business plan 5 year

How to Write a Five-Year Business Plan

Noah Parsons

15 min. read

Updated October 27, 2023

Learn why the traditional way of writing a five-year business plan is often a waste of time and how to use a one-page plan instead for smarter, easier strategic planning to establish your long-term vision. 

In business, it can sometimes seem hard enough to predict what’s going to happen next month, let alone three or even five years from now. But, that doesn’t mean that you shouldn’t plan for the long term. After all, your vision for the future is what gets you out of bed in the morning and motivates your team. It’s those aspirations that drive you to keep innovating and figuring out how to grow.

• What is a long-term plan?

A long-term or long-range business plan looks beyond the traditional 3-year planning window, focusing on what a business might look like 5 or even 10 years from now. A traditional 5-year business plan includes financial projections, business strategy, and roadmaps that stretch far into the future.

I’ll be honest with you, though—for most businesses, long-range business plans that stretch 5 and 10 years into the future are a waste of time. Anyone who’s seriously asking you for one doesn’t know what they’re doing and is wasting your time. Sorry if that offends some people, but it’s true.

However, there is still real value in looking at the long term. Just don’t invest the time in creating a lengthy version of your business plan with overly detailed metrics and milestones for the next five-plus years. No one knows the future and, more than likely, anything you write down now could be obsolete in the next year, next month, or even next week. 

That’s where long-term strategic planning comes in. A long-term business plan like this is different from a traditional business plan in that it’s lighter on the details and more focused on your strategic direction. It has less focus on financial forecasting and a greater focus on the big picture. 

Think of your long-term strategic plan as your aspirational vision for your business. It defines the ideal direction you’re aiming for but it’s not influencing your day-to-day or, potentially, even your monthly decision making. 

• Are long-term business plans a waste of time?

No one knows the future. We’re all just taking the information that we have available today and making our best guesses about the future. Sometimes trends in a market are pretty clear and your guesses will be well-founded. Other times, you’re trying to look around a corner and hoping that your intuition about what comes next is correct.

Now, I’m not saying that thinking about the future is a waste of time. Entrepreneurs are always thinking about the future. They have to have some degree of faith and certainty about what customers are going to want in the future. Successful entrepreneurs do actually predict the future — they know what customers are going to want and when they’re going to want it.

Entrepreneurship is unpredictable 

Successful entrepreneurs are also often wrong. They make mistakes just like the rest of us. The difference between successful entrepreneurs and everyone else is that they don’t let mistakes slow them down. They learn from mistakes, adjust and try again. And again. And again. It’s not about being right all the time; it’s about having the perseverance to keep trying until you get it right. For example, James Dyson, inventor of the iconic vacuum cleaner, tried out 5,126 prototypes of his invention before he found a design that worked.

So, if thinking about the future isn’t a waste of time, why are 5-year business plans a waste of time? They’re a waste of time because they typically follow the same format as a traditional business plan, where you are asked to project sales, expenses, and cash flow 5 and 10 years into the future. 

Let’s be real. Sales and expense projections that far into the future are just wild guesses, especially for startups and new businesses. They’re guaranteed to be wrong and can’t be used for anything. You can’t (and shouldn’t) make decisions based on these guesses. They’re just fantasy. You hope you achieve massive year-over-year growth in sales, but there’s no guarantee that’s going to happen. And, you shouldn’t make significant spending decisions today based on the hope of massive sales 10 years from now.

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• Why write a long-term business plan?

So, what is the purpose of outlining a long-term plan? Here are a few key reasons why it’s still valuable to consider the future of your business without getting bogged down by the details.

Showcase your vision for investors

First, and especially important if you are raising money from investors, is your vision. Investors will want to know not only where you plan on being in a year, but where the business will be in five years. Do you anticipate launching new products or services? Will you expand internationally? Or will you find new markets to grow into? 

Set long-term goals for your business

Second, you’ll want to establish goals for yourself and your team. What kinds of high-level sales targets do you hope to achieve? How big is your company going to get overtime? These goals can be used to motivate your team and even help in the hiring process as you get up and running.

That said, you don’t want to overinvest in fleshing out all the details of a long-range plan. You don’t need to figure out exactly how your expansion will work years from now or exactly how much you’ll spend on office supplies five years from now. That’s really just a waste of time.

Instead, for long-range planning, think in broad terms. A good planning process means that you’re constantly revising and refining your business plan. You’ll add more specifics as you go, creating a detailed plan for the next 6-12 months and a broader, vague plan for the long term.

You have a long development time

Businesses with extremely long research and development timelines do make spending decisions now based on the hope of results years from now. For example, the pharmaceutical industry and medical device industry have to make these bets all the time. The R&D required to take a concept from idea to proven product with regulatory approval can take years for these industries, so long-range planning in these cases is a must. A handful of other industries also have similar development timelines, but these are the exceptions, not the rule.

Your business is well-established and predictable 

Long-term, detailed planning can make more sense for businesses that are extremely well established and have long histories of consistent sales and expenses with predictable growth. But, even for those businesses, predictability means quite the opposite of stability. The chances that you’ll be disrupted in the marketplace by a new company, or the changing needs and desires of your customers, is extremely high. So, most likely, those long-range predictions of sales and profits are pretty useless.

• What a 5-year plan should look like

With the exception of R&D-heavy businesses, most 5-year business plans should be more like vision statements than traditional business plans. They should explain your vision for the future, but skip the details of detailed sales projections and expense budgets. 

Your vision for your business should explain the types of products and services that you hope to offer in the future and the types of customers that you hope to serve. Your plan should outline who you plan to serve now and how you plan to expand if you are successful.

This kind of future vision creates a strategic roadmap. It’s not a fully detailed plan with sales forecasts and expense budgets, but a plan for getting started and then growing over time to reach your final destination.

For example, here’s a short-form version of what a long-term plan for Nike might have looked like if one had been written in the 1960s:

Nike will start by developing high-end track shoes for elite athletes. We’ll start with a focus on the North West of the US, but expand nationally as we develop brand recognition among track and field athletes. We will use sponsored athletes to spread the word about the quality and performance of our shoes. Once we have success in the track & field market segment, we believe that we will be able to successfully expand both beyond the US market and also branch out into other sports, with an initial focus on basketball.

Leadership and brand awareness in a sport such as basketball will enable us to cross over from the athlete market into the consumer market. This will lead to significant business growth in the consumer segment and allow for expansion into additional sports, fashion, and casual markets in addition to building a strong apparel brand.

Interestingly enough, Nike (to my knowledge) never wrote out a long-range business plan. They developed their plans as they grew, building the proverbial airplane as it took off.

But, if you have this kind of vision for your business, it’s useful to articulate it. Your employees will want to know what your vision is and your investors will want to know as well. They want to know that you, as an entrepreneur, are looking beyond tomorrow and into the future months and years ahead.

• How to write a five-year business plan

Writing out your long-term vision for your business is a useful exercise. It can bring a sense of stability and solidify key performance indicators and broad milestones that drive your business. 

Developing a long-range business plan is really just an extension of your regular business planning process. A typical business plan covers the next one to three years, documenting your target market, marketing strategy, and product or service offerings for that time period. 

A five-year plan expands off of that initial strategy and discusses what your business might do in the years to come. However, as I’ve mentioned before, creating a fully detailed five-year business plan will be a waste of time. 

Here’s a quick guide to writing a business plan that looks further into the future without wasting your time:

1. Develop your one-page plan

As with all business planning, we recommend that you start with a one-page business plan. It provides a snapshot of what you’re hoping to achieve in the immediate term by outlining your core business strategy, target market, and business model.

A one-page plan is the foundation of all other planning because it’s the document that you’ll keep the most current. It’s also the easiest to update and share with business partners. You will typically highlight up to three years of revenue and profit goals as well as milestones that you hope to achieve in the near term.

Check out our guide to building your one-page plan and download a free template to get started.

2. Determine if you need a traditional business plan

Unlike a one-page business plan, a traditional business plan is more detailed and is typically written in long-form prose. A traditional business plan is usually 10-20 pages long and contains details about your product or service, summaries of the market research that you’ve conducted, and details about your competition. Read our complete guide to writing a business plan .

Companies that write traditional business plans typically have a “business plan event” where a complete business plan is required. Business plan events are usually part of the fundraising process. During fundraising, lenders and investors may ask to see a detailed plan and it’s important to be ready if that request comes up. 

But there are other good reasons to write a detailed business plan. A detailed plan forces you to think through the details of your business and how, exactly, you’re going to build your business. Detailed plans encourage you to think through your business strategy, your target market, and your competition carefully. A good business plan ensures that your strategy is complete and fleshed out, not just a collection of vague ideas.

A traditional business plan is also a good foundation for a long-term business plan and I recommend that you expand your lean business plan into a complete business plan if you intend to create plans for more than three years into the future.

3. Develop long-term goals and growth targets

As you work on your business plan, you’ll need to think about where you want to be in 5+ years. A good exercise is to envision what your business will look like. How many employees will you have? How many locations will you serve? Will you introduce new products and services? 

When you’ve envisioned where you want your business to be, it’s time to turn that vision into a set of goals that you’ll document in your business plan. Each section of your business plan will be expanded to highlight where you want to be in the future. For example, in your target market section, you will start by describing your initial target market. Then you’ll proceed to describe the markets that you hope to reach in 3-5 years.

To accompany your long-term goals, you’ll also need to establish revenue targets that you think you’ll need to meet to achieve your goals. It’s important to also think about the expenses you’re going to incur in order to grow your business. 

For long-range planning, I recommend thinking about your expenses in broad buckets such as “marketing” and “product development” without getting bogged down in too much detail. Think about what percentage of your sales you’ll spend on each of these broad buckets. For example, marketing spending might be 20% of sales. 

4. Develop a 3-5 year strategic plan

Your goals and growth targets are “what” you want to achieve. Your strategy is “how” you’re going to achieve it.

Use your business plan to document your strategy for growth. You might be expanding your product offering, expanding your market, or some combination of the two. You’ll need to think about exactly how this process will happen over the next 3-5 years. 

A good way to document your strategy is to use milestones. These are interim goals that you’ll set to mark your progress along the way to your larger goal. For example, you may have a goal to expand your business nationally from your initial regional presence. You probably won’t expand across the country all at once, though. Most likely, you’ll expand into certain regions one at a time and grow to have a national presence over time. Your strategy will be the order of the regions that you plan on expanding into and why you pick certain regions over others.

Your 3-5 year strategy may also include what’s called an “exit strategy”. This part of a business plan is often required if you’re raising money from investors. They’ll want to know how they’ll eventually get their money back. An “exit” can be the sale of your business or potentially going public. A typical exit strategy will identify potential acquirers for your business and will show that you’ve thought about how your business might be an attractive purchase.

5. Tie your long-term plan to your one-page plan

As your business grows, you can use your long-term business plan as your north star. Your guide for where you want to end up. Use those goals to steer your business in the right direction, making small course corrections as you need to. 

You’ll reflect those smaller course corrections in your one-page plan. Because it is a simple document and looks at the shorter term, it’s easier to update. The best way to do this is to set aside a small amount of time to review your plan once a month. You’ll review your financial forecast, your milestones, and your overall strategy. If things need to change, you can make those adjustments. Nothing ever goes exactly to plan, so it’s OK to make corrections as you go.

You may find that your long-term plan may also need corrections as you grow your business. You may learn things about your market that change your initial assumptions and impacts your long-range plan. This is perfectly normal. Once a quarter or so, zoom out and review your long-range plan. If you need to make corrections to your strategy and goals, that’s fine. Just keep your plan alive so that it gives you the guidance that you need over time. 

• Vision setting is the purpose of long-term planning

Part of what makes entrepreneurs special is that they have a vision. They have dreams for where they want their business to go. A 5-year business plan should be about documenting that vision for the future and how your business will capitalize on that vision.

So, if someone asks you for your 5-year business plan. Don’t scramble to put together a sales forecast and budget for 5 years from now. Your best guess today will be obsolete tomorrow. Instead, focus on your vision and communicate that. 

Explain where you think your business is going and what you think the market is going to be like 5 years from now. Explain what you think customers are going to want and where trends are headed and how you’re going to be there to sell the solution to the problems that exist in 5 and 10 years. Just skip the invented forecasts and fantasy budgets.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

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How to Create a 5-Year Business Plan in 8 Easy Steps

• March 11, 2024

12 Min Read

As an entrepreneur or a business owner, you know it can be challenging enough to predict business growth for the long term. And the business decisions you make today will shape your company’s future.

Well, having a strategic plan for the next three or even five years will guide you toward long-term business goals and increase the potential for success.

So, why take a chance? Keep a solid five-year business plan with you!

Need help writing a business plan from scratch? Don’t worry;  we’re here to support you with our 5-year business plan template .

This will help you learn more about the business plan for 5 years and what components you should include in it. Also, it allows you to organize ideas, set realistic growth targets, and refine your business strategy that will attract investors.

Sounds good, right? Let’s get started.

Free 5-Year Business Plan Template

Download our 5-year business plan template now and start planning with ease.

What is a 5 Year Business Plan?

A 5-year business plan is a professional document that serves as a strategic roadmap for your company’s future. It outlines business goals, strategies, financial projections, and growth plans for the next five years. 

It helps you set clear objectives, define target customers, allocate resources effectively, mitigate risks, adapt to changing market conditions, and make informed decisions.

Ultimately, a well-developed 5-year plan keeps you on track and drives sustainable growth and profitability over the specified timeframe.

Why do you need a 5 year business plan?

Writing a solid business plan is one of the most important aspects of your entrepreneurial journey.

A 5-year business plan gives you a structural framework to think strategically about your company’s plans over the next few years. It helps you organize your business idea and guide your strategic decision-making.

The following are a few key reasons why it’s valuable to have a 5-year business plan:

Highlight your long-term vision

A 5-year plan helps you articulate your long-term vision and define a set of strategic goals for your business over the next five years. This will allow you to stay focused on your objectives and make smart decisions to navigate the complexities of your business environment.

Build investor confidence

If you’re looking for investors or stakeholders to fund your business expansion, a well-written 5-year plan is necessary. It demonstrates your commitment to long-term growth and assures investors that your business will make profits. So, this will increase their confidence and belief in your long-term strategy.

Mitigate potential risks

Analyzing and identifying potential risks is the key aspect of any business. So, an actionable plan helps you develop strategies to mitigate those risks and ensure your business continuity. If there is economic volatility, regulatory transitions, or technical disruptions, a 5-year business plan helps you anticipate and prepare for business challenges.

Promote strategic planning

A good 5-year business plan enables you to think about the business and how to attain sustainable growth and success over the next few years. It also helps you make strategic hiring decisions and anticipate future staffing needs. By identifying market trends, competitors, and internal capabilities, you can enhance strategies to capitalize on opportunities and reduce potential risks.

Now that you know why a business plan is necessary, it’s time to understand what to include in a detailed 5-year plan.

What to include in your detailed five-year business plan

1. executive summary.

An executive summary is a brief introduction to your 5-year business plan and summarizes each component you mentioned in the document.

Though it is the first section, it is written in the last, since it provides a high-level overview of the complete business plan.

The executive summary is the introductory section of the plan, so its primary goal is to quickly attract readers and convince them to delve further into the rest of the plan.

Here are a few details you may consider including in your executive summary:

• A quick overview of your business idea and objectives
• Your company’s mission and vision statements
• Industry analysis and market research
• Sales and marketing plan
• Key performance indicators
• Introduction of your management team
• Financial forecasts for the next five years

Remember that you keep your summary simple, concise, and compelling enough to build investors or readers trust.

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2. Business Overview

As its name indicates, the business overview section provides a detailed description of your company. It covers all the essential information, from a business idea to its long-term goals.

Since you’ll give a brief company description in the executive summary, this chapter would be an expansion on it, providing an in-depth understanding of your business.

So, this section makes it easier for readers or potential business partners to quickly understand and confirm the nature of your business, such as what your company does, who the potential customers are, and how you plan to reach your objectives.

You may include all the following crucial elements in this section:

• The type of small business you operate
• A brief history or background details of your business
• Achievements or milestones you’ve achieved
• Business legal structure(s-corp, LLC, sole proprietorship, etc.)
• Mission statement
• Short-term goals and long-term objectives

3. Market Analysis

Industry analysis and market research is a detailed breakdown of the external business environment. It provides a thorough understanding of the specific industry or sector in which your business will operate.

This section helps your readers or potential investors to easily understand the broader industry, target customers, emerging trends, and market demands.

Apart from that, it helps you and your team to analyze and identify the untapped key areas in the market and develop strategies to stand out from the competitors.

Here are some specific details you may include:

• Market size and growth potential
• Target market
• Ideal customers, along with their preferences and buying habits
• Competitors’ research and SWOT analysis
• Industry trends
• Regulatory environment

4. Product and Services

In the product and services section, you may provide details of your product or service range, main features, pricing, and more. It helps you demonstrate the current capabilities of your business and highlight the USPs.

So, you may consider adding the below points in this section:

• Product/service description
• Pricing details
• Quality standards
• Future product development plan

While you’re planning how to start your own business, you have to explore the market and determine how your offerings will encounter customer problems and satisfy their needs better than competitors.

5. Sales and Marketing Strategies

Your sales and marketing plan outlines the strategies you’ll use to reach the target audience and how you’ll bring more customers by promoting your products/services to them.

A well-written marketing plan will encourage you to create effective campaigns and simplify your marketing efforts while maintaining the marketing budget and maximizing return on investment.

Thus, you may describe a list of sales strategies and promotional tactics to attract new customers and retain existing ones.

Here’s a list of key components you may include in this section:

• Target audience
• Marketing strategy
• Sales approach
• Sales and marketing goals
• Customer retention program

6. Operations Plan

As you’ve mentioned your business goals in the previous sections, now it’s time to define how you’ll meet those goals.

In your operations plan, you’ll need to outline all the details of everyday business operations and activities. This will help you and your team to define responsibilities, daily tasks, and short-term goals you plan to achieve, keeping track of your future goals.

Well, here is some distinct information you should include in the operations plan:

• Staffing and training
• Operational process
• Supply chain & Inventory management
• Facilities and equipment

Note that your operations plan is a living document, you may adjust and update it as needed.

7. Management Team

A well-trained and experienced management team is crucial for driving your business ahead.

So, highlight your business owners and key executives in this section, along with their roles & responsibilities, educational qualifications, industry experience, and how you plan to compensate them.

It allows readers to easily understand your management team’s background, skills, and expertise that help you grow your company and make informed business decisions.

The following information you may consider including in the management team section:

• Company owner profile
• Resume-styled summary of key members
• Organizational structure
• Compensation plan
• Advisory board members

8. 5-year Financial Projections

A financial plan is the most crucial aspect of your five-year business plan, as potential investors or lenders want to know more about your business profit margins.

It provides a detailed blueprint of your business’s 5-year financial reports broken out both monthly or quarterly for the first year of operation and then annually.

While creating an in-depth financial plan for the next 5-years, you’ll need to highlight all the below factors:

• Revenue forecast
• Cost estimates
• Profitability analysis
• Cash flow projections
• Break-even analysis
• Business ratios

In addition to that, if you’re seeking funding or investors, you will need to summarize exactly how much money you need, how you plan to use these funds, and how you pay it back.

Well, having realistic financial forecasts at your hand can help you evaluate your business’s financial health and growth potential in the long run.

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Tips for creating a five-year business plan

Now that you understand what to include in a business plan, it’s time to consider how you’ll actually create the document. Here are some tips for drafting a comprehensive five-year business plan.

This will help you prepare a business plan that serves its purpose and can be an easy reference for the years ahead.

Conduct thorough analysis

Conduct a thorough analysis of the market, competition, internal capabilities, and the current financial situation of your business before you finalize your five-year plan. Also, identify your strengths and address weaknesses. This helps you pinpoint potential risks and opportunities that impact your business and strategic decisions for the next few years.

Set realistic financial goals

While setting your business objectives, it’s important to define specific, measurable, and achievable goals that you can accomplish in the years ahead. Try to consider a few factors, such as marker conditions, emerging trends, and your business capabilities when setting revenue targets, profit margins, and other financial milestones. This will help you stay focused and motivated.

Demonstrate the potential for ROI

A 5-year plan should effectively show the investors and stakeholders that your business has the potential for return on investment(ROI). It will help you outline how your strategic initiatives will generate revenue and profitability over the next five years. So you can provide a clear opportunity for investment and support.

Develop contingency plans

Developing a contingency plan is crucial for the potential challenges that may arise over the next few years. You can consider several factors like economic downturns, supply chain disruptions, regulatory changes, or other unforeseen events. This will mitigate the impact of these risks and ensure that your business runs smoothly even in challenging circumstances.

Ensure clear communicate

A detailed five-year plan allows entrepreneurs and business owners to clearly communicate their business goals, milestones, and strategies. So this will be easy to understand for all the stakeholders, including potential partners, investors, and employees. You can also use charts, graphs, and visuals to share intricate details and make your plan more compelling.

Review and update regularly

Once you have crafted your entire business plan, you should regularly schedule reviews to assess progress, update assumptions, and update strategies as needed. Since the business plan is a living document, it evolves over time based on new facts or varying business environments. By revising and updating your plan, you make sure that it will remain relevant and effective.

So, try to keep in mind these few factors while creating a 5-year plan. Now, let’s move forward and explore several types of business plan templates.

Examples of 5-year business plan templates

As there are several types of 5-year business plan templates available, no two business owners build the same 5-year plans.

This is so because the business plan template that works best for your company depends on the age of your business, objectives, and the purpose behind using the plan.

Here are a few examples that are tailored to different aspects of business planning:

Traditional 5-year business plan template

This kind of business plan template follows the standard format as you establish a new business or startup, define the target audience, and market your products/services. It includes lengthy sections about company overview, market analysis, marketing and sales strategies, or financial forecasting. So, this will provide a detailed plan for your business over the next 5 years.

Strategic plan for growth and expansion

When you’ve been running the business for a few years and thinking about expansion or growth, a strategic growth plan might be your choice. It will help you approach your growth strategically and provide the best opportunities to identify risks and techniques to mitigate them. So, this type of template helps align your business activities with long-term objectives.

Simple one-page plan

As the name suggests, it is a single-page business plan that helps you provide a high-level overview of your business to the partners, investors, or suppliers. Since it is shorter in length, it highlights the most crucial points, and even writing a one-page business plan can be much simpler and quicker compared to the traditional business plan.

Start preparing your business plan

Finally, with the help of details and resources provided in this guide, you’re well-equipped to start an exciting journey of preparing a successful 5-year business plan.

Whether you’re an experienced entrepreneur or a new business owner, you can consider using a business plan app like Upmetrics to streamline your business planning approach.

Upmetrics is a user-friendly platform that provides easy-to-follow guides, 400+ business plan examples, and AI support to create an actionable plan in manageable steps. It also helps you develop realistic financial projections if needed or when you feel stuck with a financial plan.

So, start writing your plan today and bring your vision to life!

Make your plan in half the time & twice the impact with Upmetrics

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

Frequently Asked Questions

Is it good to make a 5 year plan.

Creating a 5-year or long-term plan is highly beneficial for your businesses. It helps you set clear goals, anticipate potential risks & challenges, develop realistic financial outlook, demonstrate growth potential to investors, and build their confidence. So, it guides you in the right direction to attain sustainable growth and success over the long term. 

How much detail should I include in the financial projections?

The following are a few key elements that you need to include in your financial projections:

• Sales forecast
• Expenses budget
• Cash flow statement
• Profit and loss statement (Income statement)
• Balance sheet

How long should my 5-year business plan be?

The length of a 5-year business plan typically ranges from 15-35 pages and beyond as it depends on your purpose, business concept, objectives, resources you plan to use, and the strategies you will need to achieve your business goals.

Can I write a business plan myself?

Of course, you can write your business plan by yourself. If you are new to the planning process, you may get help from various resources available. You may consider including business plan software, online guides, templates, strategic planning sessions, and professional writers.

What's the best way to format my 5-year plan?

The best way to format your 5-year plan depends on your specific needs, target market, and business strategy. You may follow the below guidelines to create a professional-looking business plan:

• Write a compelling executive summary
• Provide a detailed company overview
• Conduct thorough market and industry analysis
• Describe the products and services
• Outline sales and marketing strategy
• Summarize operations plan
• Introduce your management team
• Present 5-year financial forecast

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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The 6 Steps I Use to Create Five-Year Plans I Can Actually Stick To [+ Expert Tips]

Updated: August 02, 2024

Published: August 01, 2024

As people, we all have big goals — both personal and professional. I’ve been asked in countless interviews about my five-year plan for my career.

I’ve also had lengthy internal monologues about whether I want to buy a house, the countries I want to travel to, and the mountains (literal and figurative) I want to climb.

However, a desire without a plan is just a dream. I want to make sure I make my long-term goals a reality. That’s why I love five-year plans. That’s enough time to take the steps to prepare for lofty accomplishments.

So, in this post, I’ll share my tips for creating five-year plans that you can actually stick to. I’ll also share examples of what these steps look like in practice. Let’s dive in.

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What is a Five-year plan?

Benefits of a five-year plan, what to cover in a five-year plan, five-year plan tips, five-year plan template, how to make a five-year plan, five-year plan common mistakes, five-year plan example.

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A five-year plan is an outline of professional and/or personal goals you want to reach within the next five years. It usually includes broad goals relating to career, relationships, health, and finances that are broken down into action items and milestones.

1. It can give you a fresh start.

Whether professional or personal, a five-year plan can serve as a reset for your life. Who doesn’t like a fresh start?

After all, that’s why New Year’s resolutions are so popular. They give us something to look forward to. There’s also something to be said about writing out a detailed plan. It can be a great motivator to put something in motion.

Personally, I’ve said countless times that I want to be fluent in Spanish. However, it's not until I write a detailed plan for how that will happen that it feels real.

2. It gives you clarity.

Sometimes, a path seems scarier than it actually is because we don’t know what it looks like.

Creating a plan is like pointing a flashlight on a dark road. A more accurate description is that it turns that dark, twisty road into a clear path forward. This doesn’t mean there won’t be any bumps in the road, but at least you’ll know exactly where you’ll land and how to get there.

For example, working for HubSpot was a longtime goal of mine. I took the time to assess why I wanted to work for the company — the great culture and renowned blog pulled me in. Then, I made a plan on how to get here. I started by taking Academy classes and networking.

I never knew if my plan would work out precisely, but I did have time for introspection, giving me clarity on why I liked a company.

3. It serves as a reminder of what’s at stake.

In your daily life, it can be easy to forget that every day, we’re shaping our future. The decisions we make today affect what our lives will look like years from now. Having a visual reminder of this can keep you focused on your goals.

For example, I spoke to my colleague, Kaitlin Milliken about five-year goals she has had. She mentioned that she wanted to see the Philippines and explore the country her family immigrated from.

“When I first made the decision, I was still in college and didn’t have the money or time to make that trip,” Milliken says. “That goal was a great motivator for a lot of smaller choices, like saving, being smart with my vacation time, and making the space to plan the trip.”

4. It helps with professional development.

Having a five-year plan encourages you to think about and plan for the necessary skills and knowledge you will need in the future. This can guide your professional development journey and activities, such as training, education, or gaining specific experiences.

If you need a plan designed to help you with this, grab HubSpot’s free professional development plan to help you understand where you’re at, where you want to go, and how you’ll get there.

5. It helps with risk management and mitigation

If you’re a business owner, having a five-year business plan can help you manage and mitigate risks as much as possible.

By forecasting potential challenges and market changes over a five-year period, you can develop and implement contingency plans, diversify your income streams, adjust your business model in response to market demands, and maintain financial stability.

A five-year business plan makes it easier for you to navigate through potential pitfalls more effectively and sustain growth even in fluctuating economic conditions.

Before you get started with your plan, there are a few things you’ll need to figure out ahead of time.

1. Areas of Focus

Your five-year plan can cover various areas from education, career development, finance, hobbies, or even health. It’s up to you. Don’t feel stuck having to stick to one category and choose the ones that best interest you and fit your needs.

For example, one of my goals is to learn a second language, specifically Spanish. This is a personal goal for me that’s right at the intersection of education and my hobbies.

Putting down your values in writing will help you discover your “why” (more on that later). This step will also help you narrow down what’s most important to you and shape the goals you set for yourself.

Why do I want to learn Spanish? Well, it’s a super helpful language to know if you live in the U.S. Beyond that, I really want to travel throughout Spain. Being fluent in the language would help me better connect with people throughout my journey.

3. Goal Path

Your five-year plan is only as successful as the effort put into creating it. To create a viable plan, it has to be actionable. Once you’ve got an idea of the goals you’d like to include, start researching the path to attaining them.

For example, if you’d like to set a career goal to become a marketing director, start looking at the steps and credentials required. Do you need to skill up? Is there a pathway at your current job? Doing some initial research will set you up for success.

Learning a language involves lots of steps. I decided to buy a few language textbooks and download Duolingo on my phone. Beyond that, I’m researching if there are local classes in my area that I can sign up for. A structured classroom setting can often be helpful for adults learning a second language.

4. HARD Goals

Tackling heartfelt, animated, required, and difficult (HARD) goals can be a rewarding but challenging part of a five-year plan. These types of goals will push you out of your comfort zone and help you achieve things you didn’t think were possible before. Think of these goals as highly ambitious but achievable with a five-year timeline.

Think of HARD goals this way:

• Heartfelt — what reasons are behind achieving this goal?
• Animated — what gets you excited about achieving this goal? Get specific.
• Required — what is it going to take to achieve this goal? What will you need to accomplish in six months to a year to stay on track?
• Difficult — what skills will you need to accomplish this goal, and how will you obtain them?

Let’s apply this to my desire to learn Spanish:

• Heartfelt — I want to learn Spanish so I can communicate with folks who may not be fluent in English and so I can travel to Spanish-speaking countries.
• Animated — the idea of visiting Spain and speaking with the locals gets me excited to learn.
• Required — I know that finding a local Spanish class will help me stay on track and develop a basic understanding of the language. Beyond that, I want to practice every day.
• Difficult — I need to know a substantial number of vocabulary words to become fluent. I will spend time drilling flashcards every day to help me learn more helpful verbs and nouns.

Now that we’ve covered the groundwork, we’ve got more tips to help you create a five-year plan that keeps you motivated and inspired.

If creating a plan from scratch makes your eyes glaze over, check out these tips to help you start getting some ideas on paper. I also asked Kaitlin Milliken, a senior program manager at HubSpot, to share how these tips help her shape her five-year plans.

1. Give yourself space to brainstorm.

To help you focus better when creating your plan, do a bit of pre-work.

Give yourself time to really think about what you’d like to accomplish and the things that are most important to you. For example, you could write out a list of potential goals or ideas and rank them in order of importance, including notes about why they are important.

Milliken often works through this exercise. This helps her decide what she wants to work on, which goals can be accomplished quickly, and which are most complicated and need to be a part of her five-year plan.

“I always start broad. I sit down with a note book and write out what I want to accomplish — totally blue sky. I can organize and narrow this list down later,” she says.

2. Consider separating long-term and short-term goals.

Once you’ve jotted down some goals, decide which are better suited for short or long-term ones.

Completely paying off debt might be a long-term goal, but deciding which debt to tackle first could be a short-term goal. It may also help to divide them up into a 30-60-90 day plan to help best set a timeline.

I asked Milliken how she decides which goals fall into each category. For example, Milliken says she wants to run a half marathon. However, that’s a goal she can work toward in a year.

In contrast, “I want to learn Tagalog — a language I don’t have a background in — and to build the program I run at work to support different departments at HubSpot. These are loftier goals that fit better in a five-year timespan,” she says.

3. Break down annual goals into monthly ones.

Tackling lofty goals can be overwhelming. This is why it’s important to break them down into smaller tasks that are manageable so you don’t get discouraged along the way. Let’s say you want to save $10,000 in a year. You can break that amount down into a recurring monthly payment of $833 or even split it into smaller weekly payments.

Milliken told me that she starts off each year with a lofty set of goals — like writing a few short stories, saving a certain amount of money, and getting a promotion at work.

From there, she decides which goal posts she needs throughout the year to check her progress. For example, she’ll set a savings goal every month.

“I also check in on my long-term goals every six months. Am I spending enough time on professional development to build my leadership skills? Am I on track to manage a team within the next five years?” Milliken explains.

4. Find an accountability partner.

Sometimes, life gets in the way and throws us curve balls — greatly impacting our ability to stay motivated and consistent. Having an accountability partner can help you stay on track.

This could be someone you check in with monthly, a close friend, a family member, or a mentor. Whoever you choose, just make sure it’s someone who will keep you honest. Perhaps they’ll even have their own five-year plan, and you can take this journey together.

“No matter the goal, I tell my best friend Meg. She encourages me to put in the time, celebrates my wins, and is the perfect accountability partner,” Milliken says. “If you’re looking to find your own accountability partner, you’ll want someone who can both keep you on track and be happy for you when you reach your goals.”

5. Don’t be afraid to make adjustments.

Remember that your five-year plan is yours. You can make adjustments as you see fit once you start tracking your progress. If your priorities change, update your plan.

Milliken says her first job out of school was in journalism, so her initial five-year plan for her career focused on being a great reporter. However, “as I worked in the field, I discovered that I loved editing and working with other people,” she says. “I adapted my goals to reflect those new discoveries.”

Milliken notes that her five-year plan changed from working for a top newspaper to finding a role that allows her to work with writers, giving them feedback for improving their work.

If you‘re ready to create your own five-year plan, we’ve got you covered.

HubSpot created the following five-year plan template for you to download.

In it, you'll find a short and long version, both designed to help you break down your plan into actionable goals for each year.

5 Dos and Don'ts When Making a SMART Goal [+ Examples]

How to Set (Crushable) Marketing Goals, According to HubSpot Pros

How I Write SMART Goals and Make Them a Reality [+ Free SMART Goal Templates]

Goals vs Objectives: The Simple Breakdown

Why Every Company Needs to Know Its Core Competencies

Revenue Marketing: What It is and Why It Matters

The 9 Goals to Consider When Creating a Marketing Strategy

Best Goal Setting Worksheet to Help You Plan & Achieve

Charles Duhigg on the Power of Setting Smart Goals [Master Class Recap]

How to Tackle Your Most Ambitious Goals: A 5-Step Process From NBA Legend Bill Walton

Kick off your five-year plan with this free template.

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

How to Write a 5 Year Business Plan

Welcome to our ultimate guide on how to write a 5 Year Business Plan. In today’s ever-changing business landscape, it’s more important than ever to have a clear roadmap for your company’s success. A 5 Year Business Plan provides the structure and direction needed to navigate the challenges and capitalize on the opportunities that lie ahead. ‘Welcome to our ultimate guide on how to master the future with a 5 Year Business Plan. In today’s ever-changing business landscape, it’s more important than ever to have a clear roadmap for your company’s success. A 5 Year Business Plan provides the structure and direction needed to navigate the challenges and capitalize on the opportunities that lie ahead.

In this comprehensive guide, we will walk you through the entire process of creating a 5 Year Business Plan, from understanding its importance to structuring and presenting it effectively. Whether you are a startup entrepreneur, small business owner, or seasoned executive, this guide will equip you with the knowledge and tools to develop a powerful and actionable plan for the next five years.

Section 1: Introduction to the 5 Year Business Plan

We will begin by exploring what exactly a 5 Year Business Plan is and why it is crucial for your business’s long-term success. We will also discuss the benefits of creating a 5 Year Business Plan and the common challenges that you may encounter along the way.

Section 2: Preparing for Your 5 Year Business Plan

Before diving into writing your 5 Year Business Plan, it’s essential to lay a solid foundation. We will guide you through conducting a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. We will also help you define your vision and mission, set SMART goals, assess market and industry trends, and gather the necessary financial data.

Section 3: Structuring Your 5 Year Business Plan

Once you have gathered all the necessary information, it’s time to structure your 5 Year Business Plan. We will provide a step-by-step breakdown of each section, including the executive summary, company description, market analysis, organizational structure, product or service strategy, marketing and sales plan, operations and production plan, financial projections, and risk assessment.

Section 4: Writing and Presenting Your 5 Year Business Plan

In this section, we will discuss the writing style and tone, formatting and structure, and the effective use of visuals and graphics in your 5 Year Business Plan. We will also provide tips on proofreading and editing, seeking feedback, and presenting your plan to stakeholders.

Section 5: Reviewing and Updating Your 5 Year Business Plan

Creating a 5 Year Business Plan is not a one-time task. It requires regular monitoring, adaptation, and revision to stay relevant and impactful. We will guide you through the process of monitoring performance and progress, adapting to market changes, and reviewing and updating your plan accordingly.

Conclusion: The Power of a Well-Crafted 5 Year Business Plan

A well-crafted 5 Year Business Plan can be the key to unlocking your business’s full potential. It provides a clear roadmap for success, helps you make informed decisions, and enables you to navigate challenges with confidence. By following the steps outlined in this guide, you will be on your way to mastering the future and achieving your long-term business goals. So let’s dive in and start crafting your 5 Year Business Plan today!

Effective Communication and Order Management

Communication is the lifeblood of any business, and when it comes to managing orders, effective communication becomes even more critical. In this section, we will explore the importance of communication in order management and provide strategies to ensure smooth and efficient processes.

The Role of Communication in Order Management

In order management, communication plays a pivotal role in ensuring that orders are processed accurately, efficiently, and in a timely manner. Effective communication helps to establish clear expectations, foster transparency, and build trust between all parties involved in the order management process, including customers, suppliers, and internal teams.

Clear and Timely Order Confirmation

One of the first steps in order management is confirming the order with the customer. This confirmation serves as a mutual agreement between the customer and the business, ensuring that both parties are on the same page regarding the order details, such as product specifications, quantities, pricing, and delivery timelines. It is crucial to communicate this confirmation promptly to avoid any misunderstandings or delays.

Streamlined Communication Channels

To ensure effective communication in order management, it is essential to establish streamlined communication channels. This includes having a dedicated point of contact for customers to reach out to with any questions or concerns regarding their orders. Providing multiple channels of communication, such as phone, email, or live chat, can also enhance accessibility and convenience for customers.

Real-Time Order Tracking and Updates

Transparency is key in order management, and providing real-time order tracking and updates can greatly enhance the customer experience. By implementing a robust order management system, businesses can enable customers to track their orders at every stage of the process, from order confirmation to shipping and delivery. Regular updates, such as notifications on order status changes or delays, can also help manage customer expectations and build trust.

Collaboration and Coordination with Internal Teams

Effective order management requires seamless collaboration and coordination within the business. This involves clear communication channels between different departments, such as sales, inventory management, and logistics, to ensure that everyone is aligned and working towards fulfilling customer orders efficiently. Regular meetings or status updates can help synchronize efforts and address any bottlenecks or challenges along the way.

Handling Order Changes and Exceptions

In the dynamic business environment, order changes and exceptions are inevitable. It is crucial to have clear processes in place to handle such situations promptly and effectively. This includes establishing communication protocols for customers to request changes, notifying relevant teams or suppliers of any modifications, and ensuring timely updates to the customer regarding the status of their revised order.

Resolving Order Issues and Customer Complaints

Despite the best efforts, order issues or customer complaints may arise. In such cases, effective communication becomes even more critical to resolve these issues promptly and maintain customer satisfaction. Promptly acknowledging the issue, actively listening to the customer’s concerns, and providing timely updates on the resolution process can help mitigate any potential damage to the customer relationship.

Continuous Improvement through Feedback

Communication in order management should not be a one-way street. Encouraging customers to provide feedback on their ordering experience can provide valuable insights for continuous improvement. Implementing feedback mechanisms, such as customer surveys or feedback forms, can help identify areas of improvement and address any communication gaps or process inefficiencies.

Effective communication is the backbone of successful order management. By establishing clear communication channels, providing real-time updates, collaborating with internal teams, and promptly addressing any issues or customer concerns, businesses can streamline their order management processes and enhance customer satisfaction. Remember, communication is not just about conveying information but also about building strong relationships with customers and stakeholders. Implementing robust communication strategies will ensure that your order management processes are efficient, accurate, and customer-centric.

Conducting a SWOT Analysis

Before diving into the process of writing a 5 Year Business Plan, it is crucial to conduct a comprehensive SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and this analysis helps businesses gain a deeper understanding of their internal and external factors that can impact their long-term success.

Identifying Your Strengths

The first step in conducting a SWOT analysis is to identify and evaluate your strengths. These are the internal factors that give your business a competitive advantage and contribute to its success. Strengths could include aspects such as a strong brand reputation, unique products or services, a loyal customer base, a talented team, or efficient internal processes. By recognizing your strengths, you can leverage them to maximize opportunities and overcome weaknesses and threats.

Analyzing Your Weaknesses

Next, it is important to assess and analyze your weaknesses. These are internal factors that hinder your business’s growth or put it at a disadvantage compared to competitors. Weaknesses could include limited financial resources, inadequate infrastructure, lack of market presence, outdated technology, or skill gaps within the team. By identifying and acknowledging these weaknesses, you can develop strategies to address them and minimize their impact on your business’s future growth.

Exploring External Opportunities

In addition to evaluating internal factors, it is essential to identify and explore external opportunities that can benefit your business. Opportunities are external factors that have the potential to positively impact your business’s growth and profitability. These could include emerging market trends, changes in consumer behavior, new technologies, or untapped market segments. By proactively seeking out and seizing these opportunities, you can position your business for long-term success and growth.

Evaluating Potential Threats

Lastly, a SWOT analysis helps identify potential threats that can negatively impact your business’s performance. Threats are external factors beyond your control that pose risks to your business. These could include intense competition, changing market conditions, economic downturns, legal or regulatory challenges, or shifts in customer preferences. By recognizing these threats, you can develop strategies to mitigate their impact and protect your business from potential harm.

Utilizing SWOT Analysis in Your 5 Year Business Plan

Once you have conducted a thorough SWOT analysis, you can use the insights gained to inform your 5 Year Business Plan. The strengths identified can be leveraged to capitalize on opportunities and overcome weaknesses and threats. Weaknesses can be addressed through strategic initiatives and investments. Opportunities can be incorporated into your growth strategies and objectives. Threats can be mitigated through contingency plans and risk management strategies.

By incorporating the findings of your SWOT analysis into your 5 Year Business Plan, you can create a roadmap that maximizes your strengths, minimizes weaknesses, seizes opportunities, and mitigates threats. This holistic approach ensures that your business plan is built on a solid foundation of self-awareness and knowledge of the external market dynamics.

Conducting a SWOT analysis is a critical step in the process of writing a 5 Year Business Plan. It provides valuable insights into your business’s internal strengths and weaknesses, as well as external opportunities and threats. By leveraging the findings of your SWOT analysis, you can develop strategies and initiatives that position your business for long-term success. Remember, a well-informed and comprehensive SWOT analysis is the first step towards crafting a robust and effective 5 Year Business Plan.

Defining Your Vision and Mission

In order to create a 5 Year Business Plan that is focused and aligned with your long-term goals, it is crucial to define a clear vision and mission for your business. Your vision and mission statements serve as guiding principles that outline your purpose, values, and aspirations. They provide a sense of direction and act as a compass for decision-making throughout your business journey.

Crafting a Clear Vision Statement

Your vision statement paints a picture of what you envision your business to become in the future. It should be concise, inspiring, and reflect your aspirations. When crafting your vision statement, consider the following questions:

• What is the ultimate goal or destination you want to achieve with your business?
• How do you see your business making a positive impact on the world or your industry?
• What sets your business apart and makes it unique?

A well-crafted vision statement should capture the essence of your long-term goals and inspire both your team and stakeholders to work towards a common vision.

Developing a Compelling Mission Statement

While the vision statement focuses on the future, the mission statement is more focused on the present. It outlines the purpose of your business and defines the core activities and values that guide your daily operations. When developing your mission statement, consider the following aspects:

• What is the primary purpose or reason for your business’s existence?
• Who are your target customers or audience?
• What products or services do you offer, and how do they benefit your customers?

A compelling mission statement should be concise, clear, and communicate the value your business provides to its customers and stakeholders. It should also reflect your company’s core values and unique selling propositions.

Aligning Your Vision and Mission

To ensure a cohesive and effective 5 Year Business Plan, it is essential to align your vision and mission statements with your business strategies and objectives. Your vision and mission should serve as guiding principles that inform your decision-making, goal setting, and resource allocation. As you develop your business plan, refer back to your vision and mission statements to ensure that each component is aligned and working towards the realization of your long-term goals.

Communicating Your Vision and Mission

Once you have defined your vision and mission, it is important to effectively communicate them to your team, stakeholders, and customers. Your vision and mission statements should be prominently displayed on your website, marketing materials, and internal communications. Regularly share updates and progress towards your vision and mission to keep your team motivated and engaged. By effectively communicating your vision and mission, you can create a sense of purpose and alignment throughout your organization.

Defining a clear vision and mission is a crucial step in creating a 5 Year Business Plan that is focused, purposeful, and aligned with your long-term goals. Your vision statement outlines your aspirations and what you want your business to become, while your mission statement defines your purpose and how you provide value to your customers. By aligning your business strategies and objectives with your vision and mission, you can create a roadmap that drives growth, fosters alignment, and guides decision-making. Remember, your vision and mission statements act as the compass that keeps your business on track towards long-term success.

Setting SMART Goals

Setting clear and achievable goals is a crucial component of a 5 Year Business Plan. Goals provide direction, focus, and a sense of purpose for your business. When setting goals for the next five years, it is important to ensure that they are Specific, Measurable, Attainable, Relevant, and Time-Bound – in other words, SMART goals.

Specific Goals

Specific goals are clear and well-defined. They answer the questions of what, why, and how. Instead of setting a vague goal like “increase sales,” a specific goal would be “increase annual sales revenue by 15% by the end of year 3.” The more specific your goals are, the easier it is to develop strategies and action plans to achieve them.

Measurable Goals

Measurable goals are quantifiable and can be tracked and measured. They provide a way to assess progress and determine success. For example, instead of setting a goal to “improve customer satisfaction,” a measurable goal would be “increase customer satisfaction ratings by 10% based on post-purchase surveys.” Measurable goals allow you to gauge your performance and make data-driven decisions.

Attainable Goals

Attainable goals are realistic and achievable given your available resources, capabilities, and external factors. While it’s important to set ambitious goals, they should also be within reach. Setting unattainable goals can lead to frustration and demotivation. Consider factors such as your budget, manpower, market conditions, and industry benchmarks when setting attainable goals.

Relevant Goals

Relevant goals are aligned with your overall business objectives and strategic priorities. They should contribute to the growth and success of your business. Each goal should be directly linked to your vision and mission, and should have a clear purpose and impact. Avoid setting goals that are not relevant to your core business or that do not align with your long-term vision.

Time-Bound Goals

Time-bound goals have a specific deadline or timeframe. They provide a sense of urgency and help create a timeline for action. Instead of setting open-ended goals, establish a target date or milestone for each goal. For example, instead of setting a goal to “expand into new markets,” a time-bound goal would be “enter three new international markets by the end of year 5.” Time-bound goals help prioritize tasks and ensure progress towards your long-term objectives.

Setting SMART goals is crucial for creating a 5 Year Business Plan that is focused, actionable, and aligned with your long-term vision. By setting specific, measurable, attainable, relevant, and time-bound goals, you provide clarity and direction for your business’s growth and success. Remember, goals are not set in stone and may need to be adjusted based on changing circumstances. Regularly review and evaluate your goals to ensure they remain relevant and achievable. With SMART goals in place, you can chart a clear path towards your desired outcomes and measure your progress along the way.

Assessing Market and Industry Trends

In order to create a 5 Year Business Plan that is well-informed and aligned with the market dynamics, it is essential to assess market and industry trends. Understanding the current state of the market, as well as the projected future trends, allows you to identify opportunities and challenges that may impact your business in the long run.

Identifying Target Market Segments

The first step in assessing market trends is to identify and define your target market segments. These are specific groups of customers who share similar characteristics and needs. By understanding the demographics, psychographics, and purchasing behaviors of your target market segments, you can tailor your products, services, and marketing efforts to effectively reach and engage them.

Analyzing Competitor Landscape

Another important aspect of assessing market trends is analyzing the competitor landscape. Identify who your direct and indirect competitors are, and study their strategies, strengths, weaknesses, and market positioning. This analysis helps you gain insights into the competitive dynamics of your industry and enables you to differentiate your business and identify areas of opportunity.

Understanding Market Growth and Demand

It is crucial to evaluate the overall market growth and demand trends in your industry. Is the market expanding or contracting? Are there any emerging trends or shifts in consumer behavior that could impact your business? By monitoring market growth and demand, you can identify potential gaps or niches that your business can capitalize on, as well as any potential threats or challenges that may arise.

Examining Industry Regulations and Changes

In addition to evaluating market trends, it is important to stay informed about industry regulations and changes. Industries are subject to various laws, regulations, and compliance requirements. Stay updated on any changes in regulations that may impact your business operations, such as environmental regulations, labor laws, or industry-specific regulations. Failure to comply with these regulations can have significant consequences for your business.

Utilizing Market and Industry Trends in your 5 Year Business Plan

The insights gained from assessing market and industry trends play a vital role in shaping your 5 Year Business Plan. By incorporating these trends into your plan, you can align your strategies, objectives, and action plans with the evolving market dynamics. Here are some ways you can utilize market and industry trends in your business plan:

• Identify opportunities for growth and expansion based on emerging trends or underserved market segments.
• Anticipate potential threats or challenges and develop contingency plans to mitigate their impact.
• Adjust your product or service offerings to meet changing customer demands and preferences.
• Stay ahead of the competition by understanding their strategies and positioning.
• Ensure compliance with industry regulations and adapt your operations accordingly.

By considering market and industry trends, you can position your business to leverage opportunities, mitigate risks, and stay competitive in a rapidly evolving business landscape.

Assessing market and industry trends is a crucial step in developing a 5 Year Business Plan that is well-informed and aligned with the market dynamics. By identifying target market segments, analyzing the competitor landscape, understanding market growth and demand, and staying updated on industry regulations and changes, you can make informed decisions and develop strategies that will drive your business’s long-term success. Remember, the market is constantly evolving, so regularly reassessing market trends and adjusting your plan accordingly is essential for staying ahead of the curve.

Gathering Financial Data

When creating a 5 Year Business Plan, one of the critical aspects to consider is gathering and analyzing financial data. Financial data provides insights into the financial health and viability of your business, helps in making informed decisions, and supports the development of realistic financial projections.

Reviewing Historical Financial Statements

Start by reviewing your historical financial statements, including income statements, balance sheets, and cash flow statements. These statements provide a snapshot of your business’s financial performance over a specific period, typically the past three to five years. Analyze the trends, identify any areas of concern or improvement, and understand the key financial indicators for your business.

Projecting Future Financial Performance

Based on the historical financial data and your business goals, project your future financial performance for the next five years. Develop detailed financial projections, including revenue forecasts, expense budgets, and cash flow projections. Consider factors such as market trends, growth strategies, pricing strategies, and cost management initiatives to estimate future financial performance.

Determining Funding and Investment Needs

Assess your funding and investment needs for the next five years. Evaluate your capital requirements for new projects, equipment purchases, marketing initiatives, research and development, and other investments necessary to achieve your business goals. Identify potential funding sources, such as external financing, equity investments, or cash flow from operations, and determine the most viable options for meeting your financial needs.

Evaluating Financial Risks and Contingencies

Identify potential financial risks and develop contingency plans to mitigate their impact. Consider external factors such as economic fluctuations, regulatory changes, or market volatility that could affect your business’s financial stability. Assess the financial risks associated with your strategies, such as new product launches, market expansions, or changes in pricing. Develop risk management strategies and contingency plans to minimize financial risks.

Utilizing Financial Data in Your 5 Year Business Plan

The financial data you gather and analyze serves as a foundation for your 5 Year Business Plan. It helps you make informed decisions, set realistic financial goals, and develop strategies to achieve them. Here’s how you can utilize financial data in your business plan:

• Incorporate financial projections, including revenue forecasts and expense budgets, into your plan to demonstrate the financial feasibility of your strategies.
• Highlight key financial indicators, such as profitability ratios, liquidity ratios, and return on investment, to showcase the financial health and performance of your business.
• Present your funding and investment needs, along with a clear plan for how you will secure the necessary capital to support your growth initiatives.
• Outline risk management strategies and contingency plans to address potential financial risks and ensure the financial stability of your business.

By utilizing financial data effectively in your 5 Year Business Plan, you can demonstrate the financial viability of your strategies, attract potential investors or lenders, and ensure that your business is on track to achieve its long-term financial objectives.

Gathering and analyzing financial data is a crucial step in creating a comprehensive and realistic 5 Year Business Plan. By reviewing historical financial statements, projecting future financial performance, determining funding and investment needs, and evaluating financial risks, you can develop a solid financial foundation for your plan. Remember, financial data provides insights into the financial health of your business and supports informed decision-making. By incorporating financial data effectively in your business plan, you can demonstrate the financial feasibility of your strategies and set your business on a path to long-term financial success.

Structuring Your 5 Year Business Plan

After gathering all the necessary information and data, it’s time to structure your 5 Year Business Plan. A well-structured plan provides a clear roadmap for your business’s future, facilitates effective communication, and ensures that all key aspects are covered in a logical and organized manner. In this section, we will guide you through the essential sections to include in your plan and provide insights on how to structure each section effectively.

Executive Summary

The executive summary is a concise overview of your entire 5 Year Business Plan. It should capture the essence of your plan and highlight the key objectives, strategies, and financial projections. Although it appears at the beginning of your plan, it is often written last to ensure that it accurately reflects the content of the entire document. Keep the executive summary clear, compelling, and engaging to capture the reader’s attention and provide a solid foundation for the rest of the plan.

Company Description

The company description section provides an overview of your business, its history, legal structure, ownership, and key milestones. It should also highlight your unique selling proposition (USP) and explain how your products or services meet the needs of your target market. Use this section to showcase your company’s strengths, values, and competitive advantages.

Market Analysis

The market analysis section dives deep into understanding your target market, industry trends, and competitive landscape. Identify your target market segments, analyze consumer behavior, and assess the size and growth potential of your market. Conduct a competitive analysis to understand your competitors’ strengths, weaknesses, and market positioning. This section should provide a comprehensive understanding of the market dynamics that will influence your business’s success.

Organizational Structure and Management

In this section, outline your organizational structure and introduce key members of your management team. Clearly define roles and responsibilities, and highlight the expertise and experience of your team members. Provide an organizational chart to visually represent the hierarchy and relationships within your company. This section demonstrates that you have a capable and skilled team in place to execute your business strategies.

Product or Service Strategy

The product or service strategy section details your offerings and how they meet the needs and preferences of your target market. Describe your products or services in detail, highlighting their unique features, benefits, and value proposition. Explain your product development roadmap, including any plans for innovation, research, or improvements. Emphasize how your offerings differentiate you from the competition and provide a competitive advantage.

Marketing and Sales Plan

The marketing and sales plan outlines how you will promote and sell your products or services to your target market. Define your marketing objectives and strategies, including the channels and tactics you will use to reach your audience. Discuss your pricing strategy, distribution channels, and promotional activities. Include your sales forecast and projections to demonstrate the revenue potential of your marketing efforts.

Operations and Production Plan

The operations and production plan section focuses on the practical aspects of running your business. Describe your facilities, equipment, and technology requirements. Outline your supply chain management processes, including sourcing, inventory management, and logistics. Explain your production processes, quality control measures, and capacity planning. This section provides a clear understanding of how you will deliver your products or services efficiently and effectively.

Financial Projections

The financial projections section is a critical component of your 5 Year Business Plan. It includes detailed financial forecasts, such as sales forecasts, expense projections, cash flow statements, profit and loss statements, and balance sheets. Use historical data, market trends, and growth projections to develop realistic financial projections. Include key financial ratios and metrics to assess the financial performance and viability of your business.

Risk Assessment and Mitigation Strategies

The risk assessment and mitigation strategies section identifies potential risks and challenges that may impact your business’s success. Conduct a thorough risk assessment, including internal and external factors that could pose threats. Develop strategies and contingency plans to mitigate these risks and ensure business continuity. This section demonstrates that you have considered the potential challenges and have plans in place to address them.

Structuring your 5 Year Business Plan effectively is crucial to ensure clarity, coherence, and readability. Each section plays a vital role in providing a comprehensive and cohesive overview of your business’s future. By following a well-structured format and including all the essential components, you can create a compelling and informative plan that guides your business towards its long-term objectives.

Writing and Presenting Your 5 Year Business Plan

Once you have structured your 5 Year Business Plan, it’s time to focus on effectively communicating your ideas and strategies. Writing and presenting your business plan in a clear, concise, and compelling manner is crucial for conveying your vision, gaining support from stakeholders, and securing funding or investment. In this section, we will explore key considerations and tips for writing and presenting your 5 Year Business Plan.

Writing Style and Tone

When writing your business plan, it is important to maintain a professional and formal tone. Use clear and concise language to convey your ideas and avoid jargon or technical terms that may confuse readers. Be specific and provide relevant details, but also be mindful of not overwhelming the reader with excessive information. Use proper grammar, punctuation, and formatting to ensure the plan is easy to read and understand.

Formatting and Structure

Pay attention to the formatting and structure of your business plan to enhance its readability. Use headings, subheadings, bullet points, and numbered lists to organize information and create a logical flow. Consider using visual elements such as charts, graphs, and tables to present data in a visually appealing and easy-to-understand format. Ensure consistency in font styles, sizes, and formatting throughout the document.

Using Visuals and Graphics

Visuals and graphics can greatly enhance the presentation of your business plan. Utilize charts and graphs to illustrate financial projections, market trends, or growth targets. Visual representations can make complex information more accessible and engaging for the reader. However, ensure that the visuals are clear, relevant, and properly labeled to avoid any confusion or misinterpretation.

Proofreading and Editing

Before finalizing your business plan, thoroughly proofread and edit the content. Check for spelling and grammatical errors, inconsistencies, and clarity of language. It is helpful to have multiple reviewers, including professionals or advisors, to provide feedback and suggestions for improvement. Ensure that all sections are cohesive, and the overall narrative flows smoothly. A polished and error-free plan demonstrates professionalism and attention to detail.

Seeking Feedback and Professional Assistance

Seeking feedback from trusted individuals or professionals can provide valuable insights and improve the quality of your business plan. Share your plan with mentors, advisors, or industry experts who can provide constructive feedback and help you identify areas for improvement. Consider engaging the services of a professional business plan writer or consultant who can provide expertise and ensure that your plan meets industry standards and best practices.

Presenting Your Plan to Stakeholders

When presenting your 5 Year Business Plan to stakeholders, such as investors, lenders, or potential partners, tailor your presentation to your audience. Highlight the most important aspects of your plan and focus on the key messages and value propositions. Use visuals, such as PowerPoint slides, to support your presentation and keep the audience engaged. Practice your presentation to ensure a confident and persuasive delivery.

Addressing Questions and Concerns

During the presentation or afterward, be prepared to address questions and concerns from stakeholders. Anticipate potential queries and objections, and have well-thought-out answers ready. Be open to feedback and be willing to adjust or clarify aspects of your plan based on stakeholder input. This demonstrates your flexibility, adaptability, and commitment to the success of your business.

Writing and presenting your 5 Year Business Plan effectively is essential for conveying your ideas, gaining support, and securing resources for your business’s long-term success. By maintaining a professional writing style, utilizing proper formatting and visuals, and seeking feedback from trusted individuals, you can ensure that your plan is clear, compelling, and persuasive. Remember, a well-written and well-presented plan increases your chances of attracting the necessary support and resources to turn your vision into reality.

Reviewing and Updating Your 5 Year Business Plan

Creating a 5 Year Business Plan is not a one-time task. To ensure its effectiveness and relevance, it is essential to regularly review and update your plan. The business environment is dynamic, and factors such as market trends, competition, and internal dynamics may change over time. In this section, we will explore the importance of reviewing and updating your business plan and provide guidance on how to do so effectively.

Monitoring Performance and Progress

Regularly monitoring your business’s performance and progress is crucial for evaluating the effectiveness of your strategies and objectives outlined in the plan. Establish key performance indicators (KPIs) that align with your business goals and track them consistently. Assess your financial statements, sales figures, customer feedback, and other relevant metrics to measure your progress. This ongoing evaluation allows you to identify areas of improvement, make necessary adjustments, and ensure that you are on track to meet your long-term objectives.

Establishing Key Performance Indicators

Key Performance Indicators (KPIs) are quantifiable metrics that help you measure progress towards your goals. By establishing specific KPIs for each area of your business, you can track performance and identify areas that require attention. Some common KPIs include revenue growth, customer acquisition and retention rates, profitability ratios, operational efficiency metrics, and employee productivity. Regularly analyze and review these KPIs to assess the overall health and performance of your business.

Analyzing Financial Reports

Financial reports provide valuable insights into the financial health and stability of your business. Regularly review your financial statements, including income statements, balance sheets, and cash flow statements, to assess your business’s financial performance. Analyze revenue trends, expense patterns, profitability ratios, and liquidity ratios to identify areas of strength and areas that require improvement. Use this information to make informed decisions and adjust your strategies as necessary.

Making Adjustments and Course Corrections

As you review the performance of your business and analyze financial reports, you may identify areas that require adjustments or course corrections. This could involve revisiting your marketing strategies, refining your product offerings, reallocating resources, or modifying your operational processes. Be open to adapting your plan as needed to address changing market conditions, emerging opportunities, or unforeseen challenges. Flexibility and agility are key to maintaining a competitive edge in a dynamic business environment.

Adapting to Market Changes

The business landscape is constantly evolving, and it is crucial to adapt your 5 Year Business Plan to market changes. Stay informed about industry trends, technological advancements, shifting consumer preferences, and regulatory updates that may impact your business. Regularly assess the competitive landscape and adjust your strategies to maintain your market position. By staying abreast of market changes and making necessary adaptations, you can ensure that your business remains relevant and competitive.

Reviewing and Revising the Business Plan

Periodically review and revise your 5 Year Business Plan to incorporate the insights gained from monitoring performance, analyzing financial reports, and adapting to market changes. Schedule regular plan reviews, such as annually or semi-annually, to assess the effectiveness of your strategies and objectives. Incorporate any lessons learned and update your plan accordingly. Communicate changes to stakeholders, including your team members, investors, and partners, to ensure alignment and understanding.

Regularly reviewing and updating your 5 Year Business Plan is essential for maintaining its effectiveness and relevance. Monitoring performance, establishing key performance indicators, analyzing financial reports, making adjustments and course corrections, and adapting to market changes are all critical components of this ongoing process. By continuously reviewing and updating your plan, you can ensure that it remains a dynamic and relevant roadmap for your business’s long-term success. Remember, the business environment is constantly evolving, and your plan should reflect these changes to keep your business on track towards achieving its goals.

The Power of a Well-Crafted 5 Year Business Plan

A well-crafted and carefully executed 5 Year Business Plan has the potential to transform your business and set it on a path to long-term success. It serves as a roadmap that guides your decision-making, focuses your efforts, and aligns your team towards a common vision. In this final section, we will explore the power and benefits of having a well-crafted 5 Year Business Plan.

Strategic Direction and Focus

A 5 Year Business Plan provides strategic direction and focus to your business. It outlines your vision, mission, and goals, ensuring that all actions and decisions are aligned with your long-term objectives. By having a clear plan in place, you can avoid distractions, prioritize tasks, and stay on track towards achieving your desired outcomes. The plan serves as a constant reminder of what you need to accomplish and helps you stay focused amidst changing market conditions or unforeseen challenges.

Alignment and Cohesion

A well-crafted business plan fosters alignment and cohesion within your organization. It ensures that everyone in your team is working towards the same goals and objectives. The plan provides a framework for decision-making, allowing team members to make informed choices that are in line with the overall business strategy. This alignment leads to increased efficiency, productivity, and collaboration, as everyone understands their role in contributing to the business’s success.

Risk Mitigation and Contingency Planning

A 5 Year Business Plan enables you to identify potential risks and develop contingency plans to mitigate their impact. By conducting a SWOT analysis and regularly reviewing your plan, you can anticipate and address potential challenges before they become significant issues. This proactive approach allows you to develop strategies and contingencies to navigate unexpected events or market fluctuations. A well-prepared business plan gives you the confidence and resilience to weather challenges and adapt to changing circumstances.

Attracting Stakeholders and Resources

A comprehensive and well-crafted business plan is a powerful tool for attracting stakeholders and securing the necessary resources for your business’s growth. Whether you are seeking investment, loans, or partnerships, a solid plan demonstrates your professionalism, vision, and commitment to success. Stakeholders and investors are more likely to support your business when they can see a clear and well-thought-out plan that outlines the potential for growth and profitability.

Measuring Progress and Accountability

A 5 Year Business Plan provides a framework for measuring progress and holding yourself and your team accountable. By setting specific goals, establishing key performance indicators, and regularly tracking your performance against these targets, you can objectively assess your progress and make data-driven decisions. This accountability ensures that you stay on track, make necessary adjustments when required, and celebrate achievements along the way.

Continual Improvement and Adaptation

A business plan is not a static document but rather a living roadmap that evolves and adapts to changing circumstances. As you implement your plan and gain insights from monitoring, analyzing, and reviewing, you can make continual improvements and adjustments. By regularly updating and revising your plan, you can ensure that it remains relevant, effective, and aligned with your business’s needs and goals.

A well-crafted 5 Year Business Plan is a powerful tool that guides your business’s journey towards success. It provides strategic direction, aligns your team, mitigates risks, attracts stakeholders, measures progress, and encourages continual improvement. By investing time and effort in creating a comprehensive and thoughtful plan, you can set your business on a path to long-term growth, profitability, and sustainability. Remember, a business plan is not just a document; it is a roadmap that empowers you to navigate challenges, seize opportunities, and achieve your business’s full potential.

A well-crafted 5 Year Business Plan is a powerful tool that sets the foundation for your business’s success. It provides strategic direction, aligns your team, attracts stakeholders, and guides decision-making. By following the steps outlined in this guide, you can develop a comprehensive and effective plan that charts a clear path towards your long-term goals.

Throughout this guide, we have explored various aspects of writing a 5 Year Business Plan, from conducting a SWOT analysis to structuring the plan, gathering financial data, and reviewing and updating it regularly. Each step plays a crucial role in ensuring that your plan is thorough, well-informed, and adaptable to the dynamic business environment.

Remember, a well-crafted 5 Year Business Plan is not set in stone. It should be viewed as a living document that evolves and adapts as your business grows and market conditions change. Regularly review and update your plan to reflect new insights, market trends, and emerging opportunities. Continually measure your progress, make adjustments when necessary, and celebrate your achievements along the way.

In conclusion, a well-crafted 5 Year Business Plan empowers you to master the future of your business. It provides a roadmap that guides your decision-making, aligns your team, attracts resources, and helps you navigate challenges and seize opportunities. Embrace the power of a well-crafted plan and embark on a journey towards long-term success.

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Five-year business plan: why you need one and how to write it

What is a five-year business plan, do you actually need a five-year business plan, who is a five-year business plan for, how to write a five-year business plan, five business plan tips from anthony rose, final thoughts, kaylin sullivan.

Many founders roll their eyes at the idea of forecasting the growth of their business for the next five years. However, having a clear plan that sets out your ambitious yet realistic growth targets can help get investors on board.

In this article, we’ll reveal why you need to write a five-year business plan with tips from Anthony Rose, SeedLegals’ CEO and serial entrepreneur.

A five-year business plan gives an overview of what a business does, what it intends to do and how it plans to do it.

It includes everything from vision statements to market research, strategic planning and financial forecasts. The five-year plan helps prospective investors get an idea of whether they feel a business has long term potential.

Founders and investors both know that a five-year business plan includes some artistic licence. You don’t know exactly how things are going to go. Things can take longer than you expect and the economic landscape can shift overnight.

However, there’s still plenty of value in a five-year business plan. If you get your numbers right, you can use the business plan to show investors why they should invest in you and how they could see a return on their time and money.

Your five-year plan is also necessary if you’re applying for SEIS/EIS Advance Assurance . HMRC needs to see a three or five-year business plan in your pitch deck so they can be confident that you actually plan to grow the business.

In the startup space, a five-year business plan is especially useful for founders and investors.

It helps founders strategise how their business is going to work and shows investors how they might get a return on their investment.

Founders can use the business plan to align on the direction of travel with other senior members of the team.

Investors see the five-year business plan as a measure of the market opportunity for the business. If the opportunity looks good, investors are more likely to want to get involved.

It’s a good idea to create two versions of your business plan: a detailed version and a compact general overview.

A detailed plan that covers all aspects of your business can help you gain clarity and refine your goals.

Once you’re clear on what you want to do, the general overview shows investors what your plans are in a digestible way.

What to include in your detailed five-year business plan

The purpose of your five-year plan is to explain the who, what, why and, most importantly, the how behind your company’s plans. The detailed version of your plan should include:

• A description of your business
• Long-term goals
• Short-term goals
• A SWOT analysis (strengths, weaknesses, opportunities and threats)
• A competitor analysis
• Details on who your customers are
• What your products and services are and their pricing
• Details on the management team you have and need
• A spreadsheet that details all your company’s financials
• A financial forecast including a line graph depicting growth in revenue
• Investment you require

Once you have that, you can condense it into a general overview.

What to include in your general overview

Creating a general overview helps you to convey the most important information about your business in a concise manner.

When dealing with investors, your time is limited. No investor wants to go through a 20-page business plan. They want to cut to the chase, and founders need to be prepared to accommodate them.

Based on feedback from founders who’ve been through funding rounds themselves, we recommend that you condense your detailed five-year plan into the following:

• A one-page executive summary
• A SWOT analysis
• A line graph showing your revenue growth forecast over 5 years
• A spreadsheet that breaks down all the financials behind that line graph including profit and loss, expenditure and revenue

Your pitch deck for investors should include the line graph, SWOT analysis and executive summary. HMRC will also want to see this info when you apply for SEIS/EIS.

In your pitch, you’ll need to describe your business and point out your business goals, but you don’t need to include all of the finer details from your in-depth business plan at this stage. The financials spreadsheet doesn’t need to be in your pitch deck. It’s only for later on when you meet with investors.

It’s worth having a look at some pitch deck examples for inspiration.

What to include in your line graph

The purpose of the graph is to depict your projected growth in revenue at a glance.

The number of years you show depends on your business’ initial growth rate. If it’s going to take a few years before you generate revenue because you have complex product development to do, you’ll want to forecast far enough into the future to show when the exponential growth happens.

The graph should include:

• Profit forecast over X number of years
• Loss forecast over X number of years

What to include in your financials spreadsheet

This is your opportunity to break down every financial detail behind what’s depicted in the line graph. Your spreadsheet should include:

• All your business costs
• Your revenue projections
• Market size
• Cost of acquiring customers

The more information the better. This is what you’re going to present to investors once they’ve expressed interest in your pitch.

What you present will be a significant factor in whether they invest in you or not. Here’s an idea of what your spreadsheet might look like.

Image source: Brixx

SeedLegals CEO Anthony Rose has been through a fair amount of funding rounds and seen hundreds of pitch decks himself. In the video below, he offers his insights on “The art of the five-year business plan”.

We’ve put Anthony’s thoughts from the video into a written breakdown below to help you digest the information. 

1. Show the potential for ROI

Showing your ambition goes beyond an inspiring vision statement. It’s about creating hype through numbers – the real, grounded kind of hype that makes investors feel excited and confident that the goals can be achieved.

A five-year business plan that’s going to close investments needs to show the founder’s ambitions to grow the business exponentially. The investor is going to want to see that making this investment is worth their while.

Many founders are satisfied with a modest approach. The fact that they can create a good, profitable business that will add value to its market and pay the salaries and bills that need to be paid is what makes them happy.

But an investor might see it as a “hobby business” if you’re not ambitious enough. Your five-year business plan needs to include financial projections that show a steady, exponential increase in your revenue (which means the same for their ROI).

An investor is going to want to see a massive return on investment. In five years they’re going to want to see a 10x or a 50x return on the investment to make it worthwhile, given the risks involved. Anthony Rose Co-founder & CEO, SeedLegals

2. Don’t overpromise

The key here is to get your five-year number just right. Your graph should show a steady increase in revenue, but not at an unachievable rate.

If you’re not delivering on the numbers you projected at the get-go, you’ll have unhappy investors and a lot of changes to make. You will most likely have trouble getting investors on board in the first place if you’re projecting growth at a statistically unlikely rate.

Seeing that founders can run the numbers is an important measure for investors. If the numbers aren’t connecting from one year to the next, or you appear to be losing money altogether, investors aren’t going to have a whole lot of faith in you running your business well.

3. Use the unicorn formula

Before we dive into the formula, it will help to know that a company is classified as a unicorn if it is valued at US$1 billion or more (around £800 million).

The unicorn formula is the growth pathway to becoming a unicorn company, and it goes like this: triple, triple, triple, double, double.

So what does that mean for your five-year business plan? It means that if you can create a graph projecting financial growth at a rate of tripling year-on-year revenue for three years and doubling it for two, you’re on a good, steady growth path towards becoming a unicorn.

At a rate of 10x revenue for your valuation, reaching that (roughly) £100 million in revenue after five years would classify your company as a unicorn.

Not every company intends to become a unicorn, however, so how does this apply if that’s you? Well, the golden nugget in this formula is the rate of growth it suggests. It’s ambitious and steady, which will appeal to investors. So even if you’re not aiming for a unicorn valuation, applying the formula to your financial forecasting will still be beneficial.

The line graph below depicts a hypothetical business’s revenue according to the unicorn formula rate. It’s the shape of the line that’s important here – this is the shape of a healthy growth rate.

4. Spreadsheet the numbers

We covered this in the section on how to write a five-year business plan, so make sure you read and re-read that section. In case you missed it, though, we’ll reiterate the point here.

The most important part of your meetings with investors is presenting a robust breakdown of your company’s financials. Make sure you keep an up-to-date spreadsheet that details current and future income and expenditure.

5. Be honest about where you are now

Be fully transparent about where your business’s revenue is now. Don’t allow for disparity between what is displayed in the graph on your pitch deck and the revenue your business is making today.

Make sure your financial forecasting is up-to-date and begins with where you stand currently. Make sure you update it regularly so you remain confident and transparent whenever you meet with investors.

The five-year business plan still has value. It will help with procuring investment and getting your SEIS/EIS Advance Assurance from HMRC.

The key takeaway is to get your financials just right. Show ambition, grow steadily and be transparent. First-hand advice from people who have been there and done that is extremely valuable, so turn to expert input for help.

At SeedLegals, we have a team of experts who can help you with all the nuances involved in starting and growing your business, so hit the chat button to get in touch. We’ll be happy to guide you and answer any questions.

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How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

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Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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How to Write a 5-Year Business Plan

A 5-year business plan will help you manage your company and seek loans or investment money. This term is familiar to most commercial loan officers and small business investors. Learning how to write an effective five year business plan helps you manage better and improves your chances of receiving the loans or investment dollars you need to succeed.

You should thoroughly understand business plan components and your company to complete a winning blueprint for success. Below are several points to consider when writing an effective 5-year business plan.

Design Your Strategic Plan

Design your strategic plan. Combine your goals with your vision for your company. Decide on the best strategies – e-commerce, retail locations, business-to-business, business-to-consumers or combinations thereof – to reach your business objectives. These will be the benchmarks for your five-year business plan

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Prepare an Executive Summary

Prepare an executive summary. This section outlines your goals, objectives, strategies and your expertise in achieving the results you project. When seeking loans or investment, this is the most critical section of your business plan. You have limited time to impress a loan officer or investor, both of whom read many business plans daily. Make it brief, "hard hitting" and highly focused on achievement.

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Display the talent of your management team. Like a resume – only more interesting – management team biographies increase the credibility of your executive summary and all projections that follow. If you are a one-person management team, be sure to emphasize all your skills.

For example, if you are strong in technology and accounting, be sure to mention your marketing, customer relations and operations skills. If you're going to "outsource" these functions, explain how you plan to use other experts and whom you're considering.

Describe Products or Services

Describe the products or services you offer, in detail. In a five-year business plan, you should convince the reader that your products/services are marketable now and will continue to be popular in the coming years. Clearly state sound reasons that your products are currently viable and how you will react to future challenges in the market.

Create Financial Projections

Create financial projections for the next five years. Include income statements, balance sheets, and cash flow estimates. For years one and two, show Income and cash flow Statements on a monthly basis. You can use quarterly projections for years three through five. If your starting a small business, you can estimate your balance sheet on a semi-annual basis because you probably expect few major changes.

Things You Will Need

• Valid business idea
• Popular product or service
• Calculator or PC
• Accounting statement knowledge

Write a detailed "narrative" to explain and support your financial projections. Keep your plan thorough, but clear. Exotic, colorful graphs or other additions are unnecessary in most cases. Anticipate and prepare answers for questions that may come from readers. Spend more time researching and studying your market than writing the plan.

Don't fill your plan with unnecessary or subjective text or numbers. Readers want you to stay "on point" and focused. Never exaggerate or dramatically overestimate financial results. Your plan quickly loses credibility.

• Planware.org: Characteristics of Business Plans
• Forbes: trategic Plan Template: What To Include In Yours
• Stirling.gov.uk: Stirling Council Five-year Business Plan
• Business Plan Checklist
• Write a detailed "narrative" to explain and support your financial projections.
• Keep your plan thorough, but clear. Exotic, colorful graphs or other additions are unnecessary in most cases.
• Anticipate and prepare answers for questions that may come from readers.
• Spend more time researching and studying your market than writing the plan.
• Don't fill your plan with unnecessary or subjective text or numbers. Readers want you to stay "on point" and focused.
• Never exaggerate or dramatically overestimate financial results. Your plan quickly loses credibility.

• Business plans

5-Year Business Plan Template

Used 4,872 times

Empower your path to long-term success with our 5-year business plan template.

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Created by:

​ [Sender.FirstName] [Sender.LastName] ​

​ [Sender.Company] ​

Prepared for:

​ [Recipient.FirstName] [Recipient.LastName]

​ [Recipient.Company] ​

Business Overview

About the company.

​ [Sender.Company] is a leading force in the (Field) industry, seamlessly operating across diverse sectors and niches. [Sender.Company] 's unwavering commitment revolves around creating (Field)-related solutions that captivate and remain highly relevant and impactful.

Over time, they have earned the trust of some of the world's most esteemed (Field) brands, including (Insert the Clients you have collaborated with).

​ [Sender.Company] 's overarching mission is to craft immersive (Field) experiences that empower brands to meet and exceed their objectives.

They aspire to be known as the prominent (Field) company globally. Their excitement stems from leveraging their skills to propel your organization toward unprecedented success. The company's innate ability to comprehend and translate your unique narrative into compelling visual content sets them apart, forming a profound connection with your target audience.

​ [Sender.Company] ’s Product/Services and Pricing

​ [Sender.Company] would like to operate (Number of Days) days a week and (Hours) a day to handle all of the potential customers' inquiries and challenges. As demand dictates, the company's service hours may be extended or shortened. [Sender.Company] provides the following products and services.

Management Team

​ [Sender.Company] will be under the ownership and guidance of (Owner.Name), who has enlisted the support of another highly seasoned professional, (Staff.Name), to take on the role of CFO within the company. (Staff.Name) will oversee the financial operations, ensuring precise financial management.

(Staff.Name) brings a wealth of experience to the team, having served as the (Previous Position) for over a decade in an industry. Before this role, (Staff.Name) worked as a (Previous Work) at (Previous Company).

Together, their expertise forms the bedrock of [Sender.Company] 's commitment to financial excellence and operational efficiency.

Business Objectives

Key performance metrics.

Sales revenue:

lead conversion rates:

retention rate:

web page traffic:

lifetime value of clients:

(Add metrics)

Industry Analysis

Industry's size: (Description)

Market trends: (Description)

Competitive targets: (Description)

Customer preferences: (Description)

Regulatory implications: (Description)

Customer Analysis

Target customer profile.

​ [Sender.Company] focuses strategically on conquering the (Target Customer) market within (Location) and surrounding areas. This strategic choice stems from the knowledge that the surrounding region offers extensive commercial options. [Sender.Company] can efficiently cater to the demands of (Target Customer) seeking (Company.Products/Services) in the area by focussing on this local and regional market.

This strategy allows the company to establish itself as a significant player in the target region, establishing a solid reputation and a dedicated customer base before expanding into more critical areas. Furthermore, their central location makes them an appealing option for (Target Customer) visiting (Location).

Competitive Analysis

Competition.

Other companies with comparable company profiles will be [Sender.Company] 's significant competitors. Each similar business is briefly described below.

Competitive Advantage

​ [Sender.Company] has discovered that it has a competitive advantage over its rivals after thoroughly evaluating the market. The following are the company's competitive advantages:

(Competitive Advantage 1)

(Competitive Advantage 2)

(Competitive Advantage 3)

Marketing Plan

Brand and value proposition.

​ [Sender.Company] takes pride in its unique features tailored to meet the needs of its customers. The following are the distinct advantages and offerings that set [Sender.Company] apart in its industry:

Expert Team: (Description)

Versatile Solutions: (Description)

Prime Location: (Description)

Outstanding Customer Service: (Description)

Inclusivity: (Description)

Promotions Strategy

Ensuring that both customers and clients are well-informed about [Sender.Company] 's operational procedures are crucial for its seamless functioning. [Sender.Company] employs a diverse marketing strategy that effectively reaches its target audience through various channels, including referrals, word of mouth, and paid advertising campaigns.

​ [Sender.Company] has developed a comprehensive promotion strategy to enhance its visibility and reach. The following are the promotional strategies that [Sender.Company] offers:

These promotion strategies will assist [Sender.Company] in establishing a solid presence in the market and attracting a diverse range of customers and clients.

Pricing Strategy

​ [Sender.Company] provides a range of flexible payment options to cater to various customer preferences. The following list outlines these options, which can be adjusted as needed:

(Payment option 1)

(Payment option 2)

(Payment option 3)

SWOT Analysis

Operations Plan

Operational functions.

At [Sender.Company] , their (Field) team constitutes a formidable coalition of exceptionally talented individuals, each contributing their unique expertise to shape the success of assigned projects. The following are the brilliant minds that breathe life into (Field)-related visions:

CEO/Founder

(Mr./Mrs./Ms.) (Name) stands as the visionary leader of the (Field) team at [Sender.Company] , deeply committed to excellence and laying the foundation for the company's creative journey while guiding everyone toward new heights of achievement.

Lead (Field) Specialist

(Mr./Mrs./Ms.) (Name) is the creative genius behind the (Field)-related elements, ensuring striking visuals and an exceptional user experience, all with a meticulous eye for detail.

Creative Director

(Mr./Mrs./Ms.) (Name) spearheads creative direction in the (Field), consistently surpassing industry standards in design and user engagement.

Project Manager

(Mr./Mrs./Ms.) (Name) is a diligent project manager overseeing all aspects of (Field)-related projects, ensuring they stay on track, on schedule, and within budget.

Marketing Director

(Mr./Mrs./Ms.) (Name) brings a strategic approach to marketing (Field)-related ventures, resonating with target audiences and garnering well-deserved attention.

Additional Team Members

Beyond the core team, a pool of accomplished professionals, including experts, designers, and specialists, complements [Sender.Company] 's efforts in various technical aspects of (Field)-related projects. All collaborate seamlessly to deliver top-tier solutions for (Field)-associated endeavors.

​ [Sender.Company] is on track to reach several pivotal milestones over the next five (5) years:

These milestones underscore [Sender.Company] 's consistent progress toward establishing a successful presence in the (Industry.Name).

Financial Plan

Projected startup costs.

​ [Sender.Company] is looking for investment in the amount of (Amount) to launch its business. The primary areas where [Sender.Company] ​ will allocate its initial funding as listed below:

Projected Financial Statements

The company's projected income statement, balance sheet, and cash flow statement are shown below.

​ [Recipient.FirstName] [Recipient.LastName] ​

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Your rating will help others.

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How to Write a 5-Year Business Plan: A Guide to Creating a Good Business Future

Learning how to write an effective five-year business plan helps you manage, and optimize your business operations for the better.

Jenna Bunnell

Jenna Bunnell is the Director for Field and Strategic Events at Dialpad.

To run and grow a successful business, planning is crucial. 

A typical business plan covers the next one to three years and details your target audience, marketing strategy, and products or services for that time period. A five-year business plan expands on this premise, and predicts what your business might do in the next five years. 

Learning how to write an effective five-year business plan helps you manage, and optimize your business operations for the better. Without a firm business plan, you risk straying from your intended course. 

Establishing a long-term plan determines your business’s priorities and aspirations, including several important milestones. A long-term business ensures you are improving business time management skills. 

To get cracking with developing your ideal five-year business plan, follow this simple guide to success.  ​​​​​​​

Why Create a 5-Year Business Plan?

Suppose you implement a robust five-year business plan at some point in your business’s lifetime. In that case, it will provide valuable insight into how your business is likely to fare over the coming years. 

In addition to long-term business insights, your business plan helps with:

An important part of your business plan is thorough market research, and measuring what your competitors are doing. Conducting this analysis allows you to make strategic decisions about moving your business forward. 

Strategic Planning

The creation of your five-year business plan solidifies the ideas you have for your business, and what you need in place to see those ideas come to fruition. 

Partnerships

If you can envision future collaboration opportunities, your five-year business plan is a great resource for other companies to learn about your business, and decide if they want to go into partnership with you. 

A strategic five-year business plan helps you encourage data-driven business growth in the long-term, and assists with decisions about the company’s future. Businesses that create long-term business plans are good at strategic thinking and prepared for potential obstacles their companies may face. 

What Should a 5-Year Business Plan Include?

A traditional five-year business plan should include business strategies, financial projections, competitive analysis, SWOT analysis, and future roadmaps. In essence, your five-year business plan should detail your business's direction, what you think your industry will look like in five years, trend predictions, and how your business will solve your target audience’s problems.   

Your five-year business plan will probably include the following aspects; however, it may vary slightly from this outline:

• Executive Summary. A brief description of your business, and its goals. 
• Business Description. Where does your business operate, and what does it do?
• Management Team. The people who run your business.
• Products and Services. A description of your business’s offerings.  
• SWOT Analysis. Analysis of strengths, weaknesses, opportunities, and threats concerning your business. 
• Target Audience. Who buys from your business, and are there potential new audiences you want to reach?
• Competitive Analysis. Who are your competitors, and how does your business compare to them?
• Market Analysis. How does your business meet the needs of its customers?
• Marketing and Sales Plan. Plans for brand awareness, and increasing sales. 
• Financials. Profit and loss statements, and future financial projections. 
• Conclusion. An overall summary of your five-year business plan. 

How to Write a 5-Year Business Plan

Let’s look at the outline above in detail, to uncover what to include in each section. 

Executive Summary 

Write your executive summary with your business’s overview, and mission statement. Concise mission statements that reflect your business’s goals and objectives are ideal, such as these from famous brands:

“To connect the world’s professionals to make them more productive, and successful.” LinkedIn “To help people worldwide plan and have the perfect trip.” Trip Advisor 

Consider writing your business’s executive summary after completing the other sections, as this element of your plan should be a complete rundown of your business. 

Business Description

This section contains all the essential information about your business, including your goals, target customers, business structure, and future restructuring plans to align with objectives. Consider why your business exists, your hopes for your business’s future, and its values to fill out this section. 

Management Team

Include a brief description of your management team’s job responsibilities, skills, and how they fit into your business. Your team can act as your business’s USP, especially if they bring unique talents to the table. 

Products and Services

A detailed description of your business’s products and services, including benefits, features, and supplier information if relevant. List potential new services or products in the early planning stages, how much revenue you plan to make from them, and how they will serve your target audience. 

SWOT Analysis

Focus on your business’s strengths, weaknesses, opportunities, and potential threats. For example, strengths may include your business’s exemplary customer service. A weakness might be that you need to optimize resource scheduling . Opportunities are areas your business can explore to scale up, and threats can include opposition problems or changes in your industry. 

Target Audience

Describe your current target audience, and any potential new audiences your business plans to expand to reach. Segment your customers into demographics, behavior patterns, values, and level of education if appropriate to your business. Doing this helps readers of your five-year business plan further understand how your business plans to grow.  

Competitive Analysis

Your business plan should include information about who your competitors are, and, where your business sits compared to them. For example, SaaS businesses would conduct cloud call center software comparison research to understand the competitive landscape. Finish off with details about your competitors’ strengths, and weaknesses in this section. Competitive analysis helps you understand areas your business can win over your competitors. If their social media platforms show that their overall customer service is underperforming, you can make strides to elevate your customer service efforts, and overtake them in this area. 

Market Analysis

Research your market and write your findings, incorporating statistics, and relevant data. This area of your business plan should focus on where your business is positioned currently in the market, and your predictions for future market changes regarding your business’s strategies. Think about how big the current market is for your products or services, and this should create ideas for future product developments. 

Marketing and Sales Plan 

You need an overall plan for marketing your business’s offerings to your target audience. Include information about digital marketing plans, and opportunities to increase your brand’s reach. If you plan to explore the benefits of local phone numbers to level up your sales team’s capabilities, add this information as part of your marketing plan. 

Include details about your sales strategy, involving future staff required to meet your business’s goals. Information about sales targets is helpful in this section of your business plan.  

Financials 

Prepare a financial report demonstrating your business’s financial projections over the next five years. Your report must include anticipated revenue based on market, and competitor research. 

Conclusion 

Illustrate the key points within your five-year business plan in a neat summary. This section should reassure potential investors that your business is viable, and has solid plans for growth. 

Develop Long-term Growth Targets

While creating your five-year business plan, always have in mind where you envision your business in five years.

When writing your long-term business plan, the following questions are helpful:

• How many customers do you predict to gain in the next five years?
• What do you need to put in place to achieve that customer number?
• Do you need to consider shopify alternatives ?
• How much does your business need to earn in year three to be on track?
• Do you need to hire new staff members? If so, how many?
• Will you change your business location?
• Will you need to open up different locations for your business operations?
• Will you introduce new products or services?

Consider setting milestones for the course of your five-year business plan, as this approach is often easier to manage. 

Say your business plans to dabble in the affiliate marketing world. Investigate drop shipping vs affiliate marketing approaches to ascertain which marketing method is most beneficial for your business. Then set a milestone to join a set number of affiliate marketing programs by a specific date, review your results, and move upwards from there.  

Making a Good Business Future 

Your five-year business plan will require amendments over time. And that’s perfectly normal. As your business grows and changes, you’ll learn new things about your business’s industry, and need to alter your roadmap accordingly. 

An effective five-year business plan serves to convince investors that your business is worth investing in. It also ensures that your business moves in the right, and planned direction. 

By creating a five-year business plan now, your business stands the best chance of success for the next five years, and the future. 

About the author

Jenna Bunnell is the Director for Field and Strategic Events at Dialpad, an AI-incorporated cloud-hosted unified communications system that provides valuable call details for business owners and sales representatives. She is driven and passionate about communicating a brand’s design sensibility and visualizing how content can be presented in creative and comprehensive ways. Here is her  LinkedIn .

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How do I create a five-year business plan?

A business plan helps leaders to step back and think carefully about the bigger picture.

This includes looking at the company's strengths and weaknesses, as well as the financial situation and resources available. It also encourages you to consider the long-term vision for your business: what does success look like?

A five-year business plan makes your business work more effectively and allows you to continually meet expectations. Don’t assume that business plans are just for startups or companies applying for loans either – they’re valuable for every business.

The benefits of creating a business plan

There are plenty of benefits when it comes to five-year plans.

Identify a long-term goal

A business plan forces you to settle on a direction and goal for your business, which is essential if you’re easily distracted by trends or new projects.

Once you’ve identified the direction you want to take, you’ll have a better idea of how strategically aligned your business is. Does your day-to-day activity match up with what you want to achieve?

Set priorities

You can’t do everything at once. A business plan ensures your time, effort and resources are best spent. When thinking about how to write a strategic plan, ensure you choose which tasks to prioritise and which tasks aren’t as essential as part of the process.

Once you understand your priorities, you can set objectives for the company based on these priorities.

Calculate your resources

Putting together a five-year business plan for a company helps to map out what you'll need in the next few years. While circumstances inevitably change over time, you’ll know roughly what resource is required to get projects successfully out of the door.

Spot potential problems

A business plan encourages you to take a critical look at the next steps you’ll take. That makes them useful for spotting any potential problems that could derail the business.

For example, you might find your financial projections are unrealistic or you haven’t factored in the budget you need for extra developers. It’s better to realise this now, rather than suddenly facing a blocker a year down the line.

How to write a strategic plan

There are seven main components of a business plan.

Executive summary

The executive summary provides an overview of your plan and business. Although it comes first, it’s best to write it last when you have a clearer idea of what you want to achieve.

Try to keep the executive summary to a single page. It should be a concise, accessible way for employees, advisers and investors to understand your business plan.

Company mission statement

You’re planning for your company’s future, so what better time to remind yourself of the reason why you started? The goals you set in your business plan should ultimately relate back to your mission statement.

SWOT analysis

A SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis lets you analyse your company’s capabilities.

By identifying your strengths, you’ll know which areas of the business you can build on and which areas need improvement before you can progress.

For example, your strengths might be in your operational capabilities. You have an efficient service that customers rate highly and there’s plenty of opportunity for growth. However, your weaknesses are that your marketing team is inexperienced and your internet presence is minimal.

As a result of this SWOT analysis, your next steps could be:

• Hire a marketing manager with experience in your sector
• Research the resources needed to build a competitive online presence
• Strengthen your leadership team to prepare for growth

Setting goals

Having long-term goals is essential for businesses. If you don’t have an ambitious goal that excites you and drives your team forward, your business will stagnate.

The first step is to identify your five-year or long-term goals.

• Keep goals clear, simple and specific
• Think big – your long-term goals shouldn’t be something you can achieve in six months
• Make sure your goals tie back to your mission statement

Try to make your goals as specific as possible. For example, if it’s to increase your share of the market, ask yourself: by how much? The more specific you can be, the easier it will be to measure how much progress you’re making towards them.

Customer, industry and competitor analysis

By this point in your business plan, you will have established your strengths, areas for improvement and goals. But a business plan shouldn’t just focus on your company – you need to look at external factors that could affect you too.

Customer analysis

This component of your business plan looks at who your target customers are and where you’ll focus your marketing efforts. The more you know about your prospective customers, the higher your return on investment will be.

Even if you’ve been running your business for a while, bear in mind that the market is constantly changing and customers’ demands around speed and quality of service is increasing. Will your current marketing methods still be effective in five years? What other ways could you attract new customers?

Industry analysis

This section doesn’t have to be an exhaustive report on your market. But it is important to look at where it is likely to go in the future.

You need to ensure the market is growing and there are future opportunities in your current sector. If not, you might need to diversify your offering and look at new opportunities you could take.

Competitor analysis

Define your main competitors and list their strengths and weaknesses. Online reviews can help to give you a customer’s perspective.

This analysis determines your current competitive advantage and any areas you could build on.

Examples of competitor analysis questions include:

• What markets or market segments do your competitors work in?
• Why do customers buy from them?
• Is there a service that customers want from your competition that they don’t offer?

Summary of your team

Even with a comprehensive business plan in place for your company, you won’t achieve your goals if you don’t have the right people on board.

Provide a summary of your team, including brief bios of key members. Look in particular at their experience and skills to see where you might have gaps.

Can you accomplish your goals with your current team? Does your team have the relevant industry experience and background?

Financial projections

Financial projections are an essential component of your business plan because they help you decide the best opportunity to pursue. If you don’t analyse your future finances, you risk spending a year on a project and then running out of money.

This section will also help you clarify your goals and ensure they’re grounded in financial knowledge. For example, if your goal is to increase the number of first-time customers, look at how much it’ll cost you to reach your goal each month.

Try to roughly outline your annual projections over the next five years, but be prepared to come back to this section regularly. You can update it each month as you have more clarity and insight about what your business is spending.

Adapt if your business plan goes off course

Five-year plans rarely stay the same. You’ll need to continually reassess the components of your business plan in response to changing market conditions, staff and competition.

What matters most is how you adapt to unexpected challenges. If something comes up, be flexible and prepared to rework your plan. Don’t tie yourself to a goal if it’s no longer in your company’s best interests.

Fourth-generation family business H.Forman & Son faced a series of disasters which turned their plans upside down. The first was a factory fire, then a local river flooded and left the building under a metre of water. The factory had to be rebuilt near the top of a hill, with extra fire safety precautions and three years’ business interruption insurance.

During tough times, owner Lance Forman recommends revisiting your business plan and deciding where your company goes next. Focusing on the future keeps him motivated, but he emphasises that business owners should be prepared for change.

“None of us know what’s around the corner. It doesn’t mean you shouldn’t have an idea of where you want to get to, but being too rigid is a mistake." Lance Forman, owner of H.Forman & Son

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[Updated 2023] How to Write a Five Year Business Plan [Best Templates Included]

Smriti Srivastava

Achieving a set of goals is challenging.

Maintaining the motivation and productivity to achieve business goals is even harder.

In the words of Yogi Berra, a big-league baseball player-turned-manager, “Without a plan, even the most brilliant business can get lost. You need to have goals, create milestones, and have a strategy in place to set yourself up for success.”

This is why everyone in the industry — from an interviewer looking to hire top talent to an entrepreneur who accomplishes goals systematically — splits their business plan into five years. A five-year business plan not only extends a generous period to attain the set targets but at the same time keeps everyone on their toes, removing procrastination.

But writing a five-year business plan can get tedious, messy, and, sometimes, take forever to hit the right spot.

Therefore, this blog will cover the essential steps to help you write a tremendous five-year business plan.

Chronology of writing a spectacular five-year business plan

It is quite simple. You cannot achieve something great when you don’t know your priorities, objectives, ways, and timeframe to achieve those targets. It is essential to build a five-year plan for your business as well as the outcomes and expectations related to it.

But where do you start?

Here are the five sections you must include in your plan:

#1 A clear company introduction

A brief yet effective overview of your business, its market, team structure, roles and responsibilities, company offerings, and value proposition builds the foundation for your future endeavors. You use a company overview to set the right tone at the beginning of your business plan, as it serves as the base and a direction for your audience.

Related read: How to Create an Attention-Grabbing Company Introduction Slide in 10 Minutes

#2 vision and mission statement.

You have to ensure your employees, stakeholders, investors, and potential clients understand what your company is all about and what you stand for. Your vision and mission statement helps you with it. It enlightens the audience about your future plans - where you see your company in five years and the results you will work to achieve.

Related read: Top 10 Mission and Vision Statement Templates to Guide Your Organizational Culture

#3 target market and branding.

State who your company is looking to serve and why. Provide clarity on your target market based on psychographics and demographics. And do not forget to mention the size of your target market. You have to create a framework for making your brand visible exponentially and simultaneously create a lead generation and conversion strategy.

Related read: Top 30 PowerPoint Templates to Analyze Dominant Market Drivers

#4 product overview.

Set clear priorities based on the distinction between your primary and secondary products. You need to connect your branding around the product or service core to your company. This categorization will help you establish the revenue your products generate and the impacts they create. Further, it will help modify your plans accordingly.

Related read: Top 10 One-Page Product Overview PowerPoint Templates to Drive Sales

#5 swot analysis.

Measuring your strengths, weaknesses, opportunities, and threats in the industry can help you successfully dominate the market. Therefore, your five-year business plan must include regular and timely analysis of all your business operations. There is no better way to meet targets than keeping a check on one’s activities. It will help you focus on the proprietary system of your company.

Related read: Top 50 SWOT Analysis PowerPoint Templates Used by Professionals Worldwide

Templates to nail your business plan.

Often we have countless ideas to plan our way to a successful business. But as the day-to-day grind starts, it is easy to get distracted from the end goal and stray from the path leading to our intent. We look for a north star to point us directly to our mission. So we decided to make your life a bit easier by providing our readymade and editable five-year business plan templates. You can access them below. Dive in!

Template 1: Five Year Business Plan Roadmap Template

Help your team stay on track with your future business ambitions by taking the assistance of our invigorating PowerPoint template. This content-ready template helps you visualize your work plan and present your vision impactfully. You just need to click the download link to start customizing it.

Download this template

Template 2: Key Poniters for Five Year Business Plan

Use this business plan template that includes vital pointers such as setting clear goals and objectives, conducting market research and competitor analysis, developing a comprehensive marketing strategy, creating financial projections, and establishing a system for measuring progress and adjusting your plan accordingly. By following a structured template and considering these essential elements, you can create a plan that sets your organization up for long-term success.

Template 3: Five Year Roadmap Timeline for Business Plan

Employ this professionally curated template to improve the success rate of your business. This template helps you track the progress of all your operational activities without any hassle. Also, our color-coded template makes it easy to comprehend and follow. So download this adaptable template to start adding your data effortlessly.

Template 4: Five-Year Business Plan Roadmap with Operations and Functions

You can utilize this template to articulate the workflow of your organization smoothly. This template allows you to write an attractive executive summary of your business operations and functions. Download the template and start assembling your key milestones immediately. Click the link below!

Template 5: Five Year Milestones Template

Outline the timeline for achieving future goals with the help of this template. Our experts have designed this PowerPoint template to help you summarize your vision, mission, targets, and timeframe in an easily accessible format. Grasp the attention of your employees and stakeholders right away by downloading this template.

Template 6: Five-Year Roadmap for Business Planning

A comprehensive plan of action displays confidence and foresightedness. Therefore, we have curated this content-specific template to help you create a strategic roadmap for your business goals. This template distributes the target phases based on yearly milestones, thereby making it easily understandable. Grab it now!

Template 7: Five Year Business Plan with Roadmap

Take your business to the next level with this five-year business roadmap with checkpoints. It includes sections for sales, product, operations,  and targets set for different team members. It also includes timelines and checkpoints for processes and activities. Download this editable PowerPoint Slide now to streamline your business alignment.

Template 8: Five Year Business Plan With Financial Projection

Make your future financial outcomes expectations loud and clear by using this PowerPoint template. Represent your business planning elements creatively by employing this template. You can even highlight your company’s ongoing functions and practices in a structured way with the assistance of our entirely adaptable PPT template.

Template 9: Five Year Business Plan Implementation Roadmap

The success rate of business plans hugely depends on the plan of action, and this editable five years roadmap of the organization rightly serves the purpose. Encapsulate all the information related to the project in a well-structured manner to obtain maximum efficiency by incorporating this stunning PowerPoint slide. State the critical deliverable, steps involved, time frame, workforce allocation, and lots more in an easy-to-understand manner by utilizing this pre-designed roadmap layout. Download now!

Template 10: Five Year Business Plan with Risk Status

Select this PowerPoint template to predict your future growth. Using this PPT template, you can assess potential risks that can stunt your business development in the coming years. Revamp your venture by utilizing this template as a guiding star. Download it and start with your strategic planning right away!

Having a strategic roadmap for handling your business operations and objectives is the only way to go. You cannot expect high profit and returns on investment without having a clear outline for the next five years of your business. With our stunning business plan ppt templates, you will definitely look confident, assertive, reliable, and foresighted.

FAQs on Five-Year Business Plan

How to write a five year business plan.

Here are some key steps to consider when writing your plan:

Define your mission and vision: Start by articulating your organization's purpose and long-term goals.

Conduct market research : Analyze your industry, identify trends, and understand your target audience.

Evaluate your competition: Analyze your competitors' strengths and weaknesses, and determine how you can differentiate yourself in the marketplace.

Develop a marketing and sales strategy: Outline how you will reach and engage with your target audience and define your pricing strategy.

Create financial projections: Develop a comprehensive financial model that includes revenue and expense projections, as well as cash flow analysis.

Establish a system for measuring progress: Determine key performance indicators (KPIs) that will help you track progress towards your goals, and create a plan for reviewing and updating your plan on a regular basis.

What is a good 5-year business plan?

A good 5-year business plan is a comprehensive document that outlines an organization's strategy for achieving its long-term goals. Here are some key elements to include in a good 5-year business plan:

Executive summary: Provide an overview of your organization's mission, vision, and goals, as well as a summary of the key elements of your plan.

Market analysis: Conduct thorough research to understand your industry, target audience, and competition.

Marketing and sales strategy: Outline how you will reach and engage with your target audience, and define your pricing strategy.

Financial projections: Develop a comprehensive financial model that includes revenue and expense projections, as well as cash flow analysis.

Organizational structure: Outline the roles and responsibilities of key personnel, and describe how your organization will be structured to achieve its goals.

Risk management: Identify potential risks and develop strategies to mitigate them.

Performance metrics: Determine key performance indicators (KPIs) that will help you track progress towards your goals, and create a plan for reviewing and updating your plan on a regular basis.

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5 essential tips to develop a solid 5-year business plan.

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5 Year Business Plan

Where do you see your business five years from now? This is often the question that is asked when you want to assess how good your business is now and how well it will be in the next five years. It is a common question among companies and business owners, to see to it that their business or company will be a success within the allotted time. Looking from the outside in, it will look impossible without a plan. This is where a 5-year business plan comes to play. Check out the example templates of a 5-year business plan now.

10+ 5 Year Business Plan Examples

1. 5 year business plan template.

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6. 5 Year Business Plan Overview and Progress

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What Is a 5-Year Business Plan?

A five-year business plan is a plan that focuses on the future of your business. This strategic action plan is catered to how you want your business to succeed more positively. In addition, a five-year business plan shows companies or businesses the better path or road to take to avoid any roadblocks or risks that could harm the growth of the company. In addition, the factors that make a five-year business plan a success is also how and what you add to it. Strategies that you will use for your business plan should suffice a five-year route.

How to Write a Five-Year Business Plan

To make an effective five-year business plan, it needs to have a complete set of strategies and important details that helps your business plan. A goal and an executive summary are the most common things in a business plan . Here are four simple steps to follow to make an effective five-year business plan.

Step 1: Create Your Executive Summary

A brief executive summary should be about the basics of your business. It includes the current status of your business. What to expect within the five-year time. In addition, the basic strategies you plan to make to reach the mark or your goal for the business plan.

Step 2: Add a SWOT Analysis

Strengths, Weaknesses, Opportunities, and Threats. Add  a SWOT analysis  to your business plan.  The SWOT analysis  gives you a better view of the strengths and opportunities you can grasp to make your business grow and the weaknesses and threats you can address.

Step 3: Include Strategies That Benefit Your Business Plan

Strategies must benefit your business plan and help make your business or the company grow. It is best to seek out solutions that will solve all roadblocks and help avoid any risks. In addition, avoid writing a single strategy , rather, have as much as three to five. As every strategy works differently in areas of your business.

Step 4: Get To Know Your Target Clients

To get the best out of your business plan, get to know your target clients for your company or your business. How you run your business or your company will also matter as to who your target clients are. This is the kind of marketing strategy you need to add and think about.

What is a business plan?

A business plan is a strategic action plan that caters to and focuses on the strategies made for a business. Business plans vary from the type of business or company you plan to set up, to the strategies you need to avoid risks and roadblocks. Companies and businesses use business plans to help them grow their business and to gain a fruitful outcome from it.

What are the types of business plans?

There are a lot of types of business plans. The ones listed below are just the common types of business plans that you should be interested in knowing.

• Vending machine business plan
• Event planning business plan
• Solid business plan
• Start-up business plan
• Clothing business plan

What are the elements of a business plan?

The elements of a business plan can range on the kind of business plan you will make. But the most common elements of a business plan are as follows:

• Executive summary
• Goals and objectives
• Vision and Mission statements

Where do you see your business within five years from now? Do you see a successful company that competes with the biggest brands in business or do you see yourself struggling to make it to the top? The answer to this question will depend on one thing. A business plan. To make sure that you end on a successful note, don’t forget to make a five-year business plan. Download any of the example templates you found above and follow the simple steps to creating your business plan.

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When was the last time you wrote a plan for your business? If it was before you started your company, how long has it been since you looked at that business plan? Maybe you never wrote one at all.

But no matter how successful your business is now, developing a strategic plan for your business can help take your company to even greater heights.

With change happening faster than ever, industries being disrupted and technology transforming the world of business, creating a strategic plan looking five years in the future might seem hopelessly antiquated. After all, you may be thinking, how can anyone possibly predict what’s going to happen five years from now?

But contrary to what you may think, the rapid pace of business change is the best reason of all to develop a strategic plan. There’s more information available than ever before to help guide you. And by considering a variety of scenarios, you can prepare options for how your business will react to them.

In fact, some experts suggest making a 10-year or even 20-year strategic plan, then using “agile planning” to create multiple short-term strategic goals in six-or 12-month increments.

How to create a strategic plan

Whether you are creating a five-year, 10-year, or 20-year strategic plan, the basic process is the same.

1. First, take stock of how your business is doing today.

Gather your business mission and vision statements, your business plan (no matter how outdated it might be), your sales data and your financial records. Do a SWOT analysis to pinpoint your business’s strengths and weaknesses, as well as the opportunities and threats facing it from the industry, the economy and the competition.

2. Now think about where you want your business to be in five, 10 or 20 years.

How big do you want your business to grow? Do you want to expand your product or service line, your target market, your staff, your distribution channels? Would you like to start selling nationally or even worldwide?

3. If you can’t envision your business’s future that far out, begin by picturing what you want your life to look like five years from now.

Be very specific. Do you want to be working fewer hours? Do you want to be in charge of a staff of 50? Would you like more time to focus on your personal life and direct the “big picture” of the business instead of dealing with the day-to-day? Ten years from now, do you want to be on your third business? Putting your personal five-year goals in writing can help you figure out what business goals you’ll need to achieve to make them happen.

4. Create a concrete plan for how you’ll achieve your business goals.

Here’s where the short-term planning comes in. Working backward from your desired outcome, identify what you need to do to achieve it and when. For instance, if you want to grow your business big enough to sell in five years, you’ll need to increase your sales, delegate more work, systematize operations so the company can run without you, and build value in the business to prepare it for sale. Develop a plan for achieving each one of those things. The closer you get to today, the more detailed your plan should be. Your plan should cover all aspects of your business: marketing and sales, staffing, operations, financial projections and how you’ll generate or obtain the operating capital you need to reach your goals.

5. Determine how you’ll measure success.

Make your goals specific and measurable and decide how you’ll measure results. What key performance indicators (KPIs) will you look at? If your goal is to expand regionally in three years, how many locations and what geographic territory does that include?

6. By measuring results and reviewing your plan every six months, you can quickly see when your strategic plan needs tweaking.

This keeps you from wasting time working toward a goal that no longer makes sense. Keep up to date on your target market/s, industry trends and economic indicators so you can adjust your plan accordingly.

Creating a strategic plan is hard work, but it’s essential if you want your business to thrive. As the old saying goes, “If you don’t know where you’re going, you’ll probably end up somewhere else.”

SCORE can help ensure you get where you want to go. SCORE mentors can provide guidance at every step of creating your strategic plan, and offer advice, tools, and templates.

48 Questions to Ask in Your SWOT Analysis Every business owner should conduct a regular SWOT analysis to assess the company’s strengths, weaknesses, opportunities and threats in relation to its competition.

Creating A Strategic Plan This free online workshop provides the components needed to implement a strategic plan, such as a mission statement, goals, objectives and an action plan.

Copyright © 2024 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

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Going somewhere? Write the 5-year plan you need to achieve it

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What is a 5 year plan?

The benefits of creating a 5 year plan, how to create a 5 year plan in 6 easy steps, 5 year plan examples.

You may have heard of SMART goal setting (Specific, Measurable, Achievable, Realistic, and Time-bound goals), but have you ever heard of HARD goal setting?

Society has been pushing SMART goals since the early ’80s, but a 2020 study found that people who set SMART goals are much less likely to love their jobs , while people who set HARD goals are 53% more likely to love their jobs. 

But, what are HARD goals? HARD goals are defined as: 

• Heartfelt 
• Animated 
• Required 
• Difficult 

They are goals for which you have an emotional connection, strong visualization, great urgency, and difficulty. 

While there are laudable aspects of SMART goals, the study shows serious problems regarding the ‘achievable’ and realistic’ aspects of SMART goal-setting. 

Methodologies that emphasize creating difficult goals are far more likely to be successful and generate higher employee engagement.

In this article, we’ll show you how to use HARD goals to make a 5 year plan, as well as show you two 5 year plan examples.

A 5 year plan is a personal and/or professional list of goals that you want to achieve in the next 5 years. 

Oftentimes, 5 year plans include smaller, concrete goals, to help you achieve the larger goals on your list. 

For example, if a long-term goal is to buy a bigger house, then a smaller goal might include setting aside a certain amount of money each month to go toward a deposit on a home loan. 

Or, if one of your long-term goals is to be a certified nurse, then a smaller goal might include finding the best nursing program in your area or applying for a student loan.

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One of the best things about a 5 year plan is that it can significantly motivate you to create the life you want to live. Notice we said “create the life “ not just “achieve the goal.” A 5 year plan that works for you will be more effective if you think of your life holistically — how do you want to feel? What values will you be living? — as you create it. 

Whatever the specific goals you have in mind — whether it’s starting a business, becoming certified or developing expertise, competing in an event, having a child, or taking a big trip — a 5 year plan can help you move from dreaming into doing, wish into a reality. 

Here are some other benefits of creating a 5 year plan:

• It creates a starting point for a career, start-up idea, or personal goal . If you have a goal without a plan, it may not ever happen. But, if you know you want to be a real estate broker by 2026, you’re in a better position to start the process and take actionable steps to achieve that.
• It helps you stay focused and aligned with your ambitions, rather than your dreams constantly hanging out in the back seat. 
• It’s a consistent reminder of what you’re aiming toward, and what you need to do to get there. 

The trick is: keep your plan as visible as possible, make sure it’s what you deeply desire, and make sure your goals are specific, measurable, time-bound, and HARD. 

What should be included in a 5 year plan? 

Grab a pen and a piece of paper. Visualize your life 5 years from now, and write down everything you see without thinking or judging . If any fears, doubts, or negative emotions come up, that’s normal. The key is to ignore them and not attribute any meaning to them.

Use the following categories to help you write your complete brainstorm. 

How do you want your nutritional health , mental fitness , physical health , and mental health to look in 5 years?

Are you interested in being vegan? Do you want to lose weight? Do you want to start a yoga practice ? Would you like to regularly meet with a therapist? 

Relationships

Imagine your future professional relationships, friendships, and familial relationships. What do you want them to look like?

Do you want to join a networking group? Are you interested in starting a book club? Do you want to adopt a child? Do you want to take more trips with your partner?

Visualize your financial goals in these buckets: 

• Bills 
• Everyday expenses (i.e. groceries) 
• Flexible spending (i.e. entertainment) 
• Emergency savings 
• Goal savings 
• Investments 

What do you see?

Will you be contributing higher amounts to your 401(k)? Are you planning on saving for higher education? What do you want your emergency savings to look like? Do you want to save for a big trip?

Career/business

What are your career and business aspirations?

Do you picture yourself leading a huge team or an entire corporation? Do you want to be a digital nomad? Are you planning on starting a blog? 

The truth is, the world of business and how people buy and use goods and services is constantly changing — and fast. Don’t get hung up on roles and titles. Especially if you’re early in your career, you will discover career aspirations and opportunities that don’t even exist today. That being said, spend time thinking about what types of activities interest you, what type of environment you enjoy, what type of impact you want to make day-to-day.

If you’re feeling stuck about your career goals, consider:

• Taking career assessments
• Making a list of various career paths
• Finding the overlap between things you like and what companies are hiring for
• Working with mentors
• Building your network
• Creating your own job or business that lines up with your interests
• Listing your passions, values, skills, and interests, then finding or creating jobs that match some parts of the list

If you’re still unsure about your dream job, don’t worry. Go after jobs you’re interested in, learn from them, and eventually, you’ll come across pursuits you’re excited about. Many people also worry if they don’t have a passion. The reality is that pursuing interests and immersing yourself in the work is a good way to discover and develop passion . It’s also okay if you’re multi-passionate and interested in several jobs. 

Personal/spiritual/religious development

How do you want to grow personally and/or spiritually?

Are you interested in starting a home church? Do you want to work with a life coach or career coach? Do you want to meditate more? Would you like to start a gratitude or prayer practice? Do you want to build resilience ? 

Environment/organization/space/home

How do you picture your future environment?

Are you living in a tropical bungalow in Bali? Are you in a newly decorated and renovated home? Do you have a custom pool in your backyard? Are you living with your family to save money? Are you embracing minimalism?

Recreation/fun

What kinds of hobbies will you have in the future?

Will you be snowboarding every winter and surfing every summer? Are you interested in joining a soccer league? Do you want to take up cooking or art classes? 

Service/contribution

What kind of meaningful contribution would you like to be a part of?

Are you interested in volunteering for a vegetable co-op? Will you be tutoring kids on the weekends? Being a mentor ? Do you want to buy monthly groceries for one of your friends in need until they get back on their feet?

• Focus your plan
• Consider potential goals
• Determine your 'why?'
• Identify annual goals and create monthly goals
• Research how to reach your goals
• Adjust and revisit as needed

Here’s how to use your notes to create your plan:

1. Focus your plan

Take a look at your notes and decide which specific areas to focus on. 

You might decide that you’d rather focus on a few areas, like your health and career, or you might decide that you want to focus on all areas. 

Once you decide, grab a piece of paper for every area you plan to focus on and write the area of growth at the top of each. 

For example, if you decide just to focus on health and money, you’ll write ‘health’ at the top of your first paper and ‘money’ at the top of your second paper. 

2. Consider potential goals

Next, divide each paper into two columns. The left column will be for ‘goals,’ and the right column will be for ‘action steps’ or ‘skills.’ 

Then, decide which goals you want to achieve for each category. Remember that ‘specific’, ‘measurable’, and ‘time-bound’ are positive aspects of SMART goals. That said, the ‘achievable’ and ‘realistic’ aspects of SMART goals can deter you from going after more audacious goals. 

Challenge yourself to leave your comfort zone with HARD goals. 

This doesn’t mean setting goals with no chance of success. But, setting goals with, let’s say, a 50/50 chance of success is difficult and ambitious enough to give you a real sense of accomplishment when you succeed.

For example, on your ‘health’ paper, let’s say you decide to write the following in the ‘goals’ column: 

• Be more active
• Increase nutrients 

Then, you might write the following in the ‘action steps’ or ‘skills’ column: 

• Eat raw and organic fruits and vegetables three times a day 
• Walk for two hours a day
• Take a daily multivitamin and add superfoods to morning smoothies 

Next, decide between long-term and short term goals:

Review your list of goals. Decide which are better suited for short-term goals and which are better suited for long-term goals. 

For example, you might decide that being a teacher in Peru is a long-term goal while researching places to live in Peru is a short-term goal. You might start outlining your short- and long-term goals with a 30-60-90 day plan . 

3. Determine your ‘why?’

What’s your big ‘why?’ Why do you want to be a Teaching English Foreign Language (TEFL) teacher in Peru? 

Write your reason down and hang it in a place where you’ll see it daily. 

For example, “I want to be a TEFL teacher in Peru, so I can learn Spanish, help students develop their English skills, and fulfill my dream of exploring South America.”

4. Identify annual goals and create monthly goals

First, establish annual goals that will help you reach your 5 year goals. 

For example, if one of your 5 year goals is to adopt a child, then your first annual goal will probably consist of setting interviews with adoption agencies.

Next, break down your annual goals into monthly goals. 

For example, if your annual goal is becoming a TEFL teacher in Peru, your monthly breakdown could look like this:

• Month 1: Research reputable TEFL programs and set online appointments with TEFL advisors to decide which program you like best
• Months 2-3: Take your TEFL course, study for exams, and write essays
• Month 4: Take your final TEFL exam and wait for your certificate 
• Months 5: Edit your resume and look for a short TEFL internship
• Month 6: Intern with a TEFL academy and ask for feedback from your mentors
• Month 7: Create a lesson plan portfolio and start looking for jobs
• Month 8: Set up job interviews 
• Month 9-10: Land a job from one of your interviews and buy your plane tickets
• Month 11: Move to Peru, find a furnished apartment, and get to know your neighborhood
• Month 12: Start work at your new job as a TEFL teacher 

5. Research how to reach your goals

Next, research the best ways to reach your goals. 

If you plan on moving to Peru, are there some YouTube channels you can check out with tips on how to move? If you plan on creating a start-up, can you meet with some start-up experts that can mentor you? If you plan on learning how to bake macarons, is there a French macaron cookbook you can buy?

6. Adjust and revisit as needed

Life is full of unexpected twists and turns. While the 5 year plan is designed to help you stay focused and persist despite bumps and detours, sometimes the unexpected is you.

As you start working on your goals, you may realize that your interests and passions don't quite align. This is where self-directed learning can help.

Plan for periodic review, reflection, and adjustment as part of life. If your long-range plan still feels right, zoom in to your monthly goals. Decide if your monthly goals are working or if you need to adjust them.

For example, you might find that trying to conduct online interviews with a Peruvian academy is impossible. So you could decide to fly out early to meet directors in person instead. 

You may also decide that creating weekly or even daily goals is essential to hitting your monthly goals.

Revisit and revise your plan as often as needed (at least once a year). You might be surprised at how fast you reach some goals while other goals might take a bit longer than expected.

Here's an example of a 5 year plan for a student interested in being a Certified Public Accountant (CPA):

Here’s a personal 5 year plan example for someone interested in becoming fluent in Spanish:

Creating a 5 year plan is one of the best ways to see your dreams come to life. 

At BetterUp, we love seeing individuals reach their fullest potential and achieve their dreams. Request a demo today to find out more.

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Maggie Wooll, MBA

Maggie Wooll is a researcher, author, and speaker focused on the evolving future of work. Formerly the lead researcher at the Deloitte Center for the Edge, she holds a Bachelor of Science in Education from Princeton University and an MBA from the University of Virginia Darden School of Business. Maggie is passionate about creating better work and greater opportunities for all.

The 3 year plan: Build a roadmap to success

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Strategic business plans vs. growth plans for AE firms

Morrissey goodale outlines key points of successful business and growth plans for architectural engineering firm leaders.

AE firms often find themselves at a crossroads where the path forward isn’t always so clear. Should you focus on streamlining operations, pivot to new markets, or double down on what’s working? Two powerful tools to chart your course are strategic business plans and growth plans. While these terms are often used interchangeably, they serve distinct purposes, and understanding the differences is key to driving your firm in the right direction.

This article delves into the key differences between strategic business plans and growth plans, explaining when to choose one over the other and how to execute each for maximum impact.

What’s the difference?

A strategic business plan serves as a comprehensive guide for the overall direction of a firm. It’s the “big picture” plan, focused on aligning the company’s mission, vision, and long-term goals with its day-to-day operations. It defines the firm’s identity and values, sets performance metrics, outlines competitive advantages, and provides a roadmap to success over the next 3, 5, or 10 years.

Strategic plans address high-level questions like:

What does the firm want to achieve long term, how can the firm differentiate itself in the market, what are the firm’s core competencies, and how should they be leveraged, what internal weaknesses need addressing, this kind of plan typically involves a comprehensive internal audit, including financial health,   operational efficiency, employee development, and customer satisfaction. it also examines external factors such as market trends, competitors, and regulatory environments..

On the other hand, growth plans are narrower in scope but laser-focused on expansion. Where strategic plans provide broad, firm-wide direction, growth plans zoom in on increasing revenue, market share, or operational scale within a specific time frame. Growth plans are all about “how fast” and “how much.” They define concrete goals for client acquisition, market penetration, geographic expansion, or even mergers and acquisitions.

Growth plans often involve tactical steps like:

Entering new markets or industries, launching new services or products, scaling operations, either organically or through acquisitions, maximizing existing client relationships.

While a strategic business plan is more about setting up a sturdy foundation, a growth plan is about accelerating once that foundation is secure. It’s the fuel that powers a firm’s next phase of evolution.

When to focus on strategic business plans

A strategic business plan is the go-to when your firm is in need of:

Reevaluation: If your firm has hit a plateau or is undergoing significant changes (such as new leadership or a merger), it’s time to rethink the firm’s direction and operational alignment.

Repositioning: ae firms face shifting market trends—sustainability, digital transformation, or changing client expectations—that may require a recalibration of core services and positioning., stabilizing operations: when growth is either unpredictable or unsustainable, a strategic business plan can help get the house in order by improving project management, talent development, and operational efficiencies., crisis or recovery mode: after a major crisis (such as a leadership shakeup or pandemic), a strategic plan helps recalibrate long-term objectives while re-establishing core operational health., how to execute a strategic business plan, conduct internal and external audits: start by gathering data. survey employees, evaluate client feedback, and analyze competitors. review your firm’s financials, strengths, and weaknesses., review mission and vision statements: revisit and refine your firm’s mission and vision. are they still relevant are they understood and shared by employees and clients alike, set strategic objectives: define long-term goals with key performance indicators (kpis). these might include financial targets, client satisfaction rates, or operational improvements., create an implementation roadmap: break down big goals into smaller, achievable milestones. delegate responsibilities across business units and ensure there’s a clear timeline for execution., communicate and achieve buy-in: no strategic plan works unless the whole team is on board. leadership must communicate the plan and secure buy-in from employees at every level., continuously monitor and adjust: a strategic plan is a living document. set regular intervals (quarterly, annually) to review performance against kpis and adjust the course as needed., when to prioritize growth plans, growth plans should be front and center when your firm is:, stable but stagnant: if operations are solid but growth has stalled, it’s time to kick-start a focused growth strategy. often, firms find themselves in a stable market position but need to push beyond the status quo to achieve the next level of success., seizing market opportunities: maybe there’s a new market ripe for entry or a client segment that is underserved by competitors. a growth plan helps your firm pounce on these opportunities before they pass., preparing for m&a: whether you’re looking to acquire or be acquired, a growth plan details how expansion will unfold and integrates it into your firm’s broader strategy., geographic expansion: trying to break into new regions a growth plan outlines market-entry strategies, from securing key hires to building a local reputation., how to execute a growth plan, define clear growth metrics: growth for the sake of growth isn’t enough. set specific, measurable goals, such as increasing market share by 10%, acquiring three key clients in a new market, or launching a new service line that will contribute 15% of revenue within two years., conduct client and market research: understand who your ideal clients are and analyze their needs. conduct in-depth market research to identify the regions or industries with the highest potential for your firm., allocate resources: growth often requires significant investment—whether in new hires, marketing efforts, or infrastructure. make sure you have the right resources allocated and prepare for cash flow fluctuations during growth spurts., align leadership: ensure that your firm’s leadership team and key stakeholders are aligned on the growth goals. a lack of alignment can derail even the most well-thought-out growth plan., establish a timeline and execute: growth plans should be highly time-sensitive. map out the steps, resources, and teams responsible for hitting milestones, and track progress rigorously., build in flexibility: growth plans need to be flexible enough to adapt to unforeseen changes in the market or competitive landscape. create checkpoints to assess what’s working and course correct as needed., when to use both.

The reality is a strategic business plan and a growth plan are not mutually exclusive. They often work in tandem, especially for AE firms. For instance, a firm might implement a strategic business plan to solidify its operational foundation and cultural alignment, then immediately follow it with a growth plan to accelerate revenue and market expansion.

A well-rounded AE firm will have a strategic business plan as the guiding north star, periodically implementing growth plans to capture market opportunities and ensure sustainable expansion.

Key moments to use both

Post-leadership transition: after a new ceo or leadership team comes in, the firm might launch a strategic business plan to define the new vision, followed by a growth plan to capture the momentum gained from turning the page., post-m&a: acquisitions require both integration and growth. a strategic plan stabilizes operations post-acquisition, while a growth plan ensures the newly combined firm maximizes revenue opportunities., mid-career leadership transitions: if a firm is grooming new leaders, a strategic plan is crucial for clarifying the firm’s direction, while a growth plan gives the next generation specific goals to pursue., why the distinction matters.

The difference between a strategic business plan and a growth plan might seem subtle at first, but the distinction is crucial. Strategic business plans are about ensuring the firm’s long-term sustainability by aligning all elements of the business with its mission and vision. Growth plans, on the other hand, are about driving aggressive expansion in the short term, ensuring the firm capitalizes on market opportunities before they pass.

Understanding when to use each is key for AE firms navigating increasingly competitive markets. Strategic planning brings stability and alignment, while growth plans bring the rocket fuel for firms ready to blast off. Together, they form a powerful combination that can secure your firm’s future.

Original content can be found at www.morrisseygoodale.com .

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Amazon drops the hammer on remote work and orders employees back to the office 5 days a week starting in January

• Amazon said it'd require corporate workers to be in the office five days a week starting in January.
• In a memo, CEO Andy Jassy said the company was returning to how "we were before the onset of COVID."
• Jassy also said the company would shed some middle managers by the end of March.

Amazon is shutting the door on remote work.

In a memo to employees on Monday, CEO Andy Jassy said the company would require corporate workers to be in the office five days a week starting in January.

"We've decided that we're going to return to being in the office the way we were before the onset of COVID," he said. "We continue to believe that the advantages of being together in the office are significant."

The rule further tightens the requirement from last year that workers be on-site at least three days a week . Jassy said that "extenuating circumstances" and senior-leader-approved exceptions would continue to be accommodated.

"But, before the pandemic, it was not a given that folks could work remotely two days a week, and that will also be true moving forward," he said.

"If anything, the last 15 months we've been back in the office at least three days a week has strengthened our conviction about the benefits," Jassy added.

Related stories

As part of this initiative, employees will once again be assigned desks at locations that previously had them, the memo said. Offices that had "agile" desks before the pandemic will continue with those, it added.

Jassy also said the company would flatten its org chart by the end of March, with a 15% increase in the ratio of individual contributors to managers.

"Having fewer managers will remove layers and flatten organizations more than they are today," he said, without specifying what steps the company would take to reach that goal.

Both of Jassy's announced moves follow trends among other large employers in tech and retail.

While Amazon's five-day requirement is stricter than mandates from most other tech firms, Walmart announced this summer that previously remote corporate workers in the US would be required to relocate to work at one of the company's three campuses .

And Meta's Mark Zuckerberg helped kick off the org-chart-flattening trend at the start of his "year of efficiency" in 2023, when he criticized " managers managing managers ."

A Bloomberg analysis found middle managers accounted for nearly one-third of layoffs among white-collar workers that year.

If you are an Amazon worker who wants to share your perspective, please contact Dominick Reuter via email or text/call/Signal at 646-768-4750. Responses will be kept confidential, and Business Insider strongly recommends using a personal email and a nonwork device when reaching out.

Read the full memo below:

Hey team. I wanted to send a note on a couple changes we're making to further strengthen our culture and teams. First, for perspective, I feel good about the progress we're making together. Stores, AWS, and Advertising continue to grow on very large bases, Prime Video continues to expand, and new investment areas like GenAI, Kuiper, Healthcare, and several others are evolving nicely. And at the same time we're growing and inventing, we're also continuing to make progress on our cost structure and operating margins, which isn't easy to do. Overall, I like the direction in which we're heading and appreciate the hard work and ingenuity of our teams globally. When I think about my time at Amazon, I never imagined I'd be at the company for 27 years. My plan (which my wife and I agreed to on a bar napkin in 1997) was to be here a few years and move back to NYC. Part of why I've stayed has been the unprecedented growth (we had $15M of annual revenue the year before I joined—this year should be well north of $600B), the perpetual hunger to invent, the obsession with making customers' lives easier and better every day, and the associated opportunities these priorities present. But, the biggest reason I'm still here is our culture. Being so customer focused is an inspiring part of it, but it's also the people we work with, the way we collaborate and invent when we're at our best, our long-term perspective, the ownership I've always felt at every level I've worked (I started as a Level 5), the speed with which we make decisions and move, and the lack of bureaucracy and politics. Our culture is unique, and has been one of the most critical parts of our success in our first 29 years. But, keeping your culture strong is not a birthright. You have to work at it all the time. When you consider the breadth of our businesses, their associated growth rates, the innovation required across each of them, and the number of people we've hired the last 6-8 years to pursue these endeavors, it's pretty unusual—and will stretch even the strongest of cultures. Strengthening our culture remains a top priority for the s-team and me. And, I think about it all the time. We want to operate like the world's largest startup. That means having a passion for constantly inventing for customers, strong urgency (for most big opportunities, it's a race!), high ownership, fast decision-making, scrappiness and frugality, deeply-connected collaboration (you need to be joined at the hip with your teammates when inventing and solving hard problems), and a shared commitment to each other. Two areas that the s-team and I have been thinking about the last several months are: 1/ do we have the right org structure to drive the level of ownership and speed we desire? 2/ are we set up to invent, collaborate, and be connected enough to each other (and our culture) to deliver the absolute best for customers and the business that we can? We think we can be better on both. On the first topic, we've always sought to hire very smart, high judgment, inventive, delivery-focused, and missionary teammates. And, we have always wanted the people doing the actual detailed work to have high ownership. As we have grown our teams as quickly and substantially as we have the last many years, we have understandably added a lot of managers. In that process, we have also added more layers than we had before. It's created artifacts that we'd like to change (e.g., pre-meetings for the pre-meetings for the decision meetings, a longer line of managers feeling like they need to review a topic before it moves forward, owners of initiatives feeling less like they should make recommendations because the decision will be made elsewhere, etc.). Most decisions we make are two-way doors, and as such, we want more of our teammates feeling like they can move fast without unnecessary processes, meetings, mechanisms, and layers that create overhead and waste valuable time. So, we're asking each s-team organization to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025. Having fewer managers will remove layers and flatten organizations more than they are today. If we do this work well, it will increase our teammates' ability to move fast, clarify and invigorate their sense of ownership, drive decision-making closer to the front lines where it most impacts customers (and the business), decrease bureaucracy, and strengthen our organizations' ability to make customers' lives better and easier every day. We will do this thoughtfully, and our PxT team will work closely with our leaders to evolve our organizations to accomplish these goals over the next few months. [By the way, I've created a "Bureaucracy Mailbox" for any examples any of you see where we might have bureaucracy or unnecessary process that's crept in and we can root out…to be clear, companies need process to run effectively, and process does not equal bureaucracy, but unnecessary and excessive process or rules should be called out and extinguished. I will read these emails and action them accordingly.] To address the second issue of being better set up to invent, collaborate, and be connected enough to each other and our culture to deliver the absolute best for customers and the business, we've decided that we're going to return to being in the office the way we were before the onset of COVID. When we look back over the last five years, we continue to believe that the advantages of being together in the office are significant. I've previously explained these benefits ( February 2023 post ), but in summary, we've observed that it's easier for our teammates to learn, model, practice, and strengthen our culture; collaborating, brainstorming, and inventing are simpler and more effective; teaching and learning from one another are more seamless; and, teams tend to be better connected to one another. If anything, the last 15 months we've been back in the office at least three days a week has strengthened our conviction about the benefits. Before the pandemic, not everybody was in the office five days a week, every week. If you or your child were sick, if you had some sort of house emergency, if you were on the road seeing customers or partners, if you needed a day or two to finish coding in a more isolated environment, people worked remotely. This was understood, and will be moving forward as well. But, before the pandemic, it was not a given that folks could work remotely two days a week, and that will also be true moving forward—our expectation is that people will be in the office outside of extenuating circumstances (like the ones mentioned above) or if you already have a Remote Work Exception approved through your s-team leader. We are also going to bring back assigned desk arrangements in locations that were previously organized that way, including the U.S. headquarters locations (Puget Sound and Arlington). For locations that had agile desk arrangements before the pandemic, including much of Europe, we will continue to operate that way. We understand that some of our teammates may have set up their personal lives in such a way that returning to the office consistently five days per week will require some adjustments. To help ensure a smooth transition, we're going to make this new expectation active on January 2, 2025. Global Real Estate and Facilities (GREF) is working on a plan to accommodate desk arrangements mentioned above and will communicate the details as they are finalized. I want to thank our leaders and support teams in advance for the work they will do to improve their org structures over the coming months. With a company of our size and complexity, the work won't be trivial and it will test our collective ability to invent and simplify when it comes to how we organize and go after the meaningful opportunities we have across all of our businesses. Having the right culture at Amazon is something I don't take for granted. I continue to believe that we are all here because we want to make a difference in customers' lives, invent on their behalf, and move quickly to solve their problems. I'm optimistic that these changes will better help us accomplish these goals while strengthening our culture and the effectiveness of our teams. Thanks, Andy

Watch: Meet the Amazon warehouse workers paying the price for fast, free shipping

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