how to make annual business plan

How to Create a Profitable Annual Business Plan [+Free Template]

Published: February 09, 2023

The beginning of a new quarter is the perfect time to start planning the next year for your business. Start the next year or quarter off on the right foot by creating an annual business plan for your company.

Q4 often brings a flurry of business-related activity. And while all this activity helps fill the pipeline, it can distract you from reflecting on past performance and preparing for the year or quarter ahead.

Fortunately, you can write an annual business plan at any time of the year. Start your plan now to set your team up for success.

What is an annual business plan?

An annual business plan is just that — a plan for you and your employees to help achieve the company’s goals for the year. Think of an annual business plan as the guide to complete all of your company’s overall goals outlined in your initial business plan.

The first business plan you wrote for your business is the blueprint and the annual business plan is the detailed instructions to keep your business running long-term.

Usually, an annual business plan contains a short description of your company, a marketing analysis, and a sales/marketing plan.

Because an annual business plan is for the year, you’ll want to review your business at the end of four consecutive quarters and revise your plan for the next four quarters.

Why is annual business planning important?

Even though the fourth quarter might be a busy time of year, don’t put off creating an annual business plan.

Not only will your annual business plan keep you on track, it will also help you map out a strategy to keep your employees accountable. You can then more easily achieve the overall goals of your business.

Here are some reasons why it’s well worth creating an annual business plan for your company.

You can measure your success.

An annual business plan is the best way to measure your success. And I’m referring to the collective “you” here because it takes the entire company or all of your employees to make new business efforts effective.

An annual plan not only sets expectations for you but also for others within your company who need to contribute to the business’s success.

You can reflect on the past and plan ahead.

Creating an annual business plan allows you to reflect on the past 12 months.

As you reflect on the previous year, you’ll be able to get a good idea of what your business is capable of doing and set accurate, attainable projections based on previous numbers.

You’ll define your business goals.

Your annual business plan will shed some light on what the heck you do at your company. For those who are not routinely involved in new business, it can seem like a black hole of mystery.

Sharing your plan — whether to an executive committee, department heads, or even the entire staff — adds clarity and gives everyone something to aim for.

You can impress your boss.

If you head a department that could benefit from an annual business plan, don’t wait to be asked before you start writing. Get on your CEO’s schedule to review your outline and discuss your intentions for putting this plan together.

Sometimes the hardest part is getting started. You can get the ball rolling with the basic template that follows.

Annual Business Plan Template

Each section of your annual business plan will help tell the story of your company and clearly define your company’s goals for the year.

Let’s take a look at each section of the annual business plan template .

Executive Summary

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Annual Business Planning Template

Written by Dave Lavinsky

What is an Annual Business Plan?

An annual business plan is a document that sets out the goals and objectives for a company over the course of a year. It provides a roadmap for how the business will operate and achieve its desired results. The best business plan template will help guide you in creating a comprehensive annual plan.

Steps to Create an Annual Plan

There are seven steps to creating an annual business plan:

• Define the company’s overall vision and strategy.
• Set specific, measurable goals and objectives for the year.
• Identify the resources needed to achieve these goals.
• Create a timeline for each goal and objective.
• Assign responsibility for each goal and objective to specific individuals or teams.
• Review and revise the plan on a regular basis.
• Each of these steps is important in creating a well-formulated annual plan. Let’s take a closer look at each one.

Defining the Company’s Overall Vision and Strategy

The first step in creating an annual plan is defining the company’s overall vision and strategy. This involves deciding where the company wants to be in the future and outlining the steps needed to get there. It’s important to be realistic in setting these goals and to make sure they are aligned with the company’s overall strategic vision.

Setting Specific, Measurable Goals and Objectives

Once the company’s overarching vision has been defined, it’s time to set specific, measurable goals and objectives for the year. These should be attainable but challenging and should align with the company’s overall strategy. Each goal should have a target date for completion, as well as a specific metric that will be used to measure progress.

Identifying Resources Needed To Achieve Goals

Next, it’s important to identify the resources needed to achieve these goals. This includes everything from manpower and funding, to office space and equipment. It’s also important to assign responsibility for each goal/objective to specific individuals or teams. This helps ensure that everyone is aware of their role in achieving the desired results.

Creating a Timeline

Once goals have been defined and resources have been identified, it’s time to create a timeline for each one. This will help keep everyone on track throughout the year and ensure that tasks are completed in a timely manner. A Gantt chart can be helpful in organizing this information visually.

Assigning Responsibility

Finally, it’s important to assign responsibility for each goal/objective to specific individuals or teams. This helps ensure that everyone is aware of their role in achieving the desired results. By assigning clear responsibilities, tasks can be delegated efficiently and everyone will know who is responsible for what outcomes.

Reviewing and Revising Plan Regularly

It’s important to review and revise your annual plan on a regular basis. This ensures that the goals are still relevant and achievable and that the resources required are still available. It also allows for any necessary adjustments to be made if something isn’t working as planned. A good rule of thumb is to review the plan quarterly or more often if needed.

Parts of the Annual Strategic Plan Template

There are four key parts to the annual plan template:

1. Vision and Strategy

The first step is to define the company’s overall vision and strategy. This will provide a framework for all of the other steps in the process.

2. Goals and Objectives

The next step is to set specific, measurable goals and objectives for the year. These should be aligned with the company’s vision and strategy.

3. Resources

The third step is to identify the resources needed to achieve the goals and objectives. This includes things like budget, staff, and materials.

4. Timeline

The fourth step is to create a timeline for each goal and objective. This will help ensure that everything is completed on time and within budget.

The Importance of a Well-Formulated Annual Strategic Plan

The importance of a well-formulated annual plan cannot be overstated. It provides a clear roadmap for the company’s operations and sets forth a clear vision for its desired results. Additionally, it helps to ensure that all employees are aware of the company’s goals and objectives and are working towards the same end.

The Difference between an Annual Plan and A Company’s Broader Strategic Vision

The difference between an annual business plan and a company’s strategic vision is that the former is more focused on the specific goals and objectives to be achieved over the course of a year, while the latter is more concerned with the company’s long-term direction. An annual business plan lays out a roadmap for the company’s operations over the course of a year and sets specific targets to be met. A company’s strategic plan, on the other hand, is more concerned with the overall direction of the business and its long-term goals.

Ultimately the difference between an annual plan and a company’s broader strategic vision is that the former is more focused on the specific goals and objectives to be achieved over the course of a year, while the latter is more concerned with the company’s long-term direction.

Best Practices for Annual Planning

There are a few key best practices that businesses should keep in mind when planning their annual operations.  

First and foremost, it is important to be realistic about what can be accomplished in a year. Businesses should establish achievable goals and objectives, and then create a plan of action to achieve them. This includes setting timelines and specific tasks that need to be completed in order to reach the goal. 

Another key element of effective annual planning is creating a budget and sticking to it. Budgets help businesses stay accountable and track progress toward their goals. 

In addition, effective annual planning should always include regular review and course correction as needed. Businesses should routinely assess their progress, make necessary adjustments, and ensure they are still on track to meet their goals.

When it comes to business annual planning, there are a few best practices that can help your organization make the most of the process. Here are a few tips to get you started:

•  Set realistic goals. It’s important to set realistic goals for your annual planning process – this way, you’re more likely to achieve them. Be honest with yourself about what’s achievable and what’s not, and make sure your team is on the same page.
• Make a roadmap. Once you’ve set your goals, create a roadmap for how you’ll achieve them. This will help keep everyone on track and ensure that you’re making progress toward your targets.
• Use data to inform your decisions. When making decisions about your annual planning, use data to inform your decisions. This will help you make informed choices based on evidence rather than intuition alone.
• Communicate regularly. Make sure to communicate regularly with your team throughout the annual planning process – this will help keep everyone updated on what’s happening and ensure that everyone is working towards the same goal.
• Celebrate successes along the way. Celebrate successes along the way – this will keep everyone motivated and help ensure that the process is fun as well as productive.

Annual Contingency Plan Example

Sometimes it’s helpful to have a contingency plan or clause in case things don’t go as expected. Below is a sample contingency plan.

“In the event that we are unable to achieve our sales goals for the year, we will implement a number of contingency measures. These measures may include reducing our advertising budget, downsizing our workforce, and suspending operations at certain locations. We will only implement these measures if absolutely necessary and we are confident that they will help us to get back on track.”

Strategic Business Plan Example

Below is an example of a strategic business plan.

“Our long-term goal is to become the leading provider of XYZ products and services in our industry. To achieve this, we will need to increase our market share, expand our operations into new markets, and continue to innovate our product offerings. We are confident that we can achieve these goals and become the industry leader.”

Annual Business Plan Template

Executive summary.

The executive summary is a brief overview of the company’s annual plans while taking into account the company’s broader vision. It should include a description of the company, its products, and services, its marketing and sales strategy, its operations plan, and its financial plan.

Company Overview

The company overview section of the annual planning document should provide a brief history of the company, its mission and vision, and its current status.

Products and Services

This section of the annual plans should describe the company’s products and services in detail. It should also include information on the company’s competitive advantages and any new products or services that will be launched in the coming year.

Marketing Plan

The marketing plan section of the company’s strategy should outline the marketing and sales strategy for the entire organization for the coming year. It should include information on the company’s target market, its branding and positioning strategy, its advertising and promotion budget, and its sales goals.

Operations Plan

The operations plan section of the annual business plan should describe the company’s methods for manufacturing, distribution, and other aspects of its operations. It should also include information on the company’s capacity, its supply chain, and its quality control procedures.

Financial Plan

The financial plan section of the annual business plan should include a summary of the company’s financials, the budgetary approval process, contingency plans, as well as the broader visions and plans for funding and investment.

With regards to financials, you want to include past and projected Income Statements, Balance Sheets, and Cash Flow Statements. Also, if you are seeking external financing, document the amount of funding you need and the key expected uses of these funds.

Annual Goals

When creating your business plan, it’s important to set annual goals and objectives. This will help you track your progress and ensure that you’re on track to reaching your long-term goals. Some things you may want to consider when setting your annual goals include:

• Increasing revenue
• Expanding your customer base
• Improving product or service quality
• Reducing costs
• Developing new products or services
• Enhancing marketing efforts
• Expanding into new markets

One of the most important aspects of any business plan is setting annual goals. These goals should be attainable, yet ambitious, and should help to guide your business in the right direction. Some things you may want to consider when setting your annual goals include increasing sales, expanding your customer base, improving productivity or efficiency, reducing costs, or developing new products or services. Whatever your goals may be, make sure to document them and track your progress throughout the year. This will help you ensure that you are on track to meeting your targets and achieving success for your business.

The appendix of the annual business plan template should include any supporting documentation that is relevant to the plan, such as market research reports, financial projections, and product specifications.

Every company should have an annual business plan. This document helps you track your progress, set goals, plan forward, and make necessary adjustments throughout the year related to key results. Without a business plan, it is difficult to make informed decisions about where to allocate your resources or measure your success. If you need help getting started, we have a great business planning template that can get you on the right track. By following our simple tips and using our template, you can create a comprehensive business plan that will help ensure your success in the coming year. 

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How to create a successful annual business plan

Here is what you need to know to create an effective and comprehensive annual plan for your department or company:

What is the purpose of annual planning?

An annual plan acts as a roadmap for your company. Annual planning allows you to go into a new fiscal or calendar year with specific and measurable goals set, budgets finalized, and a plan for how to measure progress on and achieve your company’s organizational and financial goals. Through this process, you develop the vision of where you hope that your company will be at the end of the year and the map of how you will get there.

You can also use annual planning to set goals and plans for individual departments or teams within an organization. Create marketing plans, human resource plans, and more to keep each segment of your business on track, reset your goals, and get your teams aligned towards common goals and initiatives. Since trends, consumer habits, and other factors change frequently, it’s good to create a fresh one-year plan each year.

Annual plans complement strategic planning while providing more short-term (one year) goals that are often tied to financial goals as well as the annual budget. Strategic plans often have more overarching goals that work to advance the company’s mission over three years or longer. Your annual plan will likely include goals that play into these longer-term goals in your company’s strategic plan.

Evaluating existing and prior year goals

Start your process by evaluating your current starting point. Take time to look back at last year’s annual plan and evaluate whether you achieved your set goals or fell short in certain areas. Attempt to determine why you fell short on specific goals and what steps you could take to prevent a repeat of that issue. This will help you set realistic goals for the new year.

This is also a great time to review your company’s:

Mission statement. This is a statement that describes the purpose of your organization. What does your business do and what does it hope to accomplish?

Core values. These are the principles, beliefs, and values that your organization’s culture is built on. These values shape how you do business, and as such, should shape your annual plan.

Strategic plan. Your strategic plan should detail your business plan and long-term goals while taking market conditions into consideration. Your annual plan should complement your overall strategic plan.

Financial reports. Review the prior year’s budget reconciliation, cash flow statements, and year-end reporting. If you have access to budgets or financial forecasts for the upcoming year, review them now. If not, they’ll need to be created later in the annual planning process.

Keep all of these documents handy, as you may need to reference them as you move through the annual planning process.

Create an updated SWOT analysis

It’s also time to update or create a SWOT Analysis chart for your company. A SWOT analysis is typically depicted as a four-quadrant square with the following quadrants:

Strengths. List out the things that your company already does well and your internal strengths. Perhaps you have a large Instagram following with a strong network of influencers promoting your product. Maybe you have unique branding, patents, or technology that set you apart from competitors. This section is your highlight reel from prior years and can also include strengths like new products or developments being released in the new year.

Weaknesses. Now it’s time to consider what can be improved. List out your company’s internal areas of weakness. A good way to identify weaknesses is to look at customer feedback. Do customers like your product but complain about the processing and delivery times? A weakness can also be staffing-related such as high turnover or taking too long to fill open positions. A common marketing weakness may be lack of media mentions or ranking low in Google search results for your product or business type.

Opportunities. These are external opportunities that you can take advantage of in the coming year. Are there new trends or technologies that could boost the success of your business? Is it time to start marketing your products to Gen Z? Are there changes in government regulations or laws going into effect in 2022 that could have a positive impact on your business?

Threats. Explore potential external threats to your company’s growth and success in the coming year. Maybe the current supply chain problems mean that you will have manufacturing or delivery delays in 2022. There could also be legal changes that negatively impact your business. Threats could also come in the form of major competitors or market saturation. Knowing what may threaten your success will help you build a plan to overcome these challenges, so be thorough with your market analysis.

After creating a company-wide SWOT analysis, consider breaking things down even further and creating a SWOT analysis on specific aspects or segments of your business.

For example, a marketing SWOT chart can help you identify what you need to adjust in your marketing strategy for the new year. Many businesses, especially small businesses, may have strong Facebook and Instagram accounts but weaknesses in the area of SEO. Reaching new audiences and market segments through TikTok may be an opportunity if your business has not jumped onto the platform yet. A new year is a great time to do a SWOT and update your ideal customer or target demographics to evaluate opportunities for expansion.

Goal setting with SMART goals

It’s a good idea to start off the new year by setting goals for your employees, departments, and the company overall. This creates trackable metrics to measure your company’s success at each level throughout the year. The best way to create goals is to use the SMART goal system.

Specific. Aim to make your goals specific and to identify who will be involved in the goal. A general goal would be to increase brand awareness. Specific goals would be growing your LinkedIn following to 10,000, obtaining 10 media mentions, or ranking one the first page of Google results for a specific target keyword. Within each of those specific goals you could identify who is responsible for them; a social media manager, PR or media relations team member, an SEO consultant, or in a small business, it may just be a digital marketing manager. Regardless, it’s helpful to define who is involved and who will oversee progress.

Measurable. Define how you will measure the success of each goal. What metric will you use to track progress towards the goal?

Attainable. Your goals should be realistic. They can be somewhat ambitious, but avoid including stretch goals that are unlikely to be achieved within the year with your anticipated staffing levels, budget, and level of consumer awareness. Of course, start-ups would love to score a major investor or have their company go viral and generate a huge amount of buzz with consumers, but unless you have reason to believe either of those is on the horizon, leave out goals that depend on unrealistic or unpredictable events. Also, leave goals that will take several years for your strategic plan.

Relevant. The goals that you set for this year should be relevant to your company’s vision, mission, and long-term objectives. This is why it’s helpful to start the process by looking at your mission statement, vision, and strategic plan.

Time-bound. All goals should have a clearly defined time frame including a specific deadline date. For annual planning, the timeframe may be one year, or you can break your goals down into monthly or quarterly goals and adjust the deadlines as such.

You’ll likely end up with a decently long list of goals for your company. As mentioned in the Specific criteria, breaking down your goals and defining who is responsible for them is important. Try to create goals that span the major business functions of your company such as product, operations, marketing, HR, and leadership . Set company-wide goals and then break them down by teams and later by individual contributors to ensure that everyone knows what goals they need to accomplish in order to help the business meet its overall yearly goals.

Budgeting and financial considerations

An important aspect of annual planning is financial planning. A good business plan should take financial constraints, budgets, and financial goals into consideration and plan accordingly. If you are a start-up and plan to go through a round of fundraising or have other major changes such as going public with an IPO, include those in your annual planning.

Your annual plan should include financial projections for the year. These projections will help you plan for financing needs, changes in cash flow, and evaluate the best timing for new projects or hiring. You’ll want to create sales forecasts to project your expected income. It’s also wise to forecast your anticipated expenses for things like labor, materials. supplies, and overhead.

You’ll also want to verify that you will be able to allocate the funds needed to accomplish the SMART goals that you created earlier. At this point, you may need to revise some of your goals to ensure that they are achievable within your financial constraints. Those that require a larger budget may need to be scaled down or saved for next year.

Contingency planning

Hopefully everything will go as planned, but it’s always good to have a contingency plan in place in case something goes awry. After all, we’ve all seen how unexpected challenges can derail business operations over the past two years.

Plan for potential emergencies or alternate scenarios. Does your annual business plan rely on covid conditions improving in 2022? Create a contingency plan in case there are more hiccups than expected during reopening or the return to the office.

Consider how your business could best handle supply chain issues, unexpected cash flow problems, and major IT or security concerns. If your headquarters is in an area prone to natural disasters such as wildfires or hurricanes, you should always have a plan in place for the safety of your staff, files, as well as assets that would be difficult to replace.

Putting it all together

There are a number of annual business plan templates available online that you can use to craft your final report. Larger companies often use specialized software for their annual business plan. If you plan to use the goals created during the annual planning process for performance management , a software solution may be best so that department leads and individual employees can track their goals throughout the year.

The report should open with an executive summary, although this is actually the last piece that you’ll typically want to write. The executive summary should act as an introduction to and a summary of the full report. Tailor it to your audience depending on whether the plan will be shared with employees, investors, or others.

A description of the product or services including new products, the team, and the company at present may also be included.

Then comes the meat of the report where you explain the goals you’ve created and your plan for achieving and measuring them. Your full report may be separated into marketing planning, financial planning, HR planning for organizational improvement, and other relevant sub-sections. This is where the zoomed-in SWOT analyses and department-level SMART goals will come in handy.

The report should leave the reader with a clear picture of what you will achieve and how you will do it.

WHAT TO READ NEXT

Annual Planning: Plan Like a Pro In 5 Steps (+ Template)

Get ready to take your strategic annual planning game to the next level! This process is essential for companies who want to set a clear direction for the future and ensure everyone is working towards the same goal. 

But, let's be real, executing a killer strategic plan is easier said than done. That's why we're here to help you. 

In this article, we'll dive into the nitty-gritty of annual planning and cover all the tips and tricks you need to know. From involving the right people to communicating your plan like a pro, we've got you covered. 

We'll also share some common pitfalls to watch out for and provide real-life examples to help bring it all to life. 

So, whether you're a seasoned planning pro or just starting out, get ready to learn how to make your annual strategic planning a total success!

In this article, you’ll discover:

What Is Annual Planning?

• The Benefits of The Annual Planning Process

5 Steps To Build A Highly Effective Annual Plan

The only annual planning template you need in 2024.

• 7 Mistakes to Avoid When Conducting Annual Strategic Planning

Build And Execute Your Annual Plan With Cascade 🚀

Annual planning is about turning long-term business goals into short-term action plans for the year ahead. It contains insights from past performance and a clear roadmap with a timeline. This yearly plan should be realistic and achievable, while also being ambitious enough to move the business forward.

Annual planning is your opportunity to take the previous year’s wins, knocks, and lessons and adjust your strategy to help your business grow consistently and become better.

Boilerplate definition aside, imagine if IBM still focused on building business-centric PCs, BMW still only made airplane engines, or Tata focused on producing steel. They wouldn’t be the companies they are today.

Annual planning and regular reviews help you proactively adapt to changes and steer your organization in the right direction to get the business results you want by the end of the year or toward your vision in the future.

The Benefits Of The Annual Planning Process

Whether it’s your IT, supply chain , pricing, marketing, operations , or sales strategy—improving, pivoting, or optimizing your annual planning approach from one year to the next year is non-negotiable. The annual planning process will help you assess the effectiveness of your business strategies and make adjustments to keep up with customer needs and market trends.

An effective annual planning process for the new year can offer:

• Strategic clarity: Annual strategic planning helps define and align goals, mission, and values, leading to more focused and effective decision-making across all levels of the organization. This in turn sets a clear and consistent direction for future initiatives, maximizing the organization's potential to achieve success.
• Focus: By regularly reviewing and updating its strategic plan , your organization stays focused on long-term objectives instead of being constantly sidetracked by day-to-day operations.
• Benchmark performance: An annual strategic planning process helps you measure and track progress on key strategic initiatives , and evaluate the progress made compared to last year.
• Gaps and opportunities: By regularly reviewing your strategic plan, your teams will identify gaps and opportunities for improvement and innovation, which can help you stay ahead of your competition.
• Resource allocation: By aligning your strategic plan with your budget, you can allocate resources that will support your goals and cut costs from misaligned initiatives.
• Engagement and buy-in: Involving key stakeholders in the strategic planning process will increase engagement and buy-in across your organization, leading to a more cohesive and motivated team.

A clear and execution-ready annual plan that focuses on the big picture and pays attention to the details can be the glue that binds your teams together. And this is crucial if you want to reach this year’s goals with greater speed and efficiency. Plus, it’s much better than the alternative of just winging it and hoping for the best!

📚 Recommended read: How To Create An Effective Annual Operating Plan (+Template)

Don’t get us wrong—creating and managing a yearly planning process can be a daunting task. But, with the right approach, you'll be able to get it right and start executing faster. Here's how to do annual planning the right way:

1. Analyze your performance and identify opportunities

Before you set goals , you should do an analysis of your company's current performance, market, and competitors to see where you stand. 

Here are some tools you can use in the process: 

• SWOT analysis
• PESTLE analysis
• Porter’s Five Forces
• Competitive analysis 
• Financial performance of the previous year
• Gap analysis  

A better understanding of your current performance can help you make data-driven decisions in the next steps of the planning process. 

Want to make it fail-proof? Don’t forget to include key stakeholders who will be involved in the day-to-day execution of your annual plan. 

Here’s who should be included in the analysis process: 

• Executive leadership: They are responsible for setting the overall direction and strategy for the organization.
• Department heads and team leaders: They can offer insights into team capabilities and resources. They can provide insight into the specific needs and challenges of their teams and ensure that their operational plans align with the annual plan.
• Employees: Employees often have valuable insights and ideas that can help improve the plan. By involving them in the planning process, you can tap into this wealth of knowledge and potentially identify new opportunities or challenges that may not have been considered otherwise.
• Customers: Customer feedback is critical to understanding the needs and priorities of the target market.
• Suppliers and partners: Depending on the nature of the business, it may be beneficial to involve suppliers and partners in the strategic planning process. They can provide valuable insights into industry trends and potential challenges. 

👉Bonus tip: Don't let analysis paralysis slow you down! Set a timeline, prioritize data, make informed decisions, and don't overthink it. Move into the execution phase as fast as possible. Adapt later.

2. Formulate your strategy 

The data and insights from Step 1 should inform the formulation of your strategy for the coming year. At this point, you should have a clear sense of direction and objectives that your company wants to achieve in the coming year. 

💡 To identify and formulate your strategy, consider the following questions with your team:

• What is the business problem that we are trying to solve?
• What are our core strategic objectives , and how will we measure success?
• What are our key strategic initiatives, and how will we prioritize them?
• What are our key performance indicators , and how will we track progress?
• Are there potential risks , and how will we mitigate them?
• What resources will we need, and how do we allocate them?

Answering these questions will help you test the validity of your strategy and identify any potential gaps or risks that need to be addressed. In this way, you'll build a solid foundation for your annual plan and increase the chances of its successful execution.

3. Build your annual plan

Next, you’ll need to turn your strategy into a detailed roadmap that outlines the steps you’ll take to achieve your annual strategic objectives and goals. 

It’s like taking a map from a broad view of the journey to a more detailed look that zooms in on the roads and landmarks you’ll need to follow to reach your destination.

📝Your annual plan should include the following:

• 🔎 Focus areas: The specific areas of the company or its operations that need improvement.
• 📌Goals and objectives: Specific outcomes the company wants to achieve in its yearly plan. 
• 📈Measures: Deliverables and KPIs to track progress toward your company’s goals and objectives.
• 📤Actions: Specific actions or projects to achieve goals and objectives.
• 😎Owners: Individuals or teams responsible for implementing the actions.
• 📆Due dates: Specific deadlines and milestones throughout the year.
• 💰Budget: Allocating the resources to achieve goals and objectives.

👉Here’s how Cascade can help you:  

Cascade’s strategic planning feature gives your annual planning process a standardized and structured approach that includes all the key elements for success. It helps you set high-level annual goals, break them down into smaller initiatives, and assign owners to drive accountability.

4. Create tight alignment with your teams

If the leadership team’s job is to set high-level company priorities to frame key strategic initiatives, then it’s up to specific business functions or teams to chart out the path to reach those strategic goals .

The first step in ensuring strategic alignment is to clearly communicate the plan to all employees. This can be done through regular meetings, company-wide presentations, and other forms of communication, such as a central location for your annual plan that is easily accessible to your stakeholders.

The key is to make sure that everyone understands the goals and objectives of the plan and how their work fits into the bigger picture.

With Cascade , you can link your annual strategic plan to individual departmental or team plans in a single source of truth. As a result, it's easier to ensure that everyone in the organization is aligned with the goals and objectives and monitor the progress being made toward those goals.

An example of the Cascade alignment view is where you can see how each plan aligns with the company's annual plan and drill down to evaluate performance.

5. Monitor progress and adjust your plan

Gone are the days of static, set-in-stone strategic plans! It's time to embrace flexibility and be willing to make changes as needed. Your annual plan is a flexible, dynamic roadmap that should be adjusted as circumstances change or new information becomes available. The key is to stay focused on your goals and objectives, and be ready to pivot when needed .

Here are some steps that you can take to monitor the annual plan and adapt as needed:

• Set up a system for tracking progress: This can be done using a variety of tools, including spreadsheets, strategy reports , strategic planning software , or status reports . 
• Establish regular review meetings: These meetings can be weekly, monthly, or quarterly, depending on the needs of your organization. The key is to make sure that progress is regularly reviewed and that any issues are identified and addressed in a timely manner.
• Monitor key metrics: Track the most important KPIs that will help you quickly catch underperforming areas and evaluate the success of your annual plan and business strategies. 

If you want to be a savvy business leader, you need to always be monitoring progress, the business environment, and adjusting your plans accordingly. So, let's ditch the rigidity and embrace the flexibility of modern strategic planning and strategy execution! 

With Cascade’s powerful data visualization, you can connect multiple data sources from spreadsheets, project management tools, or business intelligence tools in a single place. You'll be able to uncover powerful insights and deliver accurate reports to help stakeholders make better decisions.

Plus, Cascade's drill-down capabilities allow you to easily explore and interact with your data to gain deeper insights in real time.

Ready for some serious annual planning made easy-peasy? We've got just the thing for you—our annual planning template ! This bad boy is like your own personal planning sidekick, packed with all the goodies you need to align your teams, monitor performance, and rock this year.

Think of it as a one-stop shop for all your annual planning needs. It’s pre-filled with examples that can guide you through the planning process, or you can customize it with your own information.

It’s a great alternative if you want to get out of messy and ineffective spreadsheets. Plus, it's got a super simple layout, so you won't be bogged down by a bunch of unnecessary features. This template can help, regardless of whether you work at a startup or an enterprise-sized company. And no matter the industry you’re in. 

Don't believe us? Give it a try! We guarantee it'll make your annual planning process a whole lot smoother and its execution a whole lot faster. So what are you waiting for? 

Sign up for a free forever plan with Cascade, add the annual planning template to your profile, and level up your game. It’s that simple. 

👉 Click here to get instant access to your annual planning template.

7 Mistakes To Avoid When Conducting Annual Strategic Planning

Alright, before you dive deep into your yearly planning session, let's talk about the elephant in the room: planning and execution mistakes . In this section, we're diving into some of the most common blunders made during the annual planning process, so you can dodge them like a boss. 

• Lack of stakeholder engagement: Failing to involve critical stakeholders in the planning process can lead to a siloed plan that doesn’t align with the organization's capacities, needs, and priorities. 
• Unrealistic goals: Be sure your planning is grounded in your situation's realities and consider your organization's resources, skills, and timelines. This is why it’s crucial that you consult with various stakeholders when planning and executing your strategy. If you need a goal-setting framework, you can check OKRs (Objectives and Key Results). Or take a look at these 5 best strategic planning models to help you set SMART goals. 
• Lack of flexibility: View your plan as a flexible roadmap, not a rigid set of rules, and be prepared to adapt as the business environment changes. The “perfect plan” doesn’t exist. As 76% of corporate strategy leaders report significant pivots in strategic plans happening more frequently, you need to be ready to expect the unexpected. 
• Lack of resources: An annual plan that doesn’t consider your team member’s knowledge and skill sets won't result in tangible outcomes. Additionally, ensure that your business has the necessary resources and that your annual plan won’t cause a cash flow crunch.
• Inadequate communication: Clear and transparent communication is crucial for success, so communicate plans to all stakeholders and ensure they understand the goals and how they fit into the organization's overall strategy.
• Lack of follow-through: Nobody wins if your teams aren’t hitting goals, and your strategy is just a document collecting dust. According to Cascade’s Strategy Report , less than 20% of team members review progress weekly. Set up regular progress reviews and take corrective actions as needed. Ignore this pitfall, and you’ll set your strategy up for failure.
• Misalignment between business strategy and team goals: Strategy execution is a team sport, and everyone needs to be on the same page. Share annual business goals with your team leaders and their team members. Let them set their team goals independently, give them feedback, and ensure buy-in early on.

Ready to tackle your annual planning with confidence? 

Remember, the key to success is having a clear plan in a single source of truth, organization-wide alignment, and being flexible enough to adapt when necessary.

And as a final reminder, don't forget to check out our annual planning template! It's the perfect tool to help you structure your plan, get your teams aligned with your strategic priorities, and keep track of your progress so you can adapt quickly if needed. 

So don't miss out, book a demo with one of our strategy experts or sign up today for free , and let's get started!

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Small Business Trends

How to create a business plan: examples & free template.

This is the ultimate guide to creating a comprehensive and effective plan to start a business . In today’s dynamic business landscape, having a well-crafted business plan is an important first step to securing funding, attracting partners, and navigating the challenges of entrepreneurship.

This guide has been designed to help you create a winning plan that stands out in the ever-evolving marketplace. U sing real-world examples and a free downloadable template, it will walk you through each step of the process.

Whether you’re a seasoned entrepreneur or launching your very first startup, the guide will give you the insights, tools, and confidence you need to create a solid foundation for your business.

Table of Contents

How to Write a Business Plan

Embarking on the journey of creating a successful business requires a solid foundation, and a well-crafted business plan is the cornerstone. Here is the process of writing a comprehensive business plan and the main parts of a winning business plan . From setting objectives to conducting market research, this guide will have everything you need.

Executive Summary

The Executive Summary serves as the gateway to your business plan, offering a snapshot of your venture’s core aspects. This section should captivate and inform, succinctly summarizing the essence of your plan.

It’s crucial to include a clear mission statement, a brief description of your primary products or services, an overview of your target market, and key financial projections or achievements.

Think of it as an elevator pitch in written form: it should be compelling enough to engage potential investors or stakeholders and provide them with a clear understanding of what your business is about, its goals, and why it’s a promising investment.

Example: EcoTech is a technology company specializing in eco-friendly and sustainable products designed to reduce energy consumption and minimize waste. Our mission is to create innovative solutions that contribute to a cleaner, greener environment.

Our target market includes environmentally conscious consumers and businesses seeking to reduce their carbon footprint. We project a 200% increase in revenue within the first three years of operation.

Overview and Business Objectives

In the Overview and Business Objectives section, outline your business’s core goals and the strategic approaches you plan to use to achieve them. This section should set forth clear, specific objectives that are attainable and time-bound, providing a roadmap for your business’s growth and success.

It’s important to detail how these objectives align with your company’s overall mission and vision. Discuss the milestones you aim to achieve and the timeframe you’ve set for these accomplishments.

This part of the plan demonstrates to investors and stakeholders your vision for growth and the practical steps you’ll take to get there.

Example: EcoTech’s primary objective is to become a market leader in sustainable technology products within the next five years. Our key objectives include:

• Introducing three new products within the first two years of operation.
• Achieving annual revenue growth of 30%.
• Expanding our customer base to over 10,000 clients by the end of the third year.

Company Description

The Company Description section is your opportunity to delve into the details of your business. Provide a comprehensive overview that includes your company’s history, its mission statement, and its vision for the future.

Highlight your unique selling proposition (USP) – what makes your business stand out in the market. Explain the problems your company solves and how it benefits your customers.

Include information about the company’s founders, their expertise, and why they are suited to lead the business to success. This section should paint a vivid picture of your business, its values, and its place in the industry.

Example: EcoTech is committed to developing cutting-edge sustainable technology products that benefit both the environment and our customers. Our unique combination of innovative solutions and eco-friendly design sets us apart from the competition. We envision a future where technology and sustainability go hand in hand, leading to a greener planet.

Define Your Target Market

Defining Your Target Market is critical for tailoring your business strategy effectively. This section should describe your ideal customer base in detail, including demographic information (such as age, gender, income level, and location) and psychographic data (like interests, values, and lifestyle).

Elucidate on the specific needs or pain points of your target audience and how your product or service addresses these. This information will help you know your target market and develop targeted marketing strategies.

Example: Our target market comprises environmentally conscious consumers and businesses looking for innovative solutions to reduce their carbon footprint. Our ideal customers are those who prioritize sustainability and are willing to invest in eco-friendly products.

Market Analysis

The Market Analysis section requires thorough research and a keen understanding of the industry. It involves examining the current trends within your industry, understanding the needs and preferences of your customers, and analyzing the strengths and weaknesses of your competitors.

This analysis will enable you to spot market opportunities and anticipate potential challenges. Include data and statistics to back up your claims, and use graphs or charts to illustrate market trends.

This section should demonstrate that you have a deep understanding of the market in which you operate and that your business is well-positioned to capitalize on its opportunities.

Example: The market for eco-friendly technology products has experienced significant growth in recent years, with an estimated annual growth rate of 10%. As consumers become increasingly aware of environmental issues, the demand for sustainable solutions continues to rise.

Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.

SWOT Analysis

A SWOT analysis in your business plan offers a comprehensive examination of your company’s internal and external factors. By assessing Strengths, you showcase what your business does best and where your capabilities lie.

Weaknesses involve an honest introspection of areas where your business may be lacking or could improve. Opportunities can be external factors that your business could capitalize on, such as market gaps or emerging trends.

Threats include external challenges your business may face, like competition or market changes. This analysis is crucial for strategic planning, as it helps in recognizing and leveraging your strengths, addressing weaknesses, seizing opportunities, and preparing for potential threats.

Including a SWOT analysis demonstrates to stakeholders that you have a balanced and realistic understanding of your business in its operational context.

• Innovative and eco-friendly product offerings.
• Strong commitment to sustainability and environmental responsibility.
• Skilled and experienced team with expertise in technology and sustainability.

Weaknesses:

• Limited brand recognition compared to established competitors.
• Reliance on third-party manufacturers for product development.

Opportunities:

• Growing consumer interest in sustainable products.
• Partnerships with environmentally-focused organizations and influencers.
• Expansion into international markets.
• Intense competition from established technology companies.
• Regulatory changes could impact the sustainable technology market.

Competitive Analysis

In this section, you’ll analyze your competitors in-depth, examining their products, services, market positioning, and pricing strategies. Understanding your competition allows you to identify gaps in the market and tailor your offerings to outperform them.

By conducting a thorough competitive analysis, you can gain insights into your competitors’ strengths and weaknesses, enabling you to develop strategies to differentiate your business and gain a competitive advantage in the marketplace.

Example: Key competitors include:

GreenTech: A well-known brand offering eco-friendly technology products, but with a narrower focus on energy-saving devices.

EarthSolutions: A direct competitor specializing in sustainable technology, but with a limited product range and higher prices.

By offering a diverse product portfolio, competitive pricing, and continuous innovation, we believe we can capture a significant share of the growing sustainable technology market.

Organization and Management Team

Provide an overview of your company’s organizational structure, including key roles and responsibilities. Introduce your management team, highlighting their expertise and experience to demonstrate that your team is capable of executing the business plan successfully.

Showcasing your team’s background, skills, and accomplishments instills confidence in investors and other stakeholders, proving that your business has the leadership and talent necessary to achieve its objectives and manage growth effectively.

Example: EcoTech’s organizational structure comprises the following key roles: CEO, CTO, CFO, Sales Director, Marketing Director, and R&D Manager. Our management team has extensive experience in technology, sustainability, and business development, ensuring that we are well-equipped to execute our business plan successfully.

Products and Services Offered

Describe the products or services your business offers, focusing on their unique features and benefits. Explain how your offerings solve customer pain points and why they will choose your products or services over the competition.

This section should emphasize the value you provide to customers, demonstrating that your business has a deep understanding of customer needs and is well-positioned to deliver innovative solutions that address those needs and set your company apart from competitors.

Example: EcoTech offers a range of eco-friendly technology products, including energy-efficient lighting solutions, solar chargers, and smart home devices that optimize energy usage. Our products are designed to help customers reduce energy consumption, minimize waste, and contribute to a cleaner environment.

Marketing and Sales Strategy

In this section, articulate your comprehensive strategy for reaching your target market and driving sales. Detail the specific marketing channels you plan to use, such as social media, email marketing, SEO, or traditional advertising.

Describe the nature of your advertising campaigns and promotional activities, explaining how they will capture the attention of your target audience and convey the value of your products or services. Outline your sales strategy, including your sales process, team structure, and sales targets.

Discuss how these marketing and sales efforts will work together to attract and retain customers, generate leads, and ultimately contribute to achieving your business’s revenue goals.

This section is critical to convey to investors and stakeholders that you have a well-thought-out approach to market your business effectively and drive sales growth.

Example: Our marketing strategy includes digital advertising, content marketing, social media promotion, and influencer partnerships. We will also attend trade shows and conferences to showcase our products and connect with potential clients. Our sales strategy involves both direct sales and partnerships with retail stores, as well as online sales through our website and e-commerce platforms.

Logistics and Operations Plan

The Logistics and Operations Plan is a critical component that outlines the inner workings of your business. It encompasses the management of your supply chain, detailing how you acquire raw materials and manage vendor relationships.

Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.

Quality control measures are essential to maintain product standards and customer satisfaction. This plan assures investors and stakeholders of your operational competency and readiness to meet business demands.

Highlighting your commitment to operational efficiency and customer satisfaction underlines your business’s capability to maintain smooth, effective operations even as it scales.

Example: EcoTech partners with reliable third-party manufacturers to produce our eco-friendly technology products. Our operations involve maintaining strong relationships with suppliers, ensuring quality control, and managing inventory.

We also prioritize efficient distribution through various channels, including online platforms and retail partners, to deliver products to our customers in a timely manner.

Financial Projections Plan

In the Financial Projections Plan, lay out a clear and realistic financial future for your business. This should include detailed projections for revenue, costs, and profitability over the next three to five years.

Ground these projections in solid assumptions based on your market analysis, industry benchmarks, and realistic growth scenarios. Break down revenue streams and include an analysis of the cost of goods sold, operating expenses, and potential investments.

This section should also discuss your break-even analysis, cash flow projections, and any assumptions about external funding requirements.

By presenting a thorough and data-backed financial forecast, you instill confidence in potential investors and lenders, showcasing your business’s potential for profitability and financial stability.

This forward-looking financial plan is crucial for demonstrating that you have a firm grasp of the financial nuances of your business and are prepared to manage its financial health effectively.

Example: Over the next three years, we expect to see significant growth in revenue, driven by new product launches and market expansion. Our financial projections include:

• Year 1: $1.5 million in revenue, with a net profit of $200,000.
• Year 2: $3 million in revenue, with a net profit of $500,000.
• Year 3: $4.5 million in revenue, with a net profit of $1 million.

These projections are based on realistic market analysis, growth rates, and product pricing.

Income Statement

The income statement , also known as the profit and loss statement, provides a summary of your company’s revenues and expenses over a specified period. It helps you track your business’s financial performance and identify trends, ensuring you stay on track to achieve your financial goals.

Regularly reviewing and analyzing your income statement allows you to monitor the health of your business, evaluate the effectiveness of your strategies, and make data-driven decisions to optimize profitability and growth.

Example: The income statement for EcoTech’s first year of operation is as follows:

• Revenue: $1,500,000
• Cost of Goods Sold: $800,000
• Gross Profit: $700,000
• Operating Expenses: $450,000
• Net Income: $250,000

This statement highlights our company’s profitability and overall financial health during the first year of operation.

Cash Flow Statement

A cash flow statement is a crucial part of a financial business plan that shows the inflows and outflows of cash within your business. It helps you monitor your company’s liquidity, ensuring you have enough cash on hand to cover operating expenses, pay debts, and invest in growth opportunities.

By including a cash flow statement in your business plan, you demonstrate your ability to manage your company’s finances effectively.

Example:  The cash flow statement for EcoTech’s first year of operation is as follows:

Operating Activities:

• Depreciation: $10,000
• Changes in Working Capital: -$50,000
• Net Cash from Operating Activities: $210,000

Investing Activities:

•  Capital Expenditures: -$100,000
• Net Cash from Investing Activities: -$100,000

Financing Activities:

• Proceeds from Loans: $150,000
• Loan Repayments: -$50,000
• Net Cash from Financing Activities: $100,000
• Net Increase in Cash: $210,000

This statement demonstrates EcoTech’s ability to generate positive cash flow from operations, maintain sufficient liquidity, and invest in growth opportunities.

Tips on Writing a Business Plan

1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively.

2. Conduct thorough research: Before writing your business plan, gather as much information as possible about your industry, competitors, and target market. Use reliable sources and industry reports to inform your analysis and make data-driven decisions.

3. Set realistic goals: Your business plan should outline achievable objectives that are specific, measurable, attainable, relevant, and time-bound (SMART). Setting realistic goals demonstrates your understanding of the market and increases the likelihood of success.

4. Focus on your unique selling proposition (USP): Clearly articulate what sets your business apart from the competition. Emphasize your USP throughout your business plan to showcase your company’s value and potential for success.

5. Be flexible and adaptable: A business plan is a living document that should evolve as your business grows and changes. Be prepared to update and revise your plan as you gather new information and learn from your experiences.

6. Use visuals to enhance understanding: Include charts, graphs, and other visuals to help convey complex data and ideas. Visuals can make your business plan more engaging and easier to digest, especially for those who prefer visual learning.

7. Seek feedback from trusted sources: Share your business plan with mentors, industry experts, or colleagues and ask for their feedback. Their insights can help you identify areas for improvement and strengthen your plan before presenting it to potential investors or partners.

FREE Business Plan Template

To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.

The template is divided into the following sections:

• Mission statement
• Business Overview
• Key products or services
• Target market
• Financial highlights
• Company goals
• Strategies to achieve goals
• Measurable, time-bound objectives
• Company History
• Mission and vision
• Unique selling proposition
• Demographics
• Psychographics
• Pain points
• Industry trends
• Customer needs
• Competitor strengths and weaknesses
• Opportunities
• Competitor products and services
• Market positioning
• Pricing strategies
• Organizational structure
• Key roles and responsibilities
• Management team backgrounds
• Product or service features
• Competitive advantages
• Marketing channels
• Advertising campaigns
• Promotional activities
• Sales strategies
• Supply chain management
• Inventory control
• Production processes
• Quality control measures
• Projected revenue
• Assumptions
• Cash inflows
• Cash outflows
• Net cash flow

What is a Business Plan?

A business plan is a strategic document that outlines an organization’s goals, objectives, and the steps required to achieve them. It serves as a roadmap as you start a business , guiding the company’s direction and growth while identifying potential obstacles and opportunities.

Typically, a business plan covers areas such as market analysis, financial projections, marketing strategies, and organizational structure. It not only helps in securing funding from investors and lenders but also provides clarity and focus to the management team.

A well-crafted business plan is a very important part of your business startup checklist because it fosters informed decision-making and long-term success.

Why You Should Write a Business Plan

Understanding the importance of a business plan in today’s competitive environment is crucial for entrepreneurs and business owners. Here are five compelling reasons to write a business plan:

• Attract Investors and Secure Funding : A well-written business plan demonstrates your venture’s potential and profitability, making it easier to attract investors and secure the necessary funding for growth and development. It provides a detailed overview of your business model, target market, financial projections, and growth strategies, instilling confidence in potential investors and lenders that your company is a worthy investment.
• Clarify Business Objectives and Strategies : Crafting a business plan forces you to think critically about your goals and the strategies you’ll employ to achieve them, providing a clear roadmap for success. This process helps you refine your vision and prioritize the most critical objectives, ensuring that your efforts are focused on achieving the desired results.
• Identify Potential Risks and Opportunities : Analyzing the market, competition, and industry trends within your business plan helps identify potential risks and uncover untapped opportunities for growth and expansion. This insight enables you to develop proactive strategies to mitigate risks and capitalize on opportunities, positioning your business for long-term success.
• Improve Decision-Making : A business plan serves as a reference point so you can make informed decisions that align with your company’s overall objectives and long-term vision. By consistently referring to your plan and adjusting it as needed, you can ensure that your business remains on track and adapts to changes in the market, industry, or internal operations.
• Foster Team Alignment and Communication : A shared business plan helps ensure that all team members are on the same page, promoting clear communication, collaboration, and a unified approach to achieving the company’s goals. By involving your team in the planning process and regularly reviewing the plan together, you can foster a sense of ownership, commitment, and accountability that drives success.

What are the Different Types of Business Plans?

In today’s fast-paced business world, having a well-structured roadmap is more important than ever. A traditional business plan provides a comprehensive overview of your company’s goals and strategies, helping you make informed decisions and achieve long-term success. There are various types of business plans, each designed to suit different needs and purposes. Let’s explore the main types:

• Startup Business Plan: Tailored for new ventures, a startup business plan outlines the company’s mission, objectives, target market, competition, marketing strategies, and financial projections. It helps entrepreneurs clarify their vision, secure funding from investors, and create a roadmap for their business’s future. Additionally, this plan identifies potential challenges and opportunities, which are crucial for making informed decisions and adapting to changing market conditions.
• Internal Business Plan: This type of plan is intended for internal use, focusing on strategies, milestones, deadlines, and resource allocation. It serves as a management tool for guiding the company’s growth, evaluating its progress, and ensuring that all departments are aligned with the overall vision. The internal business plan also helps identify areas of improvement, fosters collaboration among team members, and provides a reference point for measuring performance.
• Strategic Business Plan: A strategic business plan outlines long-term goals and the steps to achieve them, providing a clear roadmap for the company’s direction. It typically includes a SWOT analysis, market research, and competitive analysis. This plan allows businesses to align their resources with their objectives, anticipate changes in the market, and develop contingency plans. By focusing on the big picture, a strategic business plan fosters long-term success and stability.
• Feasibility Business Plan: This plan is designed to assess the viability of a business idea, examining factors such as market demand, competition, and financial projections. It is often used to decide whether or not to pursue a particular venture. By conducting a thorough feasibility analysis, entrepreneurs can avoid investing time and resources into an unviable business concept. This plan also helps refine the business idea, identify potential obstacles, and determine the necessary resources for success.
• Growth Business Plan: Also known as an expansion plan, a growth business plan focuses on strategies for scaling up an existing business. It includes market analysis, new product or service offerings, and financial projections to support expansion plans. This type of plan is essential for businesses looking to enter new markets, increase their customer base, or launch new products or services. By outlining clear growth strategies, the plan helps ensure that expansion efforts are well-coordinated and sustainable.
• Operational Business Plan: This type of plan outlines the company’s day-to-day operations, detailing the processes, procedures, and organizational structure. It is an essential tool for managing resources, streamlining workflows, and ensuring smooth operations. The operational business plan also helps identify inefficiencies, implement best practices, and establish a strong foundation for future growth. By providing a clear understanding of daily operations, this plan enables businesses to optimize their resources and enhance productivity.
• Lean Business Plan: A lean business plan is a simplified, agile version of a traditional plan, focusing on key elements such as value proposition, customer segments, revenue streams, and cost structure. It is perfect for startups looking for a flexible, adaptable planning approach. The lean business plan allows for rapid iteration and continuous improvement, enabling businesses to pivot and adapt to changing market conditions. This streamlined approach is particularly beneficial for businesses in fast-paced or uncertain industries.
• One-Page Business Plan: As the name suggests, a one-page business plan is a concise summary of your company’s key objectives, strategies, and milestones. It serves as a quick reference guide and is ideal for pitching to potential investors or partners. This plan helps keep teams focused on essential goals and priorities, fosters clear communication, and provides a snapshot of the company’s progress. While not as comprehensive as other plans, a one-page business plan is an effective tool for maintaining clarity and direction.
• Nonprofit Business Plan: Specifically designed for nonprofit organizations, this plan outlines the mission, goals, target audience, fundraising strategies, and budget allocation. It helps secure grants and donations while ensuring the organization stays on track with its objectives. The nonprofit business plan also helps attract volunteers, board members, and community support. By demonstrating the organization’s impact and plans for the future, this plan is essential for maintaining transparency, accountability, and long-term sustainability within the nonprofit sector.
• Franchise Business Plan: For entrepreneurs seeking to open a franchise, this type of plan focuses on the franchisor’s requirements, as well as the franchisee’s goals, strategies, and financial projections. It is crucial for securing a franchise agreement and ensuring the business’s success within the franchise system. This plan outlines the franchisee’s commitment to brand standards, marketing efforts, and operational procedures, while also addressing local market conditions and opportunities. By creating a solid franchise business plan, entrepreneurs can demonstrate their ability to effectively manage and grow their franchise, increasing the likelihood of a successful partnership with the franchisor.

Using Business Plan Software

Creating a comprehensive business plan can be intimidating, but business plan software can streamline the process and help you produce a professional document. These tools offer a number of benefits, including guided step-by-step instructions, financial projections, and industry-specific templates. Here are the top 5 business plan software options available to help you craft a great business plan.

1. LivePlan

LivePlan is a popular choice for its user-friendly interface and comprehensive features. It offers over 500 sample plans, financial forecasting tools, and the ability to track your progress against key performance indicators. With LivePlan, you can create visually appealing, professional business plans that will impress investors and stakeholders.

2. Upmetrics

Upmetrics provides a simple and intuitive platform for creating a well-structured business plan. It features customizable templates, financial forecasting tools, and collaboration capabilities, allowing you to work with team members and advisors. Upmetrics also offers a library of resources to guide you through the business planning process.

Bizplan is designed to simplify the business planning process with a drag-and-drop builder and modular sections. It offers financial forecasting tools, progress tracking, and a visually appealing interface. With Bizplan, you can create a business plan that is both easy to understand and visually engaging.

Enloop is a robust business plan software that automatically generates a tailored plan based on your inputs. It provides industry-specific templates, financial forecasting, and a unique performance score that updates as you make changes to your plan. Enloop also offers a free version, making it accessible for businesses on a budget.

5. Tarkenton GoSmallBiz

Developed by NFL Hall of Famer Fran Tarkenton, GoSmallBiz is tailored for small businesses and startups. It features a guided business plan builder, customizable templates, and financial projection tools. GoSmallBiz also offers additional resources, such as CRM tools and legal document templates, to support your business beyond the planning stage.

Business Plan FAQs

What is a good business plan.

A good business plan is a well-researched, clear, and concise document that outlines a company’s goals, strategies, target market, competitive advantages, and financial projections. It should be adaptable to change and provide a roadmap for achieving success.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are to guide the company’s strategy, attract investment, and evaluate performance against objectives. Here’s a closer look at each of these:

• It outlines the company’s purpose and core values to ensure that all activities align with its mission and vision.
• It provides an in-depth analysis of the market, including trends, customer needs, and competition, helping the company tailor its products and services to meet market demands.
• It defines the company’s marketing and sales strategies, guiding how the company will attract and retain customers.
• It describes the company’s organizational structure and management team, outlining roles and responsibilities to ensure effective operation and leadership.
• It sets measurable, time-bound objectives, allowing the company to plan its activities effectively and make strategic decisions to achieve these goals.
• It provides a comprehensive overview of the company and its business model, demonstrating its uniqueness and potential for success.
• It presents the company’s financial projections, showing its potential for profitability and return on investment.
• It demonstrates the company’s understanding of the market, including its target customers and competition, convincing investors that the company is capable of gaining a significant market share.
• It showcases the management team’s expertise and experience, instilling confidence in investors that the team is capable of executing the business plan successfully.
• It establishes clear, measurable objectives that serve as performance benchmarks.
• It provides a basis for regular performance reviews, allowing the company to monitor its progress and identify areas for improvement.
• It enables the company to assess the effectiveness of its strategies and make adjustments as needed to achieve its objectives.
• It helps the company identify potential risks and challenges, enabling it to develop contingency plans and manage risks effectively.
• It provides a mechanism for evaluating the company’s financial performance, including revenue, expenses, profitability, and cash flow.

Can I write a business plan by myself?

Yes, you can write a business plan by yourself, but it can be helpful to consult with mentors, colleagues, or industry experts to gather feedback and insights. There are also many creative business plan templates and business plan examples available online, including those above.

We also have examples for specific industries, including a using food truck business plan , salon business plan , farm business plan , daycare business plan , and restaurant business plan .

Is it possible to create a one-page business plan?

Yes, a one-page business plan is a condensed version that highlights the most essential elements, including the company’s mission, target market, unique selling proposition, and financial goals.

How long should a business plan be?

A typical business plan ranges from 20 to 50 pages, but the length may vary depending on the complexity and needs of the business.

What is a business plan outline?

A business plan outline is a structured framework that organizes the content of a business plan into sections, such as the executive summary, company description, market analysis, and financial projections.

What are the 5 most common business plan mistakes?

The five most common business plan mistakes include inadequate research, unrealistic financial projections, lack of focus on the unique selling proposition, poor organization and structure, and failure to update the plan as circumstances change.

What questions should be asked in a business plan?

A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?

What’s the difference between a business plan and a strategic plan?

A business plan focuses on the overall vision, goals, and tactics of a company, while a strategic plan outlines the specific strategies, action steps, and performance measures necessary to achieve the company’s objectives.

How is business planning for a nonprofit different?

Nonprofit business planning focuses on the organization’s mission, social impact, and resource management, rather than profit generation. The financial section typically includes funding sources, expenses, and projected budgets for programs and operations.

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Annual Business Planning: A Step-by-Step Guide

As the year winds down, it’s a pivotal time for businesses to reflect, analyze, and plan for the year ahead. End-of-year annual business planning is more than a mundane task—it’s a stepping stone for future success. 

It’s about setting clear objectives, aligning your team, and ensuring your resources are well-allocated to meet the upcoming challenges and opportunities. Through a thoughtful planning process, you can set a solid foundation for growth, adaptability, and continued success. 

Read on as we delve into the essential steps and considerations to make your annual business planning both effective and strategic.

What Is Annual Planning? 

At its core, annual planning is like crafting a roadmap for the journey ahead—drawing from the experiences of the past. 

So, what should this roadmap include?

• Destination Points: The goals you envision your team reaching.
• The Route: The overarching strategy that guides the way to those goals.
• Travel Itinerary: Specific tactics or steps your team will undertake.
• Signposts: Essential milestones that mark your progress and keep you on track.

With this blueprint, the path to success becomes clearer, ensuring everyone knows the direction and the stops along the way.

When Should You Start Annual Planning?

There’s wisdom in the adage: “The early bird catches the worm.” Being that early bird in your annual planning process can set you miles ahead as you dive into a fresh fiscal year. A head start in Q4, as opposed to a frantic rush post-holidays, can be the game-changer. It’s akin to prepping for a marathon – would you rather start training months in advance or cram all your sessions into the final week?

Starting earlier boasts twofold advantages:

• By stepping ahead of the curve, you sidestep the typical year-end frenzy, replacing last-minute scrambles with calculated strategy.
• An efficient early planning session involving your leadership allows other teams to continue their momentum on critical Q4 projects without distraction.

The Power of the Annual Plan: Why Teams Need It

Early annual planning is essential for setting a clear path for your business. Having an annual plan helps in the following ways:

• Alignment & Cohesion: A shared understanding of the broader vision and individual roles fosters unity, collaboration, and collective drive towards success.
• Anticipate Challenges: By planning ahead, teams can identify potential obstacles and develop proactive solutions, rather than reacting hastily in the moment.
• Milestone Tracking: With set benchmarks in the annual plan, teams have a clear roadmap to track progress, celebrate achievements, and stay motivated.

In essence, an annual plan isn’t just a document; it’s a commitment to vision, strategy, and teamwork.

5 Steps for Annual Business Planning

1. reflect on the previous year’s performance.

Evaluate how the past year measured up to the targets set. Analyze whether goals were met, and if not, understand why. If goals were easily achieved, consider raising the bar for the upcoming year. If they weren’t met, assess whether the goals were too ambitious or if the strategy needs to be adjusted.

2. Identify the goals you want to achieve in the upcoming year

Your annual plan should align with your broader strategic LRP (long range plan) vision for the next three to five years. Identify key focus areas for the upcoming year and turn them into actionable objectives. Use methods like OKR, KPIs, or SMART goals to clearly define these objectives.

3. Create an action plan to achieve goals

With the goals set, outline the steps necessary to achieve them. This action plan should detail tasks, deadlines, and responsibilities. Assign roles and ensure each team member understands the importance of their tasks within the bigger picture.

4. Communicate the annual plan to all team members

Share the annual plan with all team members, ensuring they understand and are aligned with the vision for the year. It’s not just about sharing information, but inspiring the team to work together towards the common goals.

5. Execute your strategy, monitor metrics, and adjust as needed

Execute the strategy, keep track of key metrics, and be ready to make adjustments as needed. Business conditions change, and being able to adapt the plan while keeping on track towards the goals is crucial for success.

What to include in an Annual Plan?

A good annual plan begins with setting clear, achievable objectives that are in alignment with the long-term vision of the business. The plan should then break down these objectives into actionable tasks with assigned responsibilities, like setting quarterly sales targets for each team. 

Clear, Measurable Goals

Defining specific, quantifiable objectives is crucial. For instance, instead of vaguely aiming to “increase sales,” set a clear target like “15% growth in sales, measured by TCV, compared to the previous year.”

Actionable Strategies

Detailing the path to achieve these goals is the next step. For achieving sales growth, strategies such as “upsell 20% of the North American customer base to upgrade 1-2 subscription levels” or “break into two new regional markets to expand the hardware product line” can be laid down.

Detailed Timeline

Having a definitive timeline with deadlines and checkpoints ensures timely progress. For example, set milestones like “market research by end of January; prototype testing by March; official launch in June.”

Allocation of Resources

Allocating necessary human, financial, and technological resources for each task is vital. An example could be “dedicating $50,000 from the marketing budget for the Q2 product launch, with the task assigned to the product marketing team.”

Risk Assessment

Identifying potential challenges and formulating contingency plans is wise. This can be assessed by looking at historical data, market projections, and regulatory or legal documentation.

Success Metrics

Determining the criteria for measuring the success of initiatives is crucial. For new product launches, monitoring metrics like monthly sales revenue, units sold, customer reviews, and return rates can provide valuable insights.

Stakeholder Communication

Deciding on the mode and frequency of updates to stakeholders keeps everyone informed and engaged. Standardizing the format of reporting and communications can simplify stakeholder reviews and streamline decision making.

Key Takeaways 

Reflecting on the past year and planning for the future is the only way to build on the success of the past. Your business success is largely driven by the efforts of annual planning, collaboration, and thoughtful strategy.

So, as you step into the planning phase, consider partnering with a digital agency to translate your business objectives into a well-structured, actionable, and successful annual plan. Your roadmap to success could be one consultation away! Contact us today !

Updated: Nov 02, 2023

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Free Annual Plan Templates: Excel, Microsoft Word, PowerPoint, and Google Slides

By Kate Eby | January 17, 2024

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We’ve collected the top annual plan templates in Excel, Microsoft Word, PowerPoint, and Google Slides. Use the templates to build a 12-month strategy that streamlines the annual planning process based on the company’s vision for goal-setting. 

Included on this page, you’ll find an  annual plan slide template , a  yearly planning template with Gantt chart , an  annual planning template with a calendar , and more. You’ll also learn about the  differences between an annual and a strategic plan , as well as  how to create an annual plan .

Annual Plan Templates vs. Strategic Plan

An annual plan and a strategic plan serve different purposes for building and organizing a growth strategy. A strategic plan focuses on a company’s direction and long-term goals. The annual plan defines actionable steps to achieve yearly goals. 

Review the matrix below to understand the differences between an annual plan template and a strategic plan template.

Simple Annual Plan Template

Download a Simple Annual Plan Template for

Excel | Microsoft Word

Ease your way into annual planning with this simple template that organizes any company’s annual goals, objectives, timelines, and budget. Complete the  Overview, Strategies, and  Global Priorities sections to build a foundation for goal-setting. Then use the table to list objectives, timelines, owners, budgets, and statuses. Reuse this template year after year to save time and to streamline the annual planning process.

Annual Plan Slide Template

Download an Annual Plan Slide Template for 

PowerPoint | Google Slides  

Use this annual plan template to outline and present a high-level one-year plan to stakeholders. Objectives are organized by quarters, so it’s easy to follow their timelines. Add more slides, including the company’s marketing plan, sales plan, or strategic plan to create a comprehensive presentation of the company’s overarching goals.

Yearly Planning Excel Template with Gantt Chart

Download the Yearly Planning Template with Gantt Chart in Excel  

Use this yearly planning template with a Gantt chart to list annual objectives. This template is similar to the simple annual plan, but adds a Gantt chart to provide a visual representation of each deliverable’s timeline. Enter the start date and due date for each objective. The template will automatically populate the dates into a Gantt chart making it easy to track each objective’s progress and ensure the plan stays on course.

Annual Planning Template with Calendar

Download an Annual Planning Template with Calendar 

Excel | Microsoft Word  

Track important deadlines with this annual planning calendar template. This template has all the features of the simple annual plan template but adds a calendar. The calendar format provides space to enter details under any day of the year. Promote timeline transparency and guarantee deliverables meet their due dates by sharing this template with your team.

How to Create an Annual Plan

Create an annual plan by first reviewing the previous year’s wins and losses to determine where to focus the upcoming year’s efforts. Brainstorm annual goals, list the actions to achieve them, and assign the action steps to team members. 

Start drafting an annual plan in Q4 to prepare for the upcoming year. Follow the steps below to create an effective annual plan that drives revenue and growth to any business.   

• Review the Previous Year Meet with stakeholders and review the previous year’s plan and successes. Identify areas that need improvement. This review process will help determine where to focus efforts next year. You can skip this step if it’s the company’s first time creating an annual plan.
• Download an Annual Plan Template Download the simple annual plan template. Using a template will help ensure you don’t miss any vital sections of the plan.
• Enter the Company’s Vision Statement The vision statement describes the company’s long-term aspirations, so keep it at the forefront of the decision-making and goal-setting processes.  
• Brainstorm Annual Goals Collaborate with stakeholders and determine what you want to achieve in the upcoming year. Use last year’s wins and losses to set realistic goals that align with the company’s vision statement.
• List Objectives List the action steps required to meet the goals. Categorize them into sections, such as marketing, financial, customer experience, product, etc. 
• Set Timelines Set a start date and end date for each objective. Annual plans are often broken down into quarters, but it’s not uncommon to set monthly and weekly timelines. 
• Determine a Budget Determine a budget based on financial projections. This step helps allocate resources teams or departments will have available to them, which will make planning more realistic.
• Identify Metrics Decide what metrics to use for tracking and monitoring results. The data these provide is important for measuring if objectives are being met.
• Assign Responsibility Assign a team, department, or individual to each deliverable to ensure nothing is missed.  
• Share with Team Members Share the annual plan with team members to create alignment and build motivation around working toward specific goals.

Elements in an Annual Plan

Elements in an annual plan include everything necessary to outline a comprehensive plan for growing any company. Here is a list of elements found in a general annual plan:     

• Budget: The funds allocated to each goal or objective.
• KPIs:  The tools and metrics used to measure the success of the objectives.
• Objectives: Objectives are the action steps to achieve the goals.
• Owner: The owner is the team, department, or individual responsible for completing an objective.
• SMART Goals:  This represents a type of goal-setting where each should be specific, measurable, achievable, relevant, and time-bound. Learn more about  setting SMART goals .
• Strategies:  List the marketing strategies, operational strategies, and sales strategies to provide a comprehensive framework that drives coordinated efforts.
• Timeline:  The length of time dedicated to each deliverable. Deliverable timelines are typically quarters, but they can also be monthly or weekly.
• Values and Mission Statement: These document the foundation for decision making and goal setting.

Different Types Of Annual Plans

Different types of annual plans support specific areas such as budgeting, marketing, operations, and more. Choose an annual plan from the list below that best fits your company’s needs and growth strategy.

Free Annual Sales Report Templates

Use an  annual sales report template to track yearly sales activities and trends.

Free Annual Business Budget Templates

Use an  annual business budget template to evaluate business expenditures vs. revenue over a one-year period.

Free Operational Plan Templates

Use an  operational plan template to lay out specific actions and resources needed to reach certain milestones.

Annual Report Template

Use this  annual report template to document the company’s yearly accomplishments, impact stories, financial data, and donor list.

Annual Marketing Report

Use this  annual marketing report template to document the total projects delivered, KPIs, and marketing financial overview.

Create Your Annual Plan in Smartsheet and Get Gantt Chart and Calendar Views

Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change. 

The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

Discover why over 90% of Fortune 100 companies trust Smartsheet to get work done.

.css-s5s6ko{margin-right:42px;color:#F5F4F3;}@media (max-width: 1120px){.css-s5s6ko{margin-right:12px;}} AI that works. Coming June 5th, Asana redefines work management—again. .css-1ixh9fn{display:inline-block;}@media (max-width: 480px){.css-1ixh9fn{display:block;margin-top:12px;}} .css-1uaoevr-heading-6{font-size:14px;line-height:24px;font-weight:500;-webkit-text-decoration:underline;text-decoration:underline;color:#F5F4F3;}.css-1uaoevr-heading-6:hover{color:#F5F4F3;} .css-ora5nu-heading-6{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-box-pack:start;-ms-flex-pack:start;-webkit-justify-content:flex-start;justify-content:flex-start;color:#0D0E10;-webkit-transition:all 0.3s;transition:all 0.3s;position:relative;font-size:16px;line-height:28px;padding:0;font-size:14px;line-height:24px;font-weight:500;-webkit-text-decoration:underline;text-decoration:underline;color:#F5F4F3;}.css-ora5nu-heading-6:hover{border-bottom:0;color:#CD4848;}.css-ora5nu-heading-6:hover path{fill:#CD4848;}.css-ora5nu-heading-6:hover div{border-color:#CD4848;}.css-ora5nu-heading-6:hover div:before{border-left-color:#CD4848;}.css-ora5nu-heading-6:active{border-bottom:0;background-color:#EBE8E8;color:#0D0E10;}.css-ora5nu-heading-6:active path{fill:#0D0E10;}.css-ora5nu-heading-6:active div{border-color:#0D0E10;}.css-ora5nu-heading-6:active div:before{border-left-color:#0D0E10;}.css-ora5nu-heading-6:hover{color:#F5F4F3;} Get early access .css-1k6cidy{width:11px;height:11px;margin-left:8px;}.css-1k6cidy path{fill:currentColor;}

• Strategic planning |

Annual planning template

Every business needs a clear direction. Create an annual planning template to set clear goals and streamline your yearly planning process—so every level of your organization is aligned on what’s important.

Sign up to create your own template.

• A library of 70+ ready-made templates
• Hundreds of app integrations
• AI features to get more done—faster

Annual planning is essential to develop a clear strategy and ensure your company, departments, and individual teams are on the same page. But even though it happens every year, annual planning can feel chaotic—with many different stakeholders, deadlines, and decisions that need to be made. 

An annual planning template streamlines the yearly planning process, so you can focus on developing great strategy—not on juggling different planning tasks. 

What is annual planning?

What is an annual planning template .

An annual planning template is a reusable guide that lays out each step in the annual planning process. It helps clarify planning by outlining exactly what you should do—and when you should do it—to craft a successful business plan. For example, your template could include a timeline for strategy sessions, submitting budget and headcount requests, finalizing department objectives, and more.

A great annual planning template also includes space to document company, department, and team goals—so your organization’s North Star is top of mind throughout the annual planning process. With a standardized action plan and visibility into high-level objectives, you can ensure your organization is aligned from the bottom up. 

The benefits of a digital annual planning template

Annual planning often happens at the top of an organization and isn’t effectively communicated to everyone. According to our research , only 16% of knowledge workers say their company is effective at setting and communicating company goals, and only 26% of workers have a clear understanding of how their individual work contributes toward those company goals. 

A digital annual planning template closes this communication gap by setting and tracking yearly goals where work happens. Instead of gathering dust in a spreadsheet, your team and company goals live right next to the work that needs to be done to achieve them. That way, annual planning isn’t just something that happens at the executive level. Instead, it’s an exercise that helps everyone—from the CEO to the summer intern—set measurable goals for their work that align with other teams and your company objectives. 

By consolidating your annual planning process in a work management platform, you can: 

Standardize your strategic planning process across departments and teams.

Create a single system of record for the annual planning process, so everyone is on the same page. 

Ensure company priorities are top of mind when departments and teams set their own annual goals for the new year.

Map out a concrete timeline for your annual planning process.

Assign tasks with specific due dates, so it’s clear who’s responsible for what, by when.

Toggle between project views to visualize your annual business plan in different ways—as a standard list, Gantt chart , calendar, or Kanban board .

How to create an annual planning template

Annual planning looks different at every company. To create your own custom-built template, first ask yourself the following questions: 

Who will be involved in the annual planning process? 

What are the major decisions you need to make, and steps you need to take? 

Who will be making those decisions? 

What is the order in which those decisions need to be made? 

Then, use those questions to fill in a rough timeline. As you map out the annual planning process, use these best practices to build out your template: 

Organize tasks with sections. Keep annual planning steps organized by bucketing them into different sections—like company planning, department planning, and headcount requests. 

Create custom tags to visualize key stages. Annual planning often happens in stages—like pre-planning and strategizing, goal-setting, then allocating resources to achieve those goals. Color-coded custom tags help visualize where each task falls within each annual planning stage.

Indicate which team is responsible for each task. During annual planning, it’s important to know who’s responsible for each step in the process. Label each task with its respective team—like company planning, finance, and HR. 

Include your team and company-wide goals. For annual planning to work, you need constant visibility into high-level company objectives. Include space in your template to set and track business, department, and team goals so you can make sure each level of the organization is aligned. 

Tracking goals in your annual planning template is a great way for individual teams to stay organized, but you can level up your goal-setting process with Asana’s Goals feature . Goals is an organization-wide tool that helps your entire business set, track, and communicate about goals.

Integrated features

Timeline View . Timeline View is a Gantt-style project view that displays all of your tasks in a horizontal bar chart. Not only can you see each task’s start and end date, but you can also see dependencies between tasks. With Timeline View, you can easily track how the pieces of your plan fit together. Plus, when you can see all of your work in one place, it’s easy to identify and address dependency conflicts before they start, so you can hit all of your goals on schedule. 

Custom fields . Custom fields are the best way to tag, sort, and filter work. Create unique custom fields for any information you need to track—from priority and status to email or phone number. Use custom fields to sort and schedule your to-dos so you know what to work on first. Plus, share custom fields across tasks and projects to ensure consistency across your organization. 

Milestones . Milestones represent important project checkpoints. By setting milestones throughout your project, you can let your team members and project stakeholders know how you’re pacing towards your goal. Use milestones as a chance to celebrate the little wins on the path towards the big project goal. 

Start dates . Sometimes you don’t just need to track when a to-do is due—you also need to know when you should start working on it. Start times and dates give your team members a clear sense of how long each task should take to complete. Use start dates to set, track, and manage work to align your team's objectives and prevent dependencies from falling through the cracks. 

Recommended apps

Zoom . Asana and Zoom are partnering up to help teams have more purposeful and focused meetings. The Zoom + Asana integration makes it easy to prepare for meetings, hold actionable conversations, and access information once the call is over. Meetings begin in Asana, where shared meeting agendas provide visibility and context about what will be discussed. During the meeting, team members can quickly create tasks within Zoom, so details and action items don’t get lost. And once the meeting is over, the Zoom + Asana integration pulls meeting transcripts and recordings into Asana, so all collaborators and stakeholders can review the meeting as needed.

Vimeo . Text may get the point across, but written words lack tone, emotion, and expression. With video messaging in Asana, powered by Vimeo, you can give your team all the context they need, without having to schedule another meeting. Record short video messages of yourself, your screen—or both—then embed the videos in tasks, projects, messages, and comments to provide additional clarity and context. A transcript of the recording is automatically created by Asana, making it readable and searchable. Give feedback, ask questions, and assign tasks—all without leaving Asana.

Microsoft Teams . With the Microsoft Teams + Asana integration, you can search for and share the information you need without leaving Teams. Easily connect your Teams conversations to actionable items in Asana. Plus, create, assign, and view tasks during a Teams Meeting without needing to switch to your browser.

Google Workplace . Attach files directly to tasks in Asana with the Google Workplace file chooser, which is built into the Asana task pane. Easily attach any My Drive file with just a few clicks.

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There are a variety of goal-setting methodologies you can use, including objectives and key results (OKRs) and SMART goals —objectives that are specific, measurable, achievable, realistic, and time-bound. Regardless of the method you choose, make sure you identify key success metrics to track and measure results. That way, you can determine if your business strategy is working—or if you need to do something different. 

It’s also a good idea to evaluate your performance from the previous year when setting business goals. How you did last year is a great benchmark to determine what’s realistic for you to achieve with your new yearly plan.

What types of teams can benefit from this annual planning template?

If you participate in annual planning, this template can help—regardless of whether you work at a small business, startup, or enterprise-sized company. Every department and team should participate in annual planning, and using a template helps standardize the process across your whole company.

When should I use my annual planning template?

The earlier, the better. Start using your annual planning template as soon as your company kicks off the yearly planning process. This often happens in the third quarter, about four months before the start of the new fiscal year. 

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Annual Planning

A strong annual plan builds on the company’s broader strategic vision and core values while still providing specific goals, metrics, and budgets to guide managers and employees. If it’s doing its job, the annual business plan is also flexible enough to adapt to an unpredictable and often volatile market.

Take the Scenario Planner demo

What is annual planning?

An annual business plan is a road map for a company and its employees. It contains milestones that carry the plan forward through a series of smaller goals that lead to a broader vision of where the business aims to be by the end of the year.

When a new year arrives, many people make plans and resolutions for the coming 12 months. They look back at the previous year and consider what worked for them and what they want to improve. Then they plan what goals they want to achieve, from getting out of debt to losing weight to learning a new language. Similarly, a company or organization will use an annual business plan to tighten its belt, improve performance, and reach specific goals over the coming year.

Whether using an annual business plan template or working from scratch, a company will review the expectations and results from the previous year in order to create an annual plan that gives everyone in the organization a sense of where they’re headed and how they will get there.

Why annual planning is important.

An annual business plan empowers workers to set specific business goals based on the company’s overarching strategy, and it also holds teams accountable for achieving stated goals.

The annual plan connects directly to where a company wants to be in 3 to 5 years and defines what’s critical to achieve over the next year to progress toward longer-term targets.

A well-formulated annual plan also keeps the workforce united and focused, energizing them to be more productive.

Additional benefits of an annual business plan include:

• Providing a stronger connection to the strategic plan
• Putting the mission of the organization into daily practice
• Providing workers with a clear sense of direction in their departments or roles

What’s the difference between an annual plan and a strategic plan?

In the strategic planning process , an organization describes or affirms its mission, deciding what it wants to achieve over the next few years (vision) and setting strategic priorities to help make that vision a reality.

The strategic plan works hand in hand with the annual business plan. The former provides an overarching vision of what the company wants to achieve, and the annual plan provides the nuts and bolts of the necessary work to be done over the coming year.

So, the annual business plan depends on the strategy for its priorities, and the strategy depends on the annual plan to execute its ideas about the organization’s vision, mission, purpose, and goals. Logistics, projects, allocation of resources, and timing are covered in the annual plan.

Preparing to create an annual plan.

Before you can look ahead, you need to first look back, take what you’ve learned, and recommit yourself to your company’s values and priorities. Thus, reviewing your old plan and assessing its results against expectations is an important first step.

You should also review your company’s:

• Mission statement: This is a guiding declaration that describes what your company does and differentiates you from your competition.
• Vision statement : This is an aspirational statement about what your company wants to become—an important factor in setting the annual plan’s priorities.
• Core values: These are the principles, beliefs, and philosophies that shape your company’s culture and support your vision for the future.
• Financial information, including budgeting: This is important because annual planning is connected to the budgetary approval process for the next fiscal year, including anticipated revenue, expenses, and growth predictions.
• Key problems and issues: By understanding what went wrong the previous year and the issues it faced, a company can offer remedies in its annual plan to improve future outcomes.

What is included in an annual plan?

There are many annual business plan templates you can use to make your plan. Generally, they contain these elements:

Stated goals (SMART)

Your yearly plan should include both SMART and stretch goals.

SMART (Specific, Measurable, Attainable, Relevant, Time-Bound) goals are an enduring staple of the business world, helping to clarify your ideas, focus your efforts, ensure your time and resources are used productively, and increase your chances of success. Stretch goals, as the name suggests, require above-and-beyond effort and innovation to pull off, with the promise of a greater payoff. Include a mixture of both in your annual plan.

Budget and financials

An annual plan also includes projections for the coming 12 months, forecasting income and outlays. Your projections will help you plan for cash flow dips, pinpoint financing needs, and decide the best timing for projects.

Part of this involves developing monthly financial projections by recording expected income based on sales forecasts and anticipated expenses for labor, supplies, overhead, and so on. It’s wise to prepare a projected income (profit and loss) statement and a balance sheet projection.

You can also use the projections to determine financing needs, if any. Well-prepared projections will make it easier to qualify for a loan.

Timelines and checkpoints

To reach where you want your business to be in a year, take your larger goals and split them up into smaller goals set on specific timelines. As you set your deadlines, include metrics that will indicate how successful you’ve been in achieving your goals.

Clearly outlined expectations and responsibilities

An annual business plan works best if it’s aspirational but achievable, with practical goals that are spelled out in clear language, indicating which individuals, teams, or departments are responsible for which parts of the plan. Given that almost 50% of employees in the United States don’t know what is expected of them at work, a little bit of clarity can go a long way.

Vision for what the business looks like at the end of the year

As much as annual business plans are about the practical implementation of a company’s strategy, it’s also important to keep the organization’s aspirational future vision in mind. Having a clear vision of what successful completion of your annual planning goals looks like increases your chances of success.

Contingency plans

What happens if your company’s cash flow gets into trouble? It’s a good idea to set up emergency financial reservoirs before they’re necessary. Maintaining a cash reserve or keeping room in a line of credit are both good contingency measures. Remember to compare your actual financial results to your projections throughout the year, so you can spot financial problems before they spiral out of control.

Creating an annual plan is easier when you use the right tools. These can include an annual business plan template that organizes planning efforts and a wide variety of software solutions for writing business and strategy plans.

As you execute your annual plan, it’s also a good idea to rely on a work management platform with strategic planning tools that allow you to collaborate productively, create content, and manage complex processes. Using features like Workfront's Scenario Planner , you can simplify the annual planning process, adapt to market shifts with continuous planning, compare scenarios for risk and effectiveness, and stay ahead of the competition.

Armed with the right tools, plans, and processes, you can create a well-conceived and executed annual business plan that ensures the year ahead lives up to your expectations.

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How to Write a Business Plan, Step by Step

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What is a business plan?

1. write an executive summary, 2. describe your company, 3. state your business goals, 4. describe your products and services, 5. do your market research, 6. outline your marketing and sales plan, 7. perform a business financial analysis, 8. make financial projections, 9. summarize how your company operates, 10. add any additional information to an appendix, business plan tips and resources.

A business plan outlines your business’s financial goals and explains how you’ll achieve them over the next three to five years. Here’s a step-by-step guide to writing a business plan that will offer a strong, detailed road map for your business.

ZenBusiness

A business plan is a document that explains what your business does, how it makes money and who its customers are. Internally, writing a business plan should help you clarify your vision and organize your operations. Externally, you can share it with potential lenders and investors to show them you’re on the right track.

Business plans are living documents; it’s OK for them to change over time. Startups may update their business plans often as they figure out who their customers are and what products and services fit them best. Mature companies might only revisit their business plan every few years. Regardless of your business’s age, brush up this document before you apply for a business loan .

» Need help writing? Learn about the best business plan software .

This is your elevator pitch. It should include a mission statement, a brief description of the products or services your business offers and a broad summary of your financial growth plans.

Though the executive summary is the first thing your investors will read, it can be easier to write it last. That way, you can highlight information you’ve identified while writing other sections that go into more detail.

» MORE: How to write an executive summary in 6 steps

Next up is your company description. This should contain basic information like:

Your business’s registered name.

Address of your business location .

Names of key people in the business. Make sure to highlight unique skills or technical expertise among members of your team.

Your company description should also define your business structure — such as a sole proprietorship, partnership or corporation — and include the percent ownership that each owner has and the extent of each owner’s involvement in the company.

Lastly, write a little about the history of your company and the nature of your business now. This prepares the reader to learn about your goals in the next section.

» MORE: How to write a company overview for a business plan

The third part of a business plan is an objective statement. This section spells out what you’d like to accomplish, both in the near term and over the coming years.

If you’re looking for a business loan or outside investment, you can use this section to explain how the financing will help your business grow and how you plan to achieve those growth targets. The key is to provide a clear explanation of the opportunity your business presents to the lender.

For example, if your business is launching a second product line, you might explain how the loan will help your company launch that new product and how much you think sales will increase over the next three years as a result.

» MORE: How to write a successful business plan for a loan

In this section, go into detail about the products or services you offer or plan to offer.

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

You can also discuss current or pending trademarks and patents associated with your product or service.

Lenders and investors will want to know what sets your product apart from your competition. In your market analysis section , explain who your competitors are. Discuss what they do well, and point out what you can do better. If you’re serving a different or underserved market, explain that.

Here, you can address how you plan to persuade customers to buy your products or services, or how you will develop customer loyalty that will lead to repeat business.

Include details about your sales and distribution strategies, including the costs involved in selling each product .

» MORE: R e a d our complete guide to small business marketing

If you’re a startup, you may not have much information on your business financials yet. However, if you’re an existing business, you’ll want to include income or profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement that shows how cash comes into and goes out of the company.

Accounting software may be able to generate these reports for you. It may also help you calculate metrics such as:

Net profit margin: the percentage of revenue you keep as net income.

Current ratio: the measurement of your liquidity and ability to repay debts.

Accounts receivable turnover ratio: a measurement of how frequently you collect on receivables per year.

This is a great place to include charts and graphs that make it easy for those reading your plan to understand the financial health of your business.

This is a critical part of your business plan if you’re seeking financing or investors. It outlines how your business will generate enough profit to repay the loan or how you will earn a decent return for investors.

Here, you’ll provide your business’s monthly or quarterly sales, expenses and profit estimates over at least a three-year period — with the future numbers assuming you’ve obtained a new loan.

Accuracy is key, so carefully analyze your past financial statements before giving projections. Your goals may be aggressive, but they should also be realistic.

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

Before the end of your business plan, summarize how your business is structured and outline each team’s responsibilities. This will help your readers understand who performs each of the functions you’ve described above — making and selling your products or services — and how much each of those functions cost.

If any of your employees have exceptional skills, you may want to include their resumes to help explain the competitive advantage they give you.

Finally, attach any supporting information or additional materials that you couldn’t fit in elsewhere. That might include:

Licenses and permits.

Equipment leases.

Bank statements.

Details of your personal and business credit history, if you’re seeking financing.

If the appendix is long, you may want to consider adding a table of contents at the beginning of this section.

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

Here are some tips to write a detailed, convincing business plan:

Avoid over-optimism: If you’re applying for a business bank loan or professional investment, someone will be reading your business plan closely. Providing unreasonable sales estimates can hurt your chances of approval.

Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors. If writing and editing aren't your strong suit, you may want to hire a professional business plan writer, copy editor or proofreader.

Use free resources: SCORE is a nonprofit association that offers a large network of volunteer business mentors and experts who can help you write or edit your business plan. The U.S. Small Business Administration’s Small Business Development Centers , which provide free business consulting and help with business plan development, can also be a resource.

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A 5-Step Guide to Annual Planning for Your Business

With any luck, you were able to take some time off around the holidays to relax and recharge for the New Year. With time to reflect and decompress, you should be entering your next year of business with a fresh set of eyes and new found energy. Make the most out of this feeling by channeling your energy into annual business planning and give your business the direction and momentum it needs to have its best year yet.

Your business plan doesn’t have to be overly complex, but it does need to be organized and give you the framework to map out your next year of business. When we talk to our customers, we find that many business owners find the following five steps to be helpful and easy to navigate for their planning.

Review and Assess

• Pull reports that give you a clear picture of your revenue year over year and month over month. Try to spot trends that help you identify activities you tried that worked well for your business, or things that didn’t. Next, take a look at your closest competitor. While you won’t be able to know what their books look like, you can get a feel for their revenue growth by looking at their marketing efforts, facility upgrades, etc.
• Going through a traditional SWOT analysis is a great way to get a high-level view of your business over the last year that can help you spot obvious next steps and lessons for your annual business planning.

Define Your Purpose: Who are we here for?

• By identifying your most valuable customers you will learn two things. Firstly, you’ll learn what ‘kind’ of customer is the best fit for your business, which will help you determine your target market and a focus for marketing to similar people that are not yet customers. Secondly, you’ll be able to learn more about your best customers and determine the best way to retain them and brand new customers.
• Look at this group of “best customers” and determine what they’re buying and when they’re buying. This information will help you create a strategy for how to serve them better with more products or services that meet their needs. This is also a good time to think of different ways to reinforce your relationship with your customers by providing value through helpful information, coupons, or just a nice email message.
• Think about your most valuable customers, why do you think they are choosing you over your competitor? If you’re not sure, it might be helpful to provide an easy way for your customers to provide feedback into what they like and don’t like about your business, so that you can continue to build on your strengths and learn from your weaknesses.

Outline High-Level Goals

• To succeed, everyone within your organization needs to understand the underlying mission of your business—for the next year and for the long-term. Starting from the top (you) and down, take an honest look at the priorities each person carries: Do those priorities align with the business’ goals? Is that person working on the most impactful priorities, given their unique set of skills and expertise?
• What does your business want to be when it grows up? With that clear picture in your mind start to think about the messaging and the offerings of the company you aim to be and weave that into your current activities to start building momentum behind the direction you want to move.

Make a Plan

• Keep it short and keep it simple. Start with your goals for the upcoming year, figure out what activities need to happen to get to those goals, assign and delegate as a team, making sure everyone understands their priorities and accountability and give your team the autonomy and tools to succeed.
• When your employees understand and believe in the business’ mission, they will feel a sense of purpose. When they understand how that mission can be achieved, they will feel a sense of direction and focus. Talk to your employees, have candid conversations and take that feedback into consideration in your annual business planning and as you think about the long-term vision of your organization.

Measure Success

• Your annual plan is the road map for you and your employees for the next year. That road map needs milestones (deadlines, success metrics) that carry your plan forward through a series of smaller goals that lead into your larger goal of where you want your business to end up by the end of the year.
• While your plan should provide structure, it should also be pliable. Revisit your plan often and make changes when needed. You are the boss of your plan so own it and let it be the tool that helps you feel ‘in control’ and helps drive the success of your business.

Going through the process of creating an annual plan is something that every business owner can benefit from, regardless of the size of the business. If you are a business of one, share your plan with a mentor or someone you respect in your network for feedback. If you are business of many employees, get feedback from your team to create an informed plan that everyone can buy into and get behind.

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Business Plan: What It Is + How to Write One

Discover what a business plan includes and how writing one can foster your business’s development.

What is a business plan? 

Think of a business plan as a document that guides the journey to start-up and beyond. Business plans are written documents that define your business goals and the strategies you’ll use to achieve those goals. In addition to exploring the competitive environment in which the business will operate, a business plan also analyses a market and different customer segments, describes the products and services, lists business strategies for success, and outlines financial planning.  

How to write a business plan 

In the sections below, you’ll build the following components of your business plan:

Executive summary

Business description 

Products and services 

Competitor analysis 

Marketing plan and sales strategies 

Brand strategy

Financial planning

Explore each section to bring fresh inspiration and reveal new possibilities for developing your business. Depending on your format, you may adapt the sections, skip over some, or go deeper into others. Consider your first draft a foundation for your efforts and one you can revise, as needed, to account for changes in any area of your business.  

1. Executive summary 

This short section introduces the business plan as a whole to the people who will be reading it, including investors, lenders, or other members of your team. Start with a sentence or two about your business, development goals, and why it will succeed. If you are seeking funding, summarise the basics of the financial plan. 

2. Business description 

You can use this section to provide detailed information about your company and how it will operate in the marketplace. 

Mission statement: What drives your desire to start a business? What purpose are you serving? What do you hope to achieve for your business, the team, and your customers? 

Revenue streams: From what sources will your business generate revenue? Examples include product sales, service fees, subscriptions, rental fees, licence fees, and more. 

Leadership: Describe the leaders in your business, their roles and responsibilities, and your vision for building teams to perform various functions, such as graphic design, product development, or sales.  

Legal structure: If you’ve incorporated your business, include the legal structure here and the rationale behind this choice. 

3. Competitor analysis 

This section will assess potential competitors, their offers, and marketing and sales efforts. For each competitor, explore the following: 

Value proposition: What outcome or experience does this brand promise?

Products and services: How does each solve customer pain points and fulfill desires? What are the price points? 

Marketing: Which channels do competitors use to promote? What kind of content does this brand publish on these channels? What messaging does this brand use to communicate value to customers?  

Sales: What sales process or buyer’s journey does this brand lead customers through?

4. Products and services

Use this section to describe everything your business offers to its target market. For every product and service, list the following: 

The value proposition or promise to customers, in terms of how they will experience it

How the product serves customers, addresses their pain points, satisfies their desires, and improves their lives

The features or outcomes that make the product better than those of competitors

Your price points and how these compare to competitors

5. Marketing plan and sales strategies 

In this section, you’ll draw from thorough market research to describe your target market and how you will reach it. 

Who are your ideal customers?   

How can you describe this segment according to their demographics (age, ethnicity, income, location, etc.) and psychographics (beliefs, values, aspirations, lifestyle, etc.)? 

What are their daily lives like? 

What problems and challenges do they experience? 

What words, phrases, ideas, and concepts do consumers in your target market use to describe these problems when posting on social media or engaging with your competitors?  

What messaging will present your products as the best on the market? How will you differentiate messaging from competitors? 

On what marketing channels will you position your products and services?

How will you design a customer journey that delivers a positive experience at every touchpoint and leads customers to a purchase decision?

6. Brand strategy 

In this section, you will describe your business’s design, personality, values, voice, and other details that go into delivering a consistent brand experience. 

What are the values that define your brand?

What visual elements give your brand a distinctive look and feel?

How will your marketing messaging reflect a distinctive brand voice, including tone, diction, and sentence-level stylistic choices? 

How will your brand look and sound throughout the customer journey? 

Define your brand positioning statement. What will inspire your audience to choose your brand over others? What experiences and outcomes will your audience associate with your brand? 

7. Financial planning  

In this section, you will explore your business’s financial future. Suppose you are writing a traditional business plan to seek funding. In that case, this section is critical for demonstrating to lenders or investors you have a strategy for turning your business ideas into profit. For a lean start-up business plan, this section can provide a valuable exercise for planning how to invest resources and generate revenue [ 1 ].  

Use past financials and other sections of this business plan to begin your financial planning, such as your price points or sales strategies. 

How many individual products or service packages do you plan to sell over a specific period?

List your business expenses, such as subscribing to software or other services, hiring contractors or employees, purchasing physical supplies or equipment, etc.

What is your break-even point or the amount you must sell to cover all expenses?

Create a sales forecast for the next three to five years: (No. of units to sell X price for each unit) – (cost per unit X No. of units) = sales forecast

Quantify how much capital you have on hand.

When writing a traditional business plan to secure funding, you may append supporting documents, such as licences, permits, patents, letters of reference, resumes, product blueprints, brand guidelines, the industry awards you’ve received, and media mentions and appearances.

Business plan key takeaways and best practices

Remember: Creating a business plan is crucial when starting a business. You can use this document to guide your decisions and actions and even seek funding from lenders and investors. 

Keep these best practices in mind:

Your business plan should evolve as your business grows. Return to it periodically, such as quarterly or annually, to update individual sections or explore new directions your business can take.

Make sure everyone on your team has a copy of the business plan, and welcome their input as they perform their roles. 

Ask fellow entrepreneurs for feedback on your business plan and look for opportunities to strengthen it, from conducting more market and competitor research to implementing new strategies for success. 

Start your business with Coursera 

Ready to start your business? Watch this video on the Lean approach from the Entrepreneurship Specialisation on Coursera: 

Article sources

Inc. “ How to Write the Financial Section of a Business Plan ,   https://www.inc.com/guides/business-plan-financial-section.html.” Accessed April 15, 2024.

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Annual Planning: Why Is It So Important?

On a personal level, planning is an essential aspect of everyday life. And when it comes to companies, whether small or large, planning is equally essential. Annual planning is one of the most important activities that companies do every year because it provides an opportunity to set the overall direction of a company by discussing goals, metrics, budget, and performance.  

What Is Annual Planning?

Annual planning can be defined as the process of defining a business roadmap for your company and your employees. It can also be seen as an organization's financial plan for the year, and it is comprised of a series of milestones that help to carry the plan forward through several tasks that lead to a broader vision of where the company aims to be by the end of the year. 

Companies must hold planning sessions to review last year’s performance, as well as specific goals and achievements. These sessions will help to analyze expectations and results from the previous year in order to create an annual plan that gives everyone in the organization a sense of where they’re headed, and where they want to be twelve months from now. 

Is Annual Planning the Same as Strategic Planning?

Strategic planning is about establishing goals to sustain the company’s vision. Is about creating a strategy where the end product is a long-term plan that includes identifying goals, as well as mapping out how exactly those goals will be met. The process of strategic planning involves choosing a methodology, assessing resources, and receiving feedback from both external and internal stakeholders. A strategic plan can also be implemented during the course of years, and not necessarily within one business year. 

To put it simply, the strategic plan will identify the framework for a company to advance on its mission. The annual plan can include goals directly related to the strategic plan but it is largely connected to the budgetary approval process for the next business year, and as such, annual planning is usually conducted by leadership or directors. 

Why Is Annual Planning Important?

A well-formulated annual plan is an opportunity to set the overall direction for your company. It can also help to empower the team by providing a sense of direction. Let’s take a look at the most relevant benefits of annual planning:

• Annual planning generates efficiency because it circles around performance.
• It helps to define what is critical to achieving over the year.
• It delivers clear leadership to employees and it helps to keep the workforce united.
• Employees gain a clear sense of direction in their departments and roles. 
• An annual plan can rally an entire organization around goals. It can also provide a stronger connection to the company’s strategic plan.

What Is Included in an Annual Plan?

Generally, an annual plan will contain the following elements:

Goals. Before you can look forward it’s important to look back. For this, it’s a great idea to review your SMART (Specific, Measurable, Attainable, Relevant, Time-Bound) goals, they can help to clarify ideas, focus efforts and ensure resources are being used in the most productive manner. Remember, your annual plan should also hold a strong connection to your company’s strategic goals.

Budget. Financial elements are key to annual planning, so it’s important to take into consideration projections for the upcoming 12 months. These projections will help you plan resources, cash flow, and decide the best course of action and timing for individual projects. 

Expectations, responsibilities, and clear OKRs. Goals need to be clearly specified, indicating which teams, individuals, or departments will be responsible for carrying out tasks. Expectations must be exceptionally clear for collaborators. Also, working with well-defined OKRs can help to keep teams on track because they help to provide visibility into what other teams and individuals are working on. It’s all about maintaining the workforce motivated and crystal clear regarding who’s in charge of what. 

Timelines. When measuring performance it’s important to understand how successful your company has been in terms of achieving goals within their deadlines. Split your goals into tasks and set deadlines. 

Contingency plans. A well-formulated annual plan will also consider emergencies. It’s always a good idea to think of alternate scenarios, such as what would happen if suddenly your cash flow would become compromised? 

Values and mission. It’s also instrumental to keep your company’s aspirational future vision in mind when working on your annual plan. 

Annual Planning: 

When it comes to managing annual plans and strategic plans , you need to be on top of everything. A strong annual planning strategy can help to build a company’s broader strategic vision and to set the overall direction of a business roadmap for the next 12 months. However, as you may already know, this process entails keeping track of critical information. This can be an exhausting and difficult process, but it gets easier when you use the right tools. 

Project management software can be a powerful ally for project managers. Instagantt , for instance, allows you to keep information centralized. You can quickly store, update, share, access, and review important company-related information , all in one single place. With gantt charts , you can keep track of your budget and streamline your business plan, making sure you and your team stay on track. Moreover, you can use the same tool to keep track of your strategic and your annual plans, which will help to increase transparency across the organization, keeping track of the key results you’re trying to achieve, and visualizing progress and performance at all times. With the right tools and processes, you can create and execute a strong annual strategy.

Template: Annual Planning Example

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Annual Business Planning: Start Now to Prepare for 2024

September 18, 2023

Annual business planning is a critical success factor in achieving long-term financial goals. Crafting a yearly business plan involves reviewing your past performances and identifying solid strategies for the new year.

Assembling your business plan on your own can be challenging. Many businesses turn to accounting firms to support developing their annual business plans. These experts can help you analyze your data and the overall business climate, helping you make better business decisions grounded in reality.

But you don’t want to wait too long to start – January 2024 is already too late!

Benefits of Annual Business Planning

An annual business plan can take multiple forms. It often clearly outlines the company’s goals and objectives and works backward to determine all necessary activities. A well-developed and structured annual business plan brings several key benefits.

Provides a Roadmap for Achieving Business Goals

Annual business planning clearly outlines activities for each team member to undertake while working towards achieving their business goals. Although you can deviate from your plan as the year progresses, your actions should work to bring you to those goals.

Helps Businesses Adapt to Changing Market Conditions and Economic Factors

Part of the drafting process of the annual business plan involves weighing the external environment. That includes market trends, competition, and economic conditions to identify potential changes that impact the business.

Enables Businesses to Make Informed Financial Decisions

The first step in writing an annual business plan is setting challenging – yet attainable – goals and objectives for the upcoming year. These benchmarks lead to informed decision-making for the business.

Essential Elements of Annual Business Planning

As 2024 creeps closer, your business plan has a few central parts to consider.

Review of the Previous Year’s Performance

How did you perform the previous year? What’s your current trajectory? The last year’s performance and goals make great starting points for the coming year’s targets. 

Identification of Key Performance Indicators (KPIs)

What’s essential in your business? Often, a few key metrics can summarize your progress toward your objectives. These KPIs focus your team’s attention on the right things. 

Setting Realistic Financial Goals

A sustainable business sets challenging yet achievable financial goals. Assess your current financial position and use that to specify what you hope to achieve during the financial year. Need to improve profit margins? Create a plan to cut costs or raise prices.

Development of a Detailed Budget

A detailed budget clearly outlines the available resources, significant expenses, and the path to achieving your financial goals and objectives. 

Creation of a Marketing, Sales, and Advertising Plan

A marketing, sales, and advertising plan defines what you need to do to promote your business to your target audience. Market research and competitor analysis can help you identify (and close) gaps in the market.

Factors to Consider When Annual Business Planning for 2024

A business plan can help you be ready for anything, and multiple factors come into play when planning for the upcoming year. Below are a few of the top considerations.

Anticipated Changes in Technology

2023 taught us that technology trends continue to shape the market. For example, the proliferation of AI technology has massive ramifications for businesses. Your planning process should note any changes on the horizon.

Expected Shifts in Consumer Behavior

Consumer behaviors are constantly shifting. Keeping up with the latest developments can help you take advantage of opportunities as they come and not always be running after the market. 

Changes in the Regulatory Environment

New rules, standards, and regulations constantly evolve the regulatory environment. Anticipating these regulatory changes can ensure your business’s sustainability and compliance.

Potential Impact of Economic Factors

No matter how good your plan is, ignoring the general economic landscape can throw a major wrench in your operations. Inflation, changes in consumer trends, and market volatility play a role in your company’s long-term sustainability. 

The Role of Accounting Firms in Annual Business Planning

Managing your own financial planning, forecasting, and budgeting can be challenging. Of course, you and your team must be invested in the process, but there’s no need to go it alone. An expert accounting firm can help you set and achieve goals. 

The planning process involves decisions about finances and budgets based on assumed future expenses, revenues, and cash flows. An accounting firm can help you sort through historical data, market trends, and analysis before making final decisions about your goals and objectives. 

Accounting professionals can offer advice and guidance on your business plan’s accounting and tax implications . Moreover, these professionals can help you develop tax-efficient strategies and ensure compliance with tax regulations. 

Finally, accounting professionals have insight into many companies. They can help you analyze historical data and performance metrics to set a baseline for realistic and achievable business goals. 

Tips for Successful Annual Business Planning

Expert assistance can make your annual business planning run smoothly and be more realistic. Let’s take a look at a few tips from the experts.

Keep the Plan Concise and Focused

Avoid getting too fancy with your annual business plans. Complexity can be challenging to communicate, implement, and track. A solid annual business plan with streamlined goals and objectives is concise and focused.      

Involve Team Members in the Planning Process

An excellent annual business plan gets buy-in from all stakeholders by involving them in the decision-making process. 

Continuously Monitor Progress and Adapt as Needed

Monitoring progress against your targets and KPIs helps you take rapid action before the situation becomes critical. Quick responses help ensure minor problems stay small.   

Seek Guidance from Trusted Partners, such as Accounting Firms

Sometimes, professional help makes having a stellar year more achievable. They can help you focus on essential topics and avoid wasting time on activities that don’t bring your business forward.

Get a Jump Start on Your 2024 Annual Business Planning

An annual business planning exercise is a prerequisite for achieving long-term goals and objectives. 

But don’t wait too long. Now is the time to start planning for 2024. Involving an accounting firm in this planning process helps set achievable goals and monitor progress.

At Founder’s, we understand the nuances in the annual business planning process and have a proven track record of helping businesses achieve their goals and objectives. Let us take your business to the next level. Contact Founders today to start planning for 2024.

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How to create an annual business plan

You can’t plan for every eventuality , but you can plan to withstand shocks . Having a business plan and following our 3-Step Annual Business Plan Process will help you make your business as robust as possible , should such a shock occur.

Planning is about influencing the things you can influence, while taking account of the things you can’t. The latter are risks or opportunities that may or may never eventuate.

By changing the things you can change, you can position yourself to take advantage of opportunities should they arise, or mitigate risks that might flow.

What’s the first step?

An Annual Business Plan is a practical document, but it needs to guided by the high-level, strategic goals you have for your business.

As I’ve said in other blogs, a three- to five-year Strategic Plan can be written on the back of an envelope, if that’s your style, but it needs to clearly show your people (and your financiers!) where your business is today, and where you want it to be in the future.

Some things to include in a Strategic Plan are:

• What business lines we’re focusing on
• What markets we’re looking at
• What product range we’re looking at
• Where we’re going
• How we intend to get there over a defined period.

The Annual Business Plan will then say righto, within that context, how am I going to operate for the next 12 months ?

• What’s going to be my operational focus?
• What’s going to be my financial focus?
• What’s going to be my risk focus?
• What’s going to be my people management focus?

This Annual Business Plan should be in the minds of your whole team . If they’re meeting on a monthly basis as a management team, or as supervisors, the meeting should refer to elements of the Plan, because that is the context point around why they’re doing what they’re doing.

If you are interested in seeking business planning support, contact the team at JPAbusiness on 02 6360 0360 for a confidential, obligation-free discussion. 

• business planning
• running your business
• annual business plan

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How to Write an Online Business Plan in 2024

Written by Vanessa Petersen on July 26, 2023 Blog , Sell Online .

You’ve committed to turning your ecommerce or online business idea into something real. You want your small business to produce revenue and change the course of your life, but what’s your first step in realizing your dream? Developing a plan. If you’re not sure about how to write an online business plan, you’ve come to the right place.

One of the most essential tasks involved in starting any kind of business is to write a business plan. An online business plan won’t look that different from a traditional business plan and will include many of the same elements.

In this post, we’ll show you how to write an online business plan, including all the components and sections. We’ll also walk through how WooCommerce can help you put your plan to action and achieve your business goals.

Why write a business plan? 

Starting your own business is a great experience and something that will shape your life, fill you with self-confidence and independence, and inspire other people around you. A new business is also a serious endeavor that will take time, money, sweat, lots of decisions, and a degree of risk.

A traditional business plan template helps you document and keep track of your business goals, challenges, opportunities, and all the steps and processes involved with making your idea work. It will help you conduct thorough market research and set you up for success.

When you write a business plan, it can confirm that you’ve found the best online business to start , or provide clarity about the need to pivot.

It details all the things you will need to do in order to successfully launch and grow your business, and may include revenue projections, timelines for specific goals, concept art for products, and architectural drawings for any brick and mortar aspects of your business. 

Business plans help create a structure for your company’s development and keep you grounded in reality, focused, and not distracted by less important matters. 

If you have more than one person helping run the business, the business plan also keeps everyone unified around the same set of goals and objectives. 

Another reason to write a business plan is for situations where you are presenting your idea to someone else and asking them to invest. In that scenario, your business plan is also a sort of sales document. It makes the argument for why your business idea is so good and well-considered that an investor should want to be a part of it. 

But even if you’re self-funding your entire business — which is more common with online businesses — you still want to write the plan for the reasons given earlier.

The benefits of running an online business

Starting an online business or ecommerce store offers many of the same great benefits as any other business, but without as much risk. If you’re thinking of starting a business, here’s why an online one is a great option:

It has low startup costs

Without a storefront, you eliminate so many costs of running a business. With all the bills that come with having property — like rent, parking, furnishings and decor, etc. — there’s a much higher investment required to start a brick-and-mortar-based business. Online businesses still have startup costs, but they are much lower. 

It gives you freedom over your schedule

With an online business, you have more freedom to set your own hours, because you don’t always have to be open during the usual times. You can build your business to suit the lifestyle you want. Rearrange your time to get things done in the fastest possible way and take time off when you need it. 

You can start small

Once you have a location, it’s yours, and you have to make it work. With an online business, you can start very small, offering just a few products or even just a single service. You can more easily test the waters without making huge commitments with inventory, and other physical investments.

You can more easily pivot

If your online or ecommerce business doesn’t do as well as you expected, it’s easier to pivot and adapt to something new because you haven’t committed so much to making your original idea work. There are many business success stories where the business owner adjusted their idea after gaining some experience, and then it took off. It’s a lot easier to do that when you aren’t tied to a physical location.

But, there’s one thing online businesses have in common with every other type of business: You need a robust business plan to help guide your idea from concept to a successful reality that makes money and fulfills your dreams and goals. 

So, let’s get into business planning. 

How do I write my own online business plan?

Most formal business plans and business plan templates include seven sections, plus an executive summary. You’ll need to keep in mind who you’re writing your business plan for. If you are taking this to potential investors or will be seeking a business loan, your business plan needs to sell the idea of your business as a great investment opportunity and communicate the skills, expertise, and commitment you personally bring to the table. 

Here are the key sections of a traditional business plan format:

• Executive summary
• Company description
• Market analysis
• Organization and management
• Service and product line
• Sales and marketing plans
• Financial projections
• Funding request (if working with investors or partners)

Here’s a brief look at each step of creating an online business plan:

Draft an executive summary

In the executive summary, the first section of almost every business plan template, you’ll present your vision and focus on building excitement. If the business plan is a sales document, the executive summary is the lead. It gets the reader engaged and excited to hear more. 

Your executive summary should achieve two goals:

• Deliver the basic facts about your business
• Motivate the reader to keep going and get them excited about your idea

What facts should you include? Whatever helps the reader understand your business idea. Describe the industry and niche. Mention the target market. Briefly state the needs or problems your products and services will be solving. Touch on the potential for growth in terms of revenue and customers. 

For motivation, describe your mission statement and company values. What will set you apart from the competition? What is your value proposition as a business owner? What makes you different? Again — keep this brief. You’ll elaborate later. 

It might be a good move to write all the other sections first, then finish with the executive summary so it will be the most concise and best version of how you describe your business.

Write a company description

Here, you’ll give a brief overview of your company. What are your strengths, skills, and areas of expertise as a business owner that will position you for success? If you have a compelling story behind why you’re starting your business, you can include that too.

Conduct a SWOT analysis 

If you’re not sure where to start, consider doing a SWOT analysis , which is a diagram outlining your strengths, weaknesses, opportunities, and threats. 

It’s a common part of many business plans and will help paint a realistic picture of what your business can achieve, and what stands in the way. You won’t include all of this in the company description, but your strengths and opportunities may fit here. 

Create a mission and vision statement

The company description is also the place to create a mission statement and a vision statement. What’s the difference between these? 

The vision is where you’re going, the mission is how you’ll get there. A vision statement paints a picture of a future reality for your customers and perhaps the world at large, as a result of your company’s influence. A mission statement expresses how you will achieve that.

The company description can elaborate on your vision and mission beyond just a single sentence, and later you can fine-tune what you write into a succinct pair of statements. Feeling some writer’s block? See company description templates by industry for some inspiration.

Include any unique attributes

If your company will involve particular attributes such as manufacturing, supply chains, dropshipping, affiliates, coaching or advising, online courses, or other relevant particulars, include that in your company description, too. 

State your business location, industry, niche, and other details

Also, state the location of your business, even though it’s online. Name your industry and niche target market again, and describe the nature of your company. For example, is it an ecommerce business, a consulting firm, delivery service, wholesale, or ad-based website? These are just some of many types of online business structures. 

You may also want to include whether your business is in any special class of business that might position it for special loan or grant opportunities like women-owned businesses or veteran-owned businesses.

After reading your description, readers should have a good understanding of what your business is about, why it exists, and how it works. Here’s a detailed look at company descriptions , with an example.

Perform a market analysis

A market analysis uses industry research to assess the scope of your business’s target market and describe the current competition in your industry. It can help you estimate the potential for success and prepare for the challenges you may face when you launch your online business or ecommerce shop.

Doing this research, and including it your business plan, can also help you:

• Identify industry trends
• Pinpoint opportunities 
• Diminish risks and reduce costs
• Generate new ideas for products and services
• Learn from the failures and shortcomings of your competitors
• Find ways to stand out from your competitors
• Discover new markets
• Refine your marketing plans

Now let’s dig into the elements involved in a thorough market analysis.

Understand your audience

Here, you will explain in detail who your target customers are and why they want or need what you’ll be selling. What problems or needs does your product solve? What will motivate people to buy from you? And why can’t they get it somewhere else just as easily? An ecommerce business competes against other ecommerce businesses as well as brick-and-mortar stores and shopping malls. Stores with omnichannel strategies compete with both. Why would someone choose you?

Share your key customer demographics, psychographics, and interests. Who will you be serving? What drives them? 

What are their values? If your product, service, or personal brand will appeal to a customer segment that also shares particular values, that’s a strength, not a weakness, and you can use that to win them over. 

Perform customer segmentation

Break down different categories of target customers your business plans to serve. One category could be age. Another might be life situations such as retirees, parents, divorcees, or living with older relatives. You could create a segment of people with particular health conditions, or who live certain lifestyles. 

But you can also get way more specific than that. Runners are different from hikers, who are different from bikers, yoga enthusiasts, and gym enthusiasts. Different supplements, philosophies about food, motivations for eating various foods — all of these present near endless possibilities for more narrowly defining your customer segments, all under the broad category of ‘health.’ And you might serve multiple segments. 

The more customer segments you know, the more effectively you can market to them. In an online store, good product descriptions call out the various customer segments that product is designed for.

Also, give a sense of the potential size of your target market. How many people need what you’re selling? Show how this market is large enough to justify your business and drive revenue. You might do this by studying revenue reports from other companies in your industry. Or look at specific products related to yours and research their sales and revenue performance. 

You may also perform a survey of some kind, or an online quiz, and use that to express the needs your potential customers have that aren’t currently being met.

Perform a competitive analysis

Study your competition. What are they doing well? What areas are they underserving? Where are they underperforming? Make note of what other companies in your industry are struggling with or failing at so that you can deliver something more valuable and gain a competitive advantage.

It could be product quality, customer service, or selection. Maybe their ecommerce store is badly designed and hard to use. Perhaps there’s a huge industry serving the masses, but customers who have more particular tastes or needs aren’t being well-served by the big companies. Those customers might spend more on something that delivers what they really want. 

Maybe your key competition has been rocked by scandal. Maybe a company went out of business, was sold, or closed down due to retirement and there’s an opening in the market you want to leverage. 

The main point of the competitive analysis is to persuade investors that there’s an underserved market that your business plans to cater to. You must be able to promise something that no one else is currently delivering. Otherwise, why should your business exist? Put them at ease by demonstrating proper market research.

Refer to your SWOT analysis and present any potential threats from the competition here, too.

Outline management and organizational structure

Next, present your management and legal structure. Is your company an LLC, sole proprietorship, S corporation, partnership, or some other arrangement? Who’s in charge of what? If you have different departments, list out the leadership for each one. If relevant, you might even include some information about the expertise of your leaders concerning the areas under their charge and the tasks they’ll be performing.

Remember — if your business plan will be used to persuade investors to help fund your business idea, this sort of information will reassure them that your company has strong and competent leadership. 

If there’s a chain of command, use a diagram or other method for laying out who reports to whom. 

List your products and services

What are you selling? You’ll touch on this briefly in the earlier sections, but here is where you’ll expand on the details. If you have an array of similar products, such as food flavors or clothing variations, list as many as seem relevant. But focus on the spirit of the business plan — you’re simply communicating what your business is about, not listing every SKU in your projected inventory. 

Also, include information about your products such as quality, durability, expirations, patents, and whatever else will give a clear picture of what you’re selling.

For service businesses and memberships that may include multiple packages, bundles, or tiers, describe each of these so your readers get a sense of how you’ll appeal to different types of customers and price points. 

Develop a sales and marketing strategy

Having products is great, but how do you intend to sell them? How will people find your business? How will anyone know you exist? And once they know, what will motivate them to buy from you and not from your competition? What is your unique value proposition — the thing that sets you apart from your direct competitors?

You’ll need to develop an initial marketing plan to help promote your business, products, and services to your target customers.

And remember, competition isn’t limited just to other businesses. Sometimes, competition is against the customer’s time, or their budget, or mere indifference — the conflict between doing something and doing nothing. Your SWOT analysis should touch on several of these potential barriers to the success of your online business.

Your marketing plan will obviously change over time, but give your readers and potential investors a sense of how you plan to launch and grow your business. 

Discuss media channels you plan to use, such as pay-per-click (PPC) ads , social media , email marketing , affiliate marketing , direct mail, referrals, joint ventures, search engine optimization (SEO), webinars, influencer marketing , and live events. Describe the ones you actually plan to use, and explain the core strategy you’ll begin with and how you will measure success. 

Also, include a sense of your marketing budget. If you will have a dedicated marketing team, or actual sales professionals using a particular process or sales script, discuss that as well. 

For ecommerce businesses, include a discussion of how you plan to leverage platforms like WooCommerce, which features a host of extensions that can help manage your business , engage customers, save money, and promote growth .

Make financial projections

You’ve made a lot of claims in your business plan, but how will your investors be convinced of your future success? At some point, you have to show them the money. 

If this is a brand new business with no income, where will your finances come from for the first year? Give realistic financial projections for anticipated profits and losses, as well as growth expectations for the first five years. Include financial documents if you have them, including profit and loss statements, balance sheets, and cash flow statements. Include costs of employment, manufacturing, and other investments both one-time and ongoing.

Your financial projections should reference your:

• market analysis 
• anticipated sales volume 

Investors will feel more confident when they can see your business plan does not rely entirely on just one or two ‘wins.’ For example, if your entire plan hinges on selling on eBay or Amazon , what happens if Amazon suspends your store, changes the terms, or you struggle to get noticed there? 

If your plan depends on winning over a few Instagram influencers, what if they don’t come through? It’s really easy to say what you hope will happen. But actually making it happen is another thing. Business success happens more easily when you apply a multi-channel marketing and sales approach. 

Your financial projections will feel based in reality, when you can demonstrate some prior successes, either in other businesses you’ve already launched, test audiences, local sales you made, prior experience, or data from other businesses. 

Explain your funding request — if applicable

If you intend to ask investors to help fund your business idea, present your request in the final main section of your business plan. If you’ve already secured funding from other sources, include that here as well. An investor will feel better knowing they are not the only one who believes in the potential of your business. 

Will your funding request be for a one-time payment, monthly, annually, or at some other interval? How do you plan to repay their investment? Will you allow them to charge interest? How much ROI can you promise them? 

How WooCommerce can help

WooCommerce can help you build a scalable online business that supports your business plan. No matter what you’re selling, WooCommerce offers a suite of flexible tools that allows you to customize your store to meet your needs and goals. 

Here are just some of the benefits your business will enjoy when you choose to build your store with WooCommerce:

• Sell absolutely anything you can imagine . From physical items and digital downloads to subscriptions, memberships, bookings, courses, and affiliate products, WooCommerce provides everything you need. Want to run a wholesale store? You can do that, too!
• Harness the power of WordPress . Since WooCommerce is a plugin specifically for WordPress, you can take advantage of powerful features like the block editor and blogging capabilities. 
• Capture payments securely. Choose from a large number of payment gateways, from popular options like PayPal and Stripe, to more niche processors for specific locations and types of regulated products. And with tools like WooPayments , you can keep customers on-site, capture a variety of currencies, and even accept digital wallets like Apple Pay and Google Pay.
• Customize your shipping options. Offer free shipping, charge based on weight, set fixed prices, or calculate shipping costs based on real-time carrier rates. You can even use extensions like Table Rate Shipping to create complicated shipping rules based on conditions that you set. And with WooCommerce Shipping , you benefit from discounted shipping labels and the ability to print right from your dashboard. 
• Connect to your social media channels. Use extensions to sync your store with social media platforms like Facebook, Instagram, and Pinterest. You can even sell on those platforms alongside your store without having to update inventory and information manually.
• Integrate with marketing tools. Quickly connect your store to any number of marketing tools, from email platforms like MailPoet to CRMs like Jetpack CRM . You can also implement a number of marketing strategies, from abandoned cart emails to loyalty programs.
• Keep track of your numbers. Ecommerce accounting is a big part of running an online business. While you can easily view data in your dashboard, you can also sync with tools like QuickBooks to make your accountant’s life a little bit easier.
• Manage inventory. Update your inventory levels manually or connect to tools like Scanventory to sync with your warehouse. Running low or out of stock? Add a wishlist option so customers get an alert as soon as it’s available.

As you can see, WooCommerce is well-equipped to handle any type of online store and support you as you grow. Here are a few more reasons that WooCommerce should be your go-to choice for implementing the ecommerce side of your online business plan:

WooCommerce itself is free! Many extensions for WooCommerce can also be found for free in the WordPress.org plugins library or on the Woo Marketplace . If you need to start your website with a limited budget, but want to build on a platform that can grow to support a thriving, high-traffic store, WooCommerce is an excellent option.

You have full control over your store

Unlike other ecommerce solutions that are tied to the platform’s own web hosting, WooCommerce is designed to be used with WordPress along with any hosting provider of your choice. You are also free to use whatever payment processor you want without any additional fees from WooCommerce. You can also customize your site’s appearance and functionality more extensively than you can with other ecommerce platforms and with less (or no) coding knowledge.

Thousands of free and premium extensions

There are over 800 free and premium extensions for WooCommerce on WooCommerce.com alone and over 1,000 in the WordPress.org plugins library . There are also hundreds of independent developers and agencies that offer premium and custom extensions for WooCommerce so that you can customize your store with the exact features you need. 

Excellent support and large community of users

WooCommerce is used by over 3.9 million stores — 23% of all online stores worldwide . The support team is available to answer questions and the documentation library is extensive and thorough. There are also plenty of independent resources for learning how to use WordPress and WooCommerce.

Dedicate time and resources to put your online business plan in action

A successful business plan is one that empowers and guides the business owner to launch their online or ecommerce business, and possibly secure funding. But it only works if you use it.

One advantage of starting an ecommerce store or online business is that you aren’t as locked down by deadlines. With a physical location, once you start paying the rent, you better have your business plan ready to put into action. 

But the beauty of being online is that you have more flexibility on the front end. Despite having more wiggle room with your timelines, you still need to keep your momentum going forward. Staying on track with your business projects and goals is one of the keys to reaching profitability sooner and turning your business plan into reality. A few quick tips:

• Schedule your time. Block out hours and specific days to work on your business.
• Treat it like a job, not a hobby. Build on your momentum week after week.
• Always keep learning. Research your industry, competition, target audience, and potential customers. Learn marketing — you can never know too much.
• Try stuff! Take risks, make calls, create campaigns, write content.

Your business plan template should give you a concrete list of tasks and business objectives. Once you write a business plan, then you can implement it.

Frequently asked questions about writing an online business plan

What are the seven steps of a business plan.

The seven key elements of a business plan are the executive summary, company description, market analysis, organization and management, services and products, marketing plan, and financial projections. If you’re making a funding request, that would be an eighth section.

Where can I find business plan templates?

You can find a free business plan template online, for general business plans as well as for specific industries. However, since each business is different and your plan must be authentic and specific to your company — a business plan template can only get you so far. 

If you need design inspiration for your own custom business plan template or want to start with a pre-designed template that you can customize, you can purchase one for a relatively low cost through a stock resources site like Envato Market or Creative Market .

Do I need a business plan if I am already running an online business or ecommerce shop?

Business plans aren’t only for people who are launching new businesses. You can create a business plan at any time to help you maintain or change the direction of your store or just to get a better picture of the health of your business. Below are a few different types of business plans that you might want to consider for your established online business:

• Operational business plan. Outlines the structure of your business operations, staffing, and logistics.
• Feasibility plan. Feasibility plans are like mini business plans that cover new business ideas and outline steps for implementation.
• Growth business plan. This plan is for businesses that want to demonstrate opportunities and plans for growth to attract investors.
• Maturing business plan. This plan is for businesses looking to merge with or acquire other companies, significantly expand, or go public.
• Strategic business plan. Any time your business wants to shift strategies regarding products or marketing or any other major changes to your previous business plan, you’ll want to create a new strategic business plan to address your new goals and the steps involved in achieving them.

What software should I use for my online business plan?

Your business plan should include some images, graphs, and graphic elements in the layout, so you’ll want to at least use word processing software to put your business plan together. If you have access to Google Workspace, Microsoft 365, Canva, or Adobe Creative Cloud, you’ll have some other options that might lead to a more professional layout.

Here’s a list of free and paid software that can help you put together your online business plan outline:

What do investors want to see in a business plan?

The most important piece of information to show investors in your business plan is potential for profitability. Investors don’t want to throw money at a sinking ship, no matter how cool and exciting the business sounds. 

Most investors also want to make sure that they’ll see a decent return on their investment in a relatively short time period — probably around 5-7 years. How much of a return they’ll expect will depend on your industry and what kind of investor they are. 

Investors will also want to see that you clearly understand your business, your industry, and that you have concrete, actionable steps for achieving, maintaining, and growing profitability. They’ll want to make sure that the key people on your team also understand your business and the roles they play and they’ll want to see that each person has a good amount of experience in their field and the required skill sets to fulfill their job duties, if not go above and beyond. 

Any details you can include that highlight unique aspects of your business will also be important. Any area where you have a competitive edge, are offering a unique or proprietary solution, have established any celebrity endorsements, have the backing of other investors, or have secured special grants will be of special interest to investors.

Create your plan for success

Now that you understand what goes into creating a formal business plan, it’s time to write one! Take the time to think through and consider each aspect of the list included in this article, and you’ll be well on your way to finding success.

And WooCommerce is here to support your business every step of the way, with powerful and flexible tools that help your business grow. Start selling online today !

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How to Create an Annual Business Plan to Grow Your Business

The number one reason most businesses do not grow is because they do not have a plan!

It is critical for every business owner to plan annually for consistent, healthy growth! There are several reasons why owners do not plan but the fact remains you must do it to grow your business ! The question is “How?”

In this post I want to give you a simple outline to follow as you create your business plan for the coming year.

Before you jump in you need to do some preparation. To summarize what I’ve already written about in the past, review your financials, analyze your strengths & weaknesses, and then brainstorm on what you might want to accomplish in the coming year. Give yourself a little time to think about this and prepare yourself mentally for the task at hand.

Once you are ready to move forward, start writing a simple 3-part business plan for the coming year. The 3 parts of a good annual business plan are:

Your Marketing Plan

• Your Financial Plan or Budget

Your Operational Improvement Plan

Let’s take a look at each of these 3 parts.

There are 7 components to a good marketing plan. Most of these do not change too much from year to year. Identify your primary or core product or service and then write your plan around these 7 components:

• Ideal Customer  Who is your ideal customer? Start by thinking about your best customers now. As you picture your ideal customer in your mind, write 3-5 bullet points that would describe them. Keep it simple but be focused!
• Unique Selling Proposition (U.S.P.) A good U.S.P. should be a concise, straight-forward statement about the value you bring and what makes you distinct from your competitors. It should also be interesting, so that when you share it at a networking event people stop and ask you to tell them more.
• Marketing Message  This is a body of content that speaks to your reputation, your experience, your training (including certifications & associations), your system, and your guarantee. You will use this content (either in part or in whole) on all of your marketing materials. Take some time on this since it will change very little (if any) from year to year.
• Marketing Mediums  There are hundreds of ways to market your business; from traditional advertising, to referral marketing , to digital marketing , to press releases, to social media, and so on. You need to identify the 5-10 most effective lead generating strategies that work in your business. These will be your marketing mediums.
• Marketing Budget  Once you identify the mediums you want to use to market your business, create a budget. How much will each activity cost? How often will you do it? Create a marketing budget for the year.
• Marketing Calendar  This may be the single most critical component of your marketing plan. Create a calendar of what marketing activities you will do each month. This will help you know how much money you will spend each month on marketing and it will help you be consistent with your marketing activity.
• Marketing Dashboard It is critical that you track and measure everything. Use a spreadsheet and measure the results from every marketing activity. By doing this you will know your conversion rates and your closing ratios. And you will know what marketing activities work best for your business.

Your Financial Plan

Start by looking over the past year and analyzing your income. Where did it come from? When did it come in? Based on your marketing activity and your sense of the economy, what do you project to bring in next year? Making income projections is simply making your best guess, using the best information you have at hand. Project your income by month.

Then analyze where you spent money this past year. Where they all good expenditures? What do you need to spend more or less on in the coming year? Based on your marketing plan and your history, create a budget by month for the coming year. If you will do this by month with your income and expenses, you will get a good picture of your cash flow throughout the year. Now you have a budget that you can measure each month’s performance to. Once you do this the first year it will become much easier and much more reliable year after year.

There are 7 operational areas to evaluate and brainstorm. I find it helpful to include my team members in this part of the planning. They typically give me some good ideas that I would not have thought of on my own. The 7 areas you want to brainstorm and evaluate are:

• Marketing (do this before you complete your marketing section)
• Customer Fulfillment
• Customer Satisfaction
• Leadership & Organizational Management
• Cash Flow/Financial Management (include inventory, cost of goods, expenses, etc.)
• Back Office (accounting, reporting, receivables, data management, etc.)

Once you have brainstormed each of these areas, set yourself some goals. If possible, let your team help set these goals and then (if possible) assign a champion to each goal. Review these monthly as a team and track your progress!

Keep this process simple and efficient . After you do this the first time you will discover that it is an easy and effective process to repeat year after year. The result will be a growing and continuously improving business. As a business coach I enjoy helping my clients create annual growth plans. If you need help, please contact me  and we can set up a strategy session at no obligation to you. I’m here to serve you.

Glenn Smith

Glenn Smith is a sought-after Executive Coach with over two decades of experience. Recognized for his strategic insights and leadership training, Glenn has been a guiding force for more than a hundred successful small to mid-sized businesses. Merging data-driven strategies with profound insights into human behavior, he aids business owners and executives in realizing their fullest potential. A respected thought leader, Glenn has contributed to numerous business publications and is a popular keynote speaker. Outside his professional realm, Glenn cherishes family time and outdoor activities. He is a pilot with over 30 years of flight experience. He is also a professionally trained gunsmith and a firearms instructor. His dedication to fostering leadership and driving transformative change marks him as a premier figure in executive coaching.

LinkedIn : www.linkedin.com/in/houstonbusinesscoach/

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Money latest: The 'German classic' that's a healthier and cheaper alternative to crisps

Crisps are on the menu as we see where you can make healthier choices for the best value. Elsewhere, the boss of Sainsbury's has insisted customers like self-checkouts - do you agree? Leave your thoughts in the box below.

Friday 26 April 2024 18:20, UK

• New research reveals cost of having children
• Sainsbury's boss insists customers like self-checkouts
• FTSE 100 hits another record high
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"Status symbol" pets are being given up by owners who get scared as they grow up, an animal charity has said, with the cost of living possibly paying a part in a rise in separations.

The Exotic Pet Refuge, which homes parrots, monkeys, snakes and alligators among others, says it receives referrals across the country, including from zoos and the RSPCA.

"They're a status symbol. People will say, 'OK, I'll have an alligator or a 10ft boa constrictor'," co-owner Pam Mansfield told the BBC.

"But when the animal gets big, they will get too frightened to handle them, and then the pet has to go."

She added people who want to get rid of the pets sometimes call zoos for help, which then call on her charity.

In some cases, owners don't have licences to own dangerous animals, she says, blaming a "lack of understanding" for what she says is a rise in the number of exotic animals needing to be rehomed.

She says people "just don't have the space" for some snakes, for example, with some growing to as much as 12ft and needing their own room.

The cost of living crisis has also forced owners to give their pets away, she says.

Her charity has also been affected by those increased costs, with the electricity bill rising to £10,000 a month at their highest, to fund things like heated pools for alligators.

Private car parks are accused of "confusing drivers" after introducing a new code of conduct - despite "doing all they can" to prevent an official government version.

The code of practice launched by two industry bodies - British Parking Association and the International Parking Community - includes a ten-minute grace period for motorists to leave a car park after the parking period they paid for ends.

It also features requirements for consistent signage, a single set of rules for operators on private land and an "appeals charter".

Private parking businesses have been accused of using misleading and confusing signs, aggressive debt collection and unreasonable fees.

That comes after a government-backed code of conduct was withdrawn in June 2022, after a legal challenges by parking companies.

RAC head of policy Simon Williams said: "We're flabbergasted that the BPA and the IPC have suddenly announced plans to introduce their own private parking code after doing all they can over the last five years to prevent the official government code created by an act of Parliament coming into force.

"While there are clearly some positive elements to what the private parking industry is proposing, it conveniently avoids some of the biggest issues around caps on penalty charges and debt recovery fees which badly need to be addressed to prevent drivers being taken advantage of."

BPA chief executive Andrew Pester said: "This is a crucial milestone as we work closely with government, consumer bodies and others to deliver fairer and more consistent parking standards for motorists."

IPC chief executive Will Hurley said: "The single code will benefit all compliant motorists and will present clear consequences for those who decide to break the rules."

Sky News has learnt the owner of Superdry's flagship store is weighing up a legal challenge to a rescue plan launched by the struggling fashion retailer.

M&G, the London-listed asset manager, has engaged lawyers from Hogan Lovells to scrutinise the restructuring plan.

The move by M&G, which owns the fashion retailer's 32,000 square foot Oxford Street store, will not necessarily result in a formal legal challenge - but sources say it's possible.

Read City editor Mark Kleinman 's story here...

NatWest says its mortgage lending nearly halved at the start of the year as it retreated from parts of the market when competition among lenders stepped up.

New mortgage lending totalled £5.2bn in the first three months of 2024, the banking group has revealed, down from £9.9bn the previous year.

The group, which includes Royal Bank of Scotland and Coutts, also reported an operating pre-tax profit of £1.3bn for the first quarter, down 27% from £1.8bn the previous year.

An unexplained flow of British luxury cars into states neighbouring Russia continued into February, new data shows.

About £26m worth of British cars were exported to Azerbaijan, making the former Soviet country the 17th biggest destination for UK cars - bigger than long-established export markets such as Ireland, Portugal and Qatar.

Azerbaijan's ascent has coincided almost to the month with the imposition of sanctions on the export of cars to Russia.

Read the rest of economics and data editor Ed Conway 's analysis here...

Rishi Sunak has hailed the arrival of pay day with a reminder his government's additional National Insurance tax cut kicks in this month for the first time.

At last month's budget, the chancellor announced NI will be cut by a further 2p - so some workers will pay 8% of their earnings instead of the 12% if was before autumn.

The prime minister has repeated his claim this will be worth £900 for someone on the average UK salary.

While this additional cut - on top of the previous 2p cut in January - does equate to £900 for those on average full-time earnings of £35,000, there are two key issues with Mr Sunak's claim:

• Once the effect of all income tax changes since 2021 are taken into account, the Institute for Fiscal Studies reports an average earner will benefit from a tax cut of £340 - far less than £900;
• Moreover, anyone earning less than £26,000 or between £55,000-£131,000 will ultimately be worse off.

In short, this is because NI cuts are more than offset by other tax rises.

We explain below how this is the case...

Tax thresholds

This is partly down to tax thresholds - the amount you are allowed to earn before you start paying tax (and national insurance) and before you start paying the higher rate of tax - will remain frozen. 

This means people end up paying more tax than they otherwise would, when their pay rises with inflation but the thresholds don't keep up. 

This phenomenon is known as "fiscal drag" and it's often called a stealth tax because it's not as noticeable immediately in your pay packet.

That low threshold of £12,570 has been in place since April 2021. 

The Office for Budget Responsibility says if it had increased with inflation it would be set at £15,220 for 2024/25.

If that were the case, workers could earn an extra £2,650 tax-free each year.

Less give, more take

Sky News analysis shows someone on £16,000 a year will pay £607 more in total - equivalent to more than three months of average household spending on food. 

Their income level means national insurance savings are limited but they are paying 20% in income tax on an additional £2,650 of earnings.

In its analysis , the IFS states: "In aggregate the NICs cuts just serve to give back a portion of the money that is being taken away through other income tax and NICs changes - in particular, multi-year freezes to tax thresholds at a time of high inflation."

Overall, according to the institute, for every £1 given back to workers by the National Insurance cuts, £1.30 will have been taken away due to threshold changes between 2021 and 2024.

This rises to £1.90 in 2027.

The UK could face a shortage of cava due to a drought in the sparkling wine's Spanish heartlands.

The Penedes area of Catalonia is dealing with its worst drought on record, with vineyards across the region so parched the roots of 30-year-old vines have died.

It's left shrivelled red and green grapes languishing under intense sun, fuelled by fossil-fuel driven climate change.

Cava is an increasingly popular drink in the UK, with 17.8 million bottles sold in 2023 - an increase of 5% from the previous year, when Britons stocked up on 16.8 million bottles, according to the Cava Regulatory Board.

That makes the UK the fourth-biggest buyer, behind only the US, Belgium and Germany.

Workforce slashed

The problems have been compounded after Catalonia-based cava producer Freixenet announced it will temporarily lay off 615 workers, almost 80% of its workforce.

Under Spanish law, companies facing exceptional circumstances can lay off staff or reduce working hours.

This measure is expected to take effect from May and it is not known how long it will last.

Price rises

One industry source told retail publication The Grocer  that cava shortages would push up prices "certainly for next year" if there isn't enough supply.

This could last for years if the drought persists, they added.

Consumer expert Helen Dewdney told MailOnline the staff cuts at Freixenet can only mean one thing - price rises.

However, she added, supermarkets say they are not experiencing any issues right now.

Parents are being hammered by rising childcare costs, according to a new study that suggests they may spend more than £160,000 raising their child to the age of 18.

Research by Hargreaves Lansdown has found that parents with children pay £6,969 a year more than couples without.

Over 18 years and assuming an annual inflation rate of 3%, that amounts to a whopping £163,175, the investment platform said.

Its study also found that parents were less likely to have money left at the end of the month.

Single parents carry the biggest burden, with the research suggesting they have just £85 left on average compared to £365 for couples with children.

Hargreaves Lansdown also found just 23% of single parents reported having enough emergency savings to cover at least three months' worth of essential expenses, compared to 63% of couples with children.

Parents are also at a slight disadvantage when it comes to pensions, the research found, with only 43% of couples with children on track for a moderate retirement income, compared to 47% without. Only 17% of single parents have a decent projected pension fund.

Sarah Coles, head of personal finance at the firm, said "having children is one of the most expensive decisions a person can make".

She adds that as a result of having a child, "financial resilience suffers across the board", and added: "For single parents, life is even tougher, and they face far lower resilience on almost every measure.

"It means we need all the help we can get."

By Daniel Binns, business reporter

One of the top stories shaking up the markets this morning is that UK-based mining company Anglo American has rejected a major $38.8bn (£31bn) takeover bid.

Details of the attempted buyout by Australian rival BHP emerged yesterday  - sending Anglo American shares soaring.

The deal would have created the world's biggest copper mining company - with the news coming as the price of the metal hit record highs this week.

However, Anglo American has now dismissed the proposal as "opportunistic" and said BHP had undervalued the company.

Anglo's shares are slightly down by 0.8% this morning - suggesting investors may not have given up hopes that a deal could eventually be agreed.

However, overall the FTSE 100 is up around 0.4% this morning, buoyed by strong reported earnings from US tech giants Microsoft and Google owner Alphabet.

It's helped the index, of the London Stock Exchange's 100 most valuable companies, hit yet another intraday (during the day) record of 8,136 points this morning.

The winning streak comes after a week of all-time highs on the index - including a record close of 8,078 points yesterday. The score is based on a calculation of the total value of the shares on the index.

Among the companies doing well this morning is NatWest - despite the bank reporting a fall in pre-tax profits of nearly 28% for the first quarter of the year.

Shares in the lender are up more than 3% after its results were better than expected by analysts.

On the currency markets, £1 buys $1.25 US or €1.16, almost on a par with yesterday.

Meanwhile, the price of a barrel of Brent crude oil has crept up slightly to $89 (£71).

Self-checkouts - they're like marmite, people seem to either love them or hate them.

But the boss of Sainsbury's has claimed that his customers do  enjoy using self-checkouts, despite criticism that that machines don't always provide the convenience promised.

Simon Roberts told The Telegraph that there are more of them in Sainsbury's stores "than a number of years ago" as shoppers like the "speedy checkout".

But despite this, he said there won't be a time when they'll replace cashiers completely.

"Over the last year, where we've put more self-checkouts in, we're always making sure that the traditional kind of belted checkout is there," he said.

His comments come after northern supermarket Booths ditched self-checkouts at all but two of its sites after customer feedback. 

Walmart and Costco in the US have also scaled back on the systems.

Let us know in the comments - do you love or hate self-checkouts?

We've all heard consumer advice that's repeated so often it almost becomes cliché. So, every Friday the Money team will get to the bottom of a different "fact" and decide whether it's a myth or must.

This week it is...

'Smart meters save you money'

For this one, we've enlisted the help of Dr Steve Buckley, also known as the Energy Doctor and head of data science at Loop...

So do smart meters help you save? 

"The short answer is both yes and no," Steve says.

"Installing a smart meter by itself won't magically reduce your energy consumption. But, by giving you easy access to your energy usage data, smart meters pave the way for savings that you couldn't achieve otherwise."

Before smart meters, most households only found out how much energy they had used when the bill arrived. 

By that stage it's too late to address wasteful usage, leading to what's known as "bill shock". 

"With a smart meter, you can see your usage and costs in real-time through an in-home display or an app provided by your supplier," Steve says. 

"This immediate feedback encourages you to use less energy. If you measure it, you can control it."

In 2022, the Department for Energy Security and Net Zero found that homes with smart meters used about 3.4% less electricity and 3% less gas. 

"This might not seem like a lot, but it adds up to a saving of over £50 per household annually," Steve says.  

If all homes in the UK made similar cuts, that would amount to savings of around £1.5bn and a potential reduction in CO2 emissions by about 2.7m tonnes each year. 

"Good for individual households but also great for the planet," Steve says. 

Smart meters are often installed at no extra cost to the consumer - it's effectively free data for households. 

Limitations

Smart meters are more or less what you make of them - a simple, free tool that allows you to see headline figures. 

However, "without detailed analysis, it's tough to identify and eliminate" where you could be wasting money, Steve says. 

Apps like Utrack, Loop and Hugo Energy can help you work out where you might be losing money by offering a more detailed breakdown if connected to your smart meter. 

Those tools are often free, but you may need to register your card details as proof of address. 

The tools give a number of useful insights, including looking at consumption in other households of similar size or monitoring where chunks of your money are going, such as to a faulty boiler or the "phantom load" (energy wasted by devices left on unnecessarily).

Myth or must?

Although smart meters alone don't reduce energy bills, they are a vital tool to help energy efficiency and cost savings. 

By Ollie Cooper, Money team

It can be hard to balance getting nutritious foods that make you feel good without spending a lot.

In this series, which ends today after digging into yoghurt, bread, pasta, fruit juice and plant-based milk, we've tried to find the healthiest options in the supermarket for the best value.

Sunna Van Kampen,  founder of  Tonic Health ,  who went viral on social media for reviewing food in the search of healthier choices, has given his input for the past six weeks.

And for the final part of the series, we're looking at the nation's favourite snack: crisps. 

The series does not aim to identify the outright healthiest option, but to help you get better nutritional value for as little money as possible.

We're a people obsessed: in the UK, we get through six billion packets of crisps a year.

Sunna has three easy tips for finding the tastiest options that are kinder to your body...

1. Understand the fat facts

"Typical crisps can be oil sponges and contain over 30% fat from low-quality vegetable oils that have been fried," Sunna says. 

"What we are on the lookout for those that buck the trend and stay away from the fat." 

So, he says, aim for crisps that contain less than 15% total fat.

2. Fibre up your snack time

"While crisps aren't exactly salad, some can offer more nutritional value than others," Sunna says.

"Check the labels for options that have more fibre or protein."

These help you feel fuller for longer and also keep your digestive system happy.

3. Portion control

"It's easy to demolish an entire bag in one sitting - however, many brands offer multipack bags that are portion-controlled, usually around 25g a bag," Sunna says.

Sticking to these helps to manage calorie intake and stops overindulging.

The big picture

"Small changes might not immediately seem like a lot but if you eat a bag a day with your lunch, we are talking about up to a whopping two litres of oil cut from your diet over the course of the year," Sunna says,

"This is not permission to eat crisps every day (enjoy as an occasional treat) but rather an indication of how small changes add up quickly overtime."

The good news is Sunna's recommendations are all similar in price to their popular, fattier rivals - so you don't need to make a bigger investment to reap some health benefits. 

We've included the prices for the brands' standard multipacks at Tesco - correct as of time of writing. 

Walkers Oven Baked - £1.95 for six-pack

"Around £1.95 for a pack of six, these crisps are baked, not fried, slashing the fat content to 13%, so a great option."

Popchips - £2.25 for five-pack

"These have just 13% fat content as they're popped rather than fried so are a great way to go reducing fat without compromising on the crunch."

And for some non-crisp options...

ProperCorn Popcorn - £2 for six-pack

Often described as "the healthier, lighter option", Sunna says ProperCorn "isn't actually the best option on the market for fat content at 17.4%".

That being said, you do get "double the fibre of standard crisps at 10.9g per 100g". 

At only £2 for a pack of six, it's well-priced, too.

Snack A Jacks - £2.20 for five-pack

"At only 8.3% fat per 100g, it's a great option at £2.20 for a pack of five."

Penn State Baked Pretzels - £1.50 for 175g bag

Now for Sunna's winner.

"The German classic is a great option at only 4.6% fat per 100g," he says.

One downfall is that they are not available in portioned bags, so be careful with the whole 175g bag for £1.50.

Want another option altogether?

"If you want to be even healthier, consider the switch to nuts, seeds or even dried cheese snacks," Sunna says.

"Higher in calories yes, but higher in good healthy fats too and are more satiating which will limit the chance of overeating."

The nutritionist's view -  from  Dr Laura Brown , senior lecturer in nutrition, food and health sciences at Teesside University...

"Baked instead of fried crisps is definitely a way forward as well as the popcorn suggestion," she says.

"We should also be aiming to look at the amount of protein and fibre found in products. For example, lentil and pea snacks are growing in popularity due to their higher protein and fibre values, so the focus should be more on looking for ingredients other than potatoes, oil and salt. 

"I also feel 'crisp' based snacks made in an air fryer are becoming more popular. These can include a wholemeal wrap with a small amount of oil added, and placed in the air fryer with paprika and other seasoning added for flavour. 

"Also, chickpeas in the air fryer make for a super delicious protein and fibre rich snack. They are cheaper than crisps and lower in fat since no oil has to be added."

Read more from this series... 

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