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Start » startup, how to write a startup business plan.

As a startup, you'll need to know how to write a business plan in order to attract investors. Here are some templates and examples to help you get started.

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If you're starting a new business or executing a new plan within your company, you’ll want to have a business plan. It’s a formal document that outlines your company, your project, funding options and your means of execution. There are many resources available to help you write your business plan, including countless templates you can follow depending on your goals. Below we’ve outlined some examples, including a sample plan.

[Read: How to Write a Business Plan During a Pandemic ]

Business plan template examples

While business plans can be general, it’s helpful to gear yours toward your industry. Here are five business plan templates for specific industries or situations:

For first-time entrepreneurs: The United States Small Business Administration (SBA) .
For getting your ideas down: $100 Startup .
For law firms: Cilo .
For established businesses: SCORE .
For additional industries: LawDepot .

Sample business plan

A one-page business plan briefly states your opportunity and timeline. It’s often used as an introduction to your longer, more robust plan. Here is a brief overview of a business plan and the nine elements that should be included.

1. The business opportunity

At the top of your plan, state the endeavor you're looking to pursue. Are you a new startup or an existing company looking to grow? Describe your challenges and how you plan to work through them. This section should be a one- or two-sentence elevator pitch of your business opportunity.

[Read: How to Refine Your Business Plan for Every Stage of Your Business ]

2. Your company description

When writing your company description, assume the reader knows nothing about your company. Briefly define who you are, identifying your values and why your company is necessary right now.

Outline your timeline for launching your business or project. Timelines are always subject to change, so make sure you account for alternative scenarios and setbacks.

3. Your talent description

In this section, you’ll want to introduce your team and demonstrate why they are the right fit for your business. Talk about their relevant skills, experience and background, getting as specific as possible. Providing their track record will reassure potential investors that your business is backed by reliable professionals.

4. The industry analysis

While writing your plan, it’s important to recognize your industry's outlook and your potential within it. This will also help you identify your competitors and analyze their offerings in comparison to yours, so you can focus on how you might stand out among them. This analysis is a great way to show investors that you’ve done your research and understand how you fit into your market.

[Read: Pivoting During the Pandemic? 16 Tools That Will Help Your Business Adapt ]

5. Your target audience

In this section, you will identify your target audience, defining their demographic, location and other specific traits. Additionally, explain how your audience will benefit from your company or project, or how you will solve common problems they share.

6. The timeline

Outline your timeline for launching your business or project. Timelines are always subject to change, so make sure you account for alternative scenarios and setbacks. For your one-page business plan, talk about your general timeline, its phases and why it’s a realistic goal.

7. Your marketing plan

How will you get the word out about your new business or project? Identify the avenues you and your company will choose to explore and how you plan to meet your target audience there. For example, consider your social media efforts, digital marketing and other methods that you seek to execute.

8. The financial summary

Clearly define your cost structure and revenue streams, describing your sales methods and post-launch goals, as well as how you will achieve them. Be sure to include both your long- and short-term financial goals and benchmarks.

[Read: Smart Strategies for Presenting Your Business Plan ]

9. Your funding requirements

One of the primary reasons you write a business plan is to help obtain funding. In this section, talk about the amount of funding you'll need from investors and where that funding will go. You should also be clear about how you plan to pay back your investors through your financial plan.

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1. Find the right opportunity

2. write a business plan, 3. choose a business structure, 4. get a federal tax id, 5. apply for licenses and permits, 6. open a business bank account, 7. understand your startup financing options, 8. get a business credit card, 9. choose the right accounting software, 10. prepare to pay your taxes, 11. protect yourself with business insurance, 12. establish your online presence, 13. set up a payments system, 14. hire employees, 15. get financing to grow your business.

Starting a business takes research, smarts and self-confidence — and a measure of fearlessness. You may already be asking yourself: How can I start my own business with no money? What's the right equipment? Am I getting the best advice?

Here are the essential steps on how to start a business, from choosing the right business idea, creating a solid business plan and structuring your company to opening a business bank account and choosing the right accounting software.

» MORE: 5 steps to turn your side gig into a full-fledged business

ZenBusiness

What business should you start? It depends on your expertise, plus how much time and money you’re able to invest. Some small-business ideas can be launched from home with little overhead, and e-commerce and remote businesses have become increasingly common in the wake of the COVID-19 pandemic.

As you narrow your scope, you also want to be sure that your idea can actually make money . If you’re not sure what kind of business you want to run, use these lists to get the wheels turning:

50 best small-business ideas.

The 23 most profitable business ideas .

40 startup ideas to try .

16 e-commerce business ideas.

40 home business ideas to explore .

44 online business ideas you can start now .

Looking for tools to help grow your business?

Tell us where you're at in your business journey, and we'll direct you to the experience that fits.

on Nerdwallet's secure site

A strong business plan can help you prepare for every aspect of your business. Plus, you’ll need one to present to potential investors and lenders. This document should include details of the products or services you plan to offer, how you plan to make money, who you need on your team and more.

You’ll also want to include detailed financial projections, budgets and thorough explanations of how you plan to spend investor dollars or loans. Since cash flow projections will fluctuate as you adjust projected income and expenses, it helps to think of the plan’s financials as a living, changing document.

Ultimately, your business plan will help you chart a course for your business, anticipate potential roadblocks and work out how to overcome them — and will likely go through multiple iterations before your idea comes to fruition. Industry colleagues and accountants may be able to provide valuable feedback on how realistic your projections look and point out any overlooked costs.

How to write a business plan, step by step .

How to create a business budget .

Best business budgeting software tools .

5 tips to write a successful business plan .

How to write a successful business plan for a loan .

The legal structure of your business can affect everything from your taxes to what you're liable for. For example, there’s no legal distinction between a sole proprietorship and its owner. Limited liability companies (LLCs) and their owners, however, are considered separate entities by law, which can provide more personal asset protection.

Talking with a tax professional can help you choose the right business structure for you. And you can change your structure as your business grows.

How to choose the right business structure .

Pros and cons of a limited liability company .

LLC vs. sole proprietorship: How to choose .

Partnership vs. corporation: How to choose .

Getting an employer identification number (EIN) is necessary for most businesses to file taxes, open bank accounts and perform other essential tasks. Even if you don’t have employees, there are benefits to getting an EIN. It’s free to apply and the online application only takes a few minutes.

How to apply for an employer identification number .

Benefits of getting an EIN (even if you don’t have to) .

In general, restaurants need health inspections and liquor licenses. Hair stylists need cosmetology licenses. Your city may require you to apply for a business license regardless of what field you’re in. And if you’re renovating a space to sell products or perform services, you may need to ask local officials for a zoning change.

Set aside time early on to find out what licenses and permits you need before you can open your doors. While you don’t typically need a lawyer to apply for a business license, they can help you navigate the process and review other documents, like lease agreements or loans, before you sign them. Industry associations, city officials who work on economic development issues and local business associations, like your Chamber of Commerce, may be able to offer advice, too.

How to get a business license .

Do you need a business license to sell online?

How to find a startup lawyer .

How much do you need?

with Fundera by NerdWallet

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

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

Keeping your business and personal finances separate is key to managing your business finances. It’s standard bookkeeping hygiene and makes it easier to deduct business expenses come tax time. A business bank account can help, and they’re simple to set up.

Best business bank accounts .

Best business bank accounts for freelancers .

Best free business checking accounts .

Best business bank accounts for LLCs .

Most businesses need a little capital to get started. However, the majority of business loans are not available to businesses that have been operating for less than six months, and most online lenders prefer at least a year in business. Startups should consider alternative financing options, or try to leverage other strengths of their business, such as strong credit or collateral. If your business does qualify for a loan, be sure to pay attention to interest rates, potential prepayment fees and personal liability terms.

Found Small Business Banking

Many business owners rely on their own savings to get started. You can also look into crowdfunding, personal loans, business grants and more. High-growth-potential startups may also be eligible for equity financing, which gives partial ownership, or equity, to investors in exchange for capital.

How do business loans work?

Best startup business loans.

Startup business grants .

Asset-based lending options.

Types of startup funding.

Crowdfunding for business .

Is equity financing right for your business?

Funding your business with a personal loan .

Is your to-do list overwhelming?

Business credit cards can also be used as a short-term financing solution to help you purchase necessary supplies and pay bills while cash flow is still shaky. Just be sure to spend within your limit and pay off your balance in full each month so you don’t get into a cycle of debt. Startup financing aside, business credit cards also make it easier to keep business and personal finances separate. As an added bonus, you can also earn rewards, such as cash back, on the money you spend.

Usually, you can qualify for a business credit card based on your personal credit score.

What is a business credit card?

How to get a business credit card .

Best small-business credit cards .

Best business credit cards for new businesses .

Best 0% APR business credit cards.

It’s essential that you keep records that show how much revenue you’re bringing in and how much you’re spending. Accounting software helps you track and analyze these numbers by generating reports and recording sales trends — and there are even some free options.

As your business grows, you may want to start working with a bookkeeper . This person can help ensure your records are complete and accurate, which makes it easier to file your taxes, apply for financing and more.

Best accounting software for small businesses .

Best online bookkeeping services .

Bookkeeping basics for small businesses.

Best free accounting software .

Know these 4 business financial metrics to track performance .

You'll have some new tax responsibilities as a business owner — including, potentially, the need to pay taxes throughout the year, not just during tax season. But you'll probably discover some new tax breaks , too.

Filing taxes can be complex, especially as a small-business owner. Developing a relationship with a tax professional early on can help set you up for success, and they can be a trusted adviser to your business later on.

A tax guide for small-business owners.

Self-employment tax, explained.

Best tax software for small businesses .

How estimated quarterly taxes work .

How to find the right tax advisor for your business .

It's important to protect your business and your personal assets, and business insurance exists to do just that. NerdWallet recommends that every business carry general liability insurance in case of legal claims.

You may also need insurance to comply with a contract, like to set up a booth at an event or work as a subcontractor on a larger project.

Best small-business insurance providers .

How much does business insurance cost?

What is general liability insurance?

What is a business owner’s policy (BOP)?

An online presence is critical for almost every business — especially if you want to sell products online. Setting up a website and social media profiles early on, even if they’re simple, can help you start developing relationships with potential customers right away.

Here’s what you need to know to start your business website:

How to build an e-commerce website .

The ultimate guide to small-business marketing .

The best ways to promote your business on social media .

6 Instagram tips for small-business owners .

8 best e-commerce website builders for small businesses .

The do’s and don’ts of using Facebook to drive business sales .

5 best places to advertise your business online .

If your business takes credit and debit cards, you'll likely need a payment processor and point-of-sale (POS) system. Lots of POS system providers double as processing companies, which can make the decision-making process simple. Remember to consider upfront hardware costs for card readers or POS registers, monthly POS software fees and processing fees. Online payments typically have higher processing fees than in-person payments, so be sure to consider the full range of fees when choosing your provider.

How to accept credit card payments.

What is credit card processing and how does it work?

Cheapest credit card processing companies.

Best point-of-sale (POS) systems .

Best credit card processing companies .

Best credit card readers for small businesses .

You may not need to hire employees right away — and some small-business owners prefer to remain solopreneurs throughout the life of their business. But if you do choose to hire, you’ll probably need workers’ compensation insurance, payroll software and more. Here’s what goes into hiring your first employees.

Ready to hire your first employee? Prep with these steps .

Strategies to attract good employees.

Tips for hiring remote workers.

Strategies to help retain employees.

How to choose the right payroll software for your business .

Best payroll software for small businesses.

What is workers’ compensation insurance?

Once you’ve been in business for six to 12 months, you may start qualifying for business loans. Financing can help your business grow and expand — by buying equipment, renovating an office or expanding your inventory, for instance — or float you through a slow season while you prepare for increased future revenue.

Here’s what you need to know about business loans, lines of credit and other financing options.

How to get a business loan .

SBA loans: What they are and how to qualify .

Equipment financing: What it is and top lenders.

Best small-business loans .

Types of business loans.

Should you grow your business? 6 questions to help you decide .

On a similar note...

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Blog Feature Updates

Startup Business Plans 101: Your Path to Success

By Jay Nair , Jul 24, 2023

It’s time — you’ve got a promising idea and you’re now prepared to invest the necessary effort to turn it into reality. Startup business plans are vital hack tools that will guide you through your entrepreneurial journey and a business venture with clarity and purpose.

Though vital, business planning doesn’t have to be a chore. Business plans for lean startups and solopreneurs can simply outline the business concept, sales proposition, target customers and sketch out a plan of action to bring the product or service to market. These plans will serve as strategic documents outlining your company’s vision, mission statements, business objectives, target market, financial forecasts and growth strategies.

To simplify the creation of a robust business plan as an entrepreneur, you can harness the power of a business plan maker . This invaluable tool streamlines the process and ensures a polished and well-organized presentation. Startup business plan templates provide pre-designed frameworks that can be customized to suit your specific industry needs, saving valuable time and effort while preserving the essential structure of a comprehensive business plan.

Ready to begin? Let’s go!

Just so you know, some of our business plan templates are free to use and some require a small monthly fee. Sign-up is always free, as is access to Venngage’s online drag-and-drop editor.

Click to jump ahead:

Laying the foundation of your startup business plan
Business plan executive summary
Writing your business description
Marketing & sales strategies
Startup operational plans
Financial plans – forecasting and projections
Team and management
Appendix and supporting documents

FAQs on startup business plans

Use Venngage to create your startup business plan

Preparation and research: 6 steps to laying the foundation of your startup business plan

What problem does your product or service solve?
Who are your target customers?
What differentiates your offering from existing solutions in the market?

This self-reflection will help you establish a clear direction for your startup.

Next, conduct market research to gather valuable insights about your target market , including demographics, preferences, and purchasing behavior . This data will enable you to tailor your product or service to meet the specific needs of your customers. Identify trends, industry growth projections, and any potential barriers or challenges you may encounter.
Competitive analysis is another critical aspect of preparation and research. Study your competitors to understand their strengths, weaknesses, and strategies. Analyze their pricing, marketing tactics, customer experience, and product/service features. This analysis will allow you to identify gaps in the market and position your startup to offer a unique value proposition .
Financial research is equally important during this phase. Calculate the costs associated with starting and operating your business , including overhead expenses, production costs, marketing expenses, and employee salaries. Assess potential revenue streams and estimate your expected sales. This financial analysis will help you determine the feasibility of your business idea and outline a realistic financial plan.
Additionally, gather information about legal and regulatory requirements that apply to your industry and location . Understand the necessary permits, licenses, and certifications you need to operate legally. Complying with these regulations from the outset will prevent potential setbacks or legal issues in the future.
Finally, organize your findings and insights into a coherent business plan. Create your business plan outline , list your business plan goals, strategies, target market, competitive analysis, marketing plan, financial projections and any other relevant information. This compilation will serve as a roadmap for your startup, guiding your decisions and actions moving forward.

You’ve just encountered a wealth of information and are well on your way to becoming a seasoned business owner! This can sometimes feel overwhelming. But don’t worry, take a moment to breathe deeply and remember how far you’ve come. You’ve got this!

To help you condense and organize your essential points, I have brilliant one-page samples of business plan layouts and templates that will capture everything in a concise format.

Knowing when to use a one-page business plan versus a more comprehensive plan depends on various factors. A one-page business plan is ideal for providing a quick overview, saving time, and internal planning. However, it may not suffice for detailed information, complex business models, or meeting external stakeholders’ expectations.

Ultimately, consider the purpose, audience, and complexity of your business when deciding whether to utilize a one-page business plan or opt for a more detailed approach.

Executive Summary: Your Startup’s Elevator Pitch

First impressions are crucial, and a concise yet comprehensive executive summary is your chance to grab potential investors’ attention.

To create a compelling elevator pitch, consider the following key elements:

Problem Statement : Clearly articulate the problem or pain point that your startup addresses. Emphasize the significance of the problem and the potential market size

Solution : Concisely describe your innovative solution or product that solves the identified problem. Highlight its unique features or benefits that differentiate it from existing alternatives.

Target Market : Define your ideal customer segment and outline the market potential. Demonstrate a deep understanding of your target audience’s needs, preferences, and behavior.

Competitive Advantage : Showcase the competitive edge that sets your startup apart from competitors. This could include intellectual property, strategic partnerships, cost advantages, or disruptive technology.

Business Model : Briefly explain how your startup generates revenue and sustains profitability. Outline your monetization strategy, pricing model, and any recurring revenue streams .

Traction and Milestones : Highlight any significant achievements or milestones reached by your startup. This could include customer acquisitions, partnerships, product development progress, or market validation.

Team : Showcase the expertise and qualifications of your founding team or business partners. Highlight key members and their relevant experiences demonstrating their ability to execute the business plan.

I can sense your eagerness to dive right in! To expedite your progress, I’m excited to present you with a collection of meticulously crafted executive summary templates. These templates have been thoughtfully designed and structured by Venngage designers, ensuring seamless integration into your thorough business plan. All you need to do is infuse them with your brilliant startup ideas, and you’ll be well on your way to success!

Now, remember that there’s still a ton of work to be done. Let’s take a moment to regroup and ensure we’re on the right track. Before diving into the process of writing your business plan , it’s imperative to gather a wealth of essential information. Conducting comprehensive research is key, and it should encompass the following aspects:

How to assess your target audience

To gain comprehensive insights into your potential user base, creating a user persona report is invaluable. This persona guide report will help you develop a detailed understanding of various user profiles, enabling you to tailor your products or services to meet their specific needs and preferences.

Understanding Your Market and Competition

Analyze your market and any trends relevant to your startup. Research your competitors, their strengths and weaknesses, and identify what differentiates your offering from the competition.

Developing a Unique Value Proposition

A business Unique Value Proposition (UVP) is a concise statement that communicates the unique advantage a product or service offers over competitors, addressing a specific problem or need. It highlights the distinctive value and benefits customers can expect, helping businesses attract and retain customers by differentiating themselves in the market.

Your unique value proposition (UVP) is the cornerstone of your startup, defining what sets you apart from your competitors. A strong UVP focuses on the specific benefits and solutions your startup offers to customers.

Company Description: Painting the Picture

Your company description allows you to showcase your startup’s unique features and provide more in-depth details about your business. This section should include:

The Purpose of the Company Description

Clarify the purpose of your business, your goals and how your startup is uniquely positioned to achieve them.

Essential Information to Include

Include details such as your company’s legal structure, location and a brief history of any founders or key personnel.

Showcase Your Company’s Unique Features

Emphasize the unique aspects of your startup, explaining how these features translate into a competitive advantage.

Allow me to provide you with a dash of inspiration to ignite the momentum for your startup business plan:

When it comes to showcasing your company’s unique features, keep in mind that it is essential to emphasize and highlight the distinctive aspects of your startup . Clearly articulate how these features set your company apart from competitors and translate into a tangible competitive advantage .

Whether it’s through cutting-edge technology, innovative business models, exceptional customer service, or a combination of factors, conveying the value and impact of these unique features is crucial. By effectively communicating the benefits they bring to customers, investors, and partners, you can demonstrate the significance of your offerings and differentiate yourself in the market.

Product/Service Line: What You’re Bringing to the Table

This section highlights the finer details of your product or service offerings:

Detailing Your Product/Service Offerings

Provide a thorough description of your products/services, highlighting key features and their intended use.

Highlighting Features, Benefits, and Solutions

Demonstrate how your startup’s offerings solve specific problems or address customer needs through an analysis of product features and associated benefits.

Defining Your Pricing and Revenue Model

Outline your startup’s pricing strategy and how it aligns with the overall business model. Detail any plans for scaling or expanding your revenue sources in the future.

Presenting Your Market Research Findings

Share insights from your market research, including target customer demographics, market size, and growth potential.

Identifying Market Trends and Opportunities

Discuss current trends, emerging opportunities, and how your startup will capitalize on these developments.

Marketing and Sales Strategies: Spreading the Word

Developing a robust marketing and sales strategy plan aligns with your overall business strategy and ensures steady growth. Marketing planning will be an essential part of your journey once you’ve got your business plan tight-knit! Also, creating a marketing strategy can be the most fun part of your business plan!

Developing a Comprehensive Marketing Strategy & Plan

Outline Specific Marketing Goals : Clearly define your marketing objectives, whether it’s increasing brand awareness, driving website traffic, generating leads, or boosting sales . Set measurable targets to track progress.
Identify Target Audience : Conduct thorough market research to identify your ideal customer profiles. Understand their demographics, behaviors, preferences, and pain points. Tailor your marketing messages to resonate with their needs.
Select Effective Marketing Channels : Consider both digital and traditional channels that align with your target audience and marketing goals. This may include online advertising, social media marketing, content marketing, search engine optimization (SEO), email campaigns, print media, events, or partnerships.
Craft Compelling Messages : Develop persuasive and consistent messaging that highlights the unique value proposition of your products or services. Clearly communicate how your offerings solve customer problems or improve their lives.

5 Tips for Effective Sales Techniques and Growth Strategies + free templates

Define Your Sales Strategy : Outline the approach and tactics your sales team will use to reach and convert customers. This may involve direct sales, channel partnerships, online sales, or a combination of strategies. Specify your sales process, including lead generation, qualification, nurturing, and closing.
Expand Your Customer Base : Identify opportunities to expand your customer reach. Consider targeting new customer segments, entering new geographic markets, or exploring untapped market niches. Develop strategies to attract and engage these potential customers.
Penetrate New Markets : Assess the feasibility of expanding into new markets or verticals. Market research will help you understand the dynamics, competition, and customer needs in these markets. Adapt your marketing and sales strategies accordingly to effectively penetrate and capture market share.
Innovate Products/Services : Continuously evaluate and enhance your product or service offerings to meet evolving customer demands. Identify areas for innovation or improvement and develop a roadmap for launching new features, versions, or complementary offerings.
Perform a SWOT analysis : By conducting a sales SWOT analysis , you will gather valuable insights to enhance your department’s performance. This analysis involves evaluating your company’s strengths, weaknesses, opportunities, and threats, enabling you to identify areas for improvement and capitalize on advantageous factors in the market.

Here’s a hack to get you organized – Get right into it with the help of these growth strategy templates and strategic planning templates :

Operational Plan: How Your Startup Will Run

Define an efficient and scalable operational plan, keeping in mind the following points:

Defining an Efficient and Scalable Plan

Outline the day-to-day operations, including processes, timelines, and necessary resources.

Legal Considerations for Your Startup Business

Identify any legal requirements or considerations, such as licenses, permits, or regulations that may apply to your startup.

Key Elements of Supply Chain Management and Logistics

Discuss supply chain and logistical aspects relevant to your business. Include details on how you plan to manage and scale these processes.

Here’s a kickstart on how you can structure your operating plans:

Financial Projections: Crunching the Numbers

A startup’s financial projections are vital in securing investor buy-in. This section should address:

The Importance of Financial Forecasting and Budgeting

Explain the significance of accurate financial forecasting, budgeting, and the assumptions made in your projections.

Identifying Key Performance Indicators (KPIs)

Highlight the KPIs used to gauge your business’s financial health and growth trajectory.

Outlining Funding Requirements

Detail the amount and type of funding your startup requires , including how the funds will be allocated and how this investment positions the company for growth.

Team and Management Structure: Building Your Dream Team

Your startup’s success depends on the people behind it. This section should cover:

Tips for Building the Right Team

Share your strategy for assembling a skilled team that supports your startup’s vision and growth trajectory.

Founders’ Background and Roles

Provide an overview of the founders’ backgrounds, their roles within the company, and how their skills contribute to the startup’s success.

Organizational Structure and Key Management Personnel

Outline your startup’s organizational structure, including any key management personnel who play a pivotal role in day-to-day operations.

Appendices and Supporting Documents: Backing Up Your Plan

Include any other relevant supporting documents, such as:

Research data, market analysis, or competitor analyses.
Financial statements, budgeting or forecasting data, and other financial documentation.
Legal documents, agreements or contracts, and any patent or trademark information.

Finally, remember to review and update your business plan regularly as the industry, market, and competitive landscape evolve!

1. Why is a business plan essential for a startup?

A startup business plan is crucial for a startup because it provides a framework for strategic decision-making, facilitates financial planning, helps assess risks, aligns teams, communicates your vision, and ensures effective resource allocation.

2. What should a startup business plan include?

A startup business plan should include:

Vision and Direction : Set clear goals and objectives, and outline strategies to achieve them. With a well-defined plan, you will stay focused, make informed decisions, and ensure alignment with your vision.
Market Analysis : A business plan necessitates thorough market research to understand your target market, identify competition, and assess product/service demand. These insights enable you to tailor offerings, meet customer needs, and gain a competitive edge.
Financial Planning : By constructing a financial roadmap through projected statements such as income, cash flow, and balance sheets, a business plan unveils the expected revenues, expenses, and profitability. This comprehensive planning not only anticipates challenges and sets realistic goals but also serves as a magnet for attracting investors and securing funding.
Risk Assessment : Devise strategies for risk mitigation and contingency planning. By proactively doing this, you can significantly enhance the likelihood of success by anticipating and effectively addressing potential obstacles.
Communication and Team Alignment : From fostering effective communication with both internal and external stakeholders to aligning team members and showcasing your startup’s unique value proposition, a business plan plays a crucial role. It enables you to articulate target market insights, competitive advantages, and growth strategies to potential investors, partners, and employees.
Resource Allocation : A business plan helps you identify the resources required to launch and operate your startup successfully. It includes an assessment of your human resources, technology needs, infrastructure requirements, and other key resources. By understanding your resource needs, you can allocate them effectively, ensuring that you have the necessary assets to execute your business strategy.
Adaptability and Flexibility : Your business plan should be flexible enough to accommodate changes and adapt to new circumstances. Startups operate in dynamic environments, and a well-designed plan allows you to monitor progress, evaluate outcomes, and make adjustments as needed. This agility enables you to seize new opportunities and navigate challenges effectively.

3. What is the ideal length for a startup business plan?

The optimal length for a startup business plan typically depends on the specific requirements and intended audience, but a concise and focused plan of around 20 to 30 pages is often recommended.

4. How to write a good startup business plan?

To write a good and effective startup plan, include an executive summary, company description, market analysis, detailed products/services description and a clear marketing and sales strategy. Also incorporate a comprehensive financial plan, outline your organizational structure, and demonstrates your team’s expertise and capabilities. Your plan should be well-researched, concise, and compelling, with a focus on your company’s unique value proposition and market opportunity, making it attractive to investors and stakeholders.

Utilizing Venngage templates & other tools for success

A visually appealing and professional business plan needn’t be a daunting task. Leverage tools like Venngage Business Plan Maker for effective templates that cater to various industries and streamline the process.

Leveraging Venngage for Visually Appealing and Professional Business Plans

Venngage offers a range of templates designed specifically for business plans, allowing you to craft a polished and visually engaging plan without any design experience. Simply choose a template, customize it to suit your startup’s branding, and populate it with your content.

Exploring Additional Resources and Tools for Entrepreneurs. In addition to Venngage, several other resources and tools can assist entrepreneurs in crafting the perfect business plan. Examples include:
Small Business Administration (SBA) – Offers guidance on writing business plans and provides templates and resources for each section.
SCORE – A nonprofit organization providing mentorship, workshops, and other resources for entrepreneurs.
Industry-specific resources – Research relevant professional organizations, industry publications, and blogs to stay up to date on industry trends and insights.

Embarking on the entrepreneurial path may present formidable challenges, yet it offers abundant rewards in various aspects. Embrace the art of continuous learning, delving not only into the essence of your business idea but also immersing yourself in the vast world that surrounds it. Cultivate a genuine passion for understanding every facet of your enterprise, for it is through this journey of exploration that you will uncover invaluable insights and experience the true fulfillment of entrepreneurship.

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How To Write a Business Plan

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Starting a business is a wild ride, and a solid business plan can be the key to keeping you on track. A business plan is essentially a roadmap for your business — outlining your goals, strategies, market analysis and financial projections. Not only will it guide your decision-making, a business plan can help you secure funding with a loan or from investors .

Writing a business plan can seem like a huge task, but taking it one step at a time can break the plan down into manageable milestones. Here is our step-by-step guide on how to write a business plan.

Write your executive summary
Do your market research homework
Set your business goals and objectives
Plan your business strategy
Describe your product or service
Crunch the numbers
Finalize your business plan

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Step 1: Write your executive summary

Though this will be the first page of your business plan , we recommend you actually write the executive summary last. That’s because an executive summary highlights what’s to come in the business plan but in a more condensed fashion.

An executive summary gives stakeholders who are reading your business plan the key points quickly without having to comb through pages and pages. Be sure to cover each successive point in a concise manner, and include as much data as necessary to support your claims.

You’ll cover other things too, but answer these basic questions in your executive summary:

Idea: What’s your business concept? What problem does your business solve? What are your business goals?
Product: What’s your product/service and how is it different?
Market: Who’s your audience? How will you reach customers?
Finance: How much will your idea cost? And if you’re seeking funding, how much money do you need? How much do you expect to earn? If you’ve already started, where is your revenue at now?

Step 2: Do your market research homework

The next step in writing a business plan is to conduct market research . This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to gather this information. Your method may be formal or more casual, just make sure that you’re getting good data back.

This research will help you to understand the needs of your target market and the potential demand for your product or service—essential aspects of starting and growing a successful business.

Step 3: Set your business goals and objectives

Once you’ve completed your market research, you can begin to define your business goals and objectives. What is the problem you want to solve? What’s your vision for the future? Where do you want to be in a year from now?

Use this step to decide what you want to achieve with your business, both in the short and long term. Try to set SMART goals—specific, measurable, achievable, relevant, and time-bound benchmarks—that will help you to stay focused and motivated as you build your business.

Step 4: Plan your business strategy

Your business strategy is how you plan to reach your goals and objectives. This includes details on positioning your product or service, marketing and sales strategies, operational plans, and the organizational structure of your small business.

Make sure to include key roles and responsibilities for each team member if you’re in a business entity with multiple people.

Step 5: Describe your product or service

In this section, get into the nitty-gritty of your product or service. Go into depth regarding the features, benefits, target market, and any patents or proprietary tech you have. Make sure to paint a clear picture of what sets your product apart from the competition—and don’t forget to highlight any customer benefits.

Step 6: Crunch the numbers

Financial analysis is an essential part of your business plan. If you’re already in business that includes your profit and loss statement , cash flow statement and balance sheet .

These financial projections will give investors and lenders an understanding of the financial health of your business and the potential return on investment.

You may want to work with a financial professional to ensure your financial projections are realistic and accurate.

Step 7: Finalize your business plan

Once you’ve completed everything, it's time to finalize your business plan. This involves reviewing and editing your plan to ensure that it is clear, concise, and easy to understand.

You should also have someone else review your plan to get a fresh perspective and identify any areas that may need improvement. You could even work with a free SCORE mentor on your business plan or use a SCORE business plan template for more detailed guidance.

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The takeaway

Writing a business plan is an essential process for any forward-thinking entrepreneur or business owner. A business plan requires a lot of up-front research, planning, and attention to detail, but it’s worthwhile. Creating a comprehensive business plan can help you achieve your business goals and secure the funding you need.

How to Start a Business: A Comprehensive Guide and Essential Steps

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Conducting Market Research

Crafting a business plan, reviewing funding options, understanding legal requirements, implementing marketing strategies, how much does it cost to start a business, what should i do before starting a business, what types of funding are available to start a business, do you need to write a business plan, the bottom line.

Building an effective business launch plan

Starting a business in the United States involves a number of different steps, spanning legal considerations, market research, creating a business plan, securing funding, and developing a marketing strategy. It also entails decisions around a business’s location, structure, name, taxation, and registration.

This article covers the key steps involved in starting a business, as well as important aspects of the process for entrepreneurs to consider.

Key Takeaways

Entrepreneurs seeking to develop their own business should start by conducting market research to understand their industry space and competition, and to target customers.
The next step is to write a comprehensive business plan, outlining the company’s structure, vision, and strategy. Potential funders and partners may want to review the business plan in advance of signing any agreements.
Securing funding is crucial in launching a business. Funding can come in the form of grants, loans, venture capital, or crowdfunded money; entrepreneurs may also opt to self-fund instead of or in combination with any of these avenues.
Choosing a location and business structure can have many implications for legal aspects of business ownership, such as taxation, registration, and permitting, so it’s important to fully understand the regulations and requirements for the jurisdiction in which the business will operate.
Another key aspect of launching a new business is having a strategic marketing plan that addresses the specifics of the business, industry, and target market.

Before starting a business, entrepreneurs should conduct market research to determine their target audience, competition, and market trends.

The U.S. Small Business Administration (SBA) recommends researching demographic data around potential customers to understand a given consumer base and reduce business risk. It also breaks down common market considerations as follows:

Demand : Do people want or need this product or service?
Market size : How many people might be interested?
Economic indicators : These include income, employment rate, and spending habits of potential customers.
Location : Where are the target market and the business located?
Market saturation : How competitive is the business space, and how many similar offerings exist?
Pricing : What might a customer be willing to pay?

Market research should also include an analysis of the competition (including their strengths and weaknesses compared to those of the proposed business), market opportunities and barriers to entry, industry trends, and competitors’ market share .

There are various methods for conducting market research, and the usefulness of different sources and methodologies will depend on the nature of the industry and potential business. Data can come from a variety of sources: statistical agencies, economic and financial institutions, and industry sources, as well as direct consumer research through focus groups, interviews, surveys, or questionnaires.

A comprehensive business plan is like a blueprint for a business. It will help lay the foundation for business development and can assist in decision making, day-to-day operations, and growth.

Potential investors or business partners may want to review and assess a business plan in advance of agreeing to work together. Financial institutions often request business plans as part of an application for a loan or other forms of capital.

Business plans will differ according to the needs and nature of the company and only need to include what makes sense for the business in question. As such, they can vary in length and structure depending on their intended purpose.

Business plans can generally be divided into two formats: traditional business plans and lean startup business plans. The latter is typically more useful for businesses that will need to adjust their planning quickly and frequently, as they are shorter and provide a higher-level overview of the company.

The process of funding a business can be as unique as the business itself—that is, it will depend on the needs and vision of the business and the current financial situation of the business owner.

The first step in seeking funding is to calculate how much it will cost to start the business. Estimate startup costs by identifying a list of expenses and putting a number to each of them through research and requesting quotes. The SBA has a startup costs calculator for small businesses that includes common types of business expenses.

From there, an entrepreneur will need to determine how to secure the required funding. Common funding methods include:

Self-funding , also known as bootstrapping
Seeking funding from investors, also known as venture capital
Raising money by crowdfunding
Securing a business loan
Winning a business grant

Each method will hold advantages and disadvantages depending on the situation of the business. It’s important to consider the obligations associated with any avenue of funding. For example, investors generally provide funding in exchange for a degree of ownership or control in the company, whereas self-funding may allow business owners to maintain complete control (albeit while taking on all of the risk).

The availability of funding sources is another potential consideration. Unlike loans, grants do not have to be paid back—however, as a result, they are a highly competitive form of business funding. The federal government also does not provide grants for the purposes of starting or growing a business, although private organizations may. On the other hand, the SBA guarantees several categories of loans to support small business owners in accessing capital that may not be available through traditional lenders.

Whichever funding method (or methods) an entrepreneur decides to pursue, it’s essential to evaluate in detail how the funding will be used and lay out a future financial plan for the business, including sales projections and loan repayments , as applicable.

Legally, businesses operating in the U.S. are subject to regulations and requirements under many jurisdictions, across local, county, state, and federal levels. Legal business requirements are often tied to the location and structure of the business, which then determine obligations around taxation, business IDs, registration, and permits.

Choosing a Business Location

The location—that is, the neighborhood, city, and state—in which a business operates will have an impact on many different aspects of running the business, such as the applicable taxes, zoning laws (for brick-and-mortar, or physical locations), and regulations.

A business needs to be registered in a certain location; this location then determines the taxes, licenses, and permits required. Other factors to consider when choosing a location might include:

Human factors : Such as the target audience for your business, and preferences of business owners and partners around convenience, knowledge of the area, and commuting distance
Regulations and restrictions : Concerning applicable jurisdictions or government agencies, including zoning laws
Regionally specific expenses : Such as average salaries (including required minimum wages), property or rental prices, insurance rates, utilities, and government fees and licensing
The tax and financial environment : Including income tax, sales tax, corporate tax, and property tax, or the availability of tax credits, incentives, or loan programs

Picking a Business Structure

The structure of a business should reflect the desired number of owners, liability characteristics, and tax status. Because these have legal and tax compliance implications , it’s important to fully understand and choose a business structure carefully and, if necessary, consult a business counselor, lawyer, and/or accountant.

Common business structures include:

Sole proprietorship : An unincorporated business that has just one owner, who pays personal income tax on profits
Partnership : Options include a limited partnership (LP) or a limited liability partnership (LLP)
Limited liability company (LLC) : A business structure that protects its owners from personal responsibility for its debts or liabilities
Corporation : Options include a C corp , S corp , B corp , closed corporation , or nonprofit

Getting a Tax ID Number

A tax ID number is like a Social Security number for a business. Whether or not a state and/or federal tax ID number is required for any given business will depend on the nature of the business, as well as the location in which the business is registered.

If a business is required to pay state taxes (such as income taxes and employment taxes), then a state tax ID will be necessary. The process and requirements around state tax IDs vary by state and can be found on individual states’ official websites. In some situations, state tax IDs can also be used for other purposes, such as protecting sole proprietors against identity theft.

A federal tax ID, also known as an employer identification number (EIN) , is required if a business:

Operates as a corporation or partnership
Pays federal taxes
Wants to open a business bank account
Applies for federal business licenses and permits
Files employment, excise, alcohol, tobacco, or firearms tax returns

There are further situations in which a business might need a federal tax ID number, specific to income taxation, certain types of pension plans, and working with certain types of organizations. Business owners can check with the Internal Revenue Service (IRS) about whether they need an EIN.

Registering a Business

Registration of a business will depend on its location and business structure, and can look quite different depending on the nature and size of the business.

For example, small businesses may not require any steps beyond registering their business name with local and state governments, and business owners whose business name is their own legal name might not need to register at all. However, registration can include personal liability protection as well as legal and tax benefits, so it can be beneficial even if it’s not strictly required.

Most LLCs, corporations, partnerships, and nonprofits are required to register at the state level and will require a registered agent to file on their behalf. Determining which state to register with can depend on factors such as:

Whether the business has a physical presence in the state
If the business often conducts in-person client meetings in the state
If a large portion of business revenue comes from the state
Whether the business has employees working in the state

If a business operates in more than one state, it may need to file for foreign qualification in other states in which it conducts business. In this case, the business would register in the state in which it was formed (this would be considered the domestic state), and file for foreign qualification in any additional states.

Some businesses may decide to register with the federal government if they are seeking tax-exempt status or trademark protection, but federal registration is not required for many businesses.

Overall registration requirements, costs, and documentation will vary depending on the governing jurisdictions and business structure.

Obtaining Permits

Filing for the applicable government licenses and permits will depend on the industry and nature of the business, and might include submitting an application to a federal agency, state, county, and/or city. The SBA lists federally regulated business activities alongside the corresponding license-issuing agency, while state, county, and city regulations can be found on the official government websites for each region.

Every business should have a marketing plan that outlines an overall strategy and the day-to-day tactics used to execute it. A successful marketing plan will lay out tactics for how to connect with customers and convince them to buy what the company is selling.

Marketing plans will vary according to the specifics of the industry , target market, and business, but they should aim to include descriptions of and strategies around the following:

A target customer : Including market size, demographics, traits, and relevant trends
Unique value propositions or business differentiators : Essentially, an overview of the company’s competitive advantage with regard to employees, certifications, or offerings
A sales and marketing plan : Including methods, channels, and a customer’s journey through interacting with the business
Goals : Should cover different aspects of the marketing and sales strategy, such as social media follower growth, public relations opportunities, or sales targets
An execution plan : Should detail tactics and break down higher-level goals into specific actions
A budget : Detailing how much different marketing projects and activities will cost

The startup costs for any given business will vary greatly depending on the industry, business activity, and product or service offering. Home-based online businesses will usually cost less than those that require an office setting to meet with customers. The estimated cost can be calculated by first identifying a list of expenses and then researching and requesting quotes for each one. Use the SBA’s startup costs calculator for common types of expenses associated with starting a small business.

Entrepreneurs seeking to start their own business should fully research and understand all the legal and funding considerations involved, conduct market research, and create marketing and business plans. They will also need to secure any necessary permits, licenses, funding, and business bank accounts.

Startup capital can come in the form of loans, grants, crowdfunding, venture capital, or self-funding. Note that the federal government does not provide grant funding for the purposes of starting a business, although private sources do.

Business plans are comprehensive documents that lay out the most important information about a business. They are important references for the growth, development, and decision-making processes of a business, and financial institutions as well as potential investors and partners generally request to review them in advance of agreeing to provide funding or work together.

Starting a business is no easy feat, but research and preparation can help smooth the way. Having a firm understanding of the target market, competition, industry, business goals, business structure, funding requirements, tax and operating regulations, and marketing strategy, and conducting research and consulting experts where necessary, are all things that entrepreneurs can do to set themselves up for success.

U.S. Small Business Administration. “ Market Research and Competitive Analysis .”

U.S. Small Business Administration. “ Write Your Business Plan .”

U.S. Small Business Administration. “ Loans .”

U.S. Small Business Administration. “ Fund Your Business .”

U.S. Small Business Administration. “ Pick Your Business Location .”

U.S. Small Business Administration. “ Choose a Business Structure .”

U.S. Small Business Administration. “ Get Federal and State Tax ID Numbers .”

Internal Revenue Service. “ Do You Need an EIN? ”

U.S. Small Business Administration. “ Register Your Business .”

U.S. Small Business Administration. “ Apply for Licenses and Permits .”

U.S. Small Business Administration. “ Marketing and Sales .”

U.S. Small Business Administration. “ Grants .”

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

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How To Create A Winning Business Plan For Your Startup

When it comes to starting a business, having a solid business plan is absolutely crucial. Consider this as a conversation between you and your business’s future. You’d need to start by clearly defining what your startup offers – this is your product or service. It needs to answer the question, “What problem are you solving for your customers?”

Next, delve into market analysis. Understand who your competitors are and pinpoint your target customers. Once you have that, consider your business strategy and the sales and marketing plans you’ll employ to achieve your goals.

It’s crucial not to forget the operational aspect – how will your business function daily? And lastly, the financial projections. They can be a little tricky, but they’re the crux of the plan, demonstrating the financial viability of your startup.

We have got a helpful guide that’ll dive deep into all the essential elements you need to craft a top-notch business plan, tailored specifically for your unique startup. A solid business plan will help you make smarter decisions, catch the eye of potential investors, and give yourself an edge over your competitors in the market.

Why Business Plan Is Important For A Startup

Just as you wouldn’t venture into unknown territory without a compass, initiating a startup without a business plan can lead to wandering aimlessly, wasting precious resources, or even getting lost in the market’s vast wilderness. Here are some reasons why a business plan is crucial for a startup.

Your Guide To Decision-Making

Entrepreneurship involves constant decision-making and crisis management. The luxury of pondering the possible ramifications of every choice isn’t always an option for a fledgling business. This is where a well-thought-out business plan proves its worth. Setting out your strategies, goals, and expected outcomes in advance, can guide you in making smart decisions, reducing the likelihood of costly mistakes. It’s like your startup’s crystal ball, helping you predict and navigate future challenges.

Smoothing Out The Road Ahead

Compiling a business plan requires you to dig deep, ask tough questions, and seek out insightful, well-researched answers. It’s about creating a realistic vision of your startup’s future, and it’s the process that matters. Even if you never look at the document again, the act of writing it down helps to refine your vision and identify potential gaps in your plan.

Avoiding Common Pitfalls

There’s a sobering statistic that approximately half of all small businesses don’t reach their fifth birthday. Many of these failures result from issues that a well-structured business plan can help to avoid.

According to data from CB Insights , common reasons businesses fail include a lack of market need, cash flow problems, inadequate team structure, intense competition, and pricing errors. An effective business plan can help you avoid these pitfalls by foreseeing issues like cash flow forecasts, market analysis, and pricing strategy before they become problems.

Proving Business Viability

Passion is an excellent motivator when launching a startup. However, passion alone does not guarantee success. Your plan is crucial in demonstrating your startup’s potential by outlining exactly how your vision translates into a profitable business.

For instance, the market research section of your plan can provide deep insights into your customers, competitors, and industry. This information can be pivotal in shaping strategies for marketing, product development, and scaling your business.

A Roadmap For Growth

Business plans play a crucial role in setting objectives and creating benchmarks. Without a business plan, goals can become arbitrary, losing their relevance over time. A well-documented plan keeps you accountable, aligns your team with your vision, and provides insights into the effectiveness of your strategies.

Facilitating Communication And Collaboration

A business plan isn’t just a guide for you, but also for your team. Whether you have a staff of two or two hundred, everyone needs to understand your business’s goals and how you plan to reach them. Your business plan can serve as a communication tool, spelling out the next steps when you’re unavailable for direct guidance. It aligns everyone with your vision, fostering a sense of shared purpose and commitment to the objectives outlined.

Navigating The Business Landscape

Running a successful business is about more than just managing what’s happening within your company’s four walls. It’s also about understanding the larger market environment. Crafting a business plan encourages you to study your competition, identify trends and preferences among consumers, anticipate potential disruptions, and garner insights that might not be apparent at first glance. Armed with this information, you’re better equipped to anticipate and respond to changes in your industry.

Leveraging External Support

Startups often depend on a range of external service providers for expertise in areas like accounting, marketing, and legal matters. Your business plan can serve as a reference point for these professionals, helping them understand your business better and align their services with your needs. By sharing relevant sections of your business plan, you can ensure everyone is on the same page, enhancing the effectiveness of their support.

Securing Investment

Here’s a fact to consider: you are 2.5 times more likely to secure funding if you have a business plan. Investors, banks , and potential partners want to know that their investment is in capable hands and that your business has a promising future. A well-crafted business plan is your opportunity to demonstrate this, making it a must-have document if you’re seeking external financing.

Mitigating Risks

All entrepreneurial ventures involve some level of risk, but a well-designed business plan can significantly mitigate these dangers. By considering revenue and expense projections, operational plans, and the competitive landscape, you’ll be equipped with a risk management tool that can guide your decision-making and limit the chances of unpleasant surprises.

Some Facts About A Successful Business Plan

According to the Small Business Administration , a successful business plan typically includes an executive summary , market analysis, competitive analysis, description of products and services offered, management overview, financial projections, and funding requirements.
A Harvard Business School survey found that entrepreneurs who have written a business plan are 16% more likely to achieve success than those who have not.
One study found that companies with a business plan grow 30% stronger than those without a plan.

Business Plan Formats

While there is no one-size-fits-all approach, there are common formats that cater to different needs and objectives. Understanding these formats will help you choose the most suitable one for your venture and tailor it to your specific needs.

Traditional Business Plan

The traditional business plan is the most comprehensive and widely used format. It typically spans multiple pages and contains detailed information about your company’s strategy, objectives, and financial projections. Venture capitalist firms and lenders often require these plans when seeking investment or loans. Key sections in a traditional business plan include:

Executive Summary: A brief overview of your company, including its mission, goals, and key selling proposition.
Company Description: Details about your company, history, and unique selling proposition (USP).
Market Analysis: An examination of the industry, market, and competition.
Marketing and Sales Strategies: Plans for promoting your products or services and generating sales.
Organization and Management: An outline of your company’s organizational structure and management team.
Product Line or Services: A description of your products or services and their benefits.
Financial Projections: A forecast of your company’s financial performance, including income statements, balance sheets, and cash flow statements.

Download the Traditional Plan template from here .

Lean Business Plan

A lean business plan is a condensed version of a traditional plan, focusing on the most critical information. This format is ideal for businesses that need a quick, accessible reference or for those looking to modify existing plans to target a specific market. A lean business plan will cover the same sections as a traditional plan but in a more concise manner.

Nonprofit Business Plan

A nonprofit business plan is tailored for organizations that operate for public or social benefit. This format incorporates all elements of a traditional business plan, with an additional section highlighting the organization’s intended impact.

This section may describe the social or environmental issues the organization aims to address and how its operations contribute to solving these problems. Donors and grant-makers often request nonprofit business plans to assess the organization’s mission, strategies, and potential impact.

Comparative Analysis Of The Common Business Plan Models

how to write a business plan:.

Stats Source: 1 , 2

The business plan acts as the blueprint of your venture, outlining its mission, operational strategy, market analysis, financial needs, and more. It gives stakeholders a holistic view of your company, underpinning decisions and attracting potential investors. Let’s explore the key components of a business plan that will serve as the compass guiding your startup toward success.

1. Write An Executive Summary

The executive summary is at the forefront of your business plan, which introduces your plan to the world. It encapsulates everything your plan will detail but at a much higher level. As a pro tip, this summary is often more effective when written last, ensuring you fully grasp your plan.

In the executive summary, you’ll present your organization’s mission statement and the offerings you intend to bring to the market. If your venture is a new startup, including the reasons that inspired you to initiate this journey might be beneficial.

Here is how you can write an executive summary for your business plan.

Your executive summary begins with the “Mission” – a clear and concise statement of your company’s purpose. Your mission is not merely what you do; it’s why you do it and how you want to impact your customers and the world.
Next is the “Company History and Management” section. Provide a snapshot of your company’s location, the period of operation, and the people at the helm. A brief overview of their experience will also be valuable.
A significant part of your executive summary will be the “Products or Services” your company offers. What problems does your product or service solve? How does it add value to the customer’s life? Providing succinct answers to these questions can pique the reader’s interest.
In the “Market” section, you summarize the potential of your product or service or Total Addressable Market (TAM). Highlight key insights into the size and nature of your target market, indicating the business growth potential.
The “Competitive Advantages” segment allows you to shine a light on what sets you apart from the competition. Make sure to highlight the unique strengths that will make customers choose your company.
Finally, you must present your “Financial Projections” and “Startup Financing Requirements.” Provide an estimate of sales for the first few years and a clear outline of what it’ll cost to launch and run your company.

2. Add A Business Description

The business description paints a vivid picture of your venture, its goals, the industry it serves, and your target customers. This section allows you to share the passion behind your venture while detailing your industry, including prevalent trends and formidable competitors. Highlight your team’s industry experience and what sets your venture apart from competitors.

3. Market Research And Strategies

The purpose of the market analysis and strategy component of a business plan is to research and identify a company’s primary target audience and where to find this audience. Factors to cover in this section include:

The geographic locations of your target markets
The primary pain points experienced by your target customers
The most prominent needs of your target market and how your products or services can meet these needs
The demographics of your target audience
Where your target market spends most of their time, such as particular social media platforms and physical locations
This section aims to clearly define your target audience so that you can make strategic estimations about how your product or service might perform with this audience.

4. Marketing And Sales Plan

This part of your business plan covers the specifics of how you plan to market and sell your products and services. This section includes:

Your anticipated marketing and promotion strategies
Pricing plans for your company’s products and services
Your strategies for making sales
Reasons for your target audience to purchase from your company versus your competition
Your organization’s unique selling proposal

5. Management And Organization Description

This section of your business plan explores the details of your business’s management and organization strategy. Introduce your company leaders and their qualifications and responsibilities within your business. You can also include human resources requirements and your company’s legal structure.

6. Products And Services Description

Use this section to further expand on the details of the products and services your company offers that you covered in the executive summary. Include all relevant information about your products and services. This includes how you plan to manufacture or develop them, how long they can last, what needs they may meet, and how much you project it might cost to create them.

7. Competitive Analysis

Add a detailed competitive analysis that clearly outlines a comparison of your organization to your competitors. Outline your competitors’ weaknesses and strengths and how you expect your company might compare to these. Include any advantages or distinctions your competition has in the marketplace. In addition, explore what makes your business different from other companies in the industry and any potential challenges you may face when entering the marketplace, if applicable.

8. Operating Plan

This part of your business plan describes how you plan to operate your company. Include information regarding how and where your company plans to operate, such as shipping logistics or patents for intellectual property. The operating plan also details personnel-related operations, like how many employees you hope to hire in various departments.

9. Financial Projection And Needs

The financial section of your business plan explains how you anticipate bringing in revenue. If you need funding for your business, this section also describes the sources and amounts for that funding. Include your financial statements, an analysis of these statements, and a cash flow projection.

10. Exhibits And Appendices

The last section of your business plan provides any extra information to support further the details outlined in your plan. You can also include exhibits and appendices to support the viability of your business plan and give investors a clear understanding of the research that backs your plan. Common information to put in this section includes:

Resumes of company management and other stakeholders
Marketing research
Proposed or current marketing materials
Relevant legal documentation
Image Of your product (or demo)

Tips To Create A Small Business Plan

Know Your Audience

Knowing your audience is paramount when crafting your small business plan. It’s not just about offering a product or service, but understanding who will buy it and why. Start by defining your target market – age, gender, geographic location, income level, occupation, and lifestyle preferences are just a few factors to consider. Once you’ve identified your potential customers, dive deeper. What are their pain points? How can your product or service address these issues? Having this knowledge not only helps you tailor your offerings but also guides your marketing and sales strategies.

Have A Clear Goal

Your business plan must have a clear goal – a specific aim that you intend to achieve. This could be anything from reaching a certain revenue target, expanding to new locations, or securing a specific market share within a given period. Setting clear, measurable goals serves as a roadmap, guiding your actions and decisions. Remember, these goals should be SMART – Specific, Measurable, Achievable, Relevant, and Time-bound. Each goal should directly support your overall business objectives and provide a clear path to success.

Invest Time In Research

A successful business plan is built on solid research. Market trends, competitive landscape, and regulatory environment – these are all factors that could affect your business and, thus, must be considered in your business plan. Research can inform product development, pricing, and promotional strategies, as well as identify potential opportunities and threats. Conduct both primary (surveys, interviews) and secondary research (reports, articles) to gather comprehensive information. It’s an investment of time that pays off in the long run by guiding informed decision-making.

Keep It Short And To The Point

While your business plan should be comprehensive, resist the temptation to include every minor detail. Remember, the plan is a tool to communicate your business idea and strategy to stakeholders, including potential investors, partners, or employees. Therefore, it should be concise, focusing on key aspects such as your product or service, market analysis, business model, marketing and sales strategy, and financial projections. Avoid jargon and keep your language simple and straightforward. It makes the plan easier to read and understand, increasing its effectiveness.

Keep The Tone, Style, And Voice Consistent

Consistency is key in the tone, style, and voice of your business plan. It not only enhances readability but also reflects your brand identity. If your business is a modern tech startup, a casual, conversational tone might work well. For a law firm, a more formal tone would be appropriate. Choose a tone and style that aligns with your brand, and maintain it throughout the plan. This consistency helps build a strong brand image and makes a positive impression on readers.

Use A Business Plan Software

In the digital age, business plan software can simplify the planning process. These tools come with features like templates, step-by-step guides, and financial forecasting tools, making it easier to create a professional, comprehensive plan. Using such software can save time, increase accuracy, and ensure that your plan covers all essential aspects. Some popular options include LivePlan, Bizplan, and Upmetrics. Before choosing a tool, consider your needs, budget, and the software’s ease of use.

Mistakes To Avoid When Writing A Business Plan

1. not choosing a feasible business idea.

When it comes to selecting a business idea, there’s a fine line between ambitious and unrealistic. Too often, entrepreneurs get so enthralled by their passion project that they lose sight of its practicality in the market. They overlook crucial factors like the demand, the target audience, or the industry’s economic climate. In the business world, a great idea isn’t enough; it also has to be feasible. Validate your idea with market research, seek professional advice, and listen to potential customer feedback before making a commitment.

2. No Clear Exit Strategy

Although it might seem counterintuitive to plan your business’s end before it has even begun, a clear exit strategy is paramount. It guides your decisions, indicates your long-term goals, and reassures investors about the safety of their investments. Whether it’s selling the business, distributing dividends, or opting for an IPO, consider your exit strategy from the get-go.

3. Lack Of A Balanced Team

A start-up’s success isn’t a one-person show; it involves a balanced team with diverse skills and experiences. Without a robust team, you may be overwhelmed, attempting to manage all aspects of the business singlehandedly. When composing your team, look for complementary skill sets. A mix of leadership, financial acumen, marketing prowess, and technical skills ensures a well-rounded, capable team.

4. No Comprehensive Financial Projections

Many startups fall into the trap of undervaluing comprehensive financial projections. The figures you present in your business plan should be accurate and realistic and include projections for revenue, expenses, and cash flow. This detail is not only vital for you to understand the financial requirements and sustainability of your venture, but it is also crucial for securing funding from investors. Your business plan should include:

Balance Sheet: A snapshot of your company’s financial position, including assets, liabilities, and equity.
Cash Flow Statement: An overview of cash inflows and outflows, highlighting your ability to generate and manage cash.
Profit and Loss (P&L) Statement: A summary of your company’s revenues, expenses, and net income over a specified period.

5. Spelling And Grammar Mistakes

Nothing undermines the credibility of a business plan like spelling and grammar mistakes. They give an impression of carelessness and lack of attention to detail. In the business world, these are attributes that no entrepreneur should embody. Always proofread your plan, use professional editing tools, or seek the help of an editor to ensure impeccable presentation.

6. Not Conducting A Proper Competitive Analysis

Understanding your competition is pivotal in carving your unique place in the market. An improper or superficial competitive analysis can lead to an ill-informed strategy and poor decision-making. Use methods like SWOT analysis to understand your competitors’ strengths, weaknesses, opportunities, and threats, and use this information to differentiate your offering.

7. A Proper Marketing And Sales Strategy

Without a well-defined marketing and sales strategy, even the most innovative product can get lost in the shuffle. Outline your strategy, detailing the mediums and channels you plan to use to reach your target audience. Be sure to include the estimated costs of these strategies to ensure alignment with your financial projections.

8. No Incorporating Scalable Business Model

A scalable business model is key to long-term success. It ensures that your business can adapt to increased demand without significantly increasing operational costs. If you neglect this aspect, you may struggle to grow or, worse, become overwhelmed by success.

9. Not Setting Realistic And Measurable Goals

Setting lofty, abstract goals may seem visionary, but in practice, they leave a business adrift. Your business plan should define realistic, measurable, and time-bound objectives. The idea here is to give your team a

10. No Presence Of A Risk Management Plan

All businesses face risks, whether they are financial, operational, strategic, or related to reputation. Ignoring these potential hazards won’t make them go away. On the contrary, it leaves you unprepared (i.e. SVB bank collapse). Incorporate a risk management plan into your business strategy, outlining potential challenges and your proactive steps to mitigate them.

11. Not Updating And Refining Your Business Plan

Remember, a business plan isn’t a static document you write once and forget. As your business evolves, so should your plan. Market dynamics change, customer preferences shift, and new competitors emerge. Regularly updating and refining your business plan ensures that it remains a useful tool for decision-making and a clear roadmap for your business’s future. An outdated plan will not reflect your current business status and may lead to misguided decisions.

Avoiding these common mistakes can set you on a successful path, enabling your startup to grow, thrive, and eventually, command a formidable presence in the market. It’s not an easy task, but with these guidelines in mind, you’re better equipped to navigate the challenges ahead.

1. Why Is A Traditional Business Plan Important For A New Business?

You know that feeling when you embark on a road trip without a map? It’s a blend of excitement and anxiety, right? Well, launching a new business without a traditional business plan is pretty much the same. It’s like sailing a ship with no compass or map.

The business plan serves as your guiding star, illuminating your path forward. It outlines your mission, vision, goals, and how you plan to achieve them. It’s your secret recipe for success, the blueprint for your entrepreneurial journey.

2. What Are The Key Elements Of A Traditional Business Plan?

Think of a business plan as a puzzle, made up of several key pieces that come together to create a complete picture. These pieces include the executive summary (think of it as your business’s elevator pitch), company description, market analysis (your business battlefield), organization and management structure (the captains of your ship), service or product line (the bread and butter of your venture), marketing and sales strategy (your business megaphone), and financial projections (the treasure you’re after). When these pieces fall into place, you get a clear image of your business’s future.

3. How Can I Make My Business Plan Stand Out?

You know the feeling when you’re trying to bake a cake for the first time? You can follow the recipe to the letter, but it might not turn out as you hoped. The same goes for a business plan. Using a business plan template can be helpful, but adding your unique flavor makes all the difference. Personalize it, and infuse it with your passion and vision. Use engaging anecdotes to highlight your experiences and lessons learned. It’s like telling a captivating story about your business, leaving everyone eager for the next chapter.

4. How Often Should I Update My Business Plan?

A business plan isn’t a “set it and forget it” type of deal. It’s a living document that evolves with your business. Like a gardener tending to his plants, you must regularly nurture and adjust your plan.

Wrapping Up

In conclusion, crafting a comprehensive and effective business plan is crucial for any venture’s success. By outlining your vision, objectives, target market, competitive analysis, organizational structure, and financial projections, you can attract investors and provide a roadmap for growth.

Remember to keep the plan concise, realistic, and adaptable, as it will evolve with your business. Continually reviewing and updating your plan will serve as a dynamic tool, guiding your business toward its ultimate goals and long-term success.

Was this helpful?

About the author: Oran Yehiel

Oran Yehiel is the founder of Startup Geek, with an MBA specializing in financial management and a background in Deloitte. As a Certified Public Accountant and Digital Marketing Professional, he writes about venture capital, marketing, entrepreneurship, and more, bringing a wealth of experience to businesses seeking growth and success.

BUSINESS STRATEGIES

How to start a business in 14 steps: a guide for 2024

Cecilia Lazzaro Blasbalg
Dec 3, 2023
31 min read

Get started by: Creating a website → | Getting a domain →

In the words of Steve Jobs, “The only way to do great work is to love what you do.” Starting your own business is one step towards doing work that you love. But from forming an idea to creating a business website , there are several essential steps and questions to consider before you dive in: What problem are you solving? Who is your target audience? What differentiates your product or service from existing offerings? And, most importantly, where exactly do you begin?

This comprehensive guide will walk you through every step of the journey: brainstorming ideas, perfecting your branding, registering your business and more. Use it as your trusted roadmap on how to start a business, empowering you to navigate the exciting world of entrepreneurship with confidence.

Ready to create a business website? Start building yours today .

How to start a business

Brainstorm and refine your business idea

Conduct market and competitor research

Pick a business name

Write up a business plan

Choose a legal structure for your business

Secure business capital and funding

Apply for tax IDs, licenses and permits

Apply for business insurance

Organize your finances

Brand your business

Create a professional business website

Market and promote your business

Build a team

01. Brainstorm and refine your business idea

You might already have a great business idea that you can’t wait to start, or maybe you’re still in the early brainstorming stages of finding your niche. If the latter applies to you, think about what you’re passionate about and what skills you possess. The best business ideas often emerge from your interests and expertise, making it easier to stay motivated and dedicated throughout the journey.

Keep in mind that there are some very real, very unavoidable small business challenges to consider. Most business ideas require money, innovation and time to yield results—some may even come with financial risks. This is true for both brick-and-mortar businesses and online business ideas . That’s why as a first step, you’ll need to refine and test your idea to make sure it’s a viable option. Here are some effective ways to kickstart your brainstorming process:

Be realistic: While it’s important to choose a business idea that’s in line with your passions, it’s also crucial that there’s market demand for your product or service. Ask yourself, is your business idea scalable? Who’s your target market ? Do you have the necessary skills and expertise?

Test your idea in the real world: This can involve anything from a focus group to a small-scale pilot test. Another strategy is to build a landing page , which can help you generate and gauge interest. If you find that your idea doesn’t pique interest, it’s time to reassess. Consider how you can refresh your idea to bring something new to the table, or how you can adapt it to more directly address consumer needs.

Define your business model: As you think about ways to make money from your idea, think about the exact business model that will help you to grow your business in a manageable way. Think: How do you want your business to look a year from now? Two years from now? Five? Is it sustainable?

Popular business ideas to get you started

Dropshipping : Dropshipping is a great low-cost business idea that lets you sell products without needing to manage your own inventory. You simply need an eCommerce website , or a specific dropshipping website and a strong marketing strategy to get started.

Print on demand (POD): Another popular way to make money online , POD involves working with suppliers that print your designs on blank items, such as t-shirts and mugs, and ship the orders on your behalf. This is an effective way to put your own spin on a retail venture and start your own online store .

Freelancing: Freelance artists , writers and creatives can jumpstart their business by creating a portfolio website and monetizing their skills. Take Berlin-based illustrator and animator Rafael Varona for inspiration—his modern, visually engaging Wix website features artwork he’s done for leading companies including Disney, Google and Porsche.

Starting a service business : Service business ideas center around selling your expertise, skills or assistance—such as tutoring, dog walking, personal training or event planning. For inspiration, take a look at Whitehead Weddings + Events . Founder Anna Katherine Whitehead has built an elegant service website that showcases work samples, package offerings and more.

Selling handmade items: If you’ve got a knack for creating homemade jewelry, artwork, décor or clothing, you have a business idea just waiting to launch. Follow the lead of businesses like Tach Clothing , whose online Wix storefront features handmade crocheted clothing inspired by vintage fashion.

Boring businesses : Don't be fooled by the way these business sound, boring means anything but. These ventures are typically businesses that offer products or services that are essential but may not have flashy or attention-grabbing qualities. Think accounting firms, insurance companies, waste management services or industrial manufacturers.

How a successful business owner turned selling handmade items into a $2M business

Six and a half years ago, Amanda Buhse was working a 9-to-5 job as a graphic designer. Her day job was exhausting so Buhse and her best friend, a nurse, decided to meet a few times a week to decompress over a glass of wine and make candles together. The hobby stuck. Buhse eventually turned those evenings melting wax and cutting wicks into a bustling business.

Now she’s the owner and chief creative officer of Coal and Canary , a Canada-based online luxury candle company. Her candles are sold all over North America and have even made it into the glamorous gift bags handed out to VIPs at the Oscar and Grammy Awards.

What started as a passionate side hustle is now a $2M business. You can read more about Amanda’s business story here .

Other business ideas to consider:

Business ideas for teens

Small town business ideas

Part-time business ideas

Scalable business ideas

Family business ideas

Craft business ideas

B2B business ideas

Rental business ideas

Beauty business ideas

Is starting a business worth it?

Yes, starting a business is worth it. Business ownership can be a profitable venture, providing financial stability and potential for growth. Moreover, for people like Amanda Buhse, it offers the opportunity to escape the confines of a 9-to-5 job that may not bring you happiness or fulfillment. By taking the leap into entrepreneurship, you can create your own path and shape your future on your own terms.

More popular business ideas to consider

How to start an online business

How to start a consulting business

How to start a fitness business

How to start a fitness clothing line

How to start a makeup line

How to start a candle business

How to start a clothing business

How to start an online boutique

How to start a t-shirt business

How to start a jewelry business

How to start a subscription box business

How to start a beauty business

How to start a photography business

How to start a food business

How to start an interior design business

How to start a rental property business

How to start a painting business

How to start a gym business

How to start a babysitting business

How to start a plumbing business

How to start a coaching business

How to start a finance business

02. Conduct market and competitor research

When your business is still in its earliest stages, doing market research is critical. This step helps you understand your target audience’s needs and preferences, allowing you to tailor your products or services accordingly. It also enables you to evaluate the competitive landscape, identify market gaps and make informed decisions. All of this increases your chances of success and mitigates risk.

When it comes to consumer behavior, there are two sets of research: primary and secondary.

Primary research: This is the direct study of your target market by researching them firsthand, such as by conducting user interviews or holding focus groups. You’ll want to define who your customers are and further segment your market by age, location, language, spending power or even stage of life (for example, college students, newlyweds or retirees).

Secondary research: This consists of gathering information from external sources. Conduct an online search or reference public agencies like the U.S. Bureau of Labor Statistics as a good starting point. Down the line, you might also find internal data just as useful. You can turn to your own sales reports and see what trends took off right under your nose.

This combination of primary and secondary research can help you create a thorough SWOT analysis , which is an insightful way to measure and evaluate your overall business outlook against your competitors. To do this, create a table with four quadrants, where you'll rank your business’ strengths, weaknesses, opportunities and threats.

Strengths: Identify the areas where your business stands out. Then, turn to your competitors and ask yourself, “How can I do what they do, but better?” Look at the products and services they offer to help you understand what attracts their customers, and use this as inspiration to improve your own business strategy and competitive advantage .

Weaknesses: Be honest with yourself here. Answer this question as directly as you can: What do customers complain about or dislike? This will let you narrow in on one topic at a time, as opposed to tackling something abstract like, “What is wrong within my company?”

Opportunities: Think about your business in terms of growth. Consider different ways to expand and tap into new spaces, like running seasonal events, taking on a green initiative or testing out trends.

Threats: Be cautious of any external factors that can affect your business in a negative way. It can range from market fluctuations to consumers who no longer express interest in your offerings.

Remember to play to your understanding of what a specific audience needs. Identifying a gap in the market, or having an idea to make an existing product is an important part of market research for starting a business.

How one entrepreneur translated her understanding of her target audience into business success

Raquel “Rocky” Harris knows a thing or two about kicking ass. She’s a five-time Muay Thai champion, Team USA gold medalist, Fight Camp trainer (that’s basically the Peloton of boxing) and, most recently, a thriving entrepreneur (see our guide on how to become an entrepreneur ). Harris now uses Wix eCommerce to sell a collection of wellness products to athletes like herself as the founder of Warm Up .

“I was making my own hand sanitizer and thought ‘Why don’t they have sanitizers that kill fungus?’” she says. “There are always breakouts in boxing gyms due to common skin infections like ringworms. Tea tree soap is anti-fungal, so I started adding it to my hand sanitizers, which eventually evolved into my sweat butters.”

She launched her first product line while training clients and creating Wix sites for her colleagues, all while moving across the country to shoot workouts for Fight Camp. You can read more about her business story here .

Is it easy to start a business?

Creating a business doesn't have to be difficult or intimidating. It can start with a simple but strong idea, like Raquel Harris' realization that hand sanitizers would be all the more useful if they killed fungus, especially in boxing rings.

Starting a business does require dedication, hard work and careful planning—there's no way around that. While it may not be easy, per se, with the right mindset, research, resources and tools like Wix, anyone can embark on the entrepreneurial journey. The rewards of building a successful business can truly be fulfilling and worthwhile.

Market segmentation - how to start a business

03. Pick a business name

Feeling satisfied with your business idea? The next step is to come up with a business name that will leave a strong first impression on potential clients.

You’ll want a name that’s catchy, memorable and scalable (i.e., is still relevant even if your business expands to new locations, niches or product offerings). If you need a little nudge, Wix’s free business name generator can help you brainstorm some ideas, or you can check out these best company names for further inspiration.

You’ll also want to make sure no one else has trademarked or registered your desired business name, which you can check via the U.S. Trademark Electronic Search System or with the Office of the Secretary of State for the state in which your business is located. And, remember you’ll eventually want to build a website for your business. Because your domain name will most likely be the same as your business name, make sure your desired name is available by doing a domain name search .

Learn more:

Small business name ideas

Tech business name ideas

Craft business name ideas

Clothing brand name ideas

Consulting business names

Marketing business names

eCommerce business names

Beauty business name ideas

Fitness business name ideas

Getting help from a business name generator to name a business

04. Write up a business plan

Another essential step when starting a business is to come up with an organized plan. At its core, a business plan is a document that serves as a roadmap for how to structure, operate and manage your new venture. It serves multiple purposes, like helping to attract investors, earning the trust of banks and outlining the cost of starting your business . You can use a business plan template to get your thoughts on paper. No matter how you get started, your business plan should include these components:

Executive summary : Give a high-level view of your business proposal or concept. If you were to make a professional elevator pitch (explaining your business in about a minute), you’d be reciting this bit aloud.

Company description: Include your company’s name, the names of your founders, your locations and your mission statement . Your mission statement should include core values, goals and your guarantee to provide clients with quality service or products. Take a look at these powerful mission statement examples to gather inspiration for your own.

Industry analysis: Provide research about your industry, such as small business trends and growth. When writing this section, think about how large your industry is and how it’s expected to evolve. You should also consider who your competitors are, and make note of their strengths and weaknesses.

Customer analysis: Describe your target audience and how you plan to reach them. Clearly state the needs of your customers and specify how your product or service will meet them.

Organization and management: Provide an overview of your business' organization and leadership, encompassing any founders, executives, board members, employees or important stakeholders. Creating a visual representation—like an organizational chart—can assist in presenting your company's structure effectively.

Service or product offerings: Create a list of your existing and upcoming products and services. If you're still developing your business idea, write a concept statement to outline your vision. Additionally, incorporate a proof of concept (POC) to showcase the viability of your idea.

Marketing and sales: Outline how your business concept actually translates into sales. Explain your marketing strategies and tactics, including plans for advertising, promotions, pricing, distribution channels and digital marketing efforts, along with planned consumer touchpoints (website, mobile app, retail store, etc.).

Financial projections: Estimate how much money will be coming in—or share any data around early sales. Investors want to see hard numbers to justify their risk. Include a sales forecast (based on industry and market trends), expenses , sunk costs , overhead costs , anticipated break-even point, expected accounts receivable, an estimated cash flow (derived from your sales forecast and expenses) and expected profits or losses.

Operational plan: Wrap up with an action plan. If you have a team, write down how each member will contribute to achieving your company’s SMART goals and objectives. Answer questions like “Is there a timeline?” and “What are the milestones you wish to accomplish?” For both, think in terms of years and quarters.

How choosing the right business model and establishing a clear business plan helped this online business succeed

Based in Oldbury, right in the heart of England, Andrew Darby, Faye Darby, Craig Pritchard and Terri Pritchard sold their first piece of jewelry in January 2019. Their story began with Wix eCommerce and a little inspiration from their spouses: “Our wives love jewelry, so we thought, ‘Let's do something mid-range and affordable. Nice pieces that last well.’"

For these new entrepreneurs, the key to starting their business off on the right foot was, in their own words, also their biggest challenge, “The biggest challenge was having a business model so to speak—or a blueprint and sticking to that blueprint. Eventually when we found our blueprint, we got ourselves out of trying to sell here, there, and everywhere.”

And for this business, it's worked. As of April 2022, Darby Pritchards had an annual returning customer rate of over 20%. Read more about how they started their business here .

Looking for a business plan for a specific business idea:

How to create a clothing line business plan

How to create a consultant business plan

How to create a photographer business plan

How to create a bookkeeping business plan

How to create a virtual assistant business plan

How to create a real estate business plan

How to create a restaurant business plan

How to create a plumbing business plan

Mission statement online - how to start a business

05. Choose a legal structure for your business

While there are different flavors of legal structures, choosing which one will best serve your needs is based on multiple factors, such as how much personal liability you want to have, taxes and business registration requirements. For example, a sole proprietorship is the easiest to file, but has the most personal liability. LLCs relieve you of many personal liabilities, but can come with hefty tax payments.

A great place to start is by reviewing your options via the U.S. Small Business Administration’s business structure breakdown .

The most common types of businesses or business entities in the U.S. include:

Sole proprietorship : This refers to a business owned by one individual who assumes all of its legal responsibility. Profits and losses from the business are reported on the owner's personal income tax return, and the owner is personally liable for any debts or legal issues that may arise, which could potentially put personal assets at risk.

Partnership : In this arrangement, two or more individuals or entities share ownership, responsibilities and profits. The partnership itself does not pay income tax; instead, the profits and losses "pass through" to the partners, who report them on their individual tax returns. Each partner is personally responsible for the debts and obligations of the partnership, which could potentially expose personal assets to business-related risks.

Corporations : This is a legal entity separate from its owners (shareholders) that can conduct business and incur liabilities in its own name. Corporations are subject to corporate income tax on profits, and its shareholders are generally not personally liable for the company's debts and legal obligations. If a corporation distributes dividends to its shareholders, they must pay personal income tax on these amounts. There are different types of corporations with varying legal implications, most notably C-corps and S-corps.

Limited Liability Company (LLC) : LLCs provide the limited liability protection of a corporation while allowing for the flexibility of a partnership. In terms of taxes, an LLC can choose to be taxed as a pass-through entity, where the profits and losses "pass through" to the owners' individual tax returns, or it can elect to be taxed as a corporation.

How do you know which one is right for you? We consulted with Shylene D’Addario, VP, associate general counsel with LegalZoom. Shylene offered the following insight:

"Sole proprietorships, partnerships, corporations and LLCs are the most popular kinds of business structures, according to the IRS. But what type is best for you and why?

A sole proprietorship is best suited to a business owned by an individual or couple that doesn’t have employees or significant contracts with landlords, suppliers or subcontractors.

A business with two or more owners that hasn’t established an entity is treated as a general partnership. General partners typically share the management of the business and its profits and losses but don’t have any protection against liability for their partners’ negligence, misconduct or internal disputes.

Limited Liability Companies (LLCs) provide their owners with protection against liability for company obligations. If your LLC can’t pay its debts or is unable to meet its obligations, only the business assets—and not personal assets—are at risk in a lawsuit. This flexibility and limited liability make LLCs a popular choice for small businesses of all types.

Corporations offer their owners (called 'shareholders') the same liability protection as LLCs. Corporations tend to have somewhat more complex recordkeeping and reporting requirements than LLCs, depending on the state in which you incorporate.

If you have additional questions about what kind of entity may be right for your needs, you can learn more on our website or LegalZoom can connect you with a business lawyer who can help advise you in this process."

Start an LLC with LegalZoom.

Do your research, and compare and contrast the advantages and disadvantages of the different business structures to find the right fit for you. A business lawyer can help advise you in this process, and the IRS’ guide to business structures can assist in evaluating tax implications.

What are the differences between starting a small business and an enterprise?

Starting an enterprise and starting a small business share some similarities but they differ greatly in scale, scope and goals.

Small businesses are typically, as the name suggests, small in scale. They often serve a local or niche market and have a limited number of employees. Enterprises are generally larger in scale, often with a broader geographic reach. They may have multiple locations and serve a larger customer base. Think a small, independent toy shop in a town versus a huge brand like Toys R us.

Small businesses are often owner-operated, where the owner is actively involved in day-to-day operations. Enterprises usually have a more complex ownership structure. They generally have multiple owners, shareholders and a board of directors. The owner's involvement in day-to-day operations can be limited, especially in larger enterprises.

Small businesses tend to offer a narrow range of products or services tailored to a specific customer base. They might focus on providing personalized, local solutions. Enterprises typically have a broader scope, offering a wide range of products or services. They often aim to capture a larger share of the market or diversify their offerings.

While small businesses can grow over time, they might not have aspirations for rapid or significant expansion. The primary goal may be to maintain a steady income or lifestyle. The primary goal of an enterprise is often rapid growth and scaling. They aim to expand their operations, market presence, and profitability.

06. Secure business capital and funding

The most common cause of startup failure is lack of financing (47%), according to a recent survey. Second to that is running out of cash (44%). Clearly, it’s never too early to start thinking about finances. You’ll need both sufficient capital and reliable cash flow to get your business off the ground.

Business funding can take many forms. From applying for grants and loans to reaching out to an angel investor or setting up a fundraising campaign, there are many different strategies here. Here are a few good ways to obtain capital:

Bootstrapping : This involves dipping into your own personal finances to fund your business. In some cases, the benefits of investing your own money may outweigh the challenges of having to depend on outsiders. This allows you to retain greater control over all aspects of your company, though you may face slower growth and potential personal risk.

Crowdfunding: This is a fast and easy way to share your ideas on a wide scale, get feedback and raise money at the same time. When choosing from one of the many crowdfunding sites available, consider the fees, terms and conditions of each, as well as the kind of audience they typically draw.

Small business grants: The biggest benefit of using grant money is that you won’t have to pay it back. A good place to begin looking for grants and eligibility is on the grants for community organizations page of the U.S. Small Business Administration website. Alternatively, you can check out private institutions that offer small business grants, including FedEx and the Second Service Foundation .

Credit cards: When used responsibly, credit cards can be a viable option for funding a new business. It’s advisable to open a business credit card just for this purpose; ideally one with a 0% introductory APR period and a rewards structure so you can earn cash back, credit statements or miles. This can also be a good way to build your business credit score, as long as you make on-time payments and keep a credit utilization of under 30% . You will need strong credit to obtain other types of financing.

Startup business loan : Small businesses can apply for loans from banks and other financial institutions through their offering of business banking services. First, you should know how much you need, and you should be able to demonstrate good reasons for it. Use the financial projections of your business plan to estimate an amount and determine the type of loan you need.

Business line of credit (LOC): This is a flexible loan that behaves similar to a credit card, letting you borrow and repay funds as needed. Business LOCs often have an annual income and time-in-business requirement, but new business owners may be able apply if they’re willing to put up collateral and have a good personal credit score ( over 670 ).

Angel investors: Often, angel investors are found through mutual contacts or even family members. That said, there are hundreds of other active high-net worth individuals who seed startups with their personal money, particularly in the early stages. You can check out Golden Seeds LLC (New York City) or Tech Coast Angels (Los Angeles) as just a few examples of angel investing firms who are involved in venture capital financing.

07. Register your business and make it official

Before you take your business out into the world, you’ll need to complete all the legal and formal paperwork. If you’re establishing a business in the U.S., your location and business structure will determine the steps you’ll need to take to register a business name .

Keep in mind that, according to the SBA , the benefits of registering your business include personal liability protection, legal and trademark protection, and tax benefits—all of which are crucial to the prosperity and expansion of any entrepreneurial operation .

Meanwhile, for those who are seeking to set up a business in the UK or EU , it's essential to familiarize yourself with the different requirements and rules for registering a business , relevant certifications and VAT.

how to start a business - register it in the us

How to start a business by state

How to start a business in Utah

How to start a business in Massachusetts

How to start a business in Oregon

How to start a business in Alabama

How to start a business in Missouri

How to start a business in Illinois

How to start a business in Maryland

How to start a business in Michigan

How to start a business in Connecticut

How to start a business in South Carolina

How to start a business in Tennessee

How to start a business in Minnesota

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start a business - what makes an entrepreneur friendly state

How these co-founders managed to register their business one step at a time

For Andrea Shubert, Co-founder of Strathcona Spirits when it came to registering their new business they found the following crucial:

"Don’t start with a 'no.' We didn’t think the distillery was going to happen because of all the red tape involved, but we kept applying for permits to do this or that. When they said yes, we thought: great, let’s move on to the next thing. The idea that everything is permitted is the best place to start from and just go from there.

And when you get a 'no,' which we definitely have a few times over the last five years, we typically dust ourselves off and continue on until we find our 'yes.'"

08. Apply for tax IDs, licenses and permits

As a registered U.S. business, you’re going to need to obtain your federal and state tax ID numbers , known as your employer identification number (EIN). This is how your business is recognized by the government when it comes to paying taxes on both the state and federal levels. Furthermore, you’ll need a tax ID number to hire employees, open a bank account and apply for relevant business licenses and permits.

Check your local government site to see what types of licenses and permits you might need to apply for. If your company’s activities are regulated by a federal agency, you’ll need a license (selling alcoholic beverages or broadcasting on public radio are two examples). You can review the SBA’s list of business requirements for federal licenses and permits for more information.

Applying for an EIN is free and you can do so online with the IRS’ EIN Assistant tool . That said, tax requirements vary by state. Visit your state’s website to check whether you need to get a state tax ID number to remain compliant. You'll also need to understand which IRS forms are relevant for your business, income statement , tax return process, income tax audit process and corporate tax payments, if any.

Taxes are a major responsibility for business owners, and that responsibility can vary significantly from business to business. According to Sabrina Papini, marketing director of eCommerce and marketplaces at Avalara , "A small business owner might be subjected to various types of taxes depending on their location, industry and business activities." Papini notes that in particular, business owners may be required to pay the following:

Sales tax: If your business sells goods or services to customers within a particular jurisdiction, you might need to collect and remit sales tax. The rate and regulations can vary based on the location and type of product or service sold.

State and local taxes: Depending on your business' location, there could be additional state and local taxes beyond sales tax. These could include business privilege taxes, property taxes, local business license fees and city-specific taxes.

Excise tax: Certain industries that deal with specific goods like alcohol, tobacco, fuel or other regulated products might be subject to excise taxes. These taxes are usually included in the product's price and are paid by the manufacturer, importer or distributor.

International taxes: The company could encounter various international taxes and fees if the business engages in international commerce. These may include value-added tax (VAT), goods and services tax (GST), customs duties or tariffs. If you're a U.S. business operating overseas, or a foreign business operating from the U.S., you should also check for any double taxation liabilities.

Tax considerations should be part of your operational plan from the beginning, Papini emphasizes. "[Using] automated tools, staying informed about tax changes and seeking professional guidance when necessary are critical strategies for managing tax and staying compliant with regulations . These steps will not only help protect your business from legal issues but also contribute to its growth and success."

09. Apply for business insurance

As a new small business owner, obtaining insurance is crucial to protect your venture from unforeseen risks and potential financial liabilities. Business insurance provides a safety net that can shield your assets and help your business stay afloat in case of accidents, lawsuits or other unexpected events.

When applying for insurance, you’ll want to first assess the nature of your business and identify the specific risks it may face. This includes any potential hazards, liabilities related to your products or services, and any potential lawsuits that might arise. Next, consider the coverage types that align with your business needs, such as general liability, professional liability, casualty or property insurance, etc.

A knowledgeable insurance broker can help you navigate the complexities of insurance policies and find the best rates and coverage options that fit your unique circumstances. Some types of insurance you might need to consider include:

Workers' compensation insurance: Mandatory in most states if you have employees, this insurance covers medical expenses and lost wages for employees who suffer work-related injuries or illnesses.

General liability insurance: This provides coverage for third-party bodily injury, property damage and related legal expenses resulting from accidents on your business premises or due to your products or services.

Professional liability insurance: Also known as “errors and omissions insurance,” this policy protects against claims of professional negligence, errors or omissions that may arise from providing professional services or advice.

Property insurance: This policy covers physical assets of the business, such as buildings, equipment, inventory and furniture against damage or loss from events like fire, theft or natural disasters.

Product liability insurance: This type of policy offers coverage for claims arising from injuries or property damage caused by a defective product sold by your business.

Business interruption insurance: If your business operations are interrupted due to a covered event, such as a fire or natural disaster, this will provide compensation for lost income and ongoing expenses.

Employment practices liability insurance (EPLI): An EPLI policy provides coverage for claims related to employment practices issues, such as wrongful termination, discrimination or harassment.

10. Organize your finances

Keeping a business running smoothly demands organized, detailed financials. As you put these systems in place, you’ll want to open a business bank account and consider how you’ll handle your business accounting.

Set up a business bank account

New small businesses should set up a business bank account for several reasons. First and foremost, separating your business finances from your personal finances is crucial for maintaining accurate and organized records. A dedicated business bank account enables you to track income, expenses and profits effectively, simplifying tax preparation and financial reporting.

Additionally, having a business bank account is usually required if you want a business loan or line of credit. It builds credibility with customers, peers and potential investors, as it demonstrates a professional approach to how you operate.

To open a business bank account, you’ll typically need to provide certain documents, including your business registration paperwork, employer identification number (EIN) or Social Security number (SSN). When setting up a business bank account, you’ll want to ask questions to make sure the bank can adequately handle your business needs. Make sure you ask about account fees, transaction limits, access to credit options and integration with financial accounting software to start.

Set up an accounting system

Having a meticulous bookkeeping system in place will help set your business up for success, especially when it comes to tracking expenses, paying taxes, managing invoices or handling payroll. There are a myriad of accounting apps and software options that can help you stay organized in this area, or you can hire a certified public accountant (CPA) to manage this for you.

With Wix, you can keep your books right from within the platform, eliminating the need for additional software and streamlining your workflow. You can manage customer invoices or product inventory directly from your website dashboard, or you can employ a number of accounting and payroll app integrations, such as QuickBooks and EasyTeam .

To fine tune your process, turn to this guide on small business accounting , which covers everything from creating financial statements to planning cash flow statements to managing balance sheets and more.

11. Brand your business

Building a brand is a vital part of understanding how to start a small business and shape a corporate identity . In a nutshell, branding is about creating a consistent voice, set of values and visual identity for your company. This can include everything from logo and brand colors to your company ethos, story and personality.

Brand visuals

When building your brand visuals, there are several key elements and assets you need to create to establish a cohesive visual identity:

Logo: A well-designed logo is the cornerstone of your brand visuals. It should be versatile, memorable and easily recognizable. You can get a professional design in minutes with Wix’s free logo maker .

Color palette: Choose a set of primary and secondary colors that reflect your brand's personality and evoke the desired emotions.

Typography: Select fonts that align with your brand's tone and are easy to read across different mediums.

Imagery: Decide on the type of images or illustrations that best represent your brand. This could include photography, illustrations or graphics.

Iconography: Create a set of custom icons or symbols that can be used consistently throughout your branding materials.

Website design: Ensure that your brand visuals and colors are integrated into your site design, including buttons, banners and overall layout.

Print materials: Consider how your brand visuals will translate to print materials like business cards, brochures and packaging. Not sure how to design a business card ? The Wix Business Card Maker can help you create a professional design in just six steps.

Email: Creating a business email takes just a handful of steps, and you can get a custom business email with Wix . Develop branded templates to maintain consistency in your online communications.

Brand story

According to Sitecore’s 2022 Brand Authenticity report, 70% of consumers want brands to connect with them on a more personal level. This is where your brand story comes into play.

Building a brand story is all about creating a compelling and authentic narrative that resonates with your target audience. Yaya Aaronsohn, head of brand maker at Wix, explains further. "At its core, branding hinges on trust—think of it as a relationship between two individuals: the customer and the brand, which represents the business. Within this relationship, authenticity plays a critical role. It builds trust and creates emotional bonds. It fosters consistency, engagement and reduces reputation risks."

A well-defined brand story can help you forge an emotional connection with customers, and should touch on your:

Origin story: Share the backstory of how and why your brand was created, including the challenges and inspirations that led to its inception.

Founder's journey: If applicable, humanize the brand by sharing the founder's personal journey and connection to the business.

Brand purpose: Clearly articulate the reason your brand exists, its core mission and the problem it aims to solve for its customers.

Brand values: Identify the guiding principles and values that drive your brand's decision-making and actions.

Evolution: Address how your brand has evolved over time and demonstrate your commitment to continuous improvement.

Brand voice

Brand voice establishes a consistent tone that reflects your personality and communication style. It further helps customers relate to the face behind the brand, which can translate directly to sales.

Your brand voice should remain consistent across all channels to reinforce your identity. Some key elements to include are:

Persona: Identify how you want to be perceived by your target audience and craft a tone that supports that identity.

Language: Use language that aligns with your chosen persona, such as authoritative, knowledgeable, down to earth or humorous.

Communication strategy: Set clear communication standards for how you’ll respond to customer comments, reviews, emails or phone calls.

12. Create a professional business website

Building a strong website and setting goals for your website is an absolute must when starting a business. For most prospective customers, investors and partners, your website will be their introduction to your business. It's a vital opportunity for you to create a positive first impression of your brand.

Expert advice from Amanda Buhse, Owner and Chief Creative Officer of Coal and Canary

"Something that I always heard growing up was that you could be the smallest fish in the sea, but if you have a professional website and branding, people will take you seriously. When I sent my website to potential retailers early on, we were making seven candles at a time out of my small kitchen. I think it goes to show that when you have a professional brand, the goals and dreams that you have are limitless." (Coal and Canary now produces more than 1,0000 hand-poured candles, a day from their 10,000 square foot warehouse.)

Learning how to make a business website is simple and doable for people of all skill levels. Follow the steps outlined below to get your online presence off the ground.

Ready to launch? Build a beautiful business website or eCommerce website today.

Find a business website template

Website builders make it easy to create a professional, well-designed website with a few clicks of the mouse. Wix offers more than 800 business templates , including more than 500 online store templates , encompassing everything from finance and fashion to crafts and consulting (and beyond).

To begin, simply choose a template and customize it to meet your needs. Alternatively, you can utilize Wix’s AI website builder tool, which translates information about your design and layout preferences into a professional website tailor-made to your needs—all in a matter of minutes.

If you need more inspiration, check out the best business websites of the past year.

Customize your tools and features

With the foundation of your website up and running, it’s time to fine-tune which tools and integrations you’ll use to help run your business.

Wix offers business owners a full assortment of native software solutions and built-in features that transform your site dashboard into a one-stop-shop for day-to-day operations. You can handle transactions with Wix Payments or Wix Point of Sale (POS) ; manage incoming payments with Wix Invoices ; schedule classes, workshops and appointments with Wix Bookings ; and even sell tickets with Wix Events & Tickets .

The Wix App Market offers hundreds of other third-party integrations that can help you manage payroll, expense tracking and more.

Choose a web host and domain name

After you’ve customized your template, you’re ready to move on to the next step: flipping the switch so that your site is visible to the public. This is a two-fold process.

First, you’ll need to pick a web hosting provider. Basically, this is just a tool that stores your website’s files so that they’re viewable online. Wix is the leading web hosting platform for small businesses , and it offers free website hosting that’s protected and reliable—complete with 24/7 security monitoring and integrated SSL certificates to keep your users safe.

Once you’ve selected a web host, you’ll need to connect your registered domain name to a hosting server. It will take a matter of minutes, but rest assured that when you purchase your website domain with Wix, you’ll also gain access to domain security and full customer support.

domain name search to choose domain and business name to start a business

Optimize your business website for SEO

When it comes to starting a business online, it’s essential to have some basic knowledge of search engine optimization (SEO). SEO is the process of optimizing web content to improve your site’s ranking for searches of specific keywords. Rebecca Tomasis, SEO expert for Wix Blogs, explains further. "The higher you rank in search, and the more keywords you rank for—the greater your visibility, traffic and potential for conversions or sales."

For example, if you sell organic baby items, you want to integrate exact phrases, like “eco baby products” and “natural baby toys,” into your site content. This improves your chances of showing up in search results when people type those phrases into the search bar.

You can use keyword research tools such as Google Keyword Planner, Ahrefs or Semrush (which has native integration with Wix ) to find terms to incorporate into your web content. You can also use the Wix SEO Hub as a resource for all things related to learning SEO.

Your overall SEO strategy should include the following:

Technical SEO: "Technical [SEO] involves elements such as your site speed, core web vitals, the site hierarchy and structure and navigation," Tomasis details. In other words, your website should, on a technical level, be responsive, quick to load (including on mobile) and easy for search engines to crawl. You should avoid things like dead links, duplicate content and large, slow-loading media files that can impact the user experience.

On-page optimization: Optimize your website's individual pages for the targeted keywords you’ve identified. Place the primary keyword in the page title, meta description, headings and content naturally.

High-quality content: Create high-quality, informative and engaging content that addresses the needs of your target audience. If you have a blog, well-written articles attract visitors and encourage them to spend more time on your site, signaling search engines about its relevance. "Make sure your content is helpful and answers the intent behind the search term as directly and as clearly as possible," says Tomasis. "Everything about the article—its structure, its data, its headings—should be optimized to meet the intent of the user searching."

Mobile-friendly design: Ensure your website is responsive and mobile-friendly. With the increasing number of mobile users, mobile optimization is crucial for SEO and user experience.

Local SEO: If your business serves a local audience, optimize for local SEO. Claim and optimize your Google My Business listing, ensure consistent NAP (name, address, phone) information across the web and encourage customer reviews.

13. Market and promote your business

Once you’ve launched your business and published your website, you can start building a small business marketing strategy that fuels business growth . A solid marketing strategy is essential for bringing in customers and taking your business to the next level. As Erin Shea, Senior Director of North America Marketing for VistaPrint shares, "Customers are the backbone of any successful small business and effective marketing is one of the best ways to build and sustain your community". According to Erin,

“Whether you’re engaging customers online or offline—remember that consistency is worth its weight in gold. A cohesive look to your marketing inspires confidence in your professionalism, builds credibility and strengthens customer rapport.”

Check out more of VistaPrint's 2024 marketing trends to help with your new business efforts.

Here are some of the most common marketing strategies to consider:

Paid advertising: By leveraging targeted advertisements, small businesses can reach a vast audience of potential customers who are actively searching for products or services related to their industry. Google Ads are particularly popular, letting businesses bid on relevant keywords, ensuring their ads appear prominently in search engine results. Wix users can manage Google Ad campaigns from their site dashboard, leaving one less external platform to worry about.

Social media marketing: Marketing on social media brings you massive exposure from diverse groups of people. Pick a platform that your target audience uses and maintain an active presence there. You can also implement paid social media marketing; for example, Wix users can boost sales with fully integrated Facebook and Instagram ads directly from their website builder.

Email marketing: A highly effective tactic, email marketing can promote your brand and build engagement . Using this method, you can reach customers directly, build a loyalty program and customize messages based on their individual interests. Wix users have access to a free email marketing tool with customizable templates, simple editing interface and advanced analytics.

Content marketing: This involves crafting and sharing valuable and relevant content in order to draw in your target audience. It can be done in a variety of ways, including publishing a blog, creating a podcast or making a YouTube channel. Use any of these outlets to share business updates, distribute relevant industry related news and build connections with potential customers.

Word of mouth: Positive word of mouth can give your brand's reputation and credibility a boost, increasing customer loyalty and customer acquisition. It’s a cost-effective strategy that can create a ripple effect, reaching a broader audience and generating organic growth for businesses.

Bear in mind that finding the right marketing strategy may take some time, experimentation and patience. But, Erin notes, consistency is key: "Whether you’re engaging customers online or offline, remember that consistency is worth its weight in gold. Even if you’re just starting out, try experimenting with different marketing tactics to see what works. As your sales grow, direct a greater portion of your revenue for your marketing budget and keep building.”

14. Build a team

As your business grows, it may be difficult for you to play multiple roles—which is where hiring employees and delegating tasks comes in. Even if you decide not to hire in-house staff, you may find yourself needing extra assistance from freelancers or independent contractors.

How to start a business FAQ

How do you start a business as a beginner.

To start a business as a beginner, follow these essential 14 steps:

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A journey of a thousand miles begins with a single step, but that step is far from easy. Every day, thousands of entrepreneurs around the world take the leap—but millions of would-be entrepreneurs don’t .

What’s keeping them from starting their entrepreneurial journey?

They don’t know where to begin, they don’t know how to start a startup, and they ultimately get stuck in endless Google rabbit holes reading the advice of “gurus” who’ve never actually done it before.

We often forget that the most successful entrepreneurs in the world all started the same way. They didn’t know what the first step was or what they had to do, but they managed to take it and become the amazing success stories they are today.

Don’t Skip: What You Can Learn from 7 Startups That Made It Big

At Foundr, we talk to successful entrepreneurs every day, and they continue to share the latest and greatest (proven) advice on starting a business. Below, we’ve compiled tips, workarounds, and know-how from 16+ founders (who’ve actually done it) on how to start a successful business.

Ready to start your startup? Take notes, and make it happen.

16+ Pieces of Golden Advice on How to Start a Startup

1. stop waiting for investors and capital.

Jaime Schmidt of Schmidt Naturals on the Foundr Podcast

Sit around waiting for the stars to align, and you may never reach your dreams. Jaime Schmidt knows from experience.

Schmidt had burned through 22 jobs in her career before starting her first business. She finally began Schmidt Naturals living off $35K in joint income with a brand-new baby. She would create her all-natural products at home and sell them at the local farmer’s market.

Schmidt had no investors, no capital, and no time—but she made it happen.

“We were strapped for cash constantly, but somehow we made it work,” says Schmidt. “I grew up with a very frugal mentality and upbringing…but you also have to be willing to spend money when you’re building a business.

“The trick is in knowing where: where to be frugal and where to be willing to spend.”

Schmidt went on to scale her brand from a raving farmer’s market community to a 9-figure exit in the space of 8 years.

Don’t sit around waiting for investors to believe in your idea—sometimes, you just have to run with it and do what you can with what you have. If it’s a good idea, the money will follow.

2. Be Persistent

Yoni Assia of eToro on the Foundr Podcast

In the end, you can’t do this alone. You need money, customers, advice, connections, and a break.

Yoni Assia knew this, and that’s why he badgered Warren Buffett and Justin Sun to get dinner with them.

“I started sending him emails, telegram, WhatsApp, bombarding him,” says Assia. “And after a while, he said, ‘Oh, let me think about it.’

That persistence led to a dinner with Warren Buffett, and that persistence is what helped scale his business to $5.5 million in revenue during its first year of operation.

“Find something you believe in and be persistent in getting what you want. Be open with others—don’t try to be secretive. Tell people about what you want to do. That’s the only way ideas can actually grow—through dialogue and brainstorm with more people.”

3. Try, Try Again

Jon Oringer of Shutterstock on the Foundr Podcast

You’ll rarely get it right the first time. Be prepared to work hard, do your best, and start it all over again from scratch.

It wasn’t until Jon Oringer launched his 10th company that he found the success he was looking for—but he didn’t expect Shutterstock to be the one to stand out from the crowd.

“Each were teaching me something different,” says Oringer. “I was making progress. It felt like I was getting somewhere, and [the startups] weren’t all complete failures. They sold hundreds of thousands of dollars a year in sales, but I was looking for that bigger company.”

“I was trying to figure out how I could build something really big.”

You might not hit it big the first time, the second time, or even the ninth time, but stick with it—the worthwhile one will eventually come around.

4. Find the Problem, Create the Solution

Gail Becker of Caulipower on the Foundr Podcast

There’s nothing wrong with chasing the green, but your startup ultimately needs to solve a need . Customers have problems, and it’s your job to create a product or service that helps.

Often, entrepreneurs find valuable solutions to their own problems. That was the case for Gail Becker, founder of CAULIPOWER.

“I’m the mom of two boys with celiac disease, and I got really frustrated, and you could definitely say CAULIPOWER was born out of a frustration of waiting,” says Becker.

“I got really tired and frustrated with seeing what the industry was putting in gluten-free food.”

You don’t even necessarily need to create a brand-new product. Becker didn’t.

“I stumbled across cauliflower crust pizza on the internet. I didn’t invent it. The day I looked, there were 569,000 recipes. I picked one. I couldn’t even tell you which one I picked.”

After spending 90 minutes making the cauliflower crust, Becker knew she couldn’t be the only exhausted mom out there. She quit her corporate job, launched CAULIPOWER, and hit $100M in sales in just 3 years.

Find the problem, and create the solution. It can even be your own problem.

5. Place a Financial Wager on Yourself

Nathan chan 200th foundr podcast episode

If you’re not willing to put money on yourself, who else will? If you believe in an idea, make the sacrifices to make it happen.

Not willing to invest your savings into your startup idea? Find a new idea. When the idea is right, putting money behind it won’t feel like a make-or-break risk.

“Foundr began because I saw a gap in the market,” says Nathan Chan, Founder and CEO of Foundr.

“There wasn’t a digital magazine producing content for young aspiring and novice-stage entrepreneurs and startup founders, and I wanted to fill that.”

“My first step in starting Foundr was placing a financial wager on myself. To start Foundr Magazine, it required publishing software to produce the magazine and app. I placed $2,000 on the back of my personal card to start the app. This was money I didn’t have and also the money I definitely didn’t want to waste.”

6. Make Sacrifices

The life of an entrepreneur isn’t glamorous, especially in the early days. Successful founders might be depicted as drinking endless martinis on white-sand beaches as they rake in cash, but that’s not the whole story.

In the beginning, it takes a lot of sacrifices . Take Leila Janah, Founder and CEO of Samasource, for example.

“I love reflecting on the early days because there I was at 25 years old, sleeping on a friend’s futon, eating Top Ramen (a mentor of mine actually sent me $20 a month via PayPal for what he called a “Protein Fund”), trying to convince Silicon Valley investors to give me money for this bold idea I had of giving work to marginalized people as a means to solve global poverty,” says Janah.

Fast forward to today, Samasource has moved over 33,000 people over the poverty line in East Africa, India, and Haiti.

The early days of your startup will likely be filled with similar experiences. Embrace them, and let them shape you.

7. Ignore the Naysayers

You’re going to have doubters. Others won’t want you to quit your 9-to-5. They’ll tell you you’re crazy or you’re not cut out for this.

To become a successful entrepreneur, you’ll need to block out the negativity, absorb constructive feedback, and forge ahead.

Darrell Wade, Co-Founder and CEO of Intrepid Travel, saw a gap in the marketplace between organized tours and adventurous backpacking outings. A friend and Wade hit on the idea of small groups, experienced leaders, and off-the-beaten-path itineraries.

They created a paper-based MVP outlining what the trip would look like to run it past a few experts in the travel industry. They wanted to know if it would work.

“They all said we’d fail. Having never been one for market research anyway, we pressed ahead and launched anyway.”

“We got a few sales, validated the model, invested every cent we could scrounge up, and then went hungry for a while,” says Wade. “It certainly was not an overnight success, but we took 47 travelers to Thailand in our first year, and that was just enough for us to have a second year.

Now, Intrepid Travel takes hundreds of thousands of travelers to over 120 countries every year.

You’ll have doubters and naysayers on your journey, too. They could be your co-workers, friends, industry experts, lenders, investors, or even your mom. Do your research , block out the negativity, and do what you think is right.

8. Just Get Started

There’s always more to learn, and you’ll never feel 100% ready to launch your startup. Learn as you go.

“The best piece of advice I can give is: just get started,” says Melanie Perkins, Co-Founder and CEO of Canva. “If I realized how much I would need to know before I started, I probably would have been too terrified to get going.

“I’m a big believer in just-in-time learning, and we’ve learned a lot as Canva grew, and we’ll continue to keep learning as we grow.”

After just 2 years, Melanie Perkin’s Canva had 8 million users, a $233M valuation, and a team of rockstar investors. She didn’t know everything from the get-go, and you don’t need to, either.

You could read every article on our website, listen to every podcast, and watch every course—but you’ll eventually need to take a leap. Don’t wait. Just get started.

9. Build Trust and a Network

Invest in building a network you can trust. Start early—as in now. You might need a co-founder, employees, or a connection to the right person.

These are invaluable assets that money can’t buy. You have to put in the time and effort to build genuine relationships.

James Beshare, CEO of Tilt, attributes much of his platform’s success to his network.

“To do anything of consequence, you’ve got to have both trust and a network. Everything else can come from that. Investment, refinement of an idea, co-founders, first recruits, all can come from building trust and a network—one is useless without the other. Even at a young age, start proactively investing in both.”

Building a network doesn’t mean you have to register for every upcoming conference and become a schmoozer. However, you do need to be intentional about reaching out, building friends, giving, and taking.

Don’t wait until you need help to start building your network—it’ll be too late and ingenuine. Start now .

10. Validate, Validate, Validate

You don’t have a good idea until you find customers willing to pay for it. Once you’ve got an MVP, put it in front of customers. Even if you don’t have an actual product or service yet, test your audience to see if they’ll get out their wallets or click the “Buy Now” button.

If they do, then you’re on to something. If they just say it’s a “good idea” but don’t put their money where their mouth is, then there’s a good chance the rest of your audience will too.

“My first step was to find 10 people willing to pay my asking price (at the time, it was $99/month),” says Rob Walling, Co-Founder of Drip. “Once I had verbal commitments from 10 people who wanted Drip, we put up a landing page and started building an interest list and broke ground on the code.”

Walling essentially did a double validation—a verbal validation to confirm it was worth his time to create a landing page and a landing page to confirm he should start getting to work on the code.

Validate your ideas before you get too into the weeds. You don’t want to invest too much time, money, or passion into a project that’s not going to work.

11. Protect Your Equity

Vishen Lakhiani foundr podcast interview

VC funding is not free cash. You’re often trading valuable equity in exchange for (relatively) small funds.

Debt may seem more intimidating, but you ultimately pay back your debts. When you give up equity to investors or even partners, you lose it for good.

Vishen Lakhiani, Founder and CEO of Mindvalley, was very intentional with his startup. When he set out to build Mindvalley, he paid an old high school friend 2,000 Ringgit to build the first website—he didn’t trade equity to get started.

“Be very careful with whom you share equity,” says Lakhiani.

“Your equity is your future wealth. Do not give it away too freely. Do not underestimate your own abilities.”

12. Know Your Customers

Get to know your customers on a deep level. Understand their wants, needs, fears, and desires. The more you know about your customers, the better you’ll be able to build and market your products and services.

To learn more straight from the mouths of her potential customers, Georgina Nelson, Founder and CEO of truRating, took to the streets.

“I had no idea at the beginning whether my dream could actually become a reality or would make any money, so the very first thing I did was walk the streets and speak to those people who might buy the truRating product,” says Nelson. “After we had proven that it was technically possible, I reached out for investment.”

Launch market research, run surveys, and interview customers to learn more about their wants and needs. In the end, it doesn’t matter what you want the product to look like—it matters what they want.

Ask for honest feedback, and don’t get defensive. Listen. What are the recurring themes? What are the needs?

12. The Customer is Your Boss

Kendra Scott, founder and CEO of the self-titled jewelry empire , discovered that her strength as a leader is her connection with the customer. It’s why she still walks the floor of her stores, capturing that nightclub energy that defines the Kendra Scott brand.

“My first and only job here is to make sure that she [the customer] is the boss,” Scott says.

“You have to keep exceeding those expectations for your customer.”

Being a college dropout and failed business owner never defined her legacy. But these experiences are part of Scott’s motivation to fulfill her childhood dream of making the world a better place through fashion.

“It doesn’t matter where you come from, and it doesn’t matter what you’re told you should do or how your path should look,” Scott says. “Focus on building the best business you can build, and everything else will follow.”

13. Trust Your Gut

The biggest lesson Suneera Madhani learned in her career happened when she met with her board following the first term sheet offer.

“It was a s***show of a board meeting,” Madhani says. The investors had reduced their initial $17 million offer to $12 million. “If you’re negotiating with one party, you’re negotiating with yourself.”

But the board still wanted to take the deal.

“I said, ‘You guys just invested in this business. What has changed in the last six weeks that you’re ready to take this minimal offer just incrementally more than you invested in?’”

Madhani didn’t back down. She relied on what she describes as her “three minds”—analytical, heart, and gut.

“I need all three to make the decisions, and when one isn’t feeling right, I have to trust that.”

Shortly following the rejection of the bid, she received another term sheet for $50 million. It was a private equity deal that bought out their initial investors—the boardroom naysayers—and exited them 18 times their investment.

“Your intuition is the most powerful tool you have, [so] use it and don’t discount it and listen to it.”

To date, Stax has raised $500 million in capital and is growing triple digits year-over-year. In March of 2022, Stax officially became a unicorn startup with a valuation of more than $1 billion.

How Her Rejected Pitch Led to a Billion-Dollar Startup

14. Don’t Forget What Really Matters

Your business might be your baby, but don’t forget the things that really matter to you: family, friends, experiences, hobbies, and passions. You can love your business and invest your heart and soul into it, but don’t take yourself too seriously.

Work hard, seek contribution, play hard for success, but don’t forget the big things that matter,” says Nick Molnar, Co-Founder and CEO of Afterpay. “While I have made mistakes—we all do—I have a beautiful wife and amazing parents, and that makes me happy and proud.”

15. Give Back

According to Mike Evans, founder of food delivery company Grubhub, greed comes from a couple of places as businesses become successful. When you start a business, there are grand ideas about success, but you’re worried first about building a product for customers. As success comes, Evans says founders easily forget the value that brought them there.

“If you change the way a million people do something in just a slight way and you make a little bit of a profit from it, you’ll become crazy rich,” Evans says. “It’s so easy to forget that’s not the point.”

To prevent greed from overwhelming your business, Evans provides two solutions. First is focusing on customers and continuing to provide them value. The second is philanthropy.

“The only defense against becoming a rich asshole is to start giving [away] money quickly,” Evans says. “Wealth can very easily change a person, and not for the better.”

How to be Successful, Without Being Greedy | Mike Evans of Grubhub

How to Start a Startup FAQs?

What makes a successful startup.

Ah, yes, if there were a perfect answer to that question, every startup would eventually be trading on the stock exchange. Unfortunately, the reality is that your startup will likely fail. You need to start a startup for the right reason—not fame and wealth but to solve a problem that will help people at scale. Begin with solving a problem. It's the best way to start a startup that survives and hopefully thrives.

What mistakes should I avoid when starting a startup?

The most common mistake of startups is creating a business that doesn't solve a problem or fill a need. In addition, we see mistakes stem from picking a co-founder with poor communication skills, not finding a product-market fit, and focusing too much on fundraising instead of serving the customer.

How do I navigate the challenges of starting a startup?

If you plan to commit to a long-term entrepreneurship lifestyle, you must obsess over your self-development as much as your startup. With an unhealthy founder at the helm, most startups lose momentum or collapse from within. Leading a startup isn't a typical job. You need to focus on taking care of yourself first to tackle the daily challenges you'll face in your business.

Keep Learning How to Start a Startup

Get started. It’s that simple. Learn the basics, and get to work.

We can help. We have a catalog of free trainings to help you with every aspect of starting and growing your business. Here’s a taste of what you can learn:

Find a Business Partner Who’ll Help (Not Hurt) Your Business
Business Startup Costs Checklist
How to Write a Business Plan
How to Find the Right Product Market Fit for Your Startup

There’s all that and more when you sign up for Foundr+ . Check it out to learn everything you need to know to launch your startup.

About Jesse Sumrak

Jesse Sumrak is a writing zealot focused on creating killer content. He’s spent almost a decade writing about startup, marketing, and entrepreneurship topics, having built and sold his own post-apocalyptic fitness bootstrapped business. A writer by day and a peak bagger by night (and early early morning), you can usually find Jesse preparing for the apocalypse on a precipitous peak somewhere in the Rocky Mountains of Colorado.

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How to Write a Business Plan for Your Startup

Anyone can have a great idea. But turning an idea into a viable business is a different ballgame.

You may think you’re ready to launch a startup company . That’s great news, and you should be excited about it.

Before you start seeking legal advice, renting office space, or forming an LLC, you need to put your thoughts on paper. This will help you stay organized and focused.

You’ll also be able to share this plan with others to help you get valuable feedback. We don’t recommend starting a company without consulting people first.

A typical business plan consists of the following elements:

An executive summary
A company description
Market research
Descriptions of products and/or services
The management and operational structure
Marketing and sales strategy

Thoroughly writing out your plan accomplishes several things.

Save your business plan progress in one place across all the document apps you use.

First, it gives you a much better understanding of your business. You may think you know what you’re talking about, but putting it on paper will truly make you an expert.

Writing a formal plan increases your chances of success by 16%.

Having a business plan also gives you a better chance of raising capital for your startup company. No banks or investors will give you a dollar if you don’t have a solid business plan.

Plus, companies with business plans also see higher growth rates than those without a plan.

If you have an idea for a startup company but not sure how to get started with a business plan, we can help you out. We will show you how to write different elements of your business plan and provide some helpful tips along the way.

8 Steps to Write a Business Plan

Here’s what you need to know to get started.

Make sure your company has a clear objective
Identify your target market
Analyze your competition
Budget accordingly
Identify your goals and financial projections
Clearly define the power structure
Discuss your marketing plan
Keep it short and professional

Step 1 – Make sure your company has a clear objective

When writing a company description, make sure it’s not ambiguous.

“We’re going to sell stuff”

isn’t going to cut it.

Instead, identify who you are and when you plan on going into business. State what kinds of products or services you’ll be offering and in what industry.

Where will this business operate? Be clear whether you’ll have a physical store, operate online, or both. Is your company local, regional, national, or international?

Your company description can also incorporate your mission statement.

This is an opportunity for you to gain a better understanding of your startup. The company summary forces you to set clear objectives. The type of company you have and how you will operate should be obvious to anyone who reads it.

Include the reasons for going into business. For example, let’s say you’re opening a restaurant. A reason for opening could be that you identified that no other restaurants in the area serve the cuisine you specialize in.

You can briefly discuss the vision and future of your startup company, but you don’t need to go into too much detail. You’ll cover that in greater depth as you write the rest of your business plan.

Keep in mind, this description is a summary, so there’s no reason for you to write a ton. This section should be pretty concise and no more than three or four paragraphs.

Step 2 – Identify your target market

Your business isn’t for everyone. Although you may think everyone will love your idea, that’s not a viable business strategy.

One of the first steps to launching a successful business is clearly identifying the target market of your startup .

But to find out whom you’ll target, you need to conduct market research .

This is arguably the most important part of launching a startup company. If there’s no market for your business, the company will fail. It’s as simple as that.

All too often we see entrepreneurs rush into a decision because they fall in love with an idea. Due to this tunnel vision, they don’t take the necessary steps to conduct the proper research.

Sadly, those businesses don’t last.

But if you take the time to write a business plan, you may discover there’s not a viable market for your startup before it’s too late. It’s much better to learn this information in these preliminary stages than after you’ve dumped a ton of money into your venture.

To figure out your target market, start with broad assumptions and slowly narrow it down. Typically, the best way to segment your audience is using these four categories:

demographic
psychographic

Start with things like:

income level

As we said earlier, start broadly. For example, you may start by saying your target market lives in North America, and then narrow it down to the United States.

But as you continue going through your market research, you can get even more specific. You can target customers living in New England, for example.

By the time you’re finished, the target market could look something like this:

ages 26 to 40
living in the Boston area
with an annual income of $55,000-$70,000
who are into recycling

This profile encompasses all four demographic segments we mentioned earlier. Plus, it’s very specific.

Your business plan should talk about the research you conducted to identify this market. Talk about the data you collected from surveys and interviews .

You’ll use this target market in other sections of the business plan as well when you discuss future projections and your marketing strategy. We’ll cover both of those topics shortly.

Step 3 – Analyze your competition

In addition to researching your target market, you need to conduct a competitive analysis as well. You’ll use this information to create your brand differentiation strategy .

When you’re writing a business plan, your startup doesn’t exist yet. Nobody knows about you. Don’t expect to be successful if you’re planning to launch a competitor’s carbon copy.

Customers won’t have a reason to switch to your brand if it’s the same as the company they already know and trust.

How will you separate yourself from the crowd?

Your differentiation strategy could involve your price and quality. If your prices are significantly lower, that can be your niche in the industry. If you have superior quality, there is a market for that as well.

Competitive analysis should be conducted simultaneously with identifying your target audience. Both of these fall under the market research category of your business plan.

Once you figure out who your competitors are, it will be easier to determine how your company will be different from them. But this information will be based on your target market.

For example, let’s say you’re in the clothing industry. Your competitors will depend on your target market. If you’re planning to sell jeans for $50, you won’t be competing with designer brands selling jeans for $750.

Or you can base your price differentiation on what you learned about your target market. From there, you’ll be able to identify your competitors.

As you can see, the two go hand in hand.

Step 4 – Budget accordingly

You need to have all your numbers in order when you’re writing a business plan, especially if you’re planning on securing investment funding.

Figure out exactly how much money you need to start the business and stay operational; otherwise, you’ll run out of money.

The top 20 reasons startups fail infographic

Running out of cash is one of the most common reasons why startup companies fail. Taking the time to sort your budget out before you launch will minimize that risk.

Consider everything. Start with the basics like:

equipment costs
property (buying or leasing)

Here’s an example of what this will look like in your business plan:

These numbers need to be accurate. When in doubt, estimate higher. Things don’t always go according to plan.

In the example above, although the total startup expenses are less than $28k, it may not be a bad idea to raise $40k or even $50k. That way, you’d have some extra cash in the bank in case something comes up.

You don’t want poor budgeting to be the reason for your startup’s failure.

Step 5 – Identify your goals and financial projections

Let’s continue talking about your financials. Obviously, you won’t have any income statements, balance sheets, cash flow reports, or other accounting documents if you’re not fully operational.

However, you can still make projections. You can base these projections on the total population of the target market in your area and what percentage of that market you think you can penetrate.

If you have an expansion strategy in mind, this would also be outlined in your financial projections.

These projections should cover the first three to five years of your startup. Make sure they are reasonable. Don’t just say you’ll make $10 million in your first year. In fact, your company may not be even profitable for the first couple of years.

As long as you’re being honest with yourself and potential investors, your financial plan will cover your break-even analysis.

While it’s reasonable to expect your sales revenue to increase each year, you still need to take all factors into consideration.

For example, if you’re planning to expand to a new location in year four, your financial projections need to be adjusted accordingly.

You may not be profitable until your third year of operation, but if you’re opening a new facility in year four, that year may have a net loss as well. Again, this is completely fine as long as you’re planning and budgeting accordingly.

Another example of a goal could be launching an ecommerce store in addition to your brick-and-mortar locations. Just don’t try to bite off more than you can chew. Keep everything within reason.

Step 6 – Clearly define the power structure

Your business plan should also cover the organizational structure of your startup. If it’s a small company with just you and maybe one or two business partners, this should be easy.

But depending on how you’re planning to scale the company, it’s best to get this sorted out sooner rather than later. Here’s an example of what your organizational chart may look like:

It’s really important to have this hierarchy in place before you get started. That way, there’s no debate over who reports to which position. It’s clear who is in charge of specific people and departments.

Don’t get too complex with this.

If you put too many layers of managers, directors, and supervisors between the top of the chart and the bottom of the chart, things can get confusing.

You don’t want any instructions or assignments to get lost in translation between levels. You also don’t want anyone to be confused about who is in charge.

This is an opportunity for you to outline how your company will operate in terms of board members and investors. Who has the final say in decisions?

While we understand you may need to give up some equity in your startup to get off the ground, we recommend keeping the power in your hands.

Step 7 – Discuss your marketing plan

Your marketing plan relies on everything else we’ve talked about so far.

How will you acquire customers based on the market research of your target audience and competitive analysis?

This strategy needs to be aligned with your budget and financial projections as well.

We could sit here and talk about different marketing strategies all day. But there’s no right or wrong way to approach this for your startup company.

Our recommendation would be to stay as cost-effective as possible. Be versatile and well-balanced too.

Acquiring customers is expensive. You don’t want to dump your entire marketing budget into one strategy. If it doesn’t work, you’ve got nothing to fall back on.

Take these categories into consideration when you’re coming up with a marketing plan:

Before you try anything too crazy, get the basics sorted out first:

launch a website
stay active on social media platforms
start building an email subscriber list
focus on customer retention
come up with customer loyalty programs.

Don’t ease into this one step at a time. Come out fast. Even before your company officially launches, you can start building your website and social media profiles.

The last thing you want is for consumers to find out about your brand but then be unable to find your website or contact information. Or worse, get directed to a website that’s broken or unfinished.

Step 8 – Keep it short and professional

We’ve talked about many different components of your business plan. It may sound overwhelming, but don’t be alarmed.

This shouldn’t be a 100-page dissertation.

You definitely want it to be detailed and thorough, but don’t go overboard. There’s no exact number of pages it should be, but have at least one page per section.

It should also be written cleanly and professionally. Don’t use slang terminology.

Proofread it for grammatical and spelling errors.

Remember, you may need to use this to raise capital. People may be hesitant to give you money if you overlook the small stuff like proper grammar.

Launching a startup company is exciting. It’s easy to get so caught up in the moment that you rush into things.

If you want to set yourself up for success, you need to take a step back and plan things out.

Going through the process of writing a formal business plan will increase your chances of securing an investment and also improve your potential growth rate.

The market research you’ll need to conduct in order to write this plan will also help you determine whether this is a viable business venture to proceed with.

If you’ve never written a business plan, use this post as a guide for what you should include. Follow our tips for best practices.

Writing a business plan may seem like a tedious task right now, but we promise it will keep you organized and save you lots of headaches down the road.

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How to Start a Startup in 10 Steps (2024 Guide)

How To Guides
How to Start a Startup in 2024

Last Updated: March 14, 2024 By TRUiC Team

Startups are businesses created with rapid growth in mind that shake up their industry and challenge the status quo. If you’re a self-motivated, passionate, creative, and adaptable person with a great idea; you might be made for entrepreneurship.

Learn how to launch your own business with our step-by-step guide on how to start a startup in 2024 . From business planning to marketing, we share the top tips and strategies to help entrepreneurs reach success.

Recommended: Firstbase offers the tools you need to launch and grow your company — all in one platform. Incorporate your startup with Firstbase ($399 one-time fee) .

Learn how to start a startup in 10 steps.

10 Steps to Create a Startup

Are you ready to launch your own successful startup company in 2024? Keep reading or use the links below to find a specific section in our startup guide.

1. Assess Your Entrepreneurial Skills

2. develop your startup idea, 3. create your startup roadmap, 4. build your founding team, 5. formally establish your startup, 6. get startup funding, 7. set up accounting for your startup.

8. Establish Your Startup's Brand

9. Hire a Team

10. launch and scale your startup.

Launching a startup is not for the weak at heart.

Starting and growing any business takes dedication . Launching a startup company takes even more.

Although there are numerous types of entrepreneurs, there are a number of common characteristics often attributed to startup founders. Some of the most important entrepreneur characteristics are passion , creativity , motivation , and self-discipline . Entrepreneurs also have to be adaptable , observant , and willing to take risks .

Other common characteristics often attributed to entrepreneurs include:

Self-discipline
Willing to take risks

A keen sense of the industry’s problems and challenges acquired through industry experience can give you and your venture a competitive edge. However, not every startup CEO has a technical background or experience to pull from. Many successful entrepreneurs simply have the vision and foundational skills to run a company, and they hire qualified employees to fill the gaps in their skillset.

Recommended: Are you ready to create a startup and become an entrepreneur? Take the Entrepreneurship Quiz to find out! You can also visit the Startup Savant podcast to gain insights and advice from founders themselves.

Listen to our latest founder interview to learn more about what it takes to launch your own startup!

If you are looking for startup ideas , one of the first places to begin your search is by looking at what you already know. Keep in mind, however, you are not limited to your current skill set. For example, there are many tech startup founders that are non-technical.

Most often, startup ideas are developed from solving a problem. Whether it is a problem you personally struggle with or one you have identified that could use an alternate solution, forming your startup’s product or service around an identified problem can help you not only develop your minimum viable product (MVP) , it can also help you find your target market before you get started.

Analyze the Industry Landscape and Develop Your Idea

Before you launch a startup, analyzing the state of the industry landscape, including the:

Funding environment
Market size
Competitive landscape
Market structure
Market size and demographics
Projected growth

The goal of doing this is to establish whether there is ample opportunity within the industry to support your entrepreneurial goals. You can dive deeper into the process by reading our comprehensive guide on conducting market research .

Validate Your Idea

Now that you’ve got a basic understanding of your industry, competitors, and the industry’s projected growth, your next step is to validate your startup idea and solidify your MVP .

There are a few ways to validate your idea:

Conduct interviews with customers you think might buy this product. Ideally, you will be able to use this insight to refine your unique value proposition (UVP) or target audience , if necessary.
Use tools and software available to discover, organize, and learn from industry and market data. Some popular tools are Statistica , Think With Google , and KNIME .
Utilize startup incubators , startup accelerators , or online startup communities to network with other entrepreneurs that can help with brainstorming and fine-tuning startup ideas.
Establish the product-market fit and, in turn, market validation.

Recommended: Looking for more inspiration to help you launch your company? Check out our list of the top startups to watch !

Whether you begin with an informal or formal business plan, the process of writing your business plans down requires you to think through all of the key elements of your company such as industry, market, and competitive position.

There are many different types of business plans, depending on the stage of your venture and the purpose of your plan. In the earliest stages of your business idea, you may want to start with an informal business plan such as:

Business model canvas : Visualization of the key aspects of your venture, including customers, value proposition, infrastructure, revenue models, and cost models.
Lean canvas : An adaption of the business model canvas. Visualizes your problem, solution, customers, value proposition, key performance indicators, and competitive advantage.

However, once you are ready to begin seeking investments, you will most likely be required to provide a formal business plan to lenders and potential investors.

Create a Pitch Deck

Before you secure funding as an early stage startup, there are a few things you need to have in place to increase the likelihood that your pitch is successful, whether you’re reaching out to angel investors or attempting to acquire a small business loan . The most important being your pitch deck . Crafting a compelling story is essential not only to the success of your startup but also to creating an impactful pitch deck.

A startup’s pitch deck should include the following;

An introduction to your startup
Examples of problems or issues your venture aims to solve
Examples of the solutions your product or service provides
The size of the market and opportunity
A clear description of your startup’s product or service
An outline of the projected growth, major goals, and future steps
An introduction to your core team members
Define your competitors and establish your competitive advantage
Prove your financial planning and management ability
A description of how investment funds will be used and why you need them

Find Co-Founders

Startups with two founders are 19% less likely to scale prematurely than startups with a solo founder. Research shows that aspiring entrepreneurs launching a startup without a cofounder take 3.6 times longer to see significant growth — enough to outgrow the startup stage.

Despite these statistics, not all startup owners need a co-founder to be successful in their journey. Bringing on co-founders is all about filling important gaps to ensure all of the company’s needs are met, such as:

Skills gaps
Leadership experience
Industry Knowledge gaps
Startup experience
Fundraising experience
Personality gaps

If you do choose to bring on a co-founder , you need to have a founders’ agreement . This document outlines all expectations now and in the future.

Hire a Lawyer if Needed

The next step is learning how to find a great lawyer for your startup . Not only will a lawyer be essential in ensuring that your startup is legally formed without a hitch, they can help ensure that your business stays compliant if you plan to implement customized vesting schedules or share allocations.

Network Network Network

Networking is one of the most impactful tools for startup entrepreneurs to grow and support their businesses. There are many different networking resources available to entrepreneurs, such as startup incubators , networking events , and local entrepreneur communities to make connections.

To develop the most impactful networking strategy, you need to connect with a wide range of people, such as:

Fellow entrepreneurs or founders
Advisors or mentors
Potential customers
Industry Leaders
Investors (e.g., venture capitalists or angel investors )
Members of your local startup community
Training programs
Hackerspaces and makerspaces
Online communities

Name Your Startup

Naming your startup is a very important consideration. Choosing an optimal name depends on the type of business, industry, and target audience.

Once you have chosen a name, you will need to ensure that the name you choose is not already in use and that the domain name is available. You can do this by searching the web, Federal Trademark Records , and your state’s Secretary of State website (or equivalent state department).

You can also search GoDaddy for available domain names:

Find a Domain Now

If the name you were hoping to use is already in use, you will have to come up with another. If you end up having trouble coming up with a name, here are a few tools that might help:

How to Name a Startup : TRUiC’s How to Name a Startup guide discusses how to choose a name for your startup, register your startup’s name, and find a domain name for your business.
Startup Name Generator : TRUiC's free Startup Name Generator makes selecting a unique startup name simple — just enter a couple of keywords and your industry.

Choose a Business Structure

One of the first things you will need to do to establish your startup as an actual business is to choose your business structure (i.e., the legal form of your startup).

These are the main types of legal structures for startup ventures:

Sole proprietorships and General Partnerships : informal business structures . In informal legal structures, the startup is considered an extension of the owners, and the owners bear the tax and liability burdens of the business.
Limited liability companies (LLCs) and Corporation s: two primary types of formal business structures . These forms of legal structures require registering your venture with the state as an independent entity. Because the venture is an independent entity from its owners, formal legal structures provide liability protection for the owners and unique tax benefits for the business.

Choosing the legal structure of your startup , in part, depends on:

Whether you are launching your startup alone or with co-founders
The stage and growth plans of the venture.

The most popular corporate structure for startups with aspirations of high growth is the c corporation. This is because most investors prefer C corporations . A C corporation (C corp) has investor-friendly taxation rules, simple transfers of ownership, and natural exit strategies, and many angel investors and venture capitalists will not invest in ventures that are not incorporated.

For more information on establishing your business as a formal legal entity, read our comprehensive guide, How to Incorporate a Startup .

Considering Using an Incorporation Service?

Hiring a professional service will help simplify the formation process for you. Click below to check out our review of the best online incorporation services for startups!

Best Incorporation Services

Choose a Location

While some locations such as Silicon Valley have become synonymous with startup culture, generally the best location to start your startup is the state you’re already located in. Starting a business in a state other than the one you’re located in requires more complicated paperwork and complex tax requirements. However, if you’re thinking of starting a startup in another state, some states are more business-friendly than others.

For example, many founders choose to incorporate their startups in Delaware due to their immense business-friendly policies. Startups that form in Delaware are able to do business in other states and therefore bypass the state income tax — a huge tax advantage for any business. However, this isn’t the case in every state. We recommend consulting with a tax professional or attorney before deciding to do business in another state.

Choose your state from the list below to read more on starting a startup in your state:

Connecticut
Massachusetts
Mississippi
New Hampshire
North Carolina
North Dakota
Pennsylvania
Rhode Island
South Carolina
South Dakota
Washington D.C.
West Virginia

If you’ve chosen a physical location for your startup and understand the laws, regulations, and potential benefits of the state you’ll reside in, it’s time to start searching for office space. We'll help you decide the right office space for your startup based on the stage your company is at, its needs, and the many types of office spaces available with this guide to selecting and leasing a startup office .

If your venture is primarily run online, especially when it comes to ecommerce, your business website is most likely the lifeblood of your company. If you don’t currently have a website, consider building one or having one built for you. You can read more about business websites and their role in your startup’s branding in Step 8 below.

Create a Founder Employment Agreement and Vesting Agreement

Startup owners aren’t typically bound by severance agreements that would be applicable to other employees. Instead, founder employment agreements represent the legal agreement between the founder and company.

A vesting agreement is an agreement between the company and a shareholder (typically an employee) that provides restrictions for the shareholder’s ownership of the company. In short, the employee will not be granted their share until the vesting requirements are satisfied.

Formalize Advisory Agreement

If you choose to involve startup advisors and equity is involved in the relationship, you will need to also formalize an advisory agreement . Essentially, this means that all the requirements and stipulations of the relationship between your company and the advisor are outlined including terms of equity and confidentiality.

Advisors can be especially helpful during the beginning stages of startup ownership if you aren’t fully confident in a specific aspect of business ownership, such as legal and compliance requirements, marketing , or manufacturing.

Looking for startup advisors? For high-scale startups, investors (venture capitalists or angel investors, typically) are often great startup advisors. However, if you’re launching a business that doesn’t have high growth in mind, you can find startup advisors through resources such as SCORE or the Small Business Development Center (SBDC) in your area.

Create Cap Table and Issue Shares/Certificates

A capitalization table , otherwise known as a cap table , is a document (such as a spreadsheet) that outlines the equity capitalization of your startup company. The cap table outlines your startup company’s securities (e.g., stocks, warrants, certificates, etc.), who owns each security, and the percentage of ownership they have.

Next, you will want to issue shares or certificates of your company to each party based on the cap table you’ve created.

Establish Corporate Governance

Corporate governance is essentially the rules, regulations, and guiding principles that govern a company. Not only does the corporate governance provide much-needed structure to help the startup obtain its goals and objectives, it balances the needs of each company participant. From shareholders to employees and the community, corporate governance ensures every need is balanced and met.

Appoint a Registered Agent

A registered agent is an individual or entity who will receive documents and other legal communications on behalf of your startup. Most states require every business to designate a registered agent when forming a corporation or LLC.

We recommend hiring a professional registered agent service to help you stay compliant with the law and provide you with peace of mind.

Register Your Business with the IRS

It is recommended that one of the first things you should do is register your business with the IRS by obtaining an Employer Identification Number (EIN) . An EIN is the IRS’ way to identify a business.

There are several reasons you may need an EIN for your business:

EINs are required for many business structures such as corporations, partnerships, and multi-member LLCs.
EINs are also required if you have any employees.
Most banks require you to have an EIN to open a business bank account .

You can apply for an EIN for free on the IRS website or by mail, by fax, or by phone.

Register Your Business for Sales Tax

Depending on the nature of your product or service and the state you live in, you may need to collect a sales tax .

Sales tax, or "Sales and Use Tax," is a tax charged by states, counties, and municipalities on the sale of certain taxable goods or services. Each state, and certain counties and municipalities, has its own set of rules and rates on what is taxable within that jurisdiction.

Check with your state’s Department of Revenue (or equivalent state department) as well as your local tax office to find out what you are required to collect sales tax on in your state.

Obtain Licenses and Permits

In addition to registering your business, you will likely need to obtain a number of licenses and permits from your local, state, and federal government.

Federal Permits and Licenses

If your business falls under the regulation of any federal agency, you will likely need to obtain the appropriate permits from that agency. These include commercial activities in:

Agriculture
Alcoholic Beverages
Firearms, Ammunition, and Explosives
Fish and Wildlife
Commercial Fisheries
Maritime Transportation
Mining and Drilling
Nuclear Energy
Radio and TV Broadcasting
Transportation and Logistics

For more information on federal licensing, visit the Federal Licenses and Permits page on the sba.gov website.

State Permits and Licenses

Most businesses are required to file for a permit or license to operate legally within their state. The permits and licenses you may need vary widely by state and type of business.

To find out more about the permits and licenses in your state, use TRUiC’s Business License guide to find business license resources for your state.

Local Permits and Licenses

Most businesses will need some kind of local license or permit to legally conduct business within their town, city, or county. These may include anything from occupancy permits and food and beverage permits to special permits and licenses for signage, lighting, and noise.

You will need to check with your local county clerk’s office about the types of licenses and permits required.

Get Insurance for Your Startup

Most startups will need business insurance in one form or another. Some forms of insurance , such as worker’s compensation or unemployment insurance, may be required by your state. Other forms of insurance may be optional but are important to protect you and your company from disaster.

To learn more about the types of insurance you may need, or search for our specific guides on startup insurance recommendations in over 650 types of small businesses, make sure to read our Business Insurance guide.

Protect your startup in just a few minutes with Next Insurance. Get an online quote .

Protect Intellectual Property (IP)

Protecting your startup’s competitive advantage means you need to obtain the proper patents , copyrights , and trademarks to ensure your intellectual property (IP) is protected. By registering ownership of intellectual property, you mitigate the risk of competitors utilizing the ideas, designs, or concepts that are protected.

Furthermore, developing a Founder Intellectual Property Assignment Agreement essentially transfers the founder’s IP rights to the company, allowing the startup to utilize the IP while still maintaining its protection. Since founders are typically also shareholders in the company, they still benefit financially from their IP.

Startups often need capital to cover their initial expenses until they become profitable, and they need to raise money again to expand , grow , build inventory , and even get through slow seasons .

When planning your business , you should determine what types of business funding options your company will need and when. You need to be completely aware of startup costs and your financials and financial projections before seeking outside funding.

Recommended: A business bank account will boost your startup's credibility and show potential investors that you're prepared for growth. Open an account with Mercury today and earn a $200 bonus when you deposit $10,000 or more.

The most common types of business funding are:

Bootstrapping
Friends and Family Loans
Business Loans
Business Credit Cards
Business Grants
Angel and Venture Capital Investors
Crowdfunding

Keep in mind, your company will require different funding sources during different stages of development. For example, during the seed stage , bootstrapping or friends and family loans may be the best funding choice. However, as your startup becomes more established and reaches the growth stage , a venture capitalist or angel investor are more likely to want to invest.

That isn’t the only factor you need to consider, however. The type of startup you’re operating also plays an important role in determining the right funding source.

Business accounting is an important (and required) aspect of operating a startup. Accounting allows you to:

Know how you are performing financially
Track benchmarks and goals
Know how much your startup is worth.

In addition to serving legal and tax-related purposes, you also need an accounting system in place to accept payments, pay your employees, and manage your startup’s finances.

There are a number of options for handling your business accounting, including hiring an in-house accountant, hiring a bookkeeper, using a payroll service , or using accounting software .

Recommended: Schedule a consultation with a business accountant today to find out how much time and money your company could save on tax, payroll, and bookkeeping services.

8. Establish Your Startup's Brand

Just because you build an awesome product, service, or experience does not mean that customers are going to show up at your door. To generate a successful startup, make sure to build your brand identity .

Design a Logo

One of the first things you will need to do is to design a logo for your brand to begin building awareness and recognition. A well-designed logo helps people to identify and remember your brand and builds trust.

Try our free logo maker to generate thousands of professional, high-resolution, downloadable logo options for no charge. You can also find alternatives by reading our review of the Best Logo Makers .

Build a Business Website

Every legitimate company needs a website . And sooner than later, your startup is going to need its own website too.

If you have never built a website before, don’t worry. It is easier than ever, and TRUiC’s How to Build a Business Website guide walks you through it.

When choosing a website builder , there are many to choose from depending on your needs. Website builders offer a multitude of features, functions, abilities, and applications based on your company’s needs.

One thing to keep in mind when designing and writing content for your website is your search engine optimization strategy. Search engine optimization (SEO) is the process of increasing your website traffic (and your brand) by designing your site and content to rank higher in search engine results.

Recommended: Build your startup website today with GoDaddy .

Establish a Social Media Presence

In addition to building a website , you will also likely need a social media presence to establish your brand identity and grow your startup. Social media provides a way to reach, connect, and engage with customers and potential clients.

The most popular social media platforms include Facebook, YouTube, Instagram, TikTok, Snapchat, Twitter, LinkedIn , and Pinterest. However, additional platforms such as Yelp, Reddit, and Quora all have large followings of niche users.

To learn more about establishing your startup’s presence on social media, feel free to read our guide, How to Improve Your Startup's Social Media Strategy .

Looking to save time on startup marketing? Check out Arrow for affordable, AI-powered social media automation.

Distribute Press Releases

Another way to let people know about your startup is by creating your own publicity by writing press releases .

A press release is an official statement by your company written by you and distributed to the press to provide public knowledge and promote your brand.

Of course, you can hire professional press release writers or press release distribution services such as Sitetrail .

A company is only as strong as its team. Building a team that is passionate about what your company does, skilled at their jobs, and trustworthy is vital to the success of your startup.

To begin, startups typically need to fill the following roles:

Chief Executive Officer (CEO)
Chief Operating Officer (COO)
Marketing Director
Product Developer or Engineer
Head of Sales
Customer Service Representative

But, before you can hire for these essential roles, you need to solidify your startup mission statement to accurately describe your company’s purpose and values. Additionally, learning to write effective job descriptions helps parse out candidates that may not be a great fit for the role by providing them with accurate information about the job and your company.

Finding Talent

Once you’ve established the roles you need filled, the next step is to work towards finding the right candidates to make up your team. A few common methods for finding talented candidates to choose from are:

Word-of-Mouth Recruiting
Online Job Boards
Recruitment Agencies
Internal Hiring

Recommended: Find freelance talent with Fiverr .

Additionally, it can be beneficial during the hiring process to amplify your job offer by offering incentives such as stock options to employees. This is most common for venture capital-funded startups and has the potential to not only build brand loyalty but also provide the team with an incentive to work actively to propel the company forward.

Employer Legal Requirements

The next step is to register for employment taxes . On the federal level, you will need to register for FICA Tax , commonly known as payroll taxes or withholding tax .

Additionally, every state has different tax requirements for employers, but many states require employers to pay some version of unemployment insurance (UI) tax as well as workers’ compensation insurance .

You’ll also need to create an employment agreement , a legal document that outlines the agreement you are making with your new employee. Inside your employment contract, you will include agreements that are applicable to your company as well as applicable policies surrounding the termination of the agreement, reimbursement of expenses, disputes, company clients, and anything else that pertains to your startup.

Here are a few agreements that you may want to consider including in your employment contract:

Confidentiality Agreements
Services Agreements
Compensation Agreements
Non-Compete Agreements

Set Up Payroll

How will you pay your employees? Setting up an effective payroll system or service for your company ensures that employees are paid on time and that the appropriate taxes are paid and documented for tax season.

Generally, we recommend startups utilize payroll software like Gusto to streamline this process and get their employees paid worry-free.

Company Culture

Startup companies are known for their emphasis on company culture . Before you build a team, you need to ask yourself, “what kind of company ethos do I want to create?” This should be the basis for the personality types and values you look for in potential employees.

A strong set of company values sets the tone for the startup’s success by providing a foundation for the team’s purpose, motivation, and attitude. It can also contribute to better employee morale and retention .

The work doesn’t end at launch or after your first sale. You will then need to focus on carrying out your plan, keeping up with industry trends, and growing your business. This will require dedication, perseverance, and the willingness to seize opportunities to grow.

These opportunities might include expanding to new regions, seeking additional target consumers, or expanding your product or service offerings.

Opportunities for growth also might come along in the form of innovation, quality improvement, customer-focused development, and streamlining your business model .

Or, opportunities for growth might include internal growth factors such as building your entrepreneurial network, growing your team , and building a strong company culture.

Boost Your Startup Marketing

When you have a solid marketing plan, you’ll know exactly who your target customers are, what marketing channels you’ll use to reach them, and the exact strategy your company wishes to follow in order to boost your customer base.

A marketing plan should be the foundation of your startup’s marketing efforts and is intended to be the “guiding light” for your marketing strategy.

To begin, take note of all of your company's business-critical goals and what you’ll focus on in the near term. Ideally, you’ll want to make these SMART goals:

Time-Bound

Once your goals have been identified, figure out who your target buyers are and what kind of compelling message you’ll use to draw your potential customers in. Having a clear, compelling message is critical in order to grab your future buyer’s attention.

After completing those initial steps, your team can begin implementing your marketing strategy and focusing on the marketing channels you believe will generate the largest return on investment (ROI). This can be content marketing, online advertising, PR campaigns, social media campaigns, and more.

Marketing Channels

Choosing the right marketing channels for your startup can be challenging, but once you identify which channels bring in the best return on your investment, you’ll be able to leverage these channels further and scale up your marketing efforts.

Here are some popular startup marketing channels:

Social Media: Whether through paid advertising or regular content publishing, social media is a great way to promote your startup’s products and services. Some examples of popular platforms to utilize are Facebook, Instagram, Twitter, TikTok, and LinkedIn.
Affiliate Marketing: Using affiliate marketing to sell more of your products and services is a great way to establish yourself as a trusted brand quickly. The first step is to compile a list of marketing materials that affiliates can use for their promotions, such as digital ads, emails , or landing pages.
Loyalty Programs, Deals, and Coupons: A great way to bring customers back to your business and get repeat sales. If one of your past customers loved your brand and the products or services you provided them in the past, a coupon or deal might tip them over the edge and bring them back.
Sponsored Events: Sponsored events are another excellent strategy when it comes to getting your business in front of potential customers. Aligning yourself with events that are related to your company and getting your brand out there can pay dividends further down the road.

Create a Strategy to Motivate Growth

While growth can happen organically, you are more likely to reach your startup’s desired objectives if you create a strategy for growth. This means, once you’ve captured initial customers, expand your reach beyond early adopters and existing customers to establish a sustainable growth trajectory that includes tactics for both profitable and sustainable growth.

Start by asking yourself the following questions:

If you plan to raise more funds in the future, what milestones will you need to hit in order to justify a new round of funding?
How long will it take to get to the stage wherein you will need another funding round?
What kind of “ burn rate ” is rational for your startup's expected growth and current operation needs?

Additionally, you will need to work toward not only understanding but improving unit economics such as:

Payback period
Customer retention rate
Lifetime customer value (LCV)
Customer acquisition cost (CAC)

These unit economics can be measured by channel, customer segment, and product line. By developing strong measurements to better track and understand this data, you’ll be able to more easily develop strategies to grow your customer base and product line as needed.

Startup vs. small business: What is the difference?

The fundamental difference between a startup and a small business is longevity. Generally, while small businesses are focused on sustained growth, startups tend to focus on gross revenue and rapid growth since this is a temporary business model. Learn how to start a small business by reading our guide.

What is a lean startup?

This is a methodology developed by Eric Ries that tests the viability of a startup company or product through experimentation and hypothesis testing. This method is based on gauging the interest of customers to produce a product or service with a built-in market.

Why do many startups fail?

Many startups fail due to a lack of market need for their product/service, running out of cash flow, having the wrong team without requisite experience, fierce competition from established players, pricing/cost issues, lack of a viable business model, and poor marketing efforts that prevent them from effectively reaching customers and gaining traction.

About the Author

The TRUiC Team

TRUiC’s team of researchers, writers, and editors dedicate hours to ensure startupsavant.com’s articles are actionable and accessible for both startup founders and startup enthusiasts. From launching a startup to growing your venture, you can trust that our information is an up-to-date and reliable source.

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Eight Steps To Creating A Successful Startup Business Plan

By Candice Georgiadis

Candice Georgiadis

Creating a business plan is one of the first steps toward success as an entrepreneur. A well-crafted business plan can help you secure funding, attract customers and establish your brand. While there’s no single blueprint for creating a perfect business plan, there are some essential steps that all entrepreneurs should follow. This article will walk you through the eight essential steps to creating a successful startup business plan.

Create A Company Overview

When creating a startup business plan, the first step is to develop a company overview. This includes identifying the unique value proposition of your startup, defining the potential market and outlining your competitive advantage. It should also include details about your startup’s organizational structure, any partnerships or investors and financial goals.

Define Your Business, Products And Services

Defining your business, products and services is a crucial step in creating a successful startup business plan. Keep it simple and to the point: What is your company’s purpose? What products or services do you offer? How are you different from your competitors? Once you have clearly defined these elements for yourself, it can be much easier to create specific goals and strategies for success.

Establish Your Goals And Objectives

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Next, determine specific, measurable, attainable, relevant and time-bound ( SMART ) objectives that align with your mission statement and long-term goals. It is also helpful to identify any potential obstacles or challenges in achieving these goals, as well as create action steps to overcome them.

Detail Your Financial Projections

When it comes to creating a successful startup business plan, financial projections are essential. This includes analyzing your startup’s expenses, projecting revenue and forecasting cash flow. It is important to be realistic and conservative in your estimates, as well as provide justification for any major assumptions.

Investors will also want to see how your startup plans to bring in revenue and reach profitability. A thorough financial plan can give investors confidence in your startup’s ability to succeed financially. It is also important to regularly review and update your financial projections throughout the life of your startup, adjusting based on any changes in the market or within the company itself.

Describe The Competitive Landscape

It is crucial to understand your competitive landscape. This means identifying both direct and indirect competitors, as well as analyzing their strengths and weaknesses. This information can help guide your own strategy and position in the market.

5 Traps to Avoid as a Startup Founder

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When creating a startup business plan, it is essential to accurately describe how funding will be used. This includes not only giving an overall breakdown of allocated expenses but also providing justification for each expense and explaining how it directly contributes to the success and growth of the startup. Furthermore, it is important to be able to demonstrate flexibility in the allocation of funds, showing that the startup team can respond nimbly to unexpected changes or opportunities.

Finally, potential investors want assurance that their funds will be used judiciously and responsibly, with a clear eye toward profitability and long-term sustainability. In sum, implementing a thorough and well-thought-out funding strategy in a startup business plan can not only secure funding from investors but also set the groundwork for future success.

Explain Your Marketing And Sales Strategy

When creating a startup business plan, it’s important to develop a clear and effective marketing and sales strategy . This means defining your target market, identifying their needs and pain points and positioning your product or service as the solution. It also involves determining how you will reach your target audience through channels such as advertising, public relations and events.

Additionally, having a solid understanding of your competition can help inform your pricing strategy and differentiators. Developing a proactive approach to sales is also crucial—this could include setting sales goals and establishing processes for lead generation and conversion.

Designate A Management Team And Advisory Board

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When selecting individuals for the management team, look for those who complement each other’s skill sets and have a passion for your product or service. As for the advisory board, aim to bring on industry leaders or successful entrepreneurs who can offer valuable insights and advice.

Creating a successful startup business plan is no easy feat. However, by following the steps outlined above, you can give your startup the best chance for success. From conducting competitive research to developing a marketing and sales strategy, each step is crucial in creating a solid foundation for your business. By taking the time to create a well-thought-out business plan, you’ll be setting your startup up for long-term success.

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Starting a Business! From Idea to Launch

Preparatory steps are needed in order for a startup to be successful.

Starting a business is very difficult. It requires a lot of planning and forethought before you leap.

This Guide is for the aspiring business owner and entrepreneur for the purpose of spuring thinking and investigation that will lead to the creation of a business plan followed by the business launch.

Once the decision has been made to go forward, there are very basic steps to setting up a business that formalizes the creation of the business and makes it operational which is addressed in a related article.

Personal & Professional Assessment of an Aspiring Entrepreneur and Small Business Owner

Starting up a business is very stressful and demanding. Therefore, being able to apply prior experience is important. By conducting a self-assessment of strengths and weaknesses, an entrepreneur is better prepared to meet the challenges as they arise.

The following offers the key points about personal and professional self-assessments:

Personal Self-Assessment as Leadup to Starting a Business

Pursue Self-awareness : Reflect on your attributes, values, goals, relationships, and life experiences. As the prospective leader of a new business, it is important to have the self-confidence necessary to engage with a broad range of people. Personal values are also important when interacting with employees, business partners, and customers.

Seek out Insight from others: Seek out friends, family, co-workers, and mentors who may offer insight about your strengths and the areas needing improvement. Request situations where they had an opportunity to observe your actions. Don’t decide to start a business in isolation.
Remain Committed: Starting up a business and running it day in and day out for many years requires an unrelenting commitment to achieve success. Consider events or circumstances in the past when you persevered to attain something important. Having had prior tests of fire will help you overcome hard-to-solve challenges along your entrepreneurial journey.
Leverage Passion: Most entrepreneurs advise others who want to start a business to choose one that evokes passion. Passion is what empowers you to survive the ups and downs of starting and growing a business. While passion provides self-motivation, it also serves to attract talent and investors to the venture.
Build Relationships : Because an entrepreneur typically spends a lot of their time working alone, particularly during the startup period, they must seek out and build relationships that are important for long-term success.

When facing the challenges of starting a business, a founder needs to be resourceful—and that includes having a network of contacts who are supportive and available to help. Relationships may occur with potential employees, mentors, consultants, suppliers, and customers. Along your entrepreneurial journey, you may never know when a prior contact becomes valuable to your business building.

Find the networking arenas that align with your industry and entrepreneurial passion. Seek out industry associations, taking advantage of community events such as conferences, workshops, training opportunities, and more.

Focus on Time Management : Since owning a business is a 24/7 endeavor, being able to efficiently manage one’s time is critical for success. Take a look at your management skills in terms of prioritizing tasks, the ability to set and meet goals, and how well you delegate lower-skill tasks to others—all of these areas add up to effective ways to move a business forward with less stress.

One may never have all of the skills necessary to be successful in starting a business, but identifying and acknowledging areas of weakness may lead to the p ursuit of a founding partner or to search out organizations that assist with skill building.

Entrepreneurial Personality Traits : While there is no proven formula to predict who will be a successful entrepreneur, some traits common to entrepreneurs have been identified. They are passionate, resilient, strongly focused, risk-taking, decisive, and adaptable. How do you match up?

Personality tests for entrepreneurs are available such as a free one offered by Psychology Today , titled “ Can you be an entrepreneur?” or a fee-based one offered by T he Enneagram Institute .

2. Professional Skill Assessment and Development

When beginning the startup journey it is very helpful to have gained skills that can be readily applied to the new business. But, also important, is knowing where to access top resources to help start a business that can be tapped to progress the business more quickly.

Assess Your Professional Skills: Take an inventory of existing skills that can be used when starting up a business apply to a startup that includes sales, marketing, operations, financing, human resources, hiring, communication networking, problem-solving, and more. Problem-solving is a very valuable skill for starting and growing a business because it is used almost every day once you decide to go down the startup path.

If you are missing a skill, research ways to fill in that gap. Seek out professional organizations in your industry, attend training sessions at local workshops, go back to your college for outreach programs they may offer, or seek outside talent such as consultants or part-time employees who fill a gap—without having to establish a full-time position.

Online tests are also available for skills assessment offered by several companies such as Coursera, Udemy, L inkedIn Learning , and others.

Possibly the greatest insight about being an entrepreneur is that it is a commitment to ongoing learning.

Financial Readiness: Many startups fail because the founder has underestimated the amount of capital needed to reach sufficient revenue and/or profitability.

Before starting up, conduct a full review of your financial health and assets. Most startups will require ongoing capital investment for years, while generating little to no income. Inventory your savings, learn your credit score, and familiarize yourself with basic financial and investment vehicles such as bank loans, grants, and investor funding.

If you have a low credit score, work to improve it in anticipation of one day needing outside financing. Seek out financial advice because it takes time to improve a score. Assistance can be obtained from companies such as Credit Karma, myFico and others.

Education and Training: Many universities and colleges offer degrees or certificates in entrepreneurship. Not only do they provide coursework and training, but some offer venture funding and mentoring.

Centers of Entrepreneurship often host workshops, conferences, competitions, and online training courses. Many of these activities draw in professionals from the local entrepreneurial community to foster networking.

Mentorship: Having access to someone with much greater experience is of tremendous value to a first-time entrepreneur. Mentors can provide situational insight during tough challenges, make introductions to others and bring to the venture a range of skills and experiences to fill gaps when one is starting a business through its growth stage.

Seek out a mentor who is an entrepreneur or someone who is involved in entrepreneurship such as those affiliated with universities or outreach programs .

3. Evaluating a Business Idea and Choosing the Right Business Model

Evaluating a potential business idea and the associated business model requires a lot of work. The following areas should be explored to determine the feasibility of the business under consideration will become sustainable and profitable.

The most important fundamental question is whether or not the founding entrepreneur has the right skills to take on the business model they choose to pursue. If not, finding a business partner may be needed.

Matching skills to the requirements of a business model may be accomplished thoroughly through the preparation of a business plan. An interim step to this is the validation of the startup idea.

Validate the Startup Idea

When starting a business the following preliminary steps will help validate the startup idea and the associated business model.

There are two types of startups: replicative and innovative. The former is a business model that has already been proven such as a computer repair shop or a restaurant, enabling the founder to follow what others have done to be successful. In contrast, an innovative startup must establish a business model or develop and introduce a product that has yet to be proven. The latter entails a lot more risk and other factors to succeed.

Is your idea to start a business a replicative model or an innovative model? Establishing a computer repair business may be validated through online research of already existing businesses or by speaking with former or current owners to learn their experience and gain their advice. The aspiring founder may also survey potential customers and analyze industry trends to reach a satisfactory validation.

However, validating a new innovative product or service is generally more difficult because the innovation occurs in the absence of a similar existing product and solution for comparison. Validation may be made by speaking with experts, doing surveys, creating a prototype for potential customers to use, and more. This last point leads to the use of a Minimum Viable Product (MVP) to assess a new innovation.

Build a Minimum Viable Product (MVP)

Specifically in the case of the development and introduction of an innovative product/service, constructing an MVP can save a lot of time and money when starting a business. This is achieved by testing the intended product or service without making the expensive commitment to full production.

Once a prototype of an innovative product or service is made, test it with a number of prospective customers who agree to provide critical insight about its value to their business, as well as the price they would be willing to pay. Very often changes need to be made to the innovation after conducting an MVP that better meets the needs of customers and is then brought to market at the right price.

Through the use of an MVP, one may learn that there is no market for the product or service at all and the idea should be abandoned. Another insight might be that the company is unable to make the product or service at a price that is profitable to the company. MVP testing provides an enormous amount of insight on a relatively small budget, potentially saving a tremendous amount of money.

Know your Value Proposition

Every company has competition in some form that must be fought with better prices, quality, and service. This is known as the Value Proposition—-the benefits offered to customers that give them something of value in return for payment. Knowing the Value Proposition is key to establishing a marketing strategy that distinguishes a company from its competition.

Every startup founder should know how the quality, delivery and price of their products/services stand up against the competition when deciding to start up a business.

Conduct Market & Industry Research:

When you are considering the startup of a business, market and industry research should be done to assess the potential of the business. Assess the target market which includes the size of the market, the customers’ needs, and if possible, the acquisition cost per customer for your product or service.

Given that AI and digital technology are now quickly altering competitive landscapes, look at industry trends to gain some insight and assurance that your prospective model is not being challenged by a new trend. That may occur as a result of a technology innovation or changes in customer preferences.

Seek to identify the pain points in the industry and the target market that can be monetized. Then, build a strategy behind your assessment that will be part of your business plan.

Assess Risk

Businesses face a broad range of risks that must be managed to minimize its impact and potential liability to the company. Inside the business, maintaining proper human resources policies lessens the possibility of a lawsuit, while insurance is taken to limit cost of fires and natural disasters.

Of particular concern are the growing risks associated with climate change—necessitating steps such as maintaining a Disaster Recovery Plan which establishes how the technology within the company and associated business processes are to be readily re-constructed in the event of destruction from a natural disaster.

The 9/11 terror attacks brought to the forefront the need for redundant networks and equipment and for the establishment of remote locations in the event, there is widespread destruction of the primary operations of the company.

Many risks are specific to an industry, so at a minimum, know industry standards for what will be required to set up the business operations, and how much it will cost.

Sales and Marketing Drive a Business:

Sales channels and sales cycles differ by industry. In addition, the digital economy is transforming almost all businesses, requiring them to have a strategy for online sales and online marketing. For the business idea and model being considered, identify and evaluate the various ways to grow s ales and the role that digital technology now has in a business for it to compete.

When a starting a business as a single founder, carefully review if the individual possesses the sales skills and training for solely taking on the enormous challenge of bringing in customers and executing all aspects of business development.

Marketing strategies vary greatly by industry, so inventorying the marketing efforts associated with your business is a start—making sure that digital marketing is included. E stablishing a brand, knowing marketing influencers , and identifying current trends are all part of a solid marketing plan.

The sales and marketing plans are key components of a business plan.

Value Customer Service

Customer service can also be viewed as customer retention. Providing attentive services to existing customers, supports the sales and operations of the business. Consider a checklist that includes sound policies and procedures, and ways to assess customer satisfaction such as surveys and training of personnel to meet high standards set by the company.

Maintain Technology Proficiency

Since the digital economy is transforming businesses around the world, the assessment of the role of digital technology in a business is critical. Most technologies require an investment that may add significantly to startup costs. However, SaaS technology enables the use of technology via monthly subscription instead of the expense required for outright purchase.

Determine what skill set is needed in the business to be able to use the standard technology of the industry, particularly in the operations of the startup needed to deliver the product or service. As a founder, evaluate your technology skills and then decide whether another individual such as a Chief Technology Officer or IT Manager is necessary to serve this role in the company or outside contractors should be pursued.

Adapt and Innovate

Technological change driven by artificial intelligence and digital technology is occurring throughout business and society. In order for a business to remain competitive, it is essential they stay on top of new technologies being introduced into their industry.

Adaptability to the changes and being prepared to pivot the company’s strategy to deal with emerging challenges are critical for long term success. A business that is standing still—is moving backward relative to direct competitors.

Exit Strategy:

How is it possible to choose an exit strategy when you have not yet started a business? The key point is that in certain circumstances such decisions can be thought out in advance and be part of the long-term vision of the company.

One example is a pharmaceutical startup—which may be undertaken with the full intention that the company will be acquired by a large corporation. Another example is a technology company in which the innovation causes an explosion of growth. With that hoped-for result in mind, the founders at the outset of starting the business may make early decisions such as the type of legal structure (LLC, C-Corporation, S-Corporation) that will work best for bringing in investors and potentially take the company public via an IPO (initial public offering).

Fintech entrepreneur David Hait shares how he successfully achieved an exit via acquisition by a private equity firm.

Typically, small businesses that grow in increments over a long period of time are exited via sale to an outside party or passed on to a family member. During the startup stage, consideration of the exit is generally not as important. However, at a later date, the owner may bring in outside consultants to prepare the company for sale or to be transferred to a family member.

The Startup Competitive Landscape

Innovative ideas behind the startup of a business very often arise when someone identifies a gap or pain point that is not being met in the marketplace. Therefore, when assessing an innovative business idea or model, check out the competitive landscape in terms of the number of competitors, size of competitors, their access to resources to compete.

In contrast, when starting a small business, determine if the market is composed of large direct competitors to the startup or if there are a number of smaller niche players, of which your startup small business may be one.

In the arena when there are large competitors, a small business should avoid competing directly on price—given the larger company’s resources to outlast a price war. Rather, focus on quality and service to distinguish the business from those larger competitors, finding a niche or segment sufficient in size to pursue and be profitable.

All of the above is part of the market research that should be conducted to qualify the startup opportunity being considered and will later be part of a written business plan to go forward.

Become Knowledgeable about Legal and Regulatory Knowledge:

Given the broad range of startups, research is needed for any regulatory requirements such as licenses, registrations and certifications that exist at local, state and government levels.

In the technology and innovation areas, review requirements for protecting intellectual property such as trademarks, copyrights and patents. There are law firms who specialize in intellectual property and can assist an entrepreneur with filings, as well as offer strategy.

Also, become familiar with various agreements that are commonly used in business such as non-disclosure agreements, and contracts, among others.

4. Planning and Strategy

Business Plan

The Business plan is the foundation for starting a new business. Plan templates are easily found on the internet offering different ones for a range of industries. Writing a business plan is a thoughtful process that covers the key areas of a business such as the startup’s mission, the founder’s vision, target market, competition, revenue model, financial projections, marketing strategy and more. Since it is a thorough process, it is a great way for a founding entrepreneur to learn areas of weaknesses that they can address early on.

When done well the business plan serves as a s trategic tool and roadmap to start the business as well as a fundamental tool when fundraising from investors.

Financial Projections

Estimating startup costs is one of the more difficult challenges facing a founder. It is very hard for a startup to project into the future as to when they will begin taking in revenue and how much. As a result, many startups run short of cash over time, jeopardizing their viability.

In addition to revenue, the projections include all associated expenses projected over three to five years. That includes personnel hiring, product development, marketing, and operational expenses.

Projections are essential for fund raising from investors or o btaining a bank loan . While it is difficult to accurately forecast out over a long period, investors seek to know if the founder understands the financial essentials such as gross margins, customer acquisition costs, sales cycles and more that are specific to their industry and underly the projections being presented.

Working with a chief financial officer who has handled high growth startups can provide great insight on this process, while controllers and bookkeepers are relied upon for starting a small business.

Legal Structure

Establishing a business requires the selections of a legal structure: sole proprietorship, partnership, LLC, S-Corporation or C-corporation. The choice of structure affects liability, taxes, and regulatory requirements. Consulting with an attorney and an accountant provides the insight necessary to choose the legal structure best suited for the vision of the company in the future, particularly if the business is expected to be acquired.

Establishing the Startup Team

One of the fundamental decisions in starting a business is whet her or not to have a business partner . There are advantages and disadvantages for sharing ownership. Choosing a partner who has complementary skills is recommended, but consider very carefully whether ownership will be divided 50-50 because over time some partners contribute significantly more to the growth of the company.

First hires can also be a critical asset for a startup. Bringing on personnel who share great passion for the business can take on key responsibilities that reduce the owner’s stress. Finding the right employee who also has an entrepreneurial mindset is very difficult, but they often work as if the company is theirs, but are not interested in the responsibility of ownership.

Company Culture

Many founders underestimate the importance of having a healthy company culture. They also do not realize how their values and behavior greatly influence the culture that emerges as the company grows. A great example of this is Sri Solur, CEO of Kenmore Brands, a guest on the podcast se ries Experienced Voices . Sri shares how he changed the culture of Kenmore Brands to re-brand Kenmore for the digital economy of the future.

To be a competitive company, a company needs to have a positive culture to attract the right talent . Many employees will compromise on salary if they feel they have a stable position in the company and will have a satisfying role into its future. Ongoing training often keeps valuable employees who want to feel they are developing in their position.

When making first hires in a startup business, be aware of the values you are emphasizing within the company, evangelize the mission, and set expectations of what you want to achieve as a team. Diversity is found to be a positive contributor to the company because it brings in a range of other skills and different thinking that furthers success. What is most important is that you have the mindset to build a culture that it focused on success .

5. Funding Your Startup

Small businesses and startups have a range of financing vehicles available to them, but all require preparation to gain access. Here are alternative sources of fu nding for startups that change by stages of growth .

Investor Funding

Many startups are begun with the anticipation that outside funding will be needed in order to be successful. During the funding process they will seek out the support of angel investors , venture capital firms as well as crowdfunding platforms. They will utilize two common tools: the investor pitch and the investor slide deck.

The pitch is typically given when approaching an investor face to face. It is concise information about the startup to gain the investor’s interest and hopefully receive an invitation to a fuller presentation. While the investor needs to hear the basic information about the venture, they are most interested to learn why it is a compelling investment opportunity. They want to hear what the expected return on investment will be for the high-risk investment they will make.

The investor pitch deck is a slide presentation that is typically given in front a group of investors that expands on the prior pitch made. The presentations follow a somewhat standard format and when presented the investors typically give an allotted amount of time that may be strictly adhered to. If the entrepreneur is serious about outside funding, it is very important that they spend time perfecting their pitch and their presentation. Practice sessions and critiques are very helpful to this process.

If the pitch is successful, a number of steps are taken by the investors to do a deep dive into the startup. As it becomes likely an investment will be made, the investors will conduct “due diligence” on the startup which verifies the information that has been presented and flushes out answers to their concerns.

Friends and family may be involved at the very beginning, but once the capital needs rise angel investors are next in line. They are high-net-worth individuals who will make investments in startups. Angel groups are a gathering of individual angel investors who serve as a collaborative of knowledge and money.

When the startup’s performance has gelled and shows its great potential, large investments are then made by venture capital firms which handle a pool of money from investor clients. High growth companies may receive an investment led by a venture capital firm with a group of other firms participating to reach a sizeable investment amount.

Both angel and venture capital investments are made in exchange for part ownership of the startup or early-stage company.

Another funding pathway for startups is crowdfunding. These online platforms, overseen by the SEC, give startups a place to pitch their funding needs to individual investors. This route enables companies to reach their funding goals through an aggregation of small investment amounts in exchange for a defined amount of equity. Notable crowdfunding platforms include Republi c , StartEngine and numerous others.

When taking this route assess explore a number of crowdfunding platforms to learn their merits and fit for your startup. Bill Santana Li shares on a podcast how he raised $120 million via cro wdfunding and the other creative financial ways he funded his startup and early stage company.

Resource Government Grants and Programs

Government grants are potentially a great source of funding. Federal grants are associated with federal agencies who post their grant programs on G rants.gov . SBIR and STTR grants for science and technology startups are very well known and are accessed via programs run throughout the country, primarily through universities and colleges. Check out top small business grant programs to determine eligibility.

Grants also exist for those in underserved groups that includes women and minorities. A great example of a highly successful entrepreneur who tapped into a range of grant programs is Carol Craig, CEO of Sidus Space . She shared how various grant programs helped her start her company that eventually went public on the NASDAQ.

Bootstrapping

Bootstrapping is the term used to describe a company that has grown without outside investment. A good bootstrapping entrepreneur will have a mindset of finding ways to achieve results by being very cost efficient about the money they spend.

Some t echniques of bootstrapping include bartering, sharing rental space, negotiating better pricing and more. Successful bootstrapping may delay the need for external funding, whether from the bank or investors.

When starting a business the founder should reflect on how they spend their money and how comfortable they are about negotiating with others. While bootstrapping helps entrepreneurs move their businesses forward, many eventually need outside financial support.

While many think of bank loans or investors for funding, a less known form of financing is factoring that enables companies to receive advances against their accounts receivables. Robyn Barrett, an entrepreneur and f actoring executive and guest on the podcast Experienced Voices describes how a business can obtain factoring financing for their business.

6. Marketing and Brand Building

Strong Branding

Having a memorable brand identity is an important part of a marketing plan. Develop one through a combination of logo, brand colors and a voice that resonates with target customers. Consistency in presentation is necessary for building brand recognition. Udaiyan Jatar, former Coca-Cola Brand Executive and guest on the podcast series Experienced Voices shares his decades of experience building successful brands.

A Presence in the Digital Economy

The emerging digital economy that is transforming how the world does business and socializes needs to be considered as part of the marketing plan. Address the fundamentals of an online presence through a professional website and active social media profiles. Digital marketing strategy is also fundamental, with search engine optimization (SEO) and content marketing as a way to draw in in customers through a funnel approach.

Setting up an appropriate size budget is key to creating the most effective online presence.

7. Launching and Scaling Your Startup

Value of a Soft Launch

A soft launch is similar to an MVP in that it is a limited way to test your product or service to obtain user feedback that enables the company to make any necessary improvements before the full launch. On a limited budget the product or service is introduced to small target audience, gaining their insight before committing to a full and costly launch.

Plan out the Marketing Campaign

Having well thought out and planned marketing campaign is instrumental for a success business launch. Fundamental to this is the use of social media channels, email marketing, and influencer partnerships, to reach your target audience. Establish a budget and a timeline for the rollout.

Scaling Your Startup: Pursuing the Scalable Business Model

How big can your startup become? Tech startup models often plan for rapid growth—utilizing outside capital to fund the rapid expansion of operations in support of growing revenues. They project out the revenue growth of the company over a period of years and then evaluate current operations to determine how to handle the growing demand so the delivery of orders is met.

The first step when starting a business is to analyze the potential sources of revenue that may occur, then determine what changes need to be made to scale operations to meet growing order demands. Labor intensive businesses tend to scale slowly, while technology companies typically scale quickly.

Continuous Innovation

The digital economy and AI are putting great pressure on companies across industries to adapt to the changes that technologies bring. Companies must remain vigilant to impact of the latest technologies and innovations to remain competitive and relevant.

In order to do this, the company culture needs to embrace innovation, technology and change. A great example of this is Dr. Peter Bonutti who has over 500+ patents and ap plications .

Scaling Team and Operations

As a startup grows, it is important to assess hiring and operational needs. Hire additional staff , implement efficient processes, and invest in technology to support increased demand. As a company’s revenue grows and operations expand, an operating plan should be developed each year that lays out the operational changes to be made to fulfill growing sales.

Starting a business is a journey filled with great rewards and great challenges. By understanding the pluses and minuses of starting a business , the aspiring entrepreneur has a more realistic view of their entrepreneurial journey.

This Guide is foundational for any aspiring entrepreneur by helping them identify the numerous factors which impact their decision in selecting the right business to start and the elements that will make it a growing and sustainable business.

Jeanne Gray is a serial entrepreneur, having built three companies in three different industries. She is the founder and publisher of American Entrepreneurship Today and host of the podcast series Experienced Voices™. She has received multiple awards including US SBA Journalist of the Year and NJBIZ Woman under 50 and was honored with a White House press credential to cover the Global Entrepreneurship Summit held in Silicon Valley.

She advises startups and businesses in various stages of growth through A EPConsulting.biz .

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15 Common Mistakes When Starting a Business

Posted: April 13, 2024 | Last updated: April 13, 2024

<p>When searching for flights and hotels online, use your browser’s incognito mode. Many travel sites track your visits and may increase prices based on your search history. By browsing incognito, you prevent the websites from using your past searches to influence the prices you see, potentially leading to lower prices.</p>

1. Lack of a Solid Business Plan

Starting a business without a comprehensive plan is like embarking on a journey without a map. A well-thought-out business plan should include market research, a clear business model, financial projections, and a growth strategy. Avoid this mistake by taking the time to develop a detailed business plan before launching.

<p>Underestimating the importance of market research is a common oversight. Understanding your target market, customer needs, and competitive landscape is crucial. Avoid this mistake by conducting thorough market research and continuously gathering customer feedback to guide your business decisions.</p>

2. Ignoring Market Research

Underestimating the importance of market research is a common oversight. Understanding your target market, customer needs, and competitive landscape is crucial. Avoid this mistake by conducting thorough market research and continuously gathering customer feedback to guide your business decisions.

<p>Running out of money is one of the main reasons startups fail. Underestimating the amount of capital required for startup and operational costs can lead to early financial difficulties. Avoid this by carefully planning your finances, considering all potential expenses, and securing adequate funding.</p>

3. Insufficient Capital

Running out of money is one of the main reasons startups fail. Underestimating the amount of capital required for startup and operational costs can lead to early financial difficulties. Avoid this by carefully planning your finances, considering all potential expenses, and securing adequate funding.

<p>A business is only as strong as its team. Hiring the wrong people or neglecting to build a skilled and motivated team can hamper your business’s growth. Avoid this by investing in hiring the right people and fostering a positive, productive work culture.</p><p><a href="https://www.msn.com/en-us/channel/source/Lifestyle%20Trends/sr-vid-k30gjmfp8vewpqsgk6hnsbtvqtibuqmkbbctirwtyqn96s3wgw7s?cvid=5411a489888142f88198ef5b72f756ad&ei=13">Follow us for more of these articles.</a></p>

4. Overlooking the Importance of a Good Team

A business is only as strong as its team. Hiring the wrong people or neglecting to build a skilled and motivated team can hamper your business’s growth. Avoid this by investing in hiring the right people and fostering a positive, productive work culture.

<p>Rigidity in business can be detrimental. The inability to adapt to market changes, customer feedback, or technological advancements can leave a startup behind. Stay flexible and open to change to avoid this mistake.</p>

5. Failing to Adapt

Rigidity in business can be detrimental. The inability to adapt to market changes, customer feedback, or technological advancements can leave a startup behind. Stay flexible and open to change to avoid this mistake.

6. Poor Marketing Strategies

Even the best products or services need effective marketing. Neglecting marketing or using ineffective strategies can lead to poor sales and low brand visibility. Avoid this by developing a strong marketing plan and regularly evaluating its effectiveness.

<p>In today’s digital world, a strong online presence is essential. Not having a website or social media presence can limit your reach and engagement with customers. Avoid this by establishing and maintaining a robust online presence.</p>

7. Neglecting Online Presence

In today’s digital world, a strong online presence is essential. Not having a website or social media presence can limit your reach and engagement with customers. Avoid this by establishing and maintaining a robust online presence.

<p>Incorrect pricing can either leave money on the table or drive away potential customers. Avoid this mistake by thoroughly researching your market to determine competitive and fair pricing for your offerings.</p><p><a href="https://www.msn.com/en-us/channel/source/Lifestyle%20Trends/sr-vid-k30gjmfp8vewpqsgk6hnsbtvqtibuqmkbbctirwtyqn96s3wgw7s?cvid=5411a489888142f88198ef5b72f756ad&ei=13">Follow us for more of these articles.</a></p>

8. Underpricing or Overpricing Products/Services

Incorrect pricing can either leave money on the table or drive away potential customers. Avoid this mistake by thoroughly researching your market to determine competitive and fair pricing for your offerings.

<p>Failing to comply with legal and tax requirements can lead to serious consequences. Neglecting to understand and adhere to these can be a costly mistake. Avoid it by seeking advice from legal and tax professionals.</p>

9. Overlooking Legal and Tax Obligations

Failing to comply with legal and tax requirements can lead to serious consequences. Neglecting to understand and adhere to these can be a costly mistake. Avoid it by seeking advice from legal and tax professionals.

<p>Poor customer service can damage your business’s reputation and lead to loss of customers. Ensure you have a strategy in place for effective customer service to avoid this pitfall.</p><p><a href="https://www.msn.com/en-us/channel/source/Lifestyle%20Trends/sr-vid-k30gjmfp8vewpqsgk6hnsbtvqtibuqmkbbctirwtyqn96s3wgw7s?cvid=5411a489888142f88198ef5b72f756ad&ei=13">Follow us for more of these articles.</a></p>

10. Ignoring Customer Service

Poor customer service can damage your business’s reputation and lead to loss of customers. Ensure you have a strategy in place for effective customer service to avoid this pitfall.

<p>Without clear goals and metrics, it’s challenging to measure success and make informed decisions. Avoid this mistake by setting specific, measurable, achievable, relevant, and time-bound (SMART) goals and regularly reviewing them.</p>

11. Failing to Establish Clear Goals and Metrics

Without clear goals and metrics, it’s challenging to measure success and make informed decisions. Avoid this mistake by setting specific, measurable, achievable, relevant, and time-bound (SMART) goals and regularly reviewing them.

12. Not Protecting Intellectual Property

Failing to protect your intellectual property can result in competitors copying your ideas or products. Avoid this by understanding the types of intellectual property protection available and taking steps to secure your assets.

<p>Rapid expansion can be as harmful as no growth. Scaling too quickly can strain resources and lead to management issues. Grow your business sustainably to avoid this mistake.</p>

13. Scaling Too Quickly

Rapid expansion can be as harmful as no growth. Scaling too quickly can strain resources and lead to management issues. Grow your business sustainably to avoid this mistake.

Starting a business can be an exhilarating journey, but it’s often fraught with challenges and potential missteps. Entrepreneurs can increase their chances of success by being aware of common pitfalls and learning how to avoid them. Here are 15 business start-up mistakes and tips on how to steer clear of them. 1. Lack of a...

14. Neglecting Personal Development

As a business owner, neglecting your personal development can limit your ability to lead and grow your business effectively. Invest in continuous learning and self-improvement.

<p>Unexpected challenges are a part of business. Not having a contingency plan for potential problems can leave your business vulnerable. Develop a contingency plan to prepare for unforeseen events.</p><p>Like our content? <a href="https://www.msn.com/en-us/channel/source/Lifestyle%20Trends/sr-vid-k30gjmfp8vewpqsgk6hnsbtvqtibuqmkbbctirwtyqn96s3wgw7s?cvid=5411a489888142f88198ef5b72f756ad&ei=13">Be sure to follow us!</a></p>

15. Not Planning for Contingencies

Unexpected challenges are a part of business. Not having a contingency plan for potential problems can leave your business vulnerable. Develop a contingency plan to prepare for unforeseen events.

13 Tactics to Negotiate a Higher Salary and Win

Negotiating a higher salary is a critical skill in the professional world, key to ensuring you’re fairly compensated for your skills and contributions. Whether you’re starting a new job or aiming for a raise in your current position, mastering the art of negotiation can significantly impact your earnings and career trajectory. Let’s explore effective tactics to help you negotiate a higher salary and come out on top.

<p>The use of technology in real estate, from property management software to online market analysis tools, is increasingly important. Savvy investors embrace these tools for more efficient management and informed decision-making.</p>

13 Tips for Building a Successful Side Hustle

Building a successful side hustle can be an exciting journey towards achieving extra income and personal fulfillment. Whether it’s turning a passion into profit or just making ends meet, a side hustle can transform your financial landscape. Let’s get into some practical tips to help you set up a thriving side hustle.

13 Tips for Building a Successful Side Hustl e

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How To Write A Business Plan (2024 Guide)
Describe Your Services or Products. 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 ...
How To Write A Business Plan: A Comprehensive Guide
1. Investors Are Short On Time. If your chief goal is using your business plan to secure funding, then it means you intend on getting it in front of an investor. And if there's one thing investors are, it's busy. So keep this in mind throughout writing a business plan.
How to Write a Startup Business Plan
6. The timeline. Outline your timeline for launching your business or project. Timelines are always subject to change, so make sure you account for alternative scenarios and setbacks. For your one-page business plan, talk about your general timeline, its phases and why it's a realistic goal. 7.
How to Start a Business in 15 Steps
5 best places to advertise your business online. 13. Set up a payments system. If your business takes credit and debit cards, you'll likely need a payment processor and point-of-sale (POS) system ...
Startup Business Plans 101: Your Path to Success
Clarify the purpose of your business, your goals and how your startup is uniquely positioned to achieve them. Essential Information to Include. Include details such as your company's legal structure, location and a brief history of any founders or key personnel. Showcase Your Company's Unique Features.
Starting a Small Business: Your Complete How-to Guide
The Bottom Line. Knowing how to start a small business involves the key steps of market research, setting up a business plan, understanding the legal requirements, exploring funding options ...
How To Write a Business Plan
Step 2: Do your market research homework. The next step in writing a business plan is to conduct market research. This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to ...
What Is a Business Plan: An Introductory Guide
To get a better sense of what a 21st century business plan is, it's best to look at what it's not. Or, more specifically, what it's not anymore. When most people think about a business plan, the first thing that usually comes to mind is an incredibly dense, 50-plus-page manifesto that's as hard to write as it is to read.
How to Start a Business: A Comprehensive Guide and Essential Steps
Fact checked by. Vikki Velasquez. Starting a business in the United States involves a number of different steps, spanning legal considerations, market research, creating a business plan, securing ...
How To Create A Winning Business Plan For Your Startup
Validate your idea with market research, seek professional advice, and listen to potential customer feedback before making a commitment. 2. No Clear Exit Strategy. Although it might seem counterintuitive to plan your business's end before it has even begun, a clear exit strategy is paramount.
How to start a business in 14 steps: a guide for 2024
Brand your business. Create a professional business website. Market and promote your business. Build a team. 01. Brainstorm and refine your business idea. You might already have a great business idea that you can't wait to start, or maybe you're still in the early brainstorming stages of finding your niche.
How to Start a Startup (Advice from Those Who've Done It)
Don't sit around waiting for investors to believe in your idea—sometimes, you just have to run with it and do what you can with what you have. If it's a good idea, the money will follow. 2. Be Persistent. In the end, you can't do this alone. You need money, customers, advice, connections, and a break.
How to Write a Business Plan for Your Startup
Step 3 - Analyze your competition. In addition to researching your target market, you need to conduct a competitive analysis as well. You'll use this information to create your brand differentiation strategy. When you're writing a business plan, your startup doesn't exist yet.
How to Start a Startup in 10 Steps (2024 Guide)
An outline of the projected growth, major goals, and future steps. An introduction to your core team members. Define your competitors and establish your competitive advantage. Prove your financial planning and management ability. A description of how investment funds will be used and why you need them. 4.
Eight Steps To Creating A Successful Startup Business Plan
Create A Company Overview. When creating a startup business plan, the first step is to develop a company overview. This includes identifying the unique value proposition of your startup, defining ...
Top 4 Business Plan Examples
Dishwasher: 133 watts Television: 1,200 to 2,400 watts Coffee Maker: 900 to 1,200 watts Washing Machine: 350 to 500 watts Toaster: 55 to 250 watts Window Fan: 800 to 1,400 watts. The majority of US households now spend roughly 35 percent of their energy consumption on appliances, electronics, and lighting.
Starting a Business! From Idea to Launch
The Business plan is the foundation for starting a new business. Plan templates are easily found on the internet offering different ones for a range of industries. Writing a business plan is a thoughtful process that covers the key areas of a business such as the startup's mission, the founder's vision, target market, competition, revenue ...
Yes, You Need A Startup Business Plan
And for this same thing, we need to have a startup business plan. We didn't think of building it just for our survival or for the survival of many, we invested everything we have in order to build a company that will last and help a lot of people even if they're not even your customers. If you think it's not important to write a startup ...
15 Common Mistakes When Starting a Business
Avoid pitfalls in your business journey with these 15 tips. Learn what not to do when starting a company. Get advice on how to successfully launch and grow your business. Navigate the startup ...
How To Write A Successful Business Plan For A Loan
In contrast, a startup could include the research they conducted to make the business plan. Also consider including relevant resumes, marketing materials, letters of recommendation or references.