and social media. If you write bloodcurdling, violent fantasy, what color, typographical and other design choices will communicate what your writing is all about?
• Think about what types of promotions you could run that are on-brand . An author who writes ‘choose-your-own-adventure’ books like Goosebumps titles in this format could run a book giveaway contest where readers combine given elements to create their own flash fiction, for example, for a book giveaway.
• Create a calendar of images, quotes and videos to share that m atch the tone, mood, spirit and/or subjects of your stories.

Measure results and adjust as you go

In any business, it helps to be agile, able to pivot fast to let go of strategies not working or embrace newer methods or platforms that are well-aligned to your goals.

Make your business plan a living document that you review regularly and adjust as needed so that you factor in assessing, learning what worked and what didn’t, and coming back stronger.

Looking for professional fiction editing services or a writing coach to guide you through each stage of writing and querying? Now Novel offers companionship and a supportive network, every step of the way.

Further resources

Rick Lite has a helpful guide for IngramSpark for creating a book promo timeline.

Zara Altair at ProWritingAid provides helpful questions to ask in deciding your book’s value and price .

Are you making regular earnings on your books? What’s the one tip you’d give another writer on going pro? Let us know down below.

Related Posts:

• 10 useful apps for writers to help you create
• How to plan a story in scenes: 5 steps
• What is a plot point? Find and plan clear story events
• Tags book marketing , writing business , writing process

Jordan is a writer, editor, community manager and product developer. He received his BA Honours in English Literature and his undergraduate in English Literature and Music from the University of Cape Town.

9 replies on “How to create a business plan for writers”

Extremely helpful! Thank you, Jordan.

Hi Allorianna, thank you! I’m glad you found this helpful. See you in the next webinar 🙂

Jordan! Thanks a million! What a detailed and helpful post! I’ve bookmarked this!

Hi Michi, it’s a pleasure. Thanks for reading this and for sharing your feedback 🙂

Excellent follow-up to the webinar! Great tips. I will be printing out the 9 Steps graphic. Thanks for all your expertise.

Hi Billy, thank you for sharing your feedback – I’m glad you found this a helpful supplement to the webinar. It’s a pleasure, happy writing!

Thanks a lot for your work. Great article. Everything is very clear and understandable.

excellent writing and every thing is understandable

Dear Asif, I’m so pleased you found this useful! Thanks for writing in. All the best with your writing.

Leave a Reply Cancel reply

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

Pin It on Pinterest

• Writing, Research & Publishing Guides

Sorry, there was a problem.

Download the free Kindle app and start reading Kindle books instantly on your smartphone, tablet, or computer - no Kindle device required .

Read instantly on your browser with Kindle for Web.

Using your mobile phone camera - scan the code below and download the Kindle app.

Image Unavailable

• To view this video download Flash Player

Follow the author

Your Author Business Plan: Take Your Author Career To The Next Level (Creative Business Books for Writers and Authors) Hardcover – November 5, 2021

You turn the thoughts in your head into valuable intellectual property assets. You understand how powerful the written word can be. Now it's time to use your words to create a business plan to take your writing career to the next level — whatever that means for your situation.

I'm Joanna Penn and I've been a full-time author-entrepreneur for almost a decade. In this book, I’ll guide you through the process of creating a business plan that will help you achieve your creative and financial goals.

It’s relevant for fiction and non-fiction authors, as well as those who want to include other products, services, and income streams. It’s also applicable whether you’re just starting out or if you already have a mature author business. A plan helps at any stage of the journey.

• Part 1 covers your business summary and author brand , taking you through the process of deciding the overall direction for what you want to achieve and who you want to serve.
• Part 2 goes into the production process around your writing, publishing and licensing, products and services .
• Part 3 covers your marketing strategy and author eco-system.
• Part 4 goes into the financial side of your business, from mindset to revenue and costs, as well as paying yourself now and into the future.

The final chapter will give you a framework for simplifying your plan and turning it into achievable steps across a chosen timeline.

In each section, I give examples from my own business plan and there are questions for you to answer, templates, and resources that might help along the way, as well as example business plans for different kinds of authors.

It's time to take your author career to the next level. Let's get started on your business plan.

Please note: This book doesn’t go into detail on how to do the specific topics, for example, how to self-publish a book, or how to do content marketing. I cover those topics in my other Books for Authors.

If you already have my previous business book, Business for Authors , this is a rewritten and updated sub-set of that material, focusing on the specifics of a plan as opposed to everything involved in running a business. This book acts as a companion as well as a more recent update to my own author journey. It will help you bring it all together into a coherent plan that you can use to take your author business into the future.

• How to Write Non-Fiction
• How to Market a Book
• How to Make a Living with your Writing
• Productivity for Authors
• Successful Self-Publishing
• Your Author Business Plan
• The Successful Author Mindset
• Public Speaking for Authors, Creatives and Other Introverts
• Audio for Authors: Audiobooks, Podcasting, and Voice Technologies
• The Healthy Writer
• Business for Authors: How to be an Author Entrepreneur
• Career Change
• Part of series Creative Business Books for Writers and Authors
• Print length 128 pages
• Language English
• Publication date November 5, 2021
• Dimensions 5.5 x 0.48 x 8.5 inches
• ISBN-10 1913321916
• ISBN-13 978-1913321918
• See all details

Product details

• Publisher ‏ : ‎ Curl Up Press (November 5, 2021)
• Language ‏ : ‎ English
• Hardcover ‏ : ‎ 128 pages
• ISBN-10 ‏ : ‎ 1913321916
• ISBN-13 ‏ : ‎ 978-1913321918
• Item Weight ‏ : ‎ 7.8 ounces
• Dimensions ‏ : ‎ 5.5 x 0.48 x 8.5 inches
• #1,393 in Business Planning & Forecasting (Books)
• #2,003 in Business Writing Skills (Books)
• #4,069 in Authorship Reference

About the author

Joanna penn.

Joanna Penn writes non-fiction for authors and is an award-nominated, New York Times and USA Today bestselling thriller, dark fantasy, crime, and horror author as J.F. Penn.

She’s also an award-winning podcaster, creative entrepreneur, and international professional speaker. www.TheCreativePenn.com

Check out Jo's Podcast for Writers: The Creative Penn Podcast

You can get a free Author 2.0 Blueprint ebook and video series at www.TheCreativePenn.com/blueprint

Jo lives in Bath, England with her husband and two British Shorthair cats, Cashew and Noisette (often featured on Instagram @jfpennauthor ). She enjoys a nice G&T (Hendricks, or any local gin).

Jo is also a travel junkie, weaving her adventures into her fiction and travel memoir and podcasting at www.BooksAndTravel.page

Customer reviews

• 5 star 4 star 3 star 2 star 1 star 5 star 79% 13% 7% 0% 1% 79%
• 5 star 4 star 3 star 2 star 1 star 4 star 79% 13% 7% 0% 1% 13%
• 5 star 4 star 3 star 2 star 1 star 3 star 79% 13% 7% 0% 1% 7%
• 5 star 4 star 3 star 2 star 1 star 2 star 79% 13% 7% 0% 1% 0%
• 5 star 4 star 3 star 2 star 1 star 1 star 79% 13% 7% 0% 1% 1%

Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them.

To calculate the overall star rating and percentage breakdown by star, we don’t use a simple average. Instead, our system considers things like how recent a review is and if the reviewer bought the item on Amazon. It also analyzed reviews to verify trustworthiness.

• Sort reviews by Top reviews Most recent Top reviews

Top reviews from the United States

There was a problem filtering reviews right now. please try again later..

Top reviews from other countries

• About Amazon
• Investor Relations
• Amazon Devices
• Amazon Science
• Sell products on Amazon
• Sell on Amazon Business
• Sell apps on Amazon
• Become an Affiliate
• Advertise Your Products
• Self-Publish with Us
• Host an Amazon Hub
• › See More Make Money with Us
• Amazon Business Card
• Shop with Points
• Reload Your Balance
• Amazon Currency Converter
• Amazon and COVID-19
• Your Account
• Your Orders
• Shipping Rates & Policies
• Returns & Replacements
• Manage Your Content and Devices

• Conditions of Use
• Privacy Notice
• Consumer Health Data Privacy Disclosure
• Your Ads Privacy Choices

The leading eBook DRM & fulfillment software.

Sign up for a free 14-day trial and join EditionGuard

Readium LCP

Social DRM Software

Compare DRMs

Product tour, how it works, education & schools, partner program, referral program.

Support Center

Integration with Zapier

Website Integration Services

Developer API

System status, terms of use, explore the ebook drms that editionguard offers to protect your ebooks., social drms, explore editionguard, learn how the editionguard app works to protect and fulfill your ebooks., learn more about ebook fulfillment, how to add editionguard to your website and more., custom integration.

EditionGuard

In business for over a decade – know that you’re choosing a partner who’ll be around for years to come., the indie author business plan: a step-by-step outline, turgay birand.

November 28, 2016

The Indie Author Business Plan

1. Finalize Your Book Topic (Product)

2. write down goals and deadlines, 3. create a competitive analysis.

4. Create A Marketing Plan

• Target customer: age, gender, location, interests, etc.
• Marketing channels: social media, blog, in person events, etc.
• Pricing strategy: how much will you sell your paperback, hardcover and eBook for?
• Special offers: will you offer discounts or give away the first few chapters for free?

5. List Required Outside Help

6. identify financing needs.

7. Create A Strategic Sales Plan

8. create a formal business plan, how to self-publish and sell your ebook, oct 24, 2023, pros and cons of ebook drm, benefits of drm encryption, oct 23, 2023, securely sell ebooks online, sign up for a free 14-day trial to join editionguard and start selling your ebooks online., the ultimate guide to self publishing.

Learn how to successfully self publish your books online.

eBook Piracy & What You Can Do About It

A must-know guide on how to protect your ebook from unauthorized distribution online.

• Skip to main content
• Skip to footer

Additional menu

The Creative Penn

Writing, self-publishing, book marketing, making a living with your writing

Your Author Business Plan Extras

Thanks for reading or listening to your author business plan..

I hope you found it useful for putting your own business plan together.

Here are the templates and extras from the book.

• Business Plan Template (MS Word)
• List of Questions (MS Word)
• List of Questions (PDF)
• Asset Master List Example (.xls)
• Resources by chapter (PDF)
• Bibliography (PDF)
• Example – The Creative Penn Brand Manual

Available in ebook, paperback, large print, audiobook , and separately as a workbook edition .

Connect with me on social media

Sign up for your free author blueprint.

Thanks for visiting The Creative Penn!

Your Writer Platform

Build your platform. engage your fans. sell more books., how to build your author platform: a simple guide.

by Kimberley Grabas

Struggling to establish your online presence and connect with your readers? 

Building a strong author platform can be the key to your success in today’s digital age.

And although it takes time and consistent effort, growing a platform and community around your writing is worth the trouble.

In this article, I’ll walk you through how to build your author platform step-by-step.

But before we dive into the nitty-gritty of building your author platform, let’s first understand what it is and why it’s crucial for your success as an author.

Your author platform is the presence you create (both online and off) to promote yourself and your work. It encompasses everything from your website to your social media profiles, email list, and other channels that you use to interact and engage with your ideal readers.

Why is it essential to have an author platform? Well, having a strong author platform can help you:

• Connect with your audience and build a loyal following
• Establish yourself as an authority in your niche
• Increase your visibility and reach more readers
• Sell more books and generate more revenue

So, how can you build a strong author platform? Let’s find out.

Identifying Your Target Audience

Identifying your target audience is a crucial step in building your author platform and business.

After all, if you don’t know who you’re trying to reach, it’s difficult to create content and marketing strategies that resonate with your readers. Your goal is to tailor your platform and marketing strategies to meet their needs (as well as your own).

The more you know about your audience, the more effective you’ll be at connecting with them.

Here are some tips for identifying your target or ideal audience:

• Consider your genre. Different genres appeal to different readers.
• Think about your writing style.  Are you humorous? Serious? Poetic? Knowing your writing style can help you connect with readers who share your sensibilities.
• Look at your existing fan base. If you already have a small following, take a closer look at who those readers are. What are their demographics? What do they like about your writing?
• Research your competitors. Take a look at other authors who write in your genre. Who are their readers? What do they like about their writing? This can give you a better understanding of the larger market you’re competing in.
• Conduct surveys or focus groups. Ask questions about demographics, interests, reading habits, and preferences to get a clearer picture of who your ideal reader is.

In-depth resource: The 4-Part System to Define & Attract Your Target Audience

Building Your Brand

Your author brand is how you present yourself and your writing to the world.

It’s about creating a unique identity that sets you apart from other writers and resonates with your readers.

By building a strong and recognizable brand that resonates with your target audience, you can create a powerful platform for your writing business.

Remember, your brand is a reflection of who you are and what you stand for – so make it count!

Here are some tips for building your author brand:

• Develop your voice. Consider the tone, style, and language you use in your writing, and strive to create a consistent voice across all your platforms.
• Have a clear message. Consider what sets you apart as a writer, and how you can communicate that in a clear and compelling way.
• Leverage your personal story. How have your own experiences influenced your writing, and how can you use your personal story to connect with your readers?
• Engage with your readers. Respond to comments and messages on social media, host Q&A sessions, and ask for feedback on your work.
• Consistency is key: Make sure your website, social media presence, and other platforms are all visually consistent and use a similar tone and style. This will help build recognition and trust with your readers.

In-depth resource: Brand Strategy for Authors: How to Truly Stand Out From the Crowd

Creating Your Author Website

Your author website is the home base of your author platform. 

It’s the first place readers will go to learn more about you and your work, so it’s essential to create a professional-looking website that represents you and your brand.

Here are some tips for creating your author website:

• Choose a domain name that is easy to remember and reflects your brand
• Use a professional-looking template or hire a designer to create a custom website
• Include a bio, book summaries, and links to purchase your books
• Add a blog to share updates, news, and insights related to your work
• Make sure your website is mobile-friendly and optimized for search engines

In-depth resource:  Your Author Website: Its Core Purpose and a ‘Must-Have’ Checklist

Building Your Email List

Your email list is one of the most valuable assets of your author platform. 

It’s a direct line of communication with your readers and can help you promote your work, build relationships, and generate revenue.

Here are some tips for building your email list:

• Offer a free resource, such as a chapter from your book or a short story, in exchange for email addresses
• Add a sign-up form to your website and social media profiles
• Send regular newsletters with exclusive content, such as sneak peeks or special promotions
• Use segmentation to target specific groups of subscribers with tailored messages

In-depth resource: Email List Building: 9 Ways to Seriously Grow Your List (For Authors)

Leveraging Social Media

Social media is a powerful tool for connecting with your readers and expanding your reach. However, it’s essential to choose the right platforms and use them effectively.

Here are some tips for leveraging social media:

• Choose platforms that your target audience uses
• Post regular updates, including behind-the-scenes glimpses, writing tips, and sneak peeks
• Engage with your followers by responding to comments and messages
• Use paid advertising to reach a larger audience and promote your work

In-depth resource:  The Ultimate Guide to Social Media for Writers 2023

Creating Engaging Content

Creating engaging content is key to building your author platform and connecting with your audience. 

Here are some tips for creating content that resonates with your readers:

• Share your journey as an author, including your challenges and triumphs
• Provide valuable insights and advice related to your niche
• Collaborate with other authors, bloggers, and influencers to expand your reach
• Use multimedia, such as videos and podcasts, to create diverse content

In-depth resource:  Audience Engagement: How to Establish a Genuine Connection with Your Readers

Additional Platform-Building Strategies

In addition to the main strategies mentioned above, there are several other ways to build your platform and grow your community. 

Here are a few more ideas to consider:

• Guest blogging : Reach out to other blogs in your niche and offer to write a guest post. This can help you reach a new audience and establish yourself as an authority.
• Speaking engagements : Look for opportunities to speak at conferences, bookstores, libraries, and other events. This can help you connect with readers and other authors, as well as build your reputation as a speaker.
• Podcasts and interviews : Seek out podcasts and other media outlets that focus on your genre or niche. Offer to be a guest and share your insights and expertise.
• Online courses and webinars : Consider creating an online course or webinar that teaches others about your area of expertise. This can help you reach a wider audience and establish yourself as a thought leader. (For next-level learning material with premium, in-depth courses, check out my school ).
• Collaborations and partnerships : Look for opportunities to collaborate with other authors or businesses in your niche. This can help you reach a new audience and expand your reach.

Q1. Do I need to be active on all social media platforms to build my author platform?

A1. No, it’s not necessary to be active on all platforms. Choose the ones (one or two to start) that your target audience uses and focus your efforts there. Quality over quantity is essential.

Q2. How often should I send newsletters to my email list?

A2. It depends on your audience and the type of content you’re sharing. Generally, sending a newsletter once a month is a good starting point. However, you can increase or decrease the frequency based on your subscribers’ preferences.

Q3. Is it essential to have a blog on my author website?

A3. No, it’s not necessary to have a blog. However, it can be a great way to share updates, insights, and news related to your work. It can also help you establish yourself as an authority in your niche and improve your search engine rankings .

Building a strong author platform is an ongoing process. It takes time and effort to establish yourself as an authority and build a following – but it’s definitely worth it in the long run. 

By creating a professional website, building an email list, leveraging social media, and creating engaging content, you can connect with your audience, establish yourself as an authority, and sell more books. 

With patience and persistence, and a continued focus on providing value to your audience, you can build a strong author platform that supports your writing career.

Believe, Plan, Act: A Platform + Productivity Planner for Writers

A complete platform + productivity planning system for your author business..

Everything you need to discover, plan, and execute your writing and business goals – so you can finally remove the word “aspiring” from all your profiles…

Authors with Platforms Sell Books.

It’s that simple.

Get on the Insiders List to receive the free Quick Start Guide to Building Your Writer Platform , exclusive content via email, and instant access to a growing library of downloadable resources.

Privacy Overview

• Sources of Business Finance
• Small Business Loans
• Small Business Grants
• Crowdfunding Sites
• How to Get a Business Loan
• Small Business Insurance Providers
• Best Factoring Companies
• Types of Bank Accounts
• Best Banks for Small Business
• Best Business Bank Accounts
• Open a Business Bank Account
• Bank Accounts for Small Businesses
• Free Business Checking Accounts
• Best Business Credit Cards
• Get a Business Credit Card
• Business Credit Cards for Bad Credit
• Build Business Credit Fast
• Business Loan Eligibility Criteria
• Small-Business Bookkeeping Basics
• How to Set Financial Goals
• Business Loan Calculators
• How to Calculate ROI
• Calculate Net Income
• Calculate Working Capital
• Calculate Operating Income
• Calculate Net Present Value (NPV)
• Calculate Payroll Tax

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

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

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

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

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

Let’s get started.

What Do You Need A Business Plan For?

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

1. Secure Funds

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

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

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

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

2. Monitor Business Growth

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

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

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

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

3. Measure Business Success

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

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

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

4. Document Your Marketing Strategies

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

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

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

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

How to Write a Business Plan Step-by-Step

1. create your executive summary.

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

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

A good executive summary should do the following:

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

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

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

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

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

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

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

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

2. Add Your Company Overview

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

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

Your company overview should contain the following:

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

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

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

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

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

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

• Mission Statement

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

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

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

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

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

Business Objectives

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

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

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

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

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

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

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

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

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

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

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

Market Analysis

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

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

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

• Market Research

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

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

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

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

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

How to Quantify Your Target Market

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

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

What Does a Good Market Analysis Entail?

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

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

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

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

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

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

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

Competitive Analysis

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

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

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

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

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

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

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

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

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

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

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

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

Direct vs Indirect Competition

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

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

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

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

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

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

Factors that Differentiate Your Business from the Competition

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

1. Cost Leadership

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

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

2. Product Differentiation

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

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

3. Market Segmentation

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

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

4. Define Your Business and Management Structure

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

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

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

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

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

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

Management Team

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

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

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

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

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

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

Key Questions to Answer When Structuring Your Management Team

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

Additional Tips for Writing the Management Structure Section

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

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

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

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

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

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

Organizational Chart

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

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

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

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

5. Describe Your Product and Service Offering

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Avoid Technical Descriptions and Industry Buzzwords

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

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

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

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

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

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

3. Long or Short Products or Services Section

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

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

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

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

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

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

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

4. Describe Your Relationships with Vendors or Suppliers

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

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

5. Your Primary Goal Is to Convince Your Readers

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

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

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

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

Key Questions to Answer When Writing your Products and Services Section

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

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

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

6. Show and Explain Your Marketing and Sales Plan

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

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

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

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

Outline Your Business’ Unique Selling Proposition (USP)

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

Target Market and Target Audience

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

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

Creating a Smart Marketing and Sales Plan

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

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

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

Your Positioning Statement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Basic Rules to Follow When Pricing Your Offering

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

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

Pricing Strategy

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

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

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

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

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

Advertising

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

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

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

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

Public Relations

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

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

Content Marketing

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

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

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

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

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

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

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

Social Media

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

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

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

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

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

Strategic Alliances

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

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

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

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

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

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

2. Evaluate Your Competition

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

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

These questions can help you know your competition.

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

3. Consider Your Brand

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

4. Focus on Benefits

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

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

5. Focus on Differentiation

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

Key Questions to Answer When Writing Your Marketing and Sales Plan

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

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

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

7. Clearly Show Your Funding Request

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

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

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

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

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

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

Funding Request: Debt or Equity?

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

Case for Equity

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

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

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

Case for Debt

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

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

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

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

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

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

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

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

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

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

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

8. Detail Your Financial Plan, Metrics, and Projections

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

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

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

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

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

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

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

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

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

Use Graphs and Charts

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

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

Address the Risk Factors and Show Realistic Financial Projections

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

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

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

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

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

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

1. Sales Forecast

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

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

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

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

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

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

2. Personnel Plan

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

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

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

3. Income Statement

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

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

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

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

4. Cash Flow Statement

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

5. Balance Sheet

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

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

6. Exit Strategy

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

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

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

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

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

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

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

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

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

9. Add an Appendix to Your Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

Tips and Strategies for Writing a Convincing Business Plan

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

1. Know Your Audience

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

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

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

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

2. Get Inspiration from People

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

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

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

3. Avoid Being Over Optimistic

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

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

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

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

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

4. Keep it Simple and Short

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

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

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

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

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

5. Make an Outline and Follow Through

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

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

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

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

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

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

6. Ask a Professional to Proofread

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

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

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

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

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

1. hubspot's one-page business plan.

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

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

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

2. Bplan’s Free Business Plan Template

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

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

3. HubSpot's Downloadable Business Plan Template

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

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

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

4. Business Plan by My Own Business Institute

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

The comprehensive template consists of a whopping 15 sections.

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

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

5. Score's Business Plan Template for Startups

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

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

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

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

6. Minimalist Architecture Business Plan Template by Venngage

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

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

7. Small Business Administration Free Business Plan Template

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

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

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

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

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

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

9. PandaDoc’s Free Business Plan Template

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

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

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

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

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

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

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

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

Alternatives to the Traditional Business Plan

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

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

Business Model Canvas (BMC)

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

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

Segments of the Business Model Canvas

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

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

Lean Canvas

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

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

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

Startup Pitch Deck

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

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

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

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

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

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

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

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

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

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

Business Plan FAQ

Business plans are important for any entrepreneur who is looking for a framework to run their company over some time or seeking external support. Although they are essential for new businesses, every company should ideally have a business plan to track their growth from time to time.  They can be used by startups seeking investments or loans to convey their business ideas or an employee to convince his boss of the feasibility of starting a new project. They can also be used by companies seeking to recruit high-profile employee targets into key positions or trying to secure partnerships with other firms.

Business plans often vary depending on your target audience, the scope, and the goals for the plan. Startup plans are the most common among the different types of business plans.  A start-up plan is used by a new business to present all the necessary information to help get the business up and running. They are usually used by entrepreneurs who are seeking funding from investors or bank loans. The established company alternative to a start-up plan is a feasibility plan. A feasibility plan is often used by an established company looking for new business opportunities. They are used to show the upsides of creating a new product for a consumer base. Because the audience is usually company people, it requires less company analysis. The third type of business plan is the lean business plan. A lean business plan is a brief, straight-to-the-point breakdown of your ideas and analysis for your business. It does not contain details of your proposal and can be written on one page. Finally, you have the what-if plan. As it implies, a what-if plan is a preparation for the worst-case scenario. You must always be prepared for the possibility of your original plan being rejected. A good what-if plan will serve as a good plan B to the original.

A good business plan has 10 key components. They include an executive plan, product analysis, desired customer base, company analysis, industry analysis, marketing strategy, sales strategy, financial projection, funding, and appendix. Executive Plan Your business should begin with your executive plan. An executive plan will provide early insight into what you are planning to achieve with your business. It should include your mission statement and highlight some of the important points which you will explain later. Product Analysis The next component of your business plan is your product analysis. A key part of this section is explaining the type of item or service you are going to offer as well as the market problems your product will solve. Desired Consumer Base Your product analysis should be supplemented with a detailed breakdown of your desired consumer base. Investors are always interested in knowing the economic power of your market as well as potential MVP customers. Company Analysis The next component of your business plan is your company analysis. Here, you explain how you want to run your business. It will include your operational strategy, an insight into the workforce needed to keep the company running, and important executive positions. It will also provide a calculation of expected operational costs.  Industry Analysis A good business plan should also contain well laid out industry analysis. It is important to convince potential investors you know the companies you will be competing with, as well as your plans to gain an edge on the competition. Marketing Strategy Your business plan should also include your marketing strategy. This is how you intend to spread awareness of your product. It should include a detailed explanation of the company brand as well as your advertising methods. Sales Strategy Your sales strategy comes after the market strategy. Here you give an overview of your company's pricing strategy and how you aim to maximize profits. You can also explain how your prices will adapt to market behaviors. Financial Projection The financial projection is the next component of your business plan. It explains your company's expected running cost and revenue earned during the tenure of the business plan. Financial projection gives a clear idea of how your company will develop in the future. Funding The next component of your business plan is funding. You have to detail how much external investment you need to get your business idea off the ground here. Appendix The last component of your plan is the appendix. This is where you put licenses, graphs, or key information that does not fit in any of the other components.

The business model canvas is a business management tool used to quickly define your business idea and model. It is often used when investors need you to pitch your business idea during a brief window.

A pitch deck is similar to a business model canvas except that it makes use of slides in its presentation. A pitch is not primarily used to secure funding, rather its main purpose is to entice potential investors by selling a very optimistic outlook on the business.

Business plan competitions help you evaluate the strength of your business plan. By participating in business plan competitions, you are improving your experience. The experience provides you with a degree of validation while practicing important skills. The main motivation for entering into the competitions is often to secure funding by finishing in podium positions. There is also the chance that you may catch the eye of a casual observer outside of the competition. These competitions also provide good networking opportunities. You could meet mentors who will take a keen interest in guiding you in your business journey. You also have the opportunity to meet other entrepreneurs whose ideas can complement yours.

Exlore Further

• 12 Key Elements of a Business Plan (Top Components Explained)
• 13 Sources of Business Finance For Companies & Sole Traders
• 5 Common Types of Business Structures (+ Pros & Cons)
• How to Buy a Business in 8 Steps (+ Due Diligence Checklist)

Was This Article Helpful?

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.

Get the Reddit app

For students from the Philippines, by students from the Philippines. For strand, course, and admission questions, please post on r/CollegeAdmissionsPH

Author's profile on a business plan

Can anyone give me an example of a author's profile.

I can't find it on google.

By continuing, you agree to our User Agreement and acknowledge that you understand the Privacy Policy .

Enter the 6-digit code from your authenticator app

You’ve set up two-factor authentication for this account.

Enter a 6-digit backup code

Create your username and password.

Reddit is anonymous, so your username is what you’ll go by here. Choose wisely—because once you get a name, you can’t change it.

Reset your password

Enter your email address or username and we’ll send you a link to reset your password

Check your inbox

An email with a link to reset your password was sent to the email address associated with your account

Choose a Reddit account to continue

• Arts & Entertainment
• Crime & Security
• International
• 4 minutes 4 change
• Chronicles of a Chronic Guyana Chronicler
• Frederick Kissoon
• Its in Our Nature
• LCDS in perspective
• Oil, Gas & You
• Talking Culture
• The Science of COVID-19
• Beyond the Runway
• Big Little Voice
• Consumer Concern
• Dentist Advises
• Lead Stories
• Fables of a Wondering Mind
• Focus On The Village
• Psychologist
• The Write Mind
• Youth Perspective

• |  August 10, 2024
• By Staff Reporter
• -  August 10, 2024

–  exposes Burke for using GNN platform for defamation, extortion scheme against Guyanese businessman

THE main witness in the ongoing trial of a major extortion conspiracy case has directly implicated wanted U.S.-based Guyanese Rickford Burke, not only for allegedly being part of the conspiracy but also as the owner of the Guyana News Network (GNN)—a platform notorious for publishing defamatory articles targeting opponents of the A Partnership for National Unity + Alliance For Change (APNU+AFC). This is according to a release from the Guyana Police Force, which, on Friday, provided updates on the case involving media workers Marlon Gary Eleazar and Alex Wayne, as well as businessman Dorwin Bess, who are before the Vigilance Magistrate’s Court for two counts of Conspiracy to Commit a Felony.

However, Burke, who resides in the United States and is wanted also wanted in Guyana for offences under various acts, including the Racial Hostility Act, Cyber Crime Act, was notably absent from court proceedings and currently has an arrest warrant out. The charges suggest that Burke conspired with Bess and Eleazar to extort money from Afras Mohamed by leveraging defamatory articles published on the GNN website. During the trial on June 20, 2024, the court heard testimony from Alex Wayne, a former co-accused who has since become the state’s key witness in exchange for the charges being dropped. According to the police, Wayne told the court that he once lived and worked for Bess. He knows Eleazar because they once worked together at Kaieteur News. Wayne described how Bess introduced him to Burke through a WhatsApp call, during which Burke identified himself and was recognised by his voice—a voice Wayne had become familiar with from GNN broadcasts. This connection was allegedly solidified when Bess revealed to Wayne that Burke was not just an ally but a former business partner and a “very good friend.” “Wayne further stated that Burke is the owner of the GNN website, and he knows this because Bess told him so. This witness went on to state that in August 2022, he was working for Bess, and they were having a conversation during which Bess told him that he had instructed his right-hand business partner to receive $90 million in payment for fuel from Mohamed,” the release detailed. Wayne stated that in August 2022, Bess instructed him to contact Mohamed, posing as a GNN reporter, and to relay that an article accusing Mohamed of defrauding the government through tax evasion linked to vehicle imports was about to be published. The intent, according to Wayne, was to coerce Mohamed into paying to suppress the damaging content.

THE EXTORTION SCHEME UNFOLDS Wayne detailed the intricacies of the plan, highlighting Bess’s pivotal role in orchestrating the extortion. He recounted how Bess directed him to approach Mohamed with the false accusation and subsequently sent the inflammatory article to Wayne’s phone. Following Bess’s instructions, Wayne contacted Mohamed, informed him of the pending publication, and even provided guidance on how to respond to the article. In a further twist, Wayne disclosed that Bess had called him later in August 2022 to inform him that the defamatory article had indeed been published on the GNN website. Bess then sent Wayne a second article alleging similar fraudulent activities by BM Soat and Global Petroleum Inc., which was also forwarded to Mohamed as part of the extortion pressure. The conspiracy’s execution involved not just threats but direct attempts to extract money. Wayne admitted to accepting $40,000 from Mohamed as a down payment to have the article removed from GNN’s website. He also testified about a meeting with Mohamed during September 2022, where Eleazar attempted to log into the GNN site to remove the article in exchange for a further payment of $150,000. This attempt, however, failed due to technical difficulties in accessing the website, leaving Eleazar to promise to remove the content later.

“Wayne added that he then asked Eleazar for ten thousand dollars ($10,000) from the fifty thousand dollars he collected from Mohamed because that was his cut for removing the article that was posted on the GNN website and to prevent the other article from being published,” the release said. According to the police, Wayne told the court that the extortion was a “threefold plan” initiated by Bess. Wayne’s testimony paints a picture of a calculated scheme, with each participant playing a specific role under Bess’s direction. Eleazar’s role as the writer of the defamatory article and Burke’s as the publisher on his GNN platform were critical in executing the plan. Wayne, as the intermediary, was tasked with directly pressuring Mohamed and collecting the extorted funds. The trial is currently ongoing before Senior Magistrate Fabayo Azore. Bess is being represented by Attorneys Dexter Todd and Dawn Cush, while Eleazar, initially represented by Nigel Hughes and Associates, is now also under the legal care of Dexter Todd. The prosecution, led by Police Legal Adviser, Mandel Moore, has so far relied heavily on Wayne’s testimony to build its case. The case is adjourned until September 13, 2024.

Leave a Comment Cancel Reply

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

More from this author

• | 2024-08-11

Mailing Address

Lama Avenue, Bel Air Park, Georgetown, Guyana.

General Numbers

(592) 226-3243-9

[email protected] (Editorial) (Advertising Department) [email protected] or [email protected]

E-Papers Daily

Business supplement.

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

Is It Time to Pivot Your Strategy?

• Ron Ashkenas

Three questions to help you decide when and how to correct the course.

Most projects and strategies at some point require a course correction. But choosing to pivot when it’s not necessary can be costly: A leader could send their team in an unproductive direction, wasting time, resources, and engagement; they could delay the achievement of the team’s goals; and they could squander the confidence of their stakeholders. The author has identified three questions that leaders can ask themselves in advance of a change in direction to make sure they aren’t pivoting for the wrong reasons: poor execution, external pressure, or the lure of a shiny new opportunity.

One of the only certainties of management is that all projects and strategies will, at some point, require a pivot or course correction. New technologies emerge, competitors do the unexpected, and plans are never perfect. That’s why agility and rapid adaptation are such critical leadership skills (as long as they are exercised, as I’ve written previously , with a focus on changing the means to achieve the goals, but not the goals themselves).

• Ron Ashkenas is a coauthor of the Harvard Business Review Leader’s Handbook  and a Partner Emeritus at Schaffer Consulting . His previous books include The Boundaryless Organization , The GE Work-Out , and Simply Effective .

Partner Center

Trump vehemently denies knowing who's in charge of Project 2025. But he once took a private flight with its leader, a new report says.

• Donald Trump has repeatedly denied any connection to the Heritage Foundation's Project 2025.
• But The Washington Post reported that Trump took a flight with the foundation's leader in 2022.
• Project 2025 is an ultra-conservative playbook that seeks to overhaul the executive branch.

Former President Donald Trump took a 45-minute private flight alongside Heritage Foundation President Kevin Roberts in April 2022, The Washington Post reported this week, citing people familiar with the trip.

Trump has repeatedly denied any connection with the Project 2025 camp, going so far as to say in a July social media post that he has "no idea who is in charge" of the ultra-conservative playbook that seeks to overhaul the executive branch.

The Post obtained and published a photo of Trump and Roberts smiling and posing on a private plane, undercutting Trump's denials.

According to the outlet, Trump and Roberts flew together to a Heritage Foundation conference, where Trump gave a keynote speech alluding to the then-forthcoming Project 2025.

Neither Trump nor the Heritage Foundation immediately responded to Business Insider's request for comment.

At the time of the flight in 2022, the Heritage Foundation had not yet put the finishing touches on Project 2025. A Heritage official told The Post that Robert raised the topic with Trump on the flight, but the former president appeared uninterested.

People familiar with the trip told the outlet that Heritage chartered the flight because Trump's private plane was being refurbished at the time. The men flew from Palm Beach, Florida , to Amelia Island, where the foundation's annual conference is held.

The Heritage Foundation and Project 2025

The Heritage Foundation is a conservative think tank based in Washington, DC, which is behind the controversial 922-page Project 2025 playbook .

Project 2025 is, in essence, a roadmap to enacting extreme conservative policies if Trump wins in 2024.

"The time is short, and conservatives need a plan," reads the Project 2025 website . "The project will create a playbook of actions to be taken in the first 180 days of the new Administration to bring quick relief to Americans suffering from the Left's devastating policies."

Related stories

Some of its extreme proposals include axing the Department of Education and its "woke-dominated system of public schools," stopping the FBI from fighting misinformation and disinformation, and ending the "war on fossil fuels."

Trump has denied any connection with the project. However, the Heritage Foundation was one of the sponsors for the Republican National Convention in Milwaukee in July, where Trump was nominated as the party's presidential nominee.

The former president called the people behind Project 2025 part of the "radical right" during a rally in Grand Rapids, Michigan, on July 20.

"Some of them, I know who they are, but they're very very conservative," he said at the rally. "They're sort of the opposite of the radical left. You have the radical left, and you have the radical right."

Watch: Donald Trump announces 2024 presidential run amid legal woes

• Main content

Advertisement

19 Facts About Tim Walz, Harris’s Pick for Vice President

Mr. Walz, the governor of Minnesota, worked as a high school social studies teacher and football coach, served in the Army National Guard and chooses Diet Mountain Dew over alcohol.

• Share full article

By Simon J. Levien and Maggie Astor

• Published Aug. 6, 2024 Updated Aug. 9, 2024

Until recently, Gov. Tim Walz of Minnesota was a virtual unknown outside of the Midwest, even among Democrats. But his stock rose fast in the days after President Biden withdrew from the race, clearing a path for Ms. Harris to replace him and pick Mr. Walz as her No. 2.

Here’s a closer look at the Democrats’ new choice for vice president.

1. He is a (very recent) social media darling . Mr. Walz has enjoyed a groundswell of support online from users commenting on his Midwestern “dad vibes” and appealing ordinariness.

2. He started the whole “weird” thing. It was Mr. Walz who labeled former President Donald J. Trump and his running mate, Senator JD Vance of Ohio, “weird” on cable television just a couple of weeks ago. The description soon became a Democratic talking point.

3. He named a highway after Prince and signed the bill in purple ink. “I think we can lay to rest that this is the coolest bill signing we’ll ever do,” he said as he put his name on legislation declaring a stretch of Highway 5 the “Prince Rogers Nelson Memorial Highway” after the musician who had lived in Minnesota.

4. He reminds you of your high school history teacher for a reason. Mr. Walz taught high school social studies and geography — first in Alliance, Neb., and then in Mankato, Minn. — before entering politics.

5. He taught in China in 1989 and speaks some Mandarin. He went to China for a year after graduating from college and taught English there through a program affiliated with Harvard University.

We are having trouble retrieving the article content.

Please enable JavaScript in your browser settings.

Thank you for your patience while we verify access. If you are in Reader mode please exit and  log into  your Times account, or  subscribe  for all of The Times.

Thank you for your patience while we verify access.

Already a subscriber?  Log in .

Want all of The Times?  Subscribe .