create a business plan uk

Free Simple Business Plan Template

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Your business plan is the document that adds structure to your proposal and helps you focus your objectives on an achievable and realistic target. It should cover every aspect of what your business journey will look like, from licensing and revenue, to competitor and sector analysis.

Writing a business plan doesn’t need to be a difficult process, but it should take at least a month to be done properly.

In today’s capricious business climate there’s a lot to consider, such as the impact of political challenges like Brexit. These details are especially important in today’s bad economy. Investors are looking for entrepreneurs who are aware of the challenges ahead and how to properly plan for them.

Below, you’ll find everything you need to create a concise, specific and authoritative business plan. So let’s get started turning your idea into a reality!

Click here to download your free Business Plan template PDF – you can fill in your own details and those of your business, its target market, your customers, competitors and your vision for growth.

Our below guide will give you detailed advice on how to write a quality business plan, and our PDF download above can give you a clear template to work through.

But, creating an effective business plan needs….planning! That’s where a high quality planning tool can help.

We recommend creating an account with monday to use this tool – there’s even a free trial . Doing so means you can start your entrepreneurial journey on the right foot.

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What to include in your business plan template

There’s a lot of information online about how to write a business plan – making it a confusing task to work out what is and isn’t good advice.

We’re here to cut through the noise by telling you exactly what you need to include for a business plan that will satisfy stakeholders and help develop a key identity for your brand. By the end, you’ll have a plan to make even Alan Sugar proud and can get started with the most exciting part – running your business.

Throughout this guide, we’ve featured an example business plan template for a new restaurant opening in Birmingham called ‘The Plew’. In each section, you’ll be able to see what the contents we’re describing would look like in a ‘real-life’ document.

What to include in your business plan:

• Executive Summary
• Personal summary
• Business idea
• Your product or service
• Market analysis
• Competitor analysis
• Cash forecast
• Operations and logistics
• Backup plan
• Top tips for writing a business plan
• Business plan template UK FAQs

1. Executive summary

This section is a summary of your entire business plan. Because of this, it is a good idea to write it at the end of your plan, not the beginning.

Just as with the overall business plan, the executive summary should be clearly written and powerfully persuasive, yet it should balance sales talk with realism in order to be convincing. It should be no more than 1,000 words.

It should cover:

• Mission statement  – what is your company’s purpose?
• Business idea and opportunity – what unique selling point (USP) will you provide?
• Business model – how will your business operate?
• Business objectives – what are you aiming to achieve?
• Target market – who is your customer base?
• Management team – who are the owners/senior staff?
• Competition – who are you competing against?
• Financial summary – can you prove the business will be profitable?
• Marketing strategy – what is your marketing plan and associated costs?
• Timeline – how long will it take to launch/grow your new business?

It sounds like a lot – but don’t feel you have to spend hours putting this together. Here’s what the above information for an executive summary might look like when put into our example business plan template for ‘The Plew’:

Startups’ business plan template example: executive summary

2. Personal summary

Investors want to know who they’re investing in, as much as what. This is where you tell people who you are, and why you’re starting your business.

Outline your general contact details first, giving your telephone number, email address, website or portfolio, and any professional social media profiles you might have.

Run through this checklist to tell the reader more about yourself, and put your business ambitions into context.

• What skills/qualifications do you have?
• What are you passionate about?
• What is/are your area(s) of industry expertise?
• Why do you want to run your own business?

Here’s what our two fictional co-founders of ‘The Plew’ might write in their personal summaries for our example business plan. CEO Gabrielle Shelby, has highlighted her expertise in the restaurant industry, while CFO Freya Moore outlines her accounting and finance knowledge.

Startups’ business plan template example: personal summary

Richard Osborne, founder and CEO of UK Business Forums, says personality is important in a business plan.

“Having a strong, personal reason at the heart of your business model will help keep you going and give you the motivation to carry on,” he affirms.

3. Business idea

This section is essentially to offer a general outline of what your business idea is, and why it brings something new to the market.

Here, you should include your general company details, such as your business name and a  one-line summary of your business idea known as an  elevator pitch. This section should also list a few key business objectives to show how you plan to scale over the next 1-3 years.

We also recommend carrying out a SWOT analysis to tell investors what the strengths, weaknesses, opportunities, and threats are for your business idea. Think about:

• Strengths: ie. why is this a good time to enter the sector?
• Weaknesses: ie. what market challenges might you encounter?
• Opportunities: ie. what demand is your product/service meeting in today’s market?
• Threats: ie. how will the business be financed to maintain liquidity?

In the template below, you can see a breakdown of the above information for ‘The Plew’. At the top is its mission statement: “to craft an unforgettable dining experience in a chic atmosphere.”

Startups’ business plan template example: business idea

Need a business idea? We’ve crunched the numbers and come up with a list of the best business ideas for startup success in 2023 based on today’s most popular and growing industries.

4. Your products or services

Now it’s time to explain what you are selling to customers and how will you produce your sales offering.

Use this section to answer all of the below questions and explain what you plan to sell and how. Just like your business idea outline, your answers should be concise and declarative.

• What product(s) or service(s) will you sell?
• Do you plan to offer new products or services in the future?
• How much does the product or service cost to produce/deliver?
• What is your pricing strategy ?
• What sales channels will you use?
• Are there legal requirements to start this business?
• What about insurance requirements?
• What is the growth potential for the product or service?
• What are the challenges? eg. if you’re looking to sell abroad, acknowledge the potential delays caused by post-Brexit regulations.

What insurance and licensing requirements do you need to consider?

Depending on what your business offers, you might need to invest in insurance or licensing. Our How To Start guides have more details about sector-specific insurance or licensing.

Public Liability, Professional Indemnity, and Employers’ Liability are the most well-known types of business insurance. We’ve listed some other common other licensing and insurance requirements below:

In our example product/service page for ‘The Plew”s business plan, the founders choose to separate this information into multiple pages. Below, they outline their cost and pricing, as well as sales strategy. But they also include an example menu, to offer something a bit more unique and tantalising to the reader:

Startups’ business plan template example: product list and pricing strategy

5. Market analysis

This section demonstrates your understanding of the market you are entering, and any challenges you will likely face when trying to establish your company.

This section pulls all of your target market and customer research together to indicate to stakeholders that you are knowledgable about the sector and how to succeed in it.

• Who is your typical customer and where are they are based? Describe the profile of your expected customers eg. average age, location, budget, interests, etc.
• How many customers will your business reach? Outline the size of your market, and the share of the market that your business can reach.
• Have you sold any products/services to customers already? If yes, describe these sales. If no, have people expressed interest in buying your products or services?
• What have you learned about the market from desk-based research? What are the industry’s current challenges, and how has it been affected by the economic downturn?
• What have you learned about the market from field research? (eg. feedback from market testing like customer questionnaires or focus group feedback).

What is your marketing strategy?

Once you’ve highlighted who your rivals are in the market, you can provide details on how you plan to stand out from them through your marketing strategy. Outline your  business’ USP, your current marketing strategy, and any associated advertising costs.

‘The Plew’ identifies its target audience as young, adventurous people in their mid-30s. Because of the restaurant’s premium service offering, its audience works in a well-paid sector like tech:

Startups’ business plan template example: customer analysis

6. Competitor analysis

This section demonstrates how well you know the key players and rivals in the industry. It should show the research you have carried out in a table format.

Begin by listing the key information about your competitors. Don’t worry about sounding too critical, or too positive. Try to prioritise accuracy above all else.

• Business size
• Product/service offering
• Sales channels
• Strengths/weaknesses

Competitors will take two forms, either direct  or  indirect. Direct competitors sell the same or similar products or services. Indirect competitors sell substitute or alternative products or services.

Here’s a breakdown of the strengths, weaknesses, and opportunities, and threats presented by a competitor restaurant for ‘The Plew’ called Eateria 24. At the bottom, the founders have written what learnings they can take from the chart.

Startups’ business plan template example: competitor analysis

Check out our list of the top competitor analysis templates to download free resources for your business, plus advice on what to include and how to get started.

7. Cash forecast

Outline your financial outlook including how much you expect to spend, and make, in your first year

All of your considered costs can be put into one easy-to-read document called a monthly cash forecast. Cash forecasts contain:

1. Incoming costs such as sales revenue, customer account fees, or funding.

2. Outgoing costs such as staff wages or operating expenses. The latter can cover everything from advertising costs to office supplies.

For those firms which have already started trading, include any previous year’s accounts (up to three years) as well as details of any outstanding loans or assets.

Annual cash forecast: what is it?

By conducting 12 monthly cash forecasts, you can create an annual cash forecast to work out when your company will become profitable (also known as breakeven analysis) . You will break even when total incoming costs = total outgoing costs.

In your annual cost budget, make sure to also include month opening/closing balance.  This is important to monitor for accounting, particularly for year-end.

• Opening balance = the amount of cash at the beginning of the month
• Closing balance = the amount of cash at the end of the month

The opening balance of any month will always be the same as the closing balance of the previous month. If you are repeatedly opening months with a negative closing balance, you need to adjust your spending. Here’s an example of what ‘The Plew’s financials might look like in its first year of operation:

Startups’ business plan template example: cash forecast

8. Operations and logistics

Explain how your day-to-day business activities will be run, including key business partnerships around production and delivery.

A.) Production

List all of the behind the scenes information about how your business will operate. Include:

• Management team – who do you plan to hire as senior staff and why?
• Premises –  where will you be based? What will be the cost?
• Materials –  what materials/equipment will you need to make your product/service?
• Staffing –  how many employees will you hire? How much will they cost?
• Insurance – what insurance do you need for production?

B.) Delivery

Detail how your customers will receive your product or service. Include:

• Distribution –  how will you sell your product to customers?
• Transport –  how will you transport the product/service to customers or partners?
• Insurance –  what insurance do you need for delivery?

C.) Supplier analysis

Lastly, you should carry out a supplier analysis.  Write down 2-3 suppliers you plan to use as part of your business operations and evaluate them on factors like location and pricing.

In our example business plan for ‘The Plew’, the founders have chosen to present this information in an easily-digestible chart, breaking down the leadership and employees into two different areas: product development and operations.

Startups’ business plan template example: staffing section

9. Backup plan

Explain how you will manage any surprise losses if your cash forecast does not go to plan.

In the event that your business does not go to plan, there will be costs to incur. A backup plan outlines to potential investors how you will pay back any outstanding loans or debt.

In the short-term: 

If your cash-flow temporarily stalls, what steps could you take to quickly raise money or make savings? For example, by negotiating shorter payment terms with your customers.

In the long-term:

If you’ve noticed a drop in sales that seems to be persisting, what changes can you make that would improve cash flow longer term? For example, can you do more of your business online to reduce rent fees?

To placate investors even further, it’s a good idea to include details about potential support channels you can utilise (eg. a business network or contact) who might be able to help if you get caught in a sticky cash-flow situation.

Startups’ 5 top tips for writing a business plan

• Keep your predictions realistic. Your business plan should showcase your knowledge of the sector and what’s achievable. It’s not about impressing investors with big numbers or meaningless buzzwords.
• Don’t go over 15 pages. Business plans should be engaging, which means sticking to the point and avoiding a lot of long-winded sentences. Keep your executive summary to less than 1,000 words, for example.
• End with supporting documents. Use your appendix to include product diagrams or detailed research findings if these are helpful to your business case.
• Get a second pair of eyes. Everyone misses a spelling error or two – invite a trusted business contact or associate to look over your business plan before you send it anywhere.
• Leave enough time to write! It’s exciting to think about getting your business up and running – but planning is an important step that can’t be rushed over. Spend at least a month on writing to get all the details correct and laid-out.

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have practical resources for helping new businesses get off the ground – use the tool below to get started today.

What Does Your Business Need Help With?

Designing a business plan is very important for laying the foundation of your business. Ensure you spend an appropriate amount of time filling it out, as it could save you many headaches further down the line.

Once your plan is complete, you’ll then be ready to look at other aspects of business set-up, such as registering your company. Sound daunting? Don’t worry!

Our experts have pulled together a simple, comprehensive guide on How to Start a Business in 2024, which will tell you everything you need to know to put your new plan into action.

• Can I write a business plan myself? Absolutely! There are plenty of resources available to help, but the truth is a business plan needs to reflect the owner's personal ambitions and passion - which is why entrepreneurs are best-placed to write their own.
• How long should a business plan be? We recommend your business plan is kept to a maximum of 15 pages. Keep it short and concise - your executive summary, for example, should be no more than 1,000 words.
• Is it OK to copy a business plan? While not technically illegal, copying a business plan will leave you in a poor position to attract investment. Customising your plan to your unique business idea and industry specialism is the best way to persuade stakeholders that you have a winning startup formula.

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What do you need to know about starting a business?

• Start up business ideas
• Set up a business
• Skills and wellbeing
• Business planning
• Financing a business
• Tax and National Insurance
• Business law
• Sales and marketing
• Business premises
• Business IT
• Grow your business
• Types of business
• Testing business ideas
• Product development
• Is running a business really for you?
• Start up stories
• Registering as a sole trader
• Setting up a limited company
• Business names
• Buy a franchise
• Buying a business
• Starting an online business
• Setting up a social enterprise
• Small business support

Protect your wellbeing from the pressures of starting and running a business and develop key business skills.

• Dealing with stress
• Manage your time
• Self-confidence
• Write a business plan
• Business strategy
• Start up costs
• Start up funding
• Setting prices
• How to work out tax and NI
• Accounting and bookkeeping
• Licences and registration
• Protecting intellectual property
• Insurance for business
• Workplace health, safety and environmental rules
• Looking after your customers
• Promote your business
• Your marketing strategy
• Sales techniques
• Research your market
• Creating and optimising a website
• Commercial premises
• Premises security
• People management
• Recruitment, contracts, discipline and grievance
• Employment rights
• Hiring employees
• Buying IT for your new business
• Basic IT security
• Preparing for business growth
• How to scale up your business
• Funding business growth
• Start exporting
• Personal development

Essential guide to writing a business plan

Your business plan outlines what your business does and what you are trying to achieve. It explains what the market opportunity is, what makes your business special and how you will make it a success.

Writing a business plan helps you:

• check that your business idea makes sense
• plan your sales, marketing and business operations
• identify potential problems and how to overcome them
• set out your objectives and the financial return you expect
• work out what financing you need
• convince other people to back your business

Why write a business plan?

How to write a business plan

Your business and products

Your market and competition

Your marketing and sales

Management and personnel structure

Your business operations

Financial performance

SWOT analysis

1. Why write a business plan?

Writing a business plan helps you think about what you are doing.

• The plan sets out your strategy and action plan for the next one to three years, or sometimes longer.
• As part of the process, you set concrete objectives and plan how you will achieve them.
• Writing a business plan helps you focus and develop your ideas. Priorities are identified. Non-priorities are dropped, saving precious time.
• Putting the plan in writing makes it easier to spot any gaps where you have more work to do.
• Once written, the plan is a benchmark for the performance of the business.
• By involving your employees in the planning process, you can build a successful, committed team.

You may need a business plan to explain your idea to other people

• A business plan is essential if you are raising finance from a bank or outside investors.
• A good plan can help you attract new senior management, or business partners such as distributors and agents.
• You should tailor your plan to the target audience. For example, you may want the plan to 'sell' the business to your bank manager or investors.
• Ask the intended recipient if there are any specific issues they want the plan to address or a template you should follow.

2. How to write a business plan

Base your business plan on accurate, detailed information where possible. But do not include all the detail in the plan. Leave the detail for operational or marketing plans.

Keep the plan short

• Focus on what the reader needs to know.
• Cut out any waffle.
• Make sure there are no spelling mistakes.
• Detailed business plans are often quickly shelved because they are difficult to use on an ongoing basis.

Include any detailed information you need in an appendix

For example, you might want:

• detailed financial forecasts and assumptions
• market research data that backs up what you say
• CVs of key personnel (essential if you are seeking outside funding)
• product literature or technical specifications

Base your business plan on reality, or it may be counterproductive

• Over-optimistic forecasts can lead to increased overheads followed by a cash flow crisis and drastic cost-cutting.
• Be realistic, even if you are selling the business to a third party. Financiers, business partners and employees will see through over-optimistic plans that ignore weaknesses or threats. Management credibility can be damaged.

Make the plan professional

• Put a cover on it.
• Include a contents page, with page and section numbering.
• Start with an executive summary. This summarises the key points, starting with the purpose of the business plan.
• Use charts, if helpful.

Even if the plan is for internal use only, write it as if it were aimed at an outsider

• Include company or product literature as an appendix.
• Give details about the history and current status of the business.

Review your business plan

• Read through the plan from your target reader's point of view. For example, try to imagine the impression the plan will make on your bank manager.
• Check the plan is realistic. Include evidence to back up what you say (perhaps in the appendix) or provide evidence if needed.
• Make sure you assess the risks. What might go wrong (eg if your main supplier closes down or you lose a key customer) and what would you do about it?
• Concentrate on the executive summary. People often make provisional judgements based on this. Only then do they read the rest of the plan to confirm their decision.
• Show the plan to friends, business peers and expert advisers for comments. Which parts did they not understand or find unconvincing?

3. Your business and products

Explain the history of the business.

• When did it start trading and what progress has it made to date?
• If the business is just starting up, what is your personal industry background and what progress towards launching the business has been made?
• Who owned the business originally?
• What is the current ownership structure?

Describe what your product or service is, avoiding technical jargon if possible

• In general, what makes your product or service different ?
• What benefits does it offer? What are its disadvantages and how will you address these?
• What changes and improvements are you planning?

Explain any key features of the industry

• For example, any special regulations, whether the industry is dominated by a few large companies or any major changes in technology.

4. Your market and competition

Describe the market in which you sell.

• Highlight the segments of the market in which you compete. What are the key characteristics of customers in each segment and what influences their purchasing decisions?
• How large is each market segment? What is your market share?
• What are the important trends, such as market growth or changing tastes? Explain the reasons behind the trend.
• What is the outlook for each important market segment?

Describe the nature and distribution of existing customers

• Do they fit the profile of the chosen market segment? If not, why not?
• Are sales largely made to one or two major customers?
• If you are a new start-up, do you have any confirmed orders and who are your best prospects?

Outline the main competition

• What are the competing products or services ? Who supplies them?
• What are their advantages and disadvantages compared to you? For example, price, quality, distribution.
• Why will customers buy your product or service instead? How will your competitors react to losing business and how you will respond?
• Never openly criticise or underestimate competitors.

5. Your marketing and sales strategy

Where do you position your product or service in the market.

• Is it high quality and high price?
• Is it marketed as a specialist product due to a particular feature?
• What unique benefits does it offer customers? For example, product reliability or customer service.
• Which of these benefits are you going to highlight?

What is your pricing policy?

• Explain how price-sensitive your customers are.
• Look at each product or market segment in turn. Identify where you make your profits and where it may be possible to increase margins or sales or cut costs. Set your pricing accordingly.

How do you promote your product or service?

• Each market segment will have one or two promotional methods that work best. For example, social media marketing, direct marketing, advertising or PR.
• If you are considering a new marketing strategy, start small. A failed investment in marketing can be costly.

What sales channels do you use to reach your target customers?

• For example, do you sell directly to the customer, or through retailers or agents? Do you sell online?
• Compare your current channels with the alternatives. Note the distribution channels used by your competitors.
• Look at the positive and negative trends in your chosen distribution channels.

How do you do your selling?

• Look at the cost-efficiency of each of your sales methods . For example, online sales, in person, through an agent or using telesales.
• Include all the hidden costs, such as management time when calculating prices or return on investment.
• Explain how long it takes to make sales (and to get paid for them), what the average sales value is and how likely customers are to give repeat orders.

6. Management and personnel structure

Set out the structure and key skills and experience of the management team and the staff.

• Clarify how you cover the key areas of production, sales, marketing, finance and administration.
• Address any areas of deficiency, and your plans to cover this weakness.
• Explain your recruitment and training plans, including timescales and costs.

Analyse the workforce in terms of total numbers and by department

• Compare the efficiency ratios with competitors, or with similar industries. Useful figures might be sales, average salaries, employee retention rates and measures of productivity.

Be realistic about the commitment and motivation of the workforce

• Show how committed you and other members of the management team are. For example, how much you have invested in the business.
• Consider how you would survive the loss of a key member of the team.
• Note any unusual upward pressure on pay levels.
• Spell out any plans to improve or maintain motivation.

7. Your business operations

Look at the capacity and efficiency of your operations, and any planned improvements.

What premises does the business have?

• Do your business premises meet your current and future needs? What are your long-term commitments to property?
• What are the advantages and disadvantages of the present location? Should the business expand or move?

What production facilities do you have and how is production organised?

• How modern is the equipment?
• What is the capacity of the current facilities compared with existing and forecast demand?
• Who are your key suppliers? How do you select and manage them?

What management information systems are in place?

• For example, management accounts, sales, stock control and quality control.
• Are they reliable? Can they deal with any proposed expansion?
• A financier will be very concerned if management information systems are inadequate. Management of a business is always limited by the quality of the information available.

Are your IT systems reliable?

• Is IT a key strength (or weakness) of your business? The development of IT systems to help your business is usually an important issue.

What quality or regulatory standards does the business conform to?

• For example, ISO 9000 or CE approval.

8. Financial forecasts

Your financial forecasts translate what you have said about your business into numbers.

Set out historical financial information for the last three to five years, if available

• Break total sales figures down into component parts. For example, sales of different types of product or to different groups of customers.
• Show the gross margin for each sales component. List what costs are included as direct costs for each component.
• Show the movement in the key working capital items of stock, trade debtors and creditors. Use ratios such as stock turnover (in months), debtors period (in days), and creditors period (in days).
• Highlight any major capital expenditure made.
• Provide an up-to-date balance sheet, and a profit and loss account .
• Explain the reasons for movements in profitability, working capital and cash flow . Compare them with industry norms.

Provide forecasts for the next three (or even five) years

• The sophistication of your forecasts should reflect the sophistication of your business. A small business may only need sales, profit and cash flow budgets .
• A more complex, asset-based business - or one with complex working capital requirements - will need balance sheet forecasts as well.
• Use the same format as for the historical information, to make comparison easier.
• Clearly state the assumptions behind the forecasts. These should tie in with what you say in the rest of the plan. For example, if the plan says that the market is becoming more competitive, profit margins should probably be falling.
• Be realistic about forecasts in new markets. For example, how much resource can you devote to selling, what success rate can you expect and how long will it take to convince new customers ?
• Look at the overall trends of historical and forecast numbers. Are they believable? Do the forecasts allow for the possibility of problems and delays in payments that could affect cash flow?
• Consider 'what-if' scenarios. For example, consider what will happen to your cash flow if sales are 20% lower than forecast (or 15% higher).

Put detailed financial forecasts in an appendix at the end

Include a detailed list of assumptions. For example:

• the profit margin on each product
• how long it takes to collect payment from debtors
• what credit suppliers will offer you
• what financing you are expecting and the interest rate you will pay

Use the cash flow forecast to predict any financing requirements

• Add an extra contingency element onto the funding requirement shown in the forecast (perhaps 10-20%). Think about what mid-month peaks might be.
• Identify what types of financing you want. For example, long-term loans or an increased overdraft facility.
• Include the likely interest or dividend costs of any new finance.
• Carry out sensitivity tests on the cash required by changing key factors, such as sales or margin. Note the outcomes.
• Explain why the financing is required and what it will be used for.

If necessary, get help

• Small business advisers at banks and business support organisations may help you put together financial forecasts free of charge.

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9. SWOT analysis

A SWOT analysis helps show that you really understand your business and the key external factors that you need to deal with.

Set out a one-page analysis of strengths, weaknesses, opportunities and threats

• Strengths might include brand name, quality of product, or management experience.
• Weaknesses might be lack of finance, or reliance on just a few customers.
• Opportunities might be increasing demand or a competitor going bust.
• Threats might be a downturn in the economy or a new competitor.

Be honest about your weaknesses and the threats you face

• Spell out mitigating circumstances and the defensive actions you are taking.

Driving your business forward

Identify what makes you better than the competition.

• Think about what the key ingredients of your future success will be and how you will strengthen your position in the market.

Establish your overall business aims

• Where do you realistically intend to be in three years' time?

Decide on half a dozen key objectives that will make a significant difference

Many businesses think in terms of:

• income - more sales, better margins
• customers - new customers, higher levels of customer satisfaction
• products - improving existing products, launching new ones
• human resources - recruiting new employees, developing new skills

Set clear targets

• You should know exactly what you want to achieve, by when.

Work out how you will reach these targets

• Look at each aspect of your business in turn and create a step-by-step action plan for it.
• Get help preparing a business plan and financial forecasts from your local enterprise agency .
• Find an ICAEW chartered accountant or an ACCA accountancy firm for help with financial forecasting and business planning.
• Find a trade association relevant to your sector through the Trade Association Forum.

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What are you looking for, how to write a business plan uk | free uk business plan template.

• Brought to you by AAT Business Finance Basics

• 1. What is a business plan?
• 2. Download: Free UK business plan template
• 3. Getting started on a business plan
• 4. How to structure a business plan step-by-step
• 5. Business plan examples
• 6. Business plan writing tips

You’ve got the brilliant business idea, you might have even started setting up or running your business, but writing a business plan and creating business proposals are vital for the launch and growth of any venture. It’s a document where you can organise all your ideas, create a company description, make sure that you’ve considered and researched everything, and ultimately decide that the business is viable. Commitment to making a business plan is a commitment to the business. Read our guide and download your free business plan template. 

What is a business plan?

A business plan is a document that details all the future plans and predictions for your business. It will explain your ideas, map out how they’ll be put into practice and provide relevant information and facts including the business details, management plan, operating plan, marketing and sales strategy , financial projections, and operational and team specifics.  

A business plan is essential in helping you: 

The business plan is a living, working document that should be read and reviewed regularly. If there are multiple directors or partners in the business then they should all be in agreement with what the plan outlines, the detailed information in the plan, and what is written in the plan. You will also need to share it with potential investors. The business plan will formalise all the ideas and assumptions, keep you focused, and ensure that everyone is on the same page.

How long writing your business plan should take will depend on your business size, the complexities of it and what stage you’re at. The most important thing is that it’s user-friendly and doesn’t include any waffle. Get straight to the nitty-gritty so that your stakeholders are engaged when reading it and so that you are more likely to use and update it regularly. Your business plan will probably cover the first three to five years. It’s important to include all the right information (see the checklist below) but it’s not a document to spend too long on. It’s more important that you are spending time running the business.

There are lots of business plan examples out there but typically yours should include: 

• What your business will do 
• The business structure and operations  
• Team members and their expertise 
• Market analysis to see current and projected state of the market and industry
• How your business will sell and market  
• Startup costs and funding required 
• Financial projections 
• Legal requirements 

Writing a business plan will allow you to take a step back and look at the business more objectively, predicting potential issues in advance, such as financial forecasts, and coming up with solutions or a shift in how you originally thought that you would do something.

Download: Free UK business plan template

We want to take the stress out of writing a business plan. Our free downloadable UK business plan template will guide you on everything you need to include and get your business primed for success. 

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Getting started on a business plan

Before you begin to make your business plan, keep these three things at the forefront of your mind. 

Focus on what makes you unique

Be creative with your plan, shout about your unique selling proposition (USPs) and what makes you different. Represent your brand using language and visuals, and talk about why you and your team are best to run this business.

Don’t over complicate it

Keep it concise so that you can get on with running the business and so the business plan is an easily readable and usable document. Too much detail in the plan can become confusing.

Be realistic and honest

The business plan will give you an indication of where you’re supposed to be. Review it every few months, update it as you go and change your activities in line with it. It will be impossible for you to predict everything so just give it your best shot and be prepared to be flexible.

How to structure a business plan step-by-step

The business plan should follow this format with these six sections. 

You must be logged in to use this checklist

The executive summary should always be written last. Think of it as a one-pager giving an overview of all the best bits of your plan. If the executive summary doesn’t captivate and interest the reader then it’s unlikely that they will read the rest of your plan. 

Describe your what, where, who and why - including your product/service, brand, location, business model and size. 

This section will involve the most amount of research as you study the current and projected conditions of the market and the industry, and look at what your competition is doing , before making your own marketing plans . 

Explain the experience, skills and credentials of all the people involved. Why are they the right people to make this a success?

Detail your required facilities, premises, systems and software. 

This section translates everything into numbers - your startup and running costs, funding , revenue projections with a cash flow forecast . 

Business plan examples

Take a look at these business plan sections in more detail to see examples of the sort of details you should include, depending on your type of business.

1. The executive summary

Give a topline description of:

• In the most basic terms, what is the business? Is it a product or service? What does it do and how?
• Why is there a need for this business?
• What does this business do better than similar existing businesses?
• What experience or skills do you have that will help make this business a success?
• How will it make money?
• Who will your customers be?
• Who are your main competitors?
• How will people find out about you?
•  What is the opportunity for investors?

2. Business details and description

• Describe your what, where, who and why – including your product/service, brand, location, business model and size.
• Food (lunch / dinner)
• Private hire for meetings / parties / events
• Putting on own events (music, comedy)
• Classes (e.g. cocktail making)
• What will the legal structure of your company be (LTD, PLC, sole trader, partnership, charity, social enterprise)?

3. Marketing and sales strategy

4. management and employees.

• Who will make up your team and what relevant skills and experience do they have?
• Do you need to employ people?
• What friends/family/business contacts do you have with skills that might be able to help you (preferably for free)?
• Do you need to outsource anything?

5. Operational set up

• What premises do you need? Where will they be? Where will you work from?
• What assets/tools do you require (and which of these do you already have)?
• Are there any licences that you require? Any other legal considerations?

6. Financial plan and projections

Business plan writing tips.

Writing a business plan can take some time and some areas of the plan will be easier to tackle than others. 

• Make initial notes every time you think of something and don’t worry if you can’t cover all points at the start.
• When you are ready to start to write the plan, make sure you use sections and these are in a logical order.
• It is important that your plan is simple, accurate and easy to follow if you are going to ask others to look at it.
• Try to avoid jargon or terms that only people in your type of industry will understand.

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Creating a business plan for your startup: step-by-step guide

You’ve had a great idea for a startup or new business. Now you need to make sure it all makes sense and create a document that shows how and why your business will succeed.

Every company is unique and this will be reflected in its business plan. The steps below can be tailored to your requirements but should ensure the key elements are all included.

Step 1. Set out your stall

You may be clear about what will make your new business great, but you need to be able to communicate that to investors, customers and other stakeholders. An effective business plan will often start with a clear statement about what the business will do, and what product or service it will sell.

Step 2.  Set clear goals

Do you want to takeover the world or just a small corner of it? Is creativity, social impact or innovation more important than maximum profit? Decide on the business, financial and even personal goals you want to achieve in the short and medium term.

Step 3. Explain your product

Describe what your product or service will be, and what makes it unique or different. What are its limitations or downsides? How will you make, develop or source it?

Step 4. Introduce your customer and market

Who is your target customer and how big is your potential market? The better you understand the customer, the more likely you will create something they will buy. Market research is critical. Consider how you could test the market and assess demand with a Minimal Viable Product.

Step 5. Explain your sales and marketing approach

How will you make potential customers aware of your product or service? Marketing and advertising costs are often underestimated, especially in a crowded market with a lot of competition for customers. Will you have time to do the marketing yourself or will you need to hire staff or outsource tasks?

Step 6. Consider variable costs

These are the costs associated with the product or service itself, including manufacture, storage and delivery. For a digital business this could include development and testing.

Step 7. Estimate fixed costs

There will also be fixed costs that you will need to pay no matter how much you sell. These could include salaries and wages, National Insurance, tax, office costs, accountant’s fees, bad debts, interest payments and rates.

Step 8. Work out your pricing

Take the cost of the product or service away from the sales price and you have your gross profit. Subtract your overhead costs for the relevant time period and you’ll start to have an idea of how much you’ll need to sell to make a profit. There are various pricing models and you may need to experiment to find the right one for your business.

Step 9. Evaluate the competition

Identify other businesses that could compete for customers. Make a list of factors related to their product or service – everything from cost and service level to features and reputation. Assess your idea against the competition to spot risks and opportunities.

Step 10. Crunch the numbers

Financial calculations and forecasts are at the heart of a business plan. They could include capital requirements, profit and loss forecasts, cashflow forecasts, required assets and funding requirements. How much startup capital do you need and what runway will that give you before more investment or revenue is required?

Step 11. Decide on a legal structure and business organisation

Will you be a sole trader, limited company or set up a business partnership, perhaps with a co-founder? Do you need staff and will they be offered any equity?  What access to advice and expertise do you have – and what will you need to pay for?

Step 12. Assess the risks

With so much disruption and uncertainty it has never been more important to assess the risks your business may face. Be honest about gaps in the founders’ knowledge or experience and look to fill them. Work out contingency plans and stress-test your assumptions.

Step 13. Iterate your approach

A business plan should be an evolving document that reflects what you are learning and the data and insight that is being collected. The sections may need to be adapted or added to, depending on the nature of the business, its sales model and type of funding.

Step 14. Talk to Barclays Eagle Labs

The Ecosystem Managers at Barclays Eagle Labs are used to working with founders and entrepreneurs at the start of their business journey. They can advise you on approaches, considerations and next steps. Find your nearest Eagle Lab here.

Step 15. Find a business plan template to suit your needs

There are numerous business plan templates online with some specifically tailored for startups. No two are the same, so it pays to search widely and borrow from multiple sources to create the business plan that best fits your circumstances and concept.

This Barclays Business Plan Generator is a great first step in clarifying your business idea.

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The information, statements and opinions contained in this content are of a general nature only and do not take into account your individual circumstances including any laws, policies, procedures or practices you, or your employer or businesses may have or be subject to. Although the statements of fact on this page have been obtained from and are based upon sources that Barclays believes to be reliable, Barclays does not guarantee their accuracy or completeness.

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How to write a business plan

According to Barclays, only 47% of small businesses in the UK have a formal business plan in place that is written down or recorded.

And we understand, it's so tempting to jump straight into building a business; formally documenting it sounds exhausting and unnecessary. But before you jump in headfirst, you need to gain clarity around the market you're hoping to enter, pinpoint your target customers and figure out whether your product is viable.

And that's precisely what a business plan can help you do.

Without that information, you stand to waste time and money on a business idea that lacks real thought or structured direction. For example, did you know that the most common reasons for business failure in the UK include lack of funding, cash flow problems, and not having a structured business plan?

Please don't fall into the trap of jumping straight in; let's start planning.

So, firstly, what is a business plan?

A business plan is a formal document outlining your business idea — it’s a process that can help you work out whether your small business is viable, e.g. is there a market out there for your product? Can you adequately compete in the current marketplace? And what does your target market look like?

These are the kinds of questions you need answers to before starting your new business venture.

Do I need a business plan?

If you plan to set up a small business, let’s say an Etsy shop, then you might not think it’s necessary to create a business plan. But, if you’re planning on bringing partners on board, accessing financial help or approaching potential investors — then chances are, you’re going to need a comprehensive business plan. After all, who wants to invest in something that’s no more than an idea?

Even if you don’t plan to bring investors on board or apply for business grants, mapping out a path to business success can be helpful regardless of your business idea. Even if it’s just so you know what associated costs you can expect to fork out on.

Having a bona fide business plan can help you get your ducks in a row.

More reasons why you should consider writing a business plan:

• To understand the marketplace and for solidifying what makes your business different
• To understand your customer and their motivations for buying a product like yours
• An idea of how much money you can make and how you’re going to get there
• To identify and mitigate risks associated with your business idea
• To help build a roadmap for getting your business off the ground

The above are just a handful of reasons, but if you can identify with any of them, then chances are, you’ll need to create a business plan.

But we’ve got good news; writing a business plan might seem daunting, but we’re going to walk you through a simple layout template. So follow along and make notes as you go. Before you know it, you’ll be well on your way to making your business idea happen in real life.

Before we talk you through how you should structure your business plan, we’re sharing a few tips you should consider as you write it.

Keep it simple

When writing your business plan, you want to cut straight to the important bits, keeping it concise and trimming any flowery language or long sentences. You also need to be mindful of jargon or unexplained industry acronyms; remember, it has to be quick and easy to understand.

Keep it professional

You don’t want to write your business plan flippantly; it’s a document you should take seriously. Lay out your document with headings, numbered pages, and a cover page. You want whoever reads it to be able to find what they’re looking for.

Keep it error-free

When it comes to financial projections and market analysis, you need to make sure your information is spot on, so we’d advise giving the plan a thorough proofread and fact check. Then, read and re-read to ensure it’s up to scratch — because it might not just be you reading it, it could be your future business partner or passed around potential investors.

How to layout a business plan

Now the all-important part, actually creating a business plan. We’ve broken down the contents of a business plan into six sections:

• Executive summary
• Goals, vision and mission statement
• Market research
• Sales and marketing plan
• Financial projections
• A roadmap of your business milestones

1. Executive summary

You should be able to hand your business plan to anyone, have them read the executive summary, and they should grasp a pretty good idea of your business plan. It should inform the reader what they can expect from your business plan and, if it’s written well, it can pique their interest from the start.

In your executive summary, you’ll want to include your business’ purpose, your vision for the company, your goals and objectives. You’ll need to briefly introduce the product or service you’re hoping to sell and why you think it’s a viable business proposition.

Basically, it’s a watered-down version of your entire business plan, so it can be a good idea to write this section last.

2. Goals, vision and mission statement

In this section, you should start by briefly describing your mission statement. According to a retired professor of strategy and governance at McMaster University, Chris Bart , three key components make an impactful mission statement :

• Your target audience
• The product/service you’re selling (and how it solves a problem)
• Your business USPs (why would people buy from you over competitors?)

You should also set out your long-term and short-term vision for your business — what does an ideal yet realistic future look like for you? What goals are you setting for yourself in the first few years? Why are these goals important to you?

3. Market research

Before you jump into any new business venture, you need to see if there’s actually a market for it, and that’s where market research comes in.

In your market research section, you’ll want to demonstrate that you know the market you’re targeting and what they look like. What age bracket do they belong to? What’s their income? Why would they purchase your product?

Understanding your target market is crucial to a successful business; without this knowledge, you’re building a business on shaky foundations. There are plenty of data sources to help you explore data trends and demographics, including Statista , ONS Census , and Gov.uk .

You’ll also need to include competitor research to show you’ve thought about what brands are already out there and how you see yourself slotting into the market. To conduct competitor research, you can undertake a PEST analysis to highlight big external factors that could affect your industry or your business directly: political, economic, social and tech. And you can also perform a SWOT analysis, which helps you determine strengths and weaknesses (internal) and opportunities and threats (external).

These frameworks are here to help guide you through your market research.

4. Sales and marketing plan

So now that you’ve identified your target market, how are you going to spread the word about your business? A solid sales and marketing plan is vital. It’s easy to waste budget trialling new channels, so take your time and understand which sales channels you’re going to focus on and think about the marketing tactics you’re going to use to capture and convert customers.

When firming up your marketing plan, it’s good to use the 4 Ps of marketing as a guideline. P rice, P lace, P roduct and P romotion. All four overlap each other.

You need to outline how you’re going to price your product and why, where you’re going to find these target markets, the product and its USP and the problem or need it addresses, and finally, promotion. How are you going to promote your product to that target market?

5. Financial projections

Without financial projections, investors or partners can’t come on board; it’s too risky. In your business plan, you need to layout your cash flow projections and discuss any capital you need to raise.

As a startup business , you haven’t got past sales to make accurate predictions, which can be tricky. But that doesn’t mean you can’t use your market research to inform future projections.

You should know about the state of the industry you’re looking to compete in; you can analyse industry trends and use your competitor analysis to get a crystal clear picture of pricing strategies and gaps your product can fill.

Break down your financial projections by monthly sales — when you’re into your second year, you can start breaking them down by quarter. Include how many units you sold, the price you sold them at, and predicted monthly sales.

You should also include cash flow projections. Again, difficult when you’re just starting out. But in your business plan, you need to show that you’ve thought about any revenue lags. For example, if you rely on invoice payments, take into account it could take your client between 30 and 120 days to pay the full invoiced amount. Make sure you’re aware of these pockets where expenditure will come out of your account before you’ve been paid.

6. A roadmap of your business milestones

Once you’ve researched and filled in each section of your business plan, it’s helpful to write a timeline of when you expect to complete certain milestones. For example, milestones could include deciding which structure your company will take, registering your business, and building a website, setting up marketing channels and designing and printing product packaging.

This section can be used to summarise all the milestones you want to achieve and by when keeping you focused and pushing the business forward and into fruition.

Where can I get a free business plan template?

Sometimes, when faced with writing such an important document, it can be tricky to know where to start. Luckily, there are plenty of free business plan templates available online . We’ve included links to a handful below:

• Barclays free business template [PDF]
• The Prince’s Trust free business template
• HubSpot free business template

Before you go

Hopefully, you’ve got an idea of how to lay out your business plan from scratch. Take it from us, writing a business plan saves time and money down the road; it’s best to put the leg work in now.

If you’re looking to access a startup loan to help you grow, we can help you. We’re brokers, which means our loan comparison service is 100% free for you to use. Apply in minutes and see funds in as little as 48 hours. Read more about startup loans .

About the author

Money Writer

Helen has over nine years of experience in content writing and writes financial content for us here at Capalona.

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Professional Bio Templates & Examples

The mere thought of putting a business plan together can send even the most enthusiastic entrepreneur into a tailspin, but writing one can help you work out whether you actually have a viable business idea on your hands.

First and foremost, the person who must be convinced by your business plan is you. After all, if you’re not persuaded by it, why should anyone else be?

Once you’re sold on the basics, you can use your business plan to convince potential sources of finance, investors, partners, and employees that you’re the real deal.

This jargon-free article will give you a better idea of how to get the ball rolling.

Executive Summary

The executive summary highlights and emphasises the main points of your business. No more than a page in length, the executive summary needs to be succinct, compelling, and engaging - you want the reader / potential investor to be interested enough to read on and, even better, buy into your business.

This section should help the reader understand the purpose and passion behind your business. You’ll need to include brief outlines of:

• Your business name and location
• A short, simple summary of your business concept
• When were you founded?
• A description of your business’ competitive advantages
• Proof that there’s a market for your product or service
• A summary of the management team you’ve assembled
• A brief description of at what stage of development your business is in
• What is your background and experience, if any?
• What was your decision making process?
• When did the initial idea occur?
• Where will the business operate?
• How long is the lease, if you have one?
• Why - the mission statement of your business

You’ll be elaborating on most of these themes throughout the document, so keep it fairly succinct. Revisit the content once you’ve finished the rest of the business plan - you might find better ways to express your ideas.

Products and services

This is your opportunity to really wax lyrical about the core aspect of your business: what you’re going to be selling. You want complete belief from the reader that your product is the best out there, and for them to see why they should invest.

Here’s what you need to include:

• What is your product or service?
• Why should customers purchase from you?
• How do you aim to sell your product or service?
• How are your products manufactured?
• Do you have any exclusive deals or partnerships?
• What is your pricing strategy?
• What problems, if any, do you see with your product or service? What are the benefits to the customer?
• How will the product be sold - online or retail?
• What makes your product or service stand out?

Management team

Your business plan needs to detail specifically who is involved in your business.

You want this particular section of your business plan to highlight that you have a more-than-capable team running your business, a team that will use their expertises to make the business work and profit.

Make a list or tree diagram of people's responsibilities, and attach CVs as appendices if you feel this supports your choices.

You’ll need to include:

• Who owns the business?
• Who are the directors and shareholders?
• Who will be involved in the day-to-day running of the business?
• What experience do these people have and how will this benefit the business?
• Who is your management team?
• What experience do they have?
• Who has direct reports?
• Do you have any vacancies yet to be filled?
• What is your recruitment process?

The marketing section is key in showing a potential investor that you know how you will bring in custom. It needs to show you’ve thought about how to get people interested in your business, and what makes it different from competitors in your market or area.

How you promote your business will differ depending on how you’ll make sales. If you’re opening a shop you’ll need to employ some local marketing techniques (think print adverts, flyers, broadcast media etc.) but if you’ll be selling online you should consider search marketing and social media promotion.

What to include can be broken down into four sections - the four P’s:

Who are you aiming your product at? Who is your target market? For example, “22-34, London based, interested in photography and male”.

What is the price of your product/service? How did you arrive at this price point?

How does this compare with other products in your market? What budget have you set aside for marketing?

How and where are you going to distribute your product/service? Retail, wholesale or online? For e-commerce, you’ll need to show you can drive traffic to your website, and with retail you’ll need to show you understand the importance of putting your product in the right shop/area.

‍ Promotion

How are you going to promote your business? How and where will you advertise?

Think about the methods mentioned in the opening paragraph - will any of these help get your business noticed?

The operations section of your business plan deep-dives into the logistical side of your idea. It highlights that you have thought concisely about the day-to-day running of your business. It needs to highlight and set clear expectations of exactly how your business will operate, and include details of the following:

Now is the time to be more specific about where you are based. Are there any works that need carrying out? Is there adequate parking? What licence do you need (if any)? Is there scope for you to develop a hybrid working space - could this suit your goals and how would it function?

Facilities and utilities

Does your location have internet access? Who will supply your water, gas and electricity?

How will you store and track your assets, stock, equipment?

What are your hours of trading? Are these flexible?

What payment systems will you have in place? Do you accept AmEx or contactless?

Do you need to invoice clients?

How many members of staff will you need? What will their duties be?

What is the customer journey? What is your refund policy? How will customer complaints be handled?

Financial Plan

A financial plan helps a potential investor think about whether they are likely to get a healthy return on investment (ROI). For this reason, it’s likely to be the most scrutinised section of your business plan.

If your business is brand new, think about how you’ll show predicted earnings - or you might want to outline any plans to scale up, including any intentions you have to access help in the form of an unsecured loan to grow your business . You could even look at a company similar to yours and what their earnings have been to compare. You’ll also need to include details of the following:

Profit and loss

Also known as an income statement, the profit and loss statement measures just that: the profit and loss of your business over a specific period. This takes information from the following equation:

Revenue - Cost of goods - Expenses = Net

Cashflow shows how much money is going in and out of your business. Think of cashflow as money management. Much like your personal finances, you need money coming in before you can take money out. If you spend money you don’t have coming in, this will amount to debt - this isn’t something an investor will look favourably upon.

Balance sheets

Compiled on an annual basis, the balance sheet gives a picture of the financial state of your business. Include assets, liabilities, and equity (see glossary on next page).

Sales forecast

Forecasting shows the depth of knowledge of your business. Break this section down into manageable parts, showing estimated sales by month over 12 months, then each year over five years. As with profit and loss, it’s important to be realistic, otherwise you will lose credibility.

Glossary of terms

Unsure of the difference between cash-flow and capital? While we do our best to avoid jargon, it’s important to understand the terminology when starting a business. To help you write your business plan, we’ve compiled a glossary of the most-used business terms and have provided easy-to-understand definitions.

An item owned by a business that has monetary value, for example, property, cash in the bank or inventory.

Lists the assets, liabilities, and equity of a business in order to calculate net worth.

An organisation that trades in goods or services.

Wealth owned by a person or business that is available for reinvestment in the company.

The amount of money being transferred in and out of a business.

A person who runs a limited company, often owning shares in the company.

A person who works for wages or salary in a business.

A person who employs people and pays them a wage or salary.

The value of the shares issued by a company.

Financial forecasts

A calculated estimation of future financial outcomes for a business.

A business licence granted by a company that enables a party (franchise) to market its products or services. For example, Ben and Jerry’s is the company, and the parlours where you buy the ice-cream are a franchise.

The items or stock owned by a business.

A person who invests money or capital into a business with an expectation of future financial return.

A company’s legal debts, for example, loans, mortgages or accounts payable.

Limited company

An organisation set up to run a business, which is responsible for everything it does. Finances are separate from personal finances, and Directors are responsible for decisions which affect the company.

Total assets of a business minus total liabilities. Determines the value of a company, for example, a business has £50,000 in cash, £200,000 of inventory and £20,000 in savings = £270,000 in assets. The business also has a £100,000 mortgage and £10,000 credit card debt (liabilities). Therefore the total net worth is £160,000.

An account showing a businesses net profit and loss over a given time frame.

Prediction of future sales.

Shareholder

A person who owns shares in a company or business, whose rights are often governed by a Shareholders’ Agreement.

A portion of the company’s ownership divided amongst shareholders, giving the owner a proportion of the company.

Sole trader

A person who is exclusively the owner of a business and solely responsible for all profits and losses of that business.

A new business.

Target market

A group of consumers at which a product is aimed. For example, sweets are often aimed at a target market of small children.

Umbrella company

A company that acts as an employer to agency contractors and processes their payments.

Keeping track of your accounting & finances

Ensuring you have a great accounting and financial plan is essential. Using a simple to navigate accounting system can be a perfect option. Why not consider using Crunch’s software ? Not only is it easy to use, but it also comes with support from our experts who can guide you through your accounting tasks and tracking your finances. We also have a ton of Crunch integrations , providing our clients with even more tools to run their businesses efficiently. For example, our integration with financial forecasting software Brixx allows you to project your business's financial future so you can test scenarios and be prepared for any eventuality. This is also a great tool to have when preparing your business plan.

We're comitted to helping new businesses thrive, and to encourage this we've shared lots of free resources - from in-depth business guides to blank invoice templates , we're here to help you succeed. To find more ways that Crunch can help make running your business effortless, join us online for 14 days completely free, or get in touch with our friendly advisors at a time that suits you. Alternatively, read our complete free guide to writing a business plan for lots of in-depth, interesting insights and considerations.

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How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated May 7, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

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How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

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

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

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

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan
• Templates and examples

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How to Create a Business Plan – Examples, Templates and Tools

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May 18, 2021 | 10 Mins Read

In business, planning is everything. Whether you’re starting in business for the first time or you’ve got years of experience under your belt, one thing remains true: you need to have a thorough business plan. There’s so much else to do that it’s easy to put this to one side, but it’s an absolute must-have.

There’s an old saying: “Fail to prepare, prepare to fail”. Even the best business idea won’t get anywhere without preparation. A business plan can help you set your new startup or small business on a healthy trajectory of sustainable growth, as well as equipping you to navigate challenges you’re likely to encounter along the way. In this guide, we’ll look in detail at how to create a great business plan. 

What is a business plan?

A business plan isn’t just about a balance sheet, as important as that is. It’s a written document where business owners outline their key activities and objectives and sketch out a general strategy for reaching them. Both new startups and established firms looking to expand use business plans to attract investment.

Your business plan can help you identify and understand your target market, devise reliable financial projections, create a roadmap for the future and provide an executive summary of what you’re trying to do. They also allow entrepreneurs to list key objectives and explain to potential investors how they intend to realise them.

Business owners should revisit their business plans periodically. This is because circumstances can change, often quite rapidly, and render business plans outdated. They should therefore rework their business plans so that they’re in line with current targets and expectations.

When and why do you need a business plan?

If you’re looking to entice new investors to put cash into your business, you’ll need to convince them that it’s going places. After all, seasoned investors—including venture capitalists—need to see that you have a credible vision for your business. A good business plan can go a long way to convincing them that it’s worth their while.

Potential investors will also be looking for proof that you’ve undertaken a proper competitive analysis, have a credible marketing strategy and that you understand your potential customers’ demographics. This can provide them with the reassurance they need to provide the firm’s capital for future scalability.

Of course, business plans aren’t only about external investors. They’re also useful for internal teams, giving a clear sense of direction to any decisions undertaken. Even if you have all the funding you need, you should still have a business plan in place to ensure you’re heading in the right direction.

Business plan components

Now we know why you need a business plan. But what exactly goes into one? Let’s take a look at the core components your plan needs.

Executive summary

An executive summary provides an overview of your business and what you’re hoping it will achieve, including a concise summary of the other sections of your plan. As such, you should leave writing it until last so that these summaries accurately reflect the contents of their respective sections.

Don’t forget to include your value proposition, which encapsulates what your business is about and what makes it stand out from its rivals.

Mission statement and objectives

Next, you’ll need a company description covering three key areas: your business’s history, mission statement, and key objectives for the future. You don’t need to be exhaustive here—instead, it’s better to be concise. Your objectives, too, should be realistic, concrete, and measurable. Otherwise, they won’t be credible either to investors or employees.

Market analysis

Your business plan must include solid market research. Think about who will comprise your customer base and their demographics—including age, location, class background, hobbies and so on. To be precise, otherwise, investors are likely to look at your analysis with some suspicion. 

What is a VoIP service for small businesses?

The following guide provides useful information on VoIP systems and will help determine whether they’re right for your small business.

Competitive analysis

Next, you need to look at who your prospective competitors are. As daunting a task as this might sound, you need to know what your business’s rivals are doing. This might include their approach to marketing, their social media output, their standards of customer service, how frequently they launch new products, how they perform in customer reviews, and other vital details.

Your product offering

In your plan, you need to explain what products and/or services your business will offer. This must include the specific benefits, how new products are produced (including how raw materials are sourced), pricing, intellectual property (where relevant), and what makes your offering distinct from those of your competitors. Investors need to be convinced of both the viability and profitability of your product.

Marketing strategy

A marketing strategy is crucial to getting new businesses off the ground and expanding them. You should recap your growth strategy and target market before explaining how you intend to market your business. This marketing plan can include online promotion, loyalty schemes, media ads, and customer retention strategies.

Your business plan must address the financial aspects of running your business. If you’re launching a brand new startup, you obviously won’t have past financial records to discuss. However, you should still cover budgetary issues in your plan.

You’ll need to include income statements, balance sheets, cash flow statements, and profit and loss statements for established businesses. Three years of reporting is ideal, if possible. Needless to say, you must ensure that all figures are accurate and reliable.

Management and staffing

It’s important to address staffing in your business plan. Talk about your existing team and, where applicable, where you’re looking to recruit additional talent. You should also address your legal structure, whether you’ll be forming an LLC or incorporating your business , and the cost of hiring legal experts and accountants to ensure compliance.

Tips to make business planning easier

When you’re starting a business , there’s a lot to do! Writing a comprehensive plan for your business might sound like quite an undertaking, but there are some things you can do to make the whole thing less strenuous. Firstly, you should keep it concise. Truly comprehensive business plans need to cover much ground, but they don’t need to be epic in length; 10 to 20 pages should suffice.

Your plan should also be written in plain and straightforward language. Could you not make it impenetrable? Don’t forget that investors and others receive many business plans, and they only have so much time in their day. Please get to the point, and make sure your plan is divided into clear sections so that it’s easier to digest.

Finally, make sure your goals and objectives are clear in your own mind. You need to know what you’re looking to achieve with your business and over what time frame. You might well find that your objectives change as you progress through the writing of your business plan, and that’s okay: you might learn new things in the process!

Business plan templates

There are plenty of business plans which you can find online, and it’s worth reading some of these to help you get a better idea of what you need to include in yours. Let’s take a look at a couple of examples by way of explanation. Here’s the first:

One-page business plan

A one-page business plan provides a quick overview of what your business is and what it does. It effectively condenses your full-length business plan into key points. This is particularly useful to potential investors, as it allows them to digest the ideas and strategies underpinning your business easily. Here what it needs to include:

• Business overview. This should cover your central vision for the business and the products or services it will provide in no more than two or three sentences for each.
• Market research. Talk briefly about your competitors and what sets your business apart from them. Please list your main rival businesses and, again in no more than a few sentences, summarise why your business meets certain consumer needs better than its competitors. It’s worth noting your audience’s demographics here.
• Marketing and sales strategy. Which marketing channels and materials do your business intend to use? What about its pricing strategy for marketing? Provide a concise discussion of these points in this section.
• Objectives and metrics. List three key objectives which you have set for your business and the metrics you will use to measure its progress in meeting them.

     2. Comprehensive business plan

A comprehensive business plan needs to detail what your business aims to achieve and why investors and lenders should back it. We’ve already listed the key areas you’ll need to address in the last section, but here’s a summary of what needs to be included:

• Title page and table of contents. List your business’s information—its address, contact details, website—and the date on which the plan was produced on its title page. You should also include a table of contents listing the various sections included in the plan and their respective page numbers so that readers know where to find them.
• Executive summary. While your executive summary should be included at the start of your business plan, it needs to be written last, as we’ve mentioned. It should be no more than two pages long. Discuss your company’s mission, introduce its management, and explain what products and services it offers. 

         You should also summarise your market research and provide an overview of your financial projections for the coming years. If you’re launching a startup,                    you’ll also need to discuss its initial financing requirements.

• Market overview. Provide a bird’s-eye view of the wider market you’re operating in. Discuss relevant trends, as well as sales and revenue statistics. Please explain how your business will find a distinctive niche in this market and how it will succeed.
• Market research and competitor analysis. Demonstrate to potential investors that you’ve undertaken a thorough analysis of the market you’ll be operating in and the competitors you’ll be up against. Define your customer base and explain how your products and services will give you a competitive advantage over your rivals.
• Marketing and sales strategy. How do you intend to attract customers? This section should cover four key areas: your product or service offering, pricing strategy, sales and distribution, and marketing.
• Ownership structure, management and staffing. Discuss your firm’s legal structure (including ownership), management and staffing requirements, as well as external services and expertise such as lawyers and accountants.
• Operating plan. Your operating plan must cover your business’s physical requirements, including office, warehouse and retail space, equipment, supplies (including where these are sourced from) and so on.
• Financial plan. As far as prospective investors are concerned, this is the key section of your business plan and the one they’ll be paying the closest attention to. You’ll need to include projected cash flow statements, financial statements and a balance sheet. 

          Investors will be keen to ensure that your business is potentially profitable before deciding to invest in it, so you should also include a breakeven analysis illustrating what it would take to make a profit.

• Appendices. If you have other documentation that needs to accompany other sections of your plan—CVs of owners and management staff, detailed competitor analyses, owners’ credit histories or further information about your products and services, for instance—then make sure you include it as appendices at the end of the plan.

Learn more about RingCentral solutions for Retail

How to revise your business plan.

It should go without saying that your business plan will need revisiting every so often. As businesses evolve, their plans should evolve with them. You should continually revisit your objectives to see how far you’re meeting them and reassess what your rivals are regularly doing.

Revising your business plan is an opportunity to assess whether you’ve met existing objectives and pursue new ones. As we’ve mentioned, the reality of running a business often diverges from the plan that’s on paper. Therefore, you should tweak your plan periodically so that it more accurately represents where your business is at and where it’s going.

Useful tools for writing a business plan

Numerous tools can help you in writing your business plan. The US Small Business Administration has created a ‘Build Your Business Plan Tool’ that provides a step-by-step guide to writing a plan. You can write it section by section, saving your progress and returning to it later (it’ll be stored for up to six months).

You can also find resources to help you build your business plan on the gov.uk, the UK government website. It’s also worth looking at business plan software, including the following:

• Enloop : A tool that automatically writes your business plan for you based on your specific details. Features include shared users capability and automatically generated financial reports.
• Rocketlawyer : An interview-based online tool that guides you step-by-step through the creation of your business plan. Answer a few questions, and your business plan should be ready in minutes.
• LivePlan : Business plan software with instructions showing you what you should include at each stage of writing your plan. It also features a library of more than 500 sample plans you can use for guidance and inspiration.
• BizPlan : A guided business plan builder who has been acclaimed for its user-friendly design. Once you’ve drawn up your plan, you can share it directly with investors or via Fundable, an online capital-raising tool.
• PlanGuru : Business plan software that makes it easy to set financial goals for your business and monitor its performance. Its integrated income statement, cash flow statement and balance sheet allow you to make more accurate long-term forecasts.
• Wrike : Project management and business planning software used by more than two million entrepreneurs across 140 different countries. Ready-made templates help you get your business plan into shape.
• Platinium Pro : A strategic business planning tool with a range of useful features, including automated contents tables, sample business plans, a user-friendly dashboard and a host of relevant educational resources.

Make your business phones work smarter with RingCentral

RingCentral’s cloud-based business phone system can help your business boost productivity through better connectivity. It allows you to take calls with HD audio wherever you happen to be, as well as to route incoming calls to a human agent or a virtual receptionist. Calls are protected by enterprise-grade security, with a 99.999% uptime SLA.

What all this means is that you can provide an even higher standard of customer service —keeping customers coming back, time and time again.

Originally published May 18, 2021, updated Dec 17, 2021

Chris Goryn is Senior Business Development Manager for RingCentral Office, the leader in cloud communications solutions. He is passionate about helping customers move to the cloud, improving CX and creating value.

He has gained extensive experience in sales and marketing across SaaS, telecommunications, technology and tinance sectors within companies such as GE Capital, Vodafone, O2 and Timico.

Chris’ hobbies include skiing, food and wine and travel.

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Writing a business plan

Your guide to a successful business plan

A good business plan defines what you want to achieve and how you intend to achieve it. Our guide could help you write yours.

Define your business

It’s important that you define what type of small business you are so that everyone you work with understands what you’re trying to achieve. A comprehensive business plan is the best way to go about defining your business.

Your plan should include:

• What your business will do
• The products or services it will provide
• How customers will access your products or services (eg in a shop, online or by phone)
• Your approach to pricing
• Your long and short-term objectives – including a series of benchmarks if possible that you can check your progress against

Know your customers

Make sure you know as much as possible about who will be buying from you. For example, if you’re marketing to consumers, here are some questions you might want to ask. Knowing the answers will help you promote your business much more effectively:

• How old are they?
• What do they do for a living?
• What are their lifestyles like?
• Do they already buy the product or service?
• Why will they buy from you and no one else?
• How will you tell them about your business?

Naming your business

The name you choose for your business should reflect the image you want to project to your market. Pick one that’s easy to pronounce and remember, but do some research first. Make sure your chosen name is not already in use, it’s available as a web address and will work on your business stationery. You may also consider looking into the name’s meaning in different countries and languages – especially if you see yourself expanding internationally in the future.

If you have the facilities, you could test various names to see how people from your proposed customer base react. There are companies that provide this service, or you could do it informally by asking friends and family.

Taking on staff

If you take on employees – even part-time – you’ll need to familiarise yourself with employment law and know how to get the best out of your staff. There are plenty of guides that will help you to understand the law and make decisions to suit your business, such as the number of employees you need, what you should offer them and if they will be contractors or permanent. Here are some key things to consider:

• What are my responsibilities and what do I need to provide them with?
• How will I make sure they are properly managed and trained?
• What should I pay them and does it match with the pay offered for similar roles in the area?
• Does it comply with the National Minimum Wage and National Living Wage?
• How will they benefit my business and help me to achieve my goals?

Writing it all down

When you write your business plan, remember to be clear, realistic and concise. It’s important to consider that someone reading it in the future might not be familiar with jargon or more technical terms, so writing it in plain English is advisable. You should use research and, if possible, evidence, to support your conclusions and include an action plan. Nothing needs to be set in stone, however; business plans are dynamic documents – meaning that you should adjust your plan as your business develops. See our in-depth guide to writing a business plan  [PDF, 6.2MB]

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Important information

Free business plan template

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Doing a business plan will improve your idea. It helps you think about your business from different points of view. The process will flag up unseen risks, but also new opportunities. Aside from helping refine your idea, a business plan will move it forward. It’ll give you a concrete set of steps to go from ‘I should’ to ‘I did’.

One-page business plan template

Great for making a start

Helps you pin down the main idea

Easy to update as things evolve

Multi-page business plan template

Ideal for nailing down the details

Required by most investors and lenders

Good if you face big startup costs

Tips to help with your business plan

Don’t obsess over every detail to start with. That will make the plan long and hard to change. Keep it short and concise initially.

Financing your business

Need cash to get going? Check out our finance guide.

How to finance your business

Starting a business

Check out our guide for information about getting started.

How to start a business

Find a bookkeeper or accountant

Accoutnants and bookkeepers can help build financial resilience into your business budgets.

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Plan on making business fun

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Xero does not provide accounting, tax, business or legal advice. This template has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business.

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How to Write a Business Plan in 8 Simple Steps

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8 step business plan checklist

Why should i write a business plan, how to write a traditional business plan, how to write a lean start up business plan, tips for writing a business plan, get your small business off to a great start.

A business plan is a written document that describes your business, usually covering strategies, objectives, marketing, sales and financial forecasts. More than that, it can be a way to provide a clear roadmap designed to take your business from where it is today to where you want it to be in the future.

But if you haven’t created one before, it can be hard to know where to start. That is why we have put together a guide on how to write a business plan, including the elements you might want to include, and the different small business plan formats you may want to consider.

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When writing a business plan, there are several factors to pay particular attention to.

• Have you included an executive summary detailing your mission statement?
• Are you clear on both your competitive advantages AND the key risks facing your business?
• Do you have a detailed organisational chart showing the structure of your business personnel?
• Are you on top of trends in your industry, and how your business can stand out?
• Have you explained how you will attract and retain your customer base?
• Are you explicit about how your product or service will benefit its intended audience?
• Do you know how much funding you need, and in what form?
• Have you included your latest financial projections?

This list is not necessarily exhaustive, but highlights some key things to pay attention to as you create your business plan.

There are a range of reasons why you might consider writing a business plan, from clarifying your intentions to securing a business loan.

Clarify your business idea

By writing a business plan you can hone and sharpen your initial business idea, making it a stronger, more detailed proposition.

It will give you a top level overview of what you need to do and, importantly, how much money you need to do it.

Set out your goals

Going through the process of creating a business plan will help you set out tangible goals for different stages of your growth.

Where you want to be after year one will differ from what you want to have achieved by year five, and writing a plan will encourage you to engage with your targets on both a short- and long-term basis.

Spot potential problems

A business plan isn’t only about sharpening your idea and setting your goals. If done properly, it can help you spot potential problems that you may not have previously considered, or that were not obvious until you’d done the research a business plan requires.

Measure your progress

A business plan is only the beginning. Once it is in place, you will have a set of targets to measure your progress against.

These targets can act as points of reference to evaluate the various stages of your organisation’s development.

Securing funding

A business plan will be essential if you’re looking to secure a business loan or other form of credit from a bank. Potential investors will also want to see one before they consider partnering with you.

It can also help convince suppliers, customers and employees to support you in your endeavour.

A traditional business plan is comprehensive and detail-oriented. For these reasons, it is the format most commonly requested by lenders and investors.

Let’s go through the sections you would expect to see in a traditional business plan – but remember, you don’t need to stick to an exact outline. Instead, use the sections that make the most sense to your business and its needs.

Step 1: Draft your executive summary

Outline briefly what your company is and why it will be a success. Include your mission statement, your product or service and basic information about your location, workforce and leadership team. And if you’re seeking funding, lay out your high-level growth plan and financial information.

Step 2: Write your company description

In this section, you can elaborate on the points laid out in your executive summary. Explain the problems your product or service solves, and list the specific organisations, businesses and consumers your company intends to serve.

Furthermore, lay out the competitive advantages that will help your business prosper. Perhaps you have industry experts on your team or have sourced the perfect location for your store.

There is no need to hold back on your company’s strengths.

Don’t be afraid to mention key risks to the business. Any lender or investor will likely identify them for themselves and will be reassured by the fact that you have identified them and have plans in place to protect the business.

Step 3: Detail your management and organisation structure

Who will be running your business? How will it be structured legally? Will it be a limited company, limited liability partnership, or partnership, or will you work as a sole trader ?

An organisational chart may help illustrate who will be in charge of what, and take the opportunity to describe how their credentials will contribute to your venture’s prosperity. You may even wish to include the CVs of key players.

Step 4: Carry out and explain your market analysis

You’ll need a solid understanding of both your target market and your industry outlook. Competitive research will shed light on trends and themes, as well as what other businesses are doing well, and how you could do it better.

Step 5: Define your marketing and sales strategy

There is no single way to approach your marketing strategy because it should evolve and adapt to your business’s individual needs as they arise. The goal in this section is to lay out how you will attract, and retain, a customer base. You’ll also need to describe how sales will actually happen.

You’ll likely need to refer to this section of your business plan later when you lay out your financial projections, so make sure your marketing and sales strategies are described in thorough detail.

» MORE: How to promote your small business online

Step 6: Describe your service or product line

Describe what you’re selling or what service you’re offering, as well as how it will benefit customers and what its life cycle will look like. If you have plans for intellectual property, such as patent filings or copyright, make sure that you share them. And if you’re conducting research and development for your product or service, explain it in detail.

Step 7: Detail your funding request

If you’re looking for funding as part of your small business plan, you’ll need to outline your requirements, preferably with a five-year projection and your future strategic financial plans, such as selling the business or paying off debt.

You’ll need to specify whether you require equity or debt, the terms you wish to be applied and the length of time your request will cover. Describe what your funds will go towards, such as paying salaries, purchasing materials and equipment or covering bills, until such time as revenue increases.

Step 8: Compile your financial projections

It’s a good idea to supplement your funding request with financial projections in order to convince readers that your business will be stable and successful.

If your business is already established, then include balance sheets, income statements and cash flow statements, preferably from at least the last three years, if not the last five. Be sure to list any other collateral you could secure against when applying for a business loan.

Provide a prospective financial outlook for the next five years, including forecast income statements, capital expenditure budgets and cash flow statements. For the first year, be even more specific, and break it down to quarterly, or even monthly, projections. Explain these clearly, and ensure they match your funding requests.

Your appendix can be filled with supporting documents and any other materials that have been specially requested. Items commonly added to the appendix include:

• product pictures
• credit histories
• letters of reference
• legal documents

This less traditional business plan format has a solely high-level focus. It is quick to write and contains only key elements. For these reasons, you may prefer a lean start-up business plan if you wish to explain or start your business in a short timeframe, or if your business is relatively simple.

It may also be a good format to use if you envisage regular change for your business or your business plan being regularly redefined.

These kinds of business plans are most applicable where you are building a business based on a new concept or product and people can understand that it is impossible to project exactly how it will develop at a more granular level of detail. However, many lenders will not consider such a high- level plan sufficient for the approval of a loan.

A lean start-up business plan is a useful summary of your infrastructure, value proposition, finances and customer base. As with the traditional business plan, it has commonly used elements, but they are not essential; you should mould your plan to your business’s particular needs.

Value proposition

You need to make a concise and compelling statement regarding the unique value that your company will deliver to customers, including the products and services you’ll be offering.will bring to the market.

Key partnerships

Make note of the other companies you’ll work alongside in bringing your business to fruition, be they suppliers, manufacturers, sub-contractors or other strategic partners.

Key activities

List the main ways your business will gain a competitive advantage in the market, from customer relations to revenue streams. highlighting It will highlight such factors as selling direct to consumers or leveraging tech to tap into the sharing economy.

Key resources

List any resource you’ll use to maximum advantage in creating value for your customers. Your key assets may include capital, staff and intellectual property.

Customer segments

Specify your target market and remember: your business won’t be for everyone. Who are your most important customers? Enter into your small business plan with a clear sense of who you will actually serve.

Customer relationships

Lay out how your customer base will interact with your business. Will it be automated, face -to -face or online? How will you grow your customer base and retain customers? Consider the customer experience from start to finish. Explain how you will find customers and retain them.

Cost structure

Will your company focus more on maximising value or reducing cost? Define your strategy, then list the key resources and most significant costs you’ll face.

Marketing and communication channels

How do you intend to talk to and communicate with your customers? How do your competitors communicate with their customers? And what are the most cost-efficient ways to do this? Most businesses make the most of a combination of marketing channels and optimise them over time.

Revenue streams

How will your company make money? What are your customers willing to pay for the value you’ll add? Will it be through direct sales, advertising space or membership fees? If you envisage multiple revenue streams, be sure to list them all.

» MORE: How to create a small business budget

When writing your business plan, it is worth keeping the following tips in mind to ensure you get the most out of the process.

• Have a clear goal: since there are many reasons why you might be writing a business plan, it is best to know exactly what you hope to get out of it before starting, as it will inform how you go about creating your document. For example, your aim may be to get funding or to convince potential hires to join.
• Know your audience: just as there are different reasons why you might write a business plan, there are different audiences who will be reading it. By keeping a target audience in mind from the beginning, you can tailor your plan towards the right people.
• Do your research: this cannot be overstated. The more research you do, the more detailed your plan can be, creating a stronger foundation for your business to launch from.
• Keep things concise and consistent: while it is important to do your research, you don’t want to swamp your reader in unnecessary detail. Make sure your plan is to the point and consistent in tone throughout.
• Check your spelling and grammar: it sounds basic, but poor grammar and spelling may undermine your business plan in the eyes of potential investors and partners. So make sure to give it a thorough read through – you may even want to consider hiring an editor or proofreader to review your plan.

A well-written small business plan can be critical in helping secure funding and bring on new business partners. Remember, investors need to feel confident that they will see returns. Your business plan is the perfect tool to convince people to work with you, so put in the time, research and effort that your business deserves.

Not only will a plan help you be taken more seriously if you’re starting a business with little funding, but it will also help you understand every element of your business, better preparing you for the market.

Image source: Getty Images

About the Authors

Nic Redfern is Finance Director at NerdWallet and an accomplished business and finance strategist with over 26 years' experience. Nic has been instrumental in the growth of several regional and…

Connor is a lead writer and spokesperson for NerdWallet. Previously at Spreadex, his market commentary has been quoted in the likes of the BBC, The Guardian, Evening Standard, Reuters and…

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How to write a business plan

Why will your business thrive and be successful when so many others fail? The answer will be found in your business plan.

You’ve got your idea, you know you’re going to start your business, so how do you take it from that brilliant concept in your mind to a fully functioning business? The first step is to write a business plan. 

It’s the basis for any successful business and it’s an important first step before you get going. A good business plan is not only key for securing funding to your venture, it can also help you organise how it will all work, from the initial ideas to an actual company where you can sell your goods. 

Here we look at everything you need to know about writing a brilliant business plan to get you started. 

What is a business plan? 

The first step in the creation of any new business is an idea. One that is original, inspiring and crucially one that will be profitable. 

Once you’ve got your business idea, it’s then time to think about the business plan. 

Creating a business plan is a critical step and it needs to be carefully thought and out created so you can give yourself every chance of success. 

It should cover the following topics:

Description of your business

Your objectives

Strategies to achieve success

Sales and financial forecasts

A marketing plan

How much funding is needed 

You need to pack a lot into the plan, but it also needs to be well structured and organised. It will explain every aspect of your business and encourage potential investors to part with their money. 

It’s not something you can knock up in an afternoon either, it should take a few weeks to create, according to the experts at the Prince’s Trust. 

Why you need a business plan

To apply for funding from a bank, investors, or other source such as a government start up loan, you will need to have a business plan. 

It can also help you to… 

Organise your thoughts

Clarify your business idea

Highlight any potential problems

Outline and update your goals

Measure your progress

Convince customers or potential employees to support you

How to make a business plan

Your business plan needs to be structured and include all the relevant information needed. It can’t just be a jumbled collection of your thoughts. 

A good place to start is to look at a sample business plan, and there are lots of free ones online including from the Prince’s Trust website . There is also a free business plan pack you can download which will guide you through every step of creating a plan. 

Business planning is completely unique to your company but the following points are all worth including.

Executive summary and quick pitch - This will be the first part of your plan anyone will look at and perhaps the only section if they are busy. It needs to be succinct, organised and not too detailed. This is where you’ll lay out the basic facts and key points about the business and how it works. It’s a summary of your business, so you should write this part last.

All about you - Here is where you’ll explain why you want to start your business, what qualifications you have, and any relevant work experience, training and hobbies. Include a CV and give reasons for why your background will help you to make the business a success.

What will your business sell? - Now it’s time to talk about the goods or services you’ll be selling or maybe your business will be a combination of both of these - such as a cake company offering training courses. Remember that the person reading your plan may not be familiar with the items you’re offering, so give a basic introduction and avoid any jargon they might not understand.

Who will your customers be? - Customers make a business but who will yours be? It’s time to describe who will pay you for your products and to show you fully understand them. Include details about your target market but don’t be too vague. For example, if it’s a cleaning business, will you be hoping to attract local businesses and households first? If so, include this specialised group, rather than listing all the customers you’d like to reach eventually.  If you’ve already started selling, include details about existing customers.

Who are your main competitors? - Where are your potential customers currently buying your product from, how many businesses supply it, and how well are they doing. This is your chance to show you’ve done your market research and you know who your competitors are and most importantly, how you’re going to be better than them.

How will customers pay and receive your products? - Moving away from the ideas and concepts of your business, you also need to talk about the nitty gritty of day-to-day operations. This includes where you’ll make your product and how it will be sent to customers. You’ll also need to include details about payment, will they pay in cash, by card, or by cheque? Can they buy directly from you or through a third-party website? To make sure you include all the details, imagine you’re making a first sale and walk through every step of the journey, from advertising the item to it arriving at your customer’s doorstep.

How much will it cost? - You can’t price your products until you know how much it costs to make and deliver them. You’ll also need to include things like paying for your time, any employees you have, renting out storage space, energy bills, insurance, and delivery costs.

How much money will you make? - Include a forecast of how many sales you would like in your first year, and how much money this will raise. You can then include a cost forecast, which shows how you will spend the money you’ve made in your first year.

What is your plan B? - Things don’t always go to plan so it’s well worth including details of a back-up plan. What happens if you’ve just launched your chocolate business, for example, and there’s a world-wide shortage of cocoa? While it’s impossible to predict everything, it’s worth considering any potential pitfalls that could derail your business so you’re as prepared as possible. 

These unsecured and secured loans could help you grow your business, cover running costs or even fund a new company.

What you don’t need to include

Be careful not to overload your business plan. Here are a few things to consider leaving out.

Jobs, experience, or training that isn’t relevant to your business

Vague or unrealistic financial projections

Non-specific research into your market and your customers

Anything unrealistic that over-hypes your business

Confusing or unplanned thoughts or research 

Business plan templates to use

You can download a free business plan template from the government’s Start Up Loan website or from the Prince’s Trust website . There are also lots available online and on social media - just be wary you’re choosing one from a genuinely successful business.

Top tips for creating a business plan 

Every business plan will look slightly different and that’s because it’s completely specific to the business being created. While business plans are helpful for showing you what you need to include, it’s up to you to really narrow down the details of your plan and to make it as tailored to you as possible. 

Here are some quick tips to follow for your plan:

Write the executive statement and quick pitch when you’ve finished your plan

Don’t include everything you’ve ever done, you don’t want to overload it

Be specific, use real-life examples and details of actual customers

Don’t over-exaggerate your financial goals, be realistic 

Always check and re-check your figures 

Avoid statements you can’t justify

Include potential reasons for your business to fail - and how you’ll overcome these

What to do with your business plan 

Business plans are crucial for any kind of business, and you’ll need to show one if you are applying for funding of any sort. 

You will need to make sure yours it up to date and has relevant information in, so it’s worth reviewing it at least once a year or more regularly if there are big changes to your business, or to external factors such as the economy. 

Aside from securing funding, they have other benefits too including the following:

Attracting customers and suppliers

Depending on the nature of your business, a business plan could be a good way to secure new customers. If it’s brand new, customers may be interested in where the business is going, how it’s funded, and how secure it is, before they part with their money. This applies to suppliers too, a company will want to know you will have the funds to pay them before they agree to ship your products, for example.

Finding new partners or employees

You may be running everything on your own, or you could be outsourcing jobs to other people or companies. If you’re hiring employees or even considering selling your business, you’ll need to be able to show how it works, how secure it is, how much money it makes, and its future.

Working out your budget

Keeping the books balanced is critical for any business and within your business plan, you should have detailed sums showing how yours is funded. This will give you an idea of pricing for whatever you’re selling and also what to do with the money you receive. There are lots of questions you can answer by looking at these calculations, such as: Will it go straight back into the business, can you take a bonus, or will you put any extra money towards a new investment?

Spotting potential problems early

No one wants to think about their business failing but by doing this you can pre-empt things going wrong. A thorough and well-researched business plan should give you an idea of any areas you need to be wary of, and any potential problems that could arise. 

Related guides

• 6 easy ways to get finance for your business
• How to get a business loan
• Business loans guides

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• Initiate with Your Business Concept: Lay the Groundwork: Start by introducing your business idea into Plannit AI's Business Plan Generator. This first step is crucial, as it sets the tone for a tailored, insightful business plan that truly resonates with your vision. Capture the Essence: Our platform is designed to grasp the nuances of your concept, ensuring that the generated plan accurately reflects the core and potential of your business.
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• Roadmap for Success: At its core, a business plan acts as a strategic guide, providing detailed steps on how your business will achieve its objectives. It helps you navigate the startup phase, manage growth effectively, and tackle unforeseen challenges with a well-thought-out strategy.
• Securing Funding: For startups and businesses looking to expand, a business plan is crucial for securing loans or attracting investors. It demonstrates to potential financial backers that your business has a clear vision, a solid strategy for profitability, and a plan for delivering returns on their investment.
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• Financial Planning: One of the most critical components of a business plan is the financial forecast. It outlines your funding requirements, expected revenue, profit margins, and cash flow projections. This section is essential for budgeting, financial management, and ensuring the financial viability of your business.
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Money blog: McDonald's changes iconic Happy Meal box; AI-powered mortgage lender cuts rates

The fast food giant has made the change to shine a light on mental health. Read this and all the latest consumer and personal finance news in the Money blog - and leave a comment or your money problem in the box below.

Tuesday 14 May 2024 18:30, UK

• Strong wage growth shrinks hope of interest rate cut
• McDonald's changes iconic Happy Meal box
• AI-powered mortgage lender cuts rates twice in a week  
• Traitors winner reveals what he's spent his prize money on so far

Essential reads

• The 'fast food' trend hitting Michelin starred restaurants
• What is PIP - and what could government changes mean?
• How to make sure your car passes its MOT
• 'Loud budgeting': The money-saving trend that has nothing to do with giving up your daily coffee
• Money Problem: My workplace is bringing in new clock-in system to pay us by the minute - is this allowed?
• Best of the Money blog - an archive

Ask a question or make a comment

Tesco's managing director has seen his pay deal more than double to almost £10m. 

That's 431 times the wage of the average £23,010 salary for a Tesco worker. 

Ken Murphy received a pay packet worth £9.93m for the year to February, the supermarket's annual report revealed.

His pay deal came to £4.4m in the previous financial year. 

The rise was driven by £4.91m from his performance share plan (PSP) after he helped lead the company to higher profits in the face of challenging inflation.

This PSP payment will be paid out in Tesco shares and is based on the company's performance since 2021.

It comes on top of an annual salary of £1.64m and an annual bonus of £3.38m. 

The group's chief finance officer, Imran Nawaz, also saw his annual pay package more than double.

He received a total £4.95m for the year, jumping from £2.27m in the previous financial year.

The retailer was criticised for revealing a £2.83bn profit for the year to February when many customers had been impacted by rampant food and drink inflation. 

Alison Platt, chairwoman of the Tesco remuneration committee, said the pay boost reflects the fact "Tesco has delivered for all of its stakeholders over the last year".

She added: "Tesco remains committed to a competitive and fair reward package for all colleagues and over the last two years we have invested more than £800m in colleague pay, as well as significantly enhancing the range of wellbeing benefits we offer."

Sony's operating profit  has climbed 5% this business year - even as it forecasts lower PlayStation 5 sales. 

The Japanese entertainment and electronics company said its operating profit is expected to come in at 1.28 trillion yen (£6.5bn) in the year ending March.

Sony, a major supplier of image sensors for smartphones, said its chips business is expected to book a 40% rise in operating profit on higher sales and lower costs.

At its gaming unit, revenues are expected to fall with the PlayStation 5 in its fourth year, but Sony said user engagement and cost control could drive future profitability at the business.

It predicted PlayStation 5 sales will fall to 18 million units from last year's 20.8 million. 

Cheaper energy deals for new customers could potentially return in October, with the industry regulator announcing a review of their ban. 

Ofgem is consulting on removing the block on acquisition-only tariffs in an attempt to encourage competition between suppliers. 

The ban was introduced as a short-term measure in April 2022 to protect consumers during the energy crisis, and was due to be lifted in March next year.

Now, the regulator has said that it is the right time to consider removing it as the energy market continues to stabilise.

MoneySavingExpert Martin Lewis welcomed the consultation, saying: "We need anything possible right now to stimulate competition and bring prices down." 

"In normal times, I wouldn't call for firms to be allowed to offer new customers cheaper prices than existing, yet these aren't normal times." 

Melinda French Gates has left the charity she set up with her former husband, Microsoft billionaire Bill Gates, after the couple's divorce. 

In a statement, she said she would step down from her position at the Bill & Melinda Gates Foundation on 7 June. 

You can see her full statement below... 

The foundation was created in 2000 and it is one of the most influential charitable organisations in the world. 

It has spent billions working to tackle poverty and disease around the world. 

Bill and Melinda Gates announced they were divorcing three years ago after being married for 27 years. 

An AI-powered mortgage lender has cut rates for a second time this week. 

MPowered has reduced all its two and five year fixed deals, with rates starting at 4.37% down from 4.59%. 

"The swap markets are moving at pace at present, and it is important that as a responsible lender we are able to react and pass on any savings we can to borrowers," said Matt Surridge, sales director of MPowered Mortgages. 

"I'm therefore really pleased we are one of the first, if not the first, to cut rates this week, having already cut rates once in the past week." 

The company uses AI in its mortgage process and is a fully digital platform. 

McDonald's has decided to remove the iconic smile from its Happy Meal box in a bid to teach children about their emotions. 

Instead, a sheet of stickers depicting different moods will be placed inside, which children can use to express their feelings. 

A QR code for a mental health hub will also be placed on the red packaging to provide its younger customers with different resources about emotional wellbeing. 

The move comes as part of Mental Health Week, with research by the fast food chain finding nearly half of children feel pressure to be happy all the time. 

Football legend Rio Ferdinand has teamed up with the company to support the campaign, which runs until 19 May. 

The father-of-five said: "It's our job to empower our children to express themselves freely and support them every step of the way in understanding that it's okay to not be happy all the time." 

The Traitors' winner Harry Clark has revealed he's only spent some of his prize money so far, and it's gone towards clearing his relatives' debts. 

The 23-year-old won £95,150 after successfully convincing his fellow contestants that he was a faithful in the second season of the show. 

Speaking on the TV BAFTAs red carpet, the former British Army engineer said his dad has stopped him from spending the cash and has been looking after him. 

"He's got his head screwed on. He's been making sure I can get my first place," he told reporters.

"I've just given my family some dosh, just to pay off their debts and stuff like that, so they don't have to worry anymore. 

"That's all I've wanted to do in my life." 

Police are no longer interested in dealing with shoplifting and retailers are being forced to spend "a lot of money" on protecting themselves, the chairman of M&S has claimed. 

Archie Norman said stores have resorted to installing new camera systems and employing store detectives to try to keep crime rates down. 

"We get very little help from the police," he told LBC's Nick Ferrari at Breakfast.

"I think we have to accept that the police are not interested in this sort of crime any more. Whether we like it or not, that's the way it has gone." 

Shoplifting is at the highest levels since records began in 2003, according to the Office for National Statistics. 

It has risen by 37% since last year.

Mr Norman said thefts had surged since the pandemic, and the rising cost of living crisis was also causing problems. 

"When people are hard up, or particularly when there's a growth in other forms of crime, particularly drugs-related crime, then one way of financing it is to go and steal from shops… it's understandable given what we've been through in the last couple of years, we've seen more of that," he added.

A change to the law in 2014 now means shoplifting goods worth less than £200 is only a summary offence. 

This may have prompted police to pay less attention to it, and it has been on the rise since.

Home Office data also show the number of shoplifting charges has fallen in recent years. 

Taking further action wasn't considered to be "in the public interest" in most cases. 

Sky News has contacted the Home Office for comment.

By James Sillars , business news reporter 

The prospects for a Bank of England interest rate cut are almost 50/50.

That's according to the latest financial market expectations in reaction to this morning's employment figures.

They showed the pace of wage growth remaining stubbornly high - overshooting the expectations of economists.

Strong wage growth is not what the Bank wants to see, as it fears a surge in consumer spending power driving a new wave of inflation.

There is a further set of wage data before the Bank's next rate-setting meeting on 20 June.

That may not help those seeking a cut in borrowing costs, however, as it will reflect the impact of April's big rise in the National Living Wage.

Away from the interest rate cut speculation, the FTSE 100 has opened flat for a second day.

Currys is among stocks doing well on the wider stock market.

The electricals retailer saw its shares trading almost 8% higher in early deals after it raised its annual profit outlook.

Those of Greggs, however, were down almost 1% despite a leap in sales.

The bakery to fast food chain said its performance was in line with expectations and, as such, it had no impact on its forecasts for the full year.

Wages grew by 6% in the three months to March, excluding bonuses, according to the Office for National Statistics.

This is slightly above economists' expectations - bad news for the Bank of England, which wants to see wage growth fall to help ease inflation as it weighs when to cut 16-year-high interest rates.

The Bank is watching wages closely as it looks to bring inflation back to its 2% target, and cooling earnings growth is seen as being key to paving the way for it to begin cutting rates.

In real terms - taking Consumer Prices Index inflation into account - pay rose 2.4% across the period.

In March alone, that figure was 3% - the highest level of growth since July 2021, when it hit 3.9%.

"Earnings growth in cash terms remains high, with the recent falls in the rate now levelling off while, with inflation falling, real pay growth remains at its highest level in well over two years," said ONS director of economic statistics Liz McKeown.

Meanwhile, unemployment ticked up to 4.3% from January to March, compared to 4.2% in the previous three months, December to February. 

The number of job vacancies remains about pre-pandemic levels, but has been declining for 22 consecutive months, said Ms McKeown.

"With unemployment also increasing, the number of unemployed people per vacancy has continued to rise, approaching levels seen before the onset of COVID-19."

By Jimmy Rice, Money editor

Michelin starred restaurants are supposed to be the antithesis of fast food, a place to enjoy ingredients that have been laboured on for days over several hours. 

But with hospitality struggling like never before due to staff shortages, inflation and changing consumer habits, it seems even those at the top end of the food chain are having to adapt. 

An increasing number of the country's most celebrated restaurants are now promising you a tasting menu in less than an hour. 

One-starred Pavyllon is located in the Four Seasons on Hyde Park, the kind of place you might have seen bustling with pinstriped business lunchers in another decade. But these days it's attracting customers with its "Lunch in 55" menu for £55.50 - four courses for half the price of its regular offering. 

Head chef Benjamin Ferra Y Castell says the industry is having to adapt. 

"Living costs have increased so, understandably, in general people will spend less," he tells the Money blog. "It's important to have a more affordable option at lunch." He says the amount of competition at this end of the market in London means you have to get creative. 

"It's noticeable that more restaurants across London are offering affordable lunch menus, including Michelin starred establishments and across Mayfair."

Castell says half the people now coming in for lunch are choosing the in-and-out option. 

"Four courses served in less than an hour fits in with busy schedules and offers convenience and versatility," he says. 

In the past couple of weeks, the flagship restaurant of Great British Menu winner Adam Handling launched its own speedy lunch. 

Frog by Adam Handling usually charges £195 for a full tasting menu but its new lunch offering has been priced at £100, with a mailing list promotion assuring people they can be out within an hour (though they can stay longer if they wish). 

"People aren't indulging at lunch like they used to and we just had to adapt," Handling told the Money blog. "We understand that things aren't going to go back to the way they were, at least not for a while. 

"Inflation has hit everyone hard and people don't have the luxury of spending time to sit and eat three to four-hour lunches." 

UKHospitality data shows 40% of Britain's restaurants are barely breaking even - but Handling is optimistic that better times are ahead. 

"We're not expecting it [cheaper, speedy lunches] to be a long-lasting trend," he says. "We won't be keeping it forever but, for now, we understand things are difficult at the moment and so, as we always do, we're adapting to our guests needs."

By Jake Levison , news reporter

Basically, PIP (personal independence payment) is a tax-free payment given to people to help with the extra costs caused by long-term ill-health or disability.

There are two parts to it:

• A daily living part - for those who have a long-term physical or mental health condition or disability
• A mobility part - for people who have difficulty doing certain everyday tasks or getting around

It's possible to meet the criteria for one part or both parts, and payments vary for each.

Who is eligible?

People aged 16 to 64 can get PIP regardless of whether they work if they expect their difficulties to last for at least 12 months from when they started.

Anyone told they may have 12 months or less to live can also apply and may get PIP more quickly.

Those with both physical disability and cognitive or mental health conditions like anxiety can meet the criteria for both types of PIP.

There is no list of medical conditions that qualify you for PIP. Instead, you're assessed on the level of help you need with specific activities.

For the daily living part, you might need help with things like:

• Preparing food
• Eating and drinking
• Managing your medicines or treatments
• Washing and bathing
• Using the toilet
• Dressing and undressing
• Socialising and being around other people
• Talking, listening and understanding.

For the mobility payments, it's things like:

• Working out a route and following it
• Physically moving around
• Leaving your home

How does the government make its decisions?

The Department for Work and Pensions carries out an assessment to work out the level of help a person should receive.

A person's needs are judged through a points system, wherein the more severe the impact in a particular area and the more help required, the more points a person gets and the more money they receive.

The answers are assessed by health professionals, who then provide a report for DWP case managers with recommendations on what to give the applicant, if anything.

Applicants can provide assessors with additional medical evidence as part of a claim, but it's not a requirement, as a person's self-assessment about the impact their condition is prioritised when making a decision.

What does the government want to change?

It is looking at changing PIP in a number of ways, potentially affecting those who are eligible for it and the type of help those who are granted it will get. Below we summarise the key points in the consultation:

Different assessment model

The government is looking at introducing an assessment model based entirely or partly on the diagnosis given to an individual.

It says it is considering whether "evidence of a clinical diagnosis made by a healthcare professional could provide a more objective assessment of need" than a self-assessment.

Eligibility reform

This is an alternative to changing the assessment model.

The government says it may keep the current assessment, but change the questions so that they are less repetitive and to "ensure they are working as intended".

The government is also considering looking at changing the length someone needs to have been suffering for due to their disability before they become eligible for PIP, because "we know many people who have short-term illnesses can make a full recovery".

It has not specified the length of time this would change to. As it stands, people have to show that the negative effects of their condition have been present for three months before applying and that they are likely to last for another nine months after PIP is first given to them.

Changes to payments

In the current system, PIP claimants are given monthly cash payments which they can use as they see fit, whether that be things like aids and mobility devices, covering increased energy costs due to special equipment or paying higher premiums due to their condition.

The government says claimants often use the money for common household costs or some "view their PIP award as compensation for being disabled rather than as an award for extra costs".

With this in mind, the government is considering the following alternatives to cash transfer:

• Catalogue/shop scheme - where there would be an approved list of items from which disabled people could choose items at reduced or no cost
• Voucher scheme - where disabled people could receive vouchers to contribute towards specific costs
• Receipt-based system - where claimants buy approved aid, appliances or services for themselves and then provide proof of purchase to claim a contribution from the government
• One-off grants - a contribution to specific, significant costs such as for home adaptations or expensive equipment.

Why does the government say it wants to change PIP?

It says PIP caseloads and costs are "spiralling" as there are now 2.6 million people of working age claiming it.

There are 33,000 new awards for PIP each month, which it says is more than double the rate before the pandemic.

In its proposal, the government adds: "This is expected to cost the taxpayer £28bn a year by 2028/29 - a 110% increase in spending since 2019.

"This is in part fuelled by the rise in people receiving PIP for mental-health conditions such as mixed anxiety and depressive disorders, with monthly awards doubling from 2,200 to 5,300 a month since 2019."

It says its main three priorities through making changes are:

• Providing the right support to the people who need it most
• Targeting our resources most effectively
• Supporting disabled people and those with long-term health conditions to live independently and reach their full potential.

Announcing the consultation on 29 April, Mel Stride, the work and pensions secretary, told the Commons: "This government's priority is to make sure that our welfare system is fair and compassionate. Fair on the taxpayer, by ensuring that people of working age who can work, do work, and fair on those who are in most need of the state's help."

What do critics say?

Some believe the proposed changes are going to target people with mental health problems and stop them getting PIP, and they have not been encouraged by the fact the government has not specified which conditions would be eligible for PIP under reforms.

Mr Stride suggested to the Times that people with "milder mental health conditions" would no longer receive financial support, adding talking therapies, social care packages and respite care could be used as alternatives.

James Taylor, the executive director of strategy at disability equality charity Scope, called for an end to the "reckless assault" on disabled people and to fix the "real underlying issues".

"It's hard to have any faith that this consultation is about anything other than cutting the benefits bill, no matter the impact," Mr Taylor said.

The Disability Benefits Consortium (DBC) branded the consultation "cynical and cruel".

Speaking on behalf of DBC, Ceri Smith head of policy at the MS Society, said: "If the government truly wants a 'stronger, healthier and fairer society', they should start by addressing NHS waiting lists and fixing social care. Instead, this approach will punish disabled people and push even more into poverty."

How can you have your say?

You can view the consultation, which is open until 23 July,  here .

Once you have read it, you can respond online  via the government's form  or by emailing [email protected]

Read other entries in our Basically... series:

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The best web hosting services: Expert tested

If you want to build a website, there are dozens of web hosting providers available. Choosing the right web hosting service for you can be challenging, but you no longer need to be a programmer or pay someone to build advanced features such as e-commerce or forum management to launch a site.

Today many web providers will provide these functions, as well as a content management system and other features like SEO assistance and security checks, in standard subscription packages. Below, you will find our top recommendations for web hosting services, ranging from providers that give you a quick and easy way to build your website all the way up to the big companies that provide full data center infrastructure capabilities as a service.

Also:   The best VPNs

What is the best web hosting service right now?

ZDNET has conducted extensive research and hands-on testing with many of the top web hosting services. Our pick for the best web hosting service overall is Hostinger . Hostinger offers inexpensive plans starting at only $2.99/month suitable for most website owners. Its premium plan has everything you need: a website builder, WordPress integration, templates, emails, SEO, marketing help, and more. Read on for the rest of our picks for the best web hosting services.

Best web hosting services of 2024

Best web hosting service overall.

• Inexpensive
• One-click WordPress install
• Enhanced security limited to more expensive plans
• Prices jump on renewal

Hostinger's premium plan ($2.99/month, three months free) is excellent value for the money if you want to operate multiple websites for personal or business reasons under one account.

The premium plan supports up to 100 websites. It offers users 100GB storage, up to 100 email addresses and forwarders, free SSL website security, and unlimited bandwidth, and a free domain name. 

While there's no dedicated IP address, this won't bother most website owners. Furthermore, you'll be given basic e-commerce capabilities and one-click WordPress installation and migration. The same WordPress installation can be used to support multiple WordPress websites. 

Review:   Hostinger review: Good support, killer entry-level price web hosting

If you need a theme, Hostinger also provides a drag-and-drop website builder and 150 templates. The plan includes Google Analytics integration, SEO tools, and standard DDoS protection. 

Overall, we consider Hostinger's premium plan an excellent option for most website owners and small businesses. Business options begin at $2.99/month with three months added, for free.

A downside, however, is that you can only access more advanced features -- such as daily backups and increased performance -- with more expensive subscriptions. In addition, while many customers applaud Hostinger's customer service, there are reports of bounceback and slow loads by some clients operating multiple websites.

There is a limited, free plan available, with 300MB storage but no free domain or email.

Hostinger features:  cPanel : Yes |  SSL : Some plans |  SSH : Yes |  Backups : Yes |  Money-back guarantee : 30 days |  Support : 24/7, live chat support

Best web hosting service for professionals

• Over three-month money-back guarantee
• Many hosting options
• Email an additional cost

DreamHost's easy-to-use interface, efficiency, and customer support stand out to business owners and new webmasters alike. The hosting provider offers WordPress hosting, shared hosting, virtual private servers, dedicated servers, cloud hosting, and more. 

We particularly like that DreamHost offers G Suite integration, with domain integration and Google Cloud support. The company also provides a great set of resources and guides that can help customers grow their businesses, all in a cost-effective way. A free SSL certificate is available on all plans. 

Review:   DreamHost review: I'm a satisfied 15-year customer

Nick Farnborough, the co-founder of  Clavis Social , told ZDNET that he has "tried almost every host out there over the years and ultimately found DreamHost to be the best overall package, taking into account cost, performance, and ease of use." 

Customers online, too, have applauded the customer support and value for money of this web host, although some also note that reaching customer support teams can be challenging. Prices begin at $2.95 per month for a basic, shared plan, with email available for an additional monthly fee.

DreamHost features :  cPanel : No, proprietary panel |  SSL : Free |  SSH : Yes |  Backups : Yes |  Money-back guarantee : 97 days |  Support : 24/7 chat, ticket, and call-back

Best budget web hosting service

• Affordable plans
• Paid plans can become expensive following promotion time periods

Ionos is one of our top picks for affordable, long-term web hosting. The web hosting provider offers reliable, stable uptime with daily backups included on all plans. Free wildcard SSL certificates, email, a free domain, and 24/7 support are also included. 

Customers report great customer service and uptime, as well as easy setup and web hosting transitions. 

Basic plans supporting one website and with 10 databases, alongside 10GB storage space, are typically $6/month, but with the agreement of a three-year plan, will cost you $4/month. A free domain name for one year is included. 

The top deal at the moment is for Ionos Plus, a website hosting package suitable for larger, scalable projects and WordPress. On a three-year plan, you will only pay $6/month and you can operate unlimited websites with unlimited databases and storage. You will also receive a wildcard SSL certificate.

Ionos f eatures:  cPanel : Yes |  SSL : Yes, wildcard |  SSH : Yes |  Backups : Daily |  Money-back guarantee : 30 days |  Support : 24/7

Best web hosting service for the environmentally-conscious

• Reasonably priced
• Eco-friendly
• On-demand backups limited to premium plans

GreenGeeks is a great web hosting option if you want to sign up for a sustainable, eco-conscious service.

GreenGeeks has developed its marketing around the concept of being environmentally friendly, with three times the power your hosting demands replaced with wind power credits and tree planting. 

It's not just the environmental factor, however -- GreenGeeks prides itself on a speedy, reliable service. Although the company's own website could use some modernization and an overhaul, the important part is the hosting, which includes standard hosting, WordPress installs, commerce, VPS, and dedicated tiers. 

You can expect to pay $2.95/month for basic plans, with options to upscale and grow over time. The basic web hosting plan only covers one website with 50GB storage, but once you move up a level, you can expect support for unlimited websites, managed WordPress installs, unlimited space, a free SSL certificate, and more. 

Customers applaud GreenGeek customer service, although there are reports of "hidden" fees related to specific products.

GreenGeeks f eatures:  cPanel : Yes |  SSL : Free |  SSH : Yes |  Backups : Varies by plan |  Money-back guarantee : 30 days |  Support : Depends on plan

Best web hosting service for GoDaddy domain customers

• Free, unlimited SSL for all websites on the Deluxe plan and up
• Tutorials online to help guide your website-creating process
• Large payment down to start hosting

GoDaddy has made a business of offering as wide an array of services as possible for individuals and small businesses in need of an internet presence. It's widely known, and many customers enjoy the service.

Pricing begins at $5.99/month for one website. With specific plans, you may be eligible for a free domain name and SSL certificate. Regarding security, automatic WordPress updates are applied and malware scanning services are available. Each plan comes with a one-click WordPress installation, a cPanel, and daily backups. 

Review:   GoDaddy: A no muss, no fuss website-building service

Customer service is reasonable, and, although not 24/7, if you need a technical lead to get something accomplished, you can usually find someone with a clue (after jumping through a few hoops, of course). However, the refund policy is restrictive and I would say the host's website is cluttered, making it difficult to find exactly what service you need -- and for what price.

ZDNET author David Gewirtz has decades of experience with GoDaddy, and he has come to respect how this web host provides the key services most customers want. They're definitely not the best at anything, but they do a good job with almost everything. 

"GoDaddy, in my opinion, is the best web host," Gerrid Smith, director of E-commerce of  Joy Organics , told ZDNET. "They promise a minimum of 99.9% availability. To prevent malicious activities and repel DDoS attacks, their security team works around the clock."

GoDaddy f eatures:  cPanel : Some plans |  SSL : Some plans |  SSH : Some plans |  Backups : Some plans |  Money-back guarantee : 30 days for annual plans, 48 hours for monthly plans |  Support : 24/7/365 US-based ticket and phone

Best web hosting service for simple e-commerce

• Lots of templates to choose from for beginner web designers
• Simple interface
• Website apps available with Wix support
• Monthly plans are expensive
• Can't switch templates, must start from scratch

If you've ever watched a YouTube video, you've seen a Wix ad. They are everywhere. With six million premium subscribers, they've got some momentum -- and are certainly capable of grabbing attention.

When selecting a website builder, why would you go with Wix over WordPress? The answer is simplicity. WordPress offers tremendous depth and customization options with plugins and widgets, but Wix quickly gets you up and running with an attractive site. 

There is nothing like the thousands of plugins and themes offered by WordPress in the Wix world, but if you want a well-designed site and you need an e-commerce solution, this is a great option. 

I selected this provider when I assisted someone in setting up a small online business, and the learning curve was easy, with no payment or downtime issues. However, for someone used to CMS backends, the more restrictive website builder can be somewhat frustrating.

Free versions, however, do contain Wix banners. You can start there, and if you like the system, convert to a paid plan and link up your chosen domain name. Plans begin at $17/month with a free domain name thrown in.

Wix f eatures:  cPanel : No |  SSL : Free |  SSH : No |  Backups : Site history |  Money-back guarantee : 14 days |  Support : 24/7 English call-back

What is the best web hosting service overall?

Hostinger is ZDNET's top choice because it offers excellent features at outstanding price points, with a large selection of tools to make the process easy, even for beginner webmasters. Hostinger offers plans starting at only $2.99/month suitable for most website owners. Its premium plan has everything you need: a website builder, WordPress integration, templates, emails, SEO, marketing help, and more. However, our other top picks are also worthy competitors.

Which web hosting service is right for you?

To help make the process of selecting your new web hosting provider simpler, here is a guide to making your decision less of a hassle, based on what is most important to you. 

Factors to consider when choosing a web hosting service

When selecting your new web hosting provider in 2024, there are some crucial factors you should consider:

• Reliability : We always recommend you choose a web hosting provider with a long history of stable, reliable service. After all, your website could end up being the central hub of your business for promotion and customer communication, so constant downtime can harm your reputation.
• Affordability : Your budget must be based on the purpose of your web hosting package. Whether you want a single, small slice of hosting real estate for a personal blog or you want to run a large e-commerce store, it will change how much you should expect to pay. Set a budget that you can easily afford and find the right provider to match you.
• Scalability : You need to consider what the most important functions or uses of your website will be. If you expect to grow your business over time and you expect heavy traffic, you will need to be able to scale the hosting's capabilities over time. Choose a provider with upgrade options. 
• Customer support : We find that customer support can be extremely important when you sign up for a web hosting service. Regardless of whether you are a beginner or you want to run a plethora of websites, you should choose a provider with customer support options.

How did we choose these web hosting services?

When we compiled this list, we began with web hosts ZDNET authors are personally familiar with. ZDNET does extensive testing on and research into web hosting providers, taking into consideration user reviews, competitor analysis, personal usage and experiences, and more.

Some of us have been running production websites for decades, with sites that have served millions of pages. Others have used web hosts for personal blogs, writing projects, and to help individuals launch small businesses. 

We chose these providers because we believe they offer some of the best services in the market. These are the main factors we considered:

• Features offered : Deciding on the best web hosting provider for you requires you to consider what features are a priority. We've included options for CMS implementation, e-commerce, design services, SEO services, cybersecurity functions, and more. 
• Price : Naturally, the price point is a very important factor when we choose our web hosting provider recommendations. We have included options suitable for varying budgets, all the way from personal blogs to small businesses and large enterprise setups that will need to scale.
• Stability : We have included only reputable web hosting providers that provide stable services with minimal downtime. After all, there's no point in having a speedy, responsive website if downtime is a constant problem.
• Customer experiences : If you are going to sign up for a long-term web hosting service, you need to know how the company treats and supports its customers. We have examined customer reviews and feedback.

Which web host is best for beginners?

Wix and Squarespace are the two web hosts we would recommend for beginners. With an abundance of creative templates between the two platforms, users can gain experience in web development with an attractive site. If you have experience with CMS platforms, you could look at WordPress.com.

Can you get web hosting for free?

Yes. There are many sites that allow for free hosting, but to do so, you will have a generic, branded domain. For example, if you were to have a free WordPress website, your domain would be [yourwebsitename].wordpress.com. 

Be careful, though. Many of the free offers end after a period of time and then you're stuck on a service that will likely charge you a considerable additional fee to keep using it. Or, the website host may allow you to have a free website on the condition that you allow adverts to be displayed.

Who is the largest web hosting company?

GoDaddy is one of the most popular web hosting service providers. Then, of course, there are the hosting plans from Amazon and Google, which are larger (in terms of revenue) than some countries.

What are the best WordPress hosting services?

We might as well get WordPress out of the way since if we're talking web hosts, we're going to talk WordPress. About  63% of websites  with content management systems use  the open-source WordPress CMS . 

The WordPress ecosystem is huge, and finding the right WordPress host is a challenge on its own. Beyond WordPress.com, the service offered by the creators of the CMS, there are a large number of managed hosting providers and an even larger number of hosting providers that specialize in providing a WordPress-optimized server for your website. Nearly every hosting provider will allow a WordPress install, considering its popularity.

What are the best Infrastructure-as-a-Service providers?

Our recommendations include IaaS providers you probably know intimately, such as Amazon. They are highly credible vendors who've been providing infrastructure for years.

If you're just starting, you might not want to go all-in with an IaaS provider, although they offer the most flexibility. Some, like Amazon and Digital Ocean, allow you to point-and-click configure virtual WordPress machines or almost any other open-source content management system you may want. It might be overkill for SMBs, though.

What are the best point-and-click website builders?

A website builder is a type of software that lets you craft your business website, generally without programming knowledge or experience. Many allow you to choose from templates and then modify those templates to suit your look and layout.

Nearly all web hosting providers include some kind of website-building software. But for most hosting plans, it's often an afterthought. By contrast, the website builders listed in this section are provided by web hosting services that have made point-and-click website building tools with excellent customer support and solid up-time a core priority in their offering. 

You do sacrifice some control when choosing a website builder solution, but if you've never done any web development and you want a beautiful, usable website quickly, these services are for you. One warning: There are a lot of lock-ins here. You won't be able to transfer the look of your site (and sometimes the content) to another hosting provider easily. So keep that in mind when you choose a website builder. 

Are there alternative web hosting services to consider?

There are countless web hosting providers out there and not all of them can make the list regarding our top recommendations, despite offering excellent service. Below, you will find other hosts to consider that may be more suitable for your requirements:

ZDNET Recommends

The best business internet service providers, bluehost review: good performance, integrated dashboard, and solid support, the best vpn services of 2024: expert tested.

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Digital twins: The art of the possible in product development and beyond

Industrial companies around the world rely on digital tools to turn ideas into physical products for their customers. These tools have become increasingly more powerful, flexible, and sophisticated since the 1960s and 1970s, when computers first began replacing drawing boards in design offices. Today, product life-cycle management (PLM) has become engineers’ first language: PLM systems help companies to capture, codify, process, and communicate product knowledge across their organizations.

About the authors

This article is a collaborative effort by Mickael Brossard , Sebastien Chaigne, Jacomo Corbo, Bernhard Mühlreiter , and Jan Paul Stein, representing views from McKinsey’s Operations Practice.

Yet as engineering tools have become more capable, the demands placed upon them have also increased. Product functions are increasingly delivered through a combination of hardware and software. Sensors and communications capabilities allow products to offer more features and to respond more effectively to changing operating conditions and user requirements. Advanced, adaptable user interfaces have simplified the operation of complex and sophisticated machines.

Evolving business models are also blurring the boundaries between design and use. Customers expect the performance and functionality of products to improve during their life cycle, enabled by over-the-air software updates or the ability to unlock new features as needed. Many products operate as part of an ecosystem of related products and services. Increasingly, customers are not buying products outright, but paying for the capabilities they provide on a per-use or subscription basis.

The birth of the digital twin

These changing requirements have triggered a transformation in digital product representation and the creation of a new tool: the digital twin. Digital twins combine and build upon existing digital engineering tools, incorporating additional data sources, adding advanced simulation and analytics capabilities, and establishing links to live data generated during the product’s manufacture and use. A conventional PLM system uses one digital model to represent each variant of a product. A digital twin, by contrast, may have one model for each individual product, which is continually updated using data collected during the product’s life cycle.

The digital-twin approach can be applied to products, manufacturing processes, or even entire value chains. In this article, we will focus on their application to products, specifically to product design.

Digital twins offer multiple potential benefits for product-based companies and users. They can aid design optimization, reduce costs and time to market, and accelerate the organization’s response to new customer needs. Digital twins can also be a critical enabler of new revenue streams, such as remote maintenance and support offerings and “as a service” business models.

Based on the experience of companies that have already adopted the approach, we estimate that digital-twin technologies can drive a revenue increase of up to 10 percent, accelerate time to market by as much as 50 percent, and improve product quality by up to 25 percent. Digital-twin technology  is becoming a significant industry. Current estimates indicate that the market for digital twins in Europe alone will be around €7 billion by 2025, with an annual growth rate of 30 to 45 percent. 1 Infinium; MarketsandMarkets; MarkNTel Advisors; Meticulous Market Research; Mordor Intelligence; SBIS; Technavio, last accessed April 2020.

Digital twins in practice

Companies in many different industries are already capturing real value by applying digital twins to product development , manufacturing, and through-life support (exhibit).

An automotive OEM, for example, has used the digital-twin approach to create a concept configurator for early phase development . The start of the development process is especially challenging for complex products because the various stakeholder groups, such as sales, engineering, and finance, may have different or even contradictory product requirements. The OEM now balances these trade-offs using a digital concept configurator that allows for simultaneous evaluation of customer requirements, technical concepts, and product costs. When a technical concept within a system or subsystem of the product is changed, the implications for meeting customer requirements or product cost targets become immediately transparent.

Would you like to learn more about our work in Product Digital Twins ?

Using the configurator within cross-functional development teams has helped the OEM to reallocate 5 to 15 percent of a new vehicle’s material costs to the attributes that drive the most customer value. Applying the approach to select customer-facing components has allowed the company to optimize costs and customer value simultaneously, improving the contribution margin of those parts by 5 to 10 percent. As a further benefit, the configurator helped the team reduce the time taken to reach agreement on changes by 20 percent, thus accelerating time to market.

Digital twins are even being used to replicate systems in complex mission scenarios. Using this approach, one aerospace and defense player has cut the time required to develop advanced products by 30 to 40 percent. The digital twin also aids discussion with customers during the development process, helping the company validate and improve its designs.

In the consumer electronics sector, a company is using product digital twins to boost quality and supply chain resilience . It stores detailed information on the content of its products, including the exact source of individual components. In the event of quality issues during production or early failures in the field, the company can trace problems back to specific supplier facilities, then take appropriate action to prevent reoccurrence of the issue. An automotive supplier uses the same approach to trace quality deviations in its production through to the upstream supply chain, and in the process has reduced scrap by 20 percent.

Digital twins are increasingly being used to improve future product generations . An electric-vehicle (EV) manufacturer, for example, uses live data from more than 80 sensors to track energy consumption under different driving regimes and in varying weather conditions. Analysis of that data allows it to upgrade its vehicle control software, with some updates introduced into new vehicles and others delivered over the air to existing customers.

Developers of autonomous-driving systems , meanwhile, are increasingly developing their technology in virtual environments. The training and validation of algorithms in a simulated environment is safer and cheaper than real-world tests. Moreover, the ability to run numerous simulations in parallel has accelerated the testing process by more than 10,000 times. Incorporating sensor data from real-world vehicles into these tests helps companies improve the veracity of their simulations and identify blind spots in the virtual test database.

The mainstreaming of additive manufacturing

A company in the renewable-energy sector is using a digital twin to automate, accelerate, and improve the engineering of hydroelectric turbines . Using the machine learning system to evaluate the likely performance of the new designs allowed it to rate more than a million different designs in seconds rather than the hours required for conventional computational flow dynamics (CFD) analysis. The winning geometry delivers the maximum theoretical performance, significantly higher than what is achievable by conventional optimization methods. Moreover, by using machine learning, the overall end-to-end design cycle time was cut in half compared with the conventional approach.

Digital twins in three dimensions

Digital twins can take many different forms. Organizations that want to take advantage of digital-twin technologies must select an appropriate form that will enhance its technical and business objectives. The design of a digital twin can vary across three dimensions (exhibit).

The first dimension encompasses the value chain steps that the digital twin will cover. An engineering twin covers value chain steps similar to those covered by conventional PLM systems, ranging from product definition to detailed engineering. A production twin replicates a product throughout the manufacturing process, incorporating data such as the components, materials, and process parameters used, as well as the results of tests and quality checks. A service twin incorporates data collected from the product in use, such as operating modes, performance, diagnostic information, and maintenance history. The most sophisticated digital twins span multiple parts of the value chain, allowing in-service data to optimize manufacturing processes or future design iterations.

The second dimension is the scope of the digital twin. A product may consist of several major systems, multiple subsystems, and hundreds or thousands of hardware and software components. Some digital twins cover only one or several components, for example, those that simulate the flow of liquids through a pipe. Others cover a full product, for example, those that simulate a car’s crash characteristics. Given the limitations of computing power, generally, the narrower the scope of a digital twin, the more precise its virtual replica will be. In contrast, full-product digital twins often need to abstract or simplify certain product behaviors to remain manageable.

The final dimension of a digital twin is its degree of sophistication . The simplest digital twins consist of various sources of data relating to a product, often from sources that have few or no links with one another. The second level of sophistication uses traditional simulation tools to perform analyses of design performance and integrate the various sources through a PLM system or similar platform.

At the third level of sophistication, a digital twin will use predictive or prescriptive analytics, as well as machine learning technology to run automated simulation refinements and yield new insights. This allows design and manufacturing teams to make informed decisions based upon direct results and performances.

At the last level of sophistication, digital twins use predictions of component failure rates or performance variations to react to changing environments and manipulate the real-world counterpart in a closed-loop setup. This approach might be used in a condition monitoring system, for example, where sensor data and simulations are combined to make inferences and predictions about the state and behavior of a specific product, and might allow a machine to compensate for wear or variations in operating conditions by adjusting parameters in real time.

Companies in other sectors are also starting to use digital twins to derive deeper insights into customer behaviors and preferences . For example, white-goods manufacturers can use data from in-service products to identify the most and least used features. That can inform future product development decisions, such as deleting rarely used features or revising the user interface to make the features more accessible.

The adoption of digital twins is currently gaining momentum across industries, as companies aim to reap the benefits of various types of digital twins. Given the many different shapes and forms of digital twins (see sidebar, “Digital twins in three dimensions”), and the different starting points of each organization, a clear strategy is needed to help prioritize where to focus digital-twin development and what steps to take to capture the most value.

How to start and succeed on your digital-twin journey

Embarking on a digital-twin journey can look daunting at first sight, especially since the breadth and depth of use cases can span the entire corporate landscape, including product portfolio choices, business model design, R&D, manufacturing, and through-life support.

This versatility can also be a strength, however, as it allows companies to start small and expand the scope, sophistication, and value-chain coverage of their digital-twin projects over time. The experience of companies that have applied digital twins in their own product operations leads to a few simple rules that can greatly increase your odds of success.

Define your aspirations

Be aware of digital-twin best practices. Do your homework and seek out perspectives on best practices and future trends in digital-twin technology. Assess and prioritize the elements of your vision. Evaluate the potential of digital-twin-related opportunities and prioritize them into an implementation road map.

Be clear about the business case. Quantify the value offered by different digital-twin opportunities and determine the minimum level of model sophistication required to generate that value. Successful projects focus on short development times and rapid ROI.

Test the waters by prototyping select use cases. Run a series of hackathons (possibly supported by digital-twin specialists) to assess your capabilities’ baseline, develop solution prototypes, refine, and adjust the initial concepts. This step calibrates the approach and prevents you from losing time and resources by attempting an impossible plan. It is part of a broader value assurance move aimed at bringing the entire project to a successful conclusion.

Know your strengths

Perform a maturity assessment. Understand your current digital product development capabilities along six main dimensions: development methodologies, PLM governance, data strategy, business processes, system complexity, and collaboration. Understanding the areas where you are most advanced and where you are lagging behind will help prioritize areas of investment for a balanced implementation of a digital twin and its use cases.

Access to appropriate talent and capabilities can make or break a digital-twin initiative. Many organizations need to develop additional expertise in areas such as advanced simulation and modeling or data analytics for user experience design.

Plan a step-by-step, agile implementation

Invest several months in developing a minimum viable product (MVP). Incubate a cross-functional, agile team dedicated to bringing priority use cases to life and building digital capabilities in the process. The MVP is now the must-do approach to maximize value gains from the start rather than waiting until the program is finalized before experiencing the first benefits.

Perform an MVP retrospective to pivot or persevere. Derive lessons from the first MVP phase to confirm your digital-twin aspirations or pivot them based on the findings (for example, the validity of use cases, complexity of implementation, and maturity of the organization). This is the second value assurance move that enables you to further calibrate the implementation plan and revise the scope to avoid generating sunk costs.

Scale up the digital-twin initiative and accelerate ROI. Optimize and standardize implementation based on insights from the MVP phase. Define an (internal or external) recruiting and capability-building strategy. Build an operating model to enable rapid scaling of successful approaches. The most advanced organizations typically consider digital-twin technologies a core strategic capability.

By following these simple best practices, you will be able to reap the benefits of digital twins in a scalable, progressive way. Are you ready?

Mickael Brossard is a partner in McKinsey’s Paris office, where Sebastien Chaigne is an associate partner; Jacomo Corbo is a partner in the London office; Bernhard Mühlreiter is a partner in the Vienna office; and Jan Paul Stein is an associate partner in the Munich office.

The authors wish to thank Roberto Argolini, Elia Berteletti, Kimberly Borden, Akshay Desai, Hannes Erntell, Alessandro Faure Ragani, Anna Herlt, Mark Huntington, Mithun Kamat, Michele Manzo, and Alessandro Mattozzi for their contributions to this article.

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