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10 Project Scope Templates and Scope Document Examples

Praburam Srinivasan

Growth Marketing Manager

February 14, 2024

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Have you ever found yourself knee-deep in a project, only to realize that you’re not entirely sure what the project is supposed to achieve, what tasks need to be completed to get there, and who’s responsible for them?

Don’t worry; we’ve all been there. That’s why project scope templates are an absolute lifesaver for project managers.

Project scope templates are essential tools for any project manager looking to plan and execute a successful project. They provide a clear outline of the project’s objectives, deliverables, timelines, and budget, allowing project managers to define the scope and ensure that everyone involved understands their roles and responsibilities.

Whether you’re managing a small or large-scale project, using a template to define your scope of work can save you time and effort by providing a framework for planning and executing your project. In this blog post, we’ll talk about what a project scope template is, and what makes a good one—then, we’ll share 10 of our favorite project scope templates so you can pick the solution that’s best for your team.

What is a Project Scope Template?

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A project scope template is a comprehensive document that helps project managers organize the critical details and components of a new project. It’s essentially your one-stop project plan .

These templates typically include a range of information designed to ensure the successful completion of a project. A few of the most common components are:

• The purpose and vision of the project
• Stakeholders and their requirements
• Criteria for success
• Project team members and their roles and responsibilities
• Specific milestones for completing tasks
• Risks associated with the project and approaches to mitigate them

Additionally, a project scope template will outline objectives, deliverables, project controls , tasks, costs, and the project’s timeline. With this comprehensive framework in place prior to starting a project, teams are more likely to work efficiently and collaboratively toward their goals.

Project scope templates not only need to have the required information written above; they also need to be user-friendly, simple to update and share, and focus on concise, but complete, information gathering. Here are a few elements that make good scope templates:

• Accurately describes the project vision: A project scope statement with a description of the project’s purpose, the relevant stakeholders, and criteria for success
• Details all mission-critical project information : Includes objectives, deliverables, team members and their roles and responsibilities, project milestones, cost estimates, and a proposed timeline
• Identifies any potential project risks : With strategies or plans to mitigate them
• Breaks down the details of the budget : Plan to reduce costs or scheduling setbacks, ways to interpret the budget, and timeline parameters that might affect the total project cost
• Uses a flexible template format: Easy to make changes and revisions with a straight-forward and frustration-free user experience for all team members that need to reference the scope

A good template should be comprehensive enough that it provides the most important details and context the team needs to get started, but concise enough that you don’t have to read through fluff to get to the most critical parts. These strategic planning templates should provide clarity, not add to the confusion.

Ultimately, the best template for your team and your projects will be the one that gives your stakeholders the clearest idea of what they need to do so that everyone involved can work toward a successful outcome.

10 Project Scope Templates You Have to Try

Using a scope template is one of the best project management tools in your arsenal. It can save you time and effort while also minimizing the risk of project failure. With a well-crafted template in place, project managers can be confident that they have a comprehensive and structured approach to planning, ensuring that their project gets delivered on time, on budget, and to the required standard.

There are many different types of project scope templates out there, but here are our 10 favorites.

Sometimes, the best place to begin organizing a new project is on a whiteboard. But in today’s distributed work environments, team members are often across the country from each other instead of across the room. That’s why we created the ClickUp Project Scope Whiteboard Template . It has all the benefits of a physical whiteboard, plus a ton of other features that make it a lot more handy than the original.

The Project Scope Whiteboard Template features: 

• A board with 7 components including information, justification, scope, business objectives, deliverables, exclusions, and assumptions
• A flexible digital whiteboard that lets you customize at will by adding or taking away “sticky notes,” adding text, hyperlinks, file attachments, photos, and freehand drawings, and sharing with other teammates for seamless collaboration

This whiteboard is the perfect place to start your project organization. Brainstorm your project’s big elements before moving to another template for all the details.

Once you’re done using our whiteboard template (or if you need more structure and details from the jump), use the ClickUp Scope of Work Template to fully plan your project from start to finish.

This template defines the tasks to be undertaken in a project, including objectives, outcomes, schedules, milestones, and additional details. While not legally binding, it serves as a common agreement among all stakeholders on what is required to successfully complete the project.

If the project you’re looking for a template for is website development, you’re in luck! We designed the ClickUp Website Scope of Work Template just for you.

The Website Scope of Work Template features: 

• A background and goals section that includes your company and the client’s contact information, high-level project details, a purpose and problem statement , project overview, and list of project goals and objectives
• Scope of work and tasks section that details the project scope in 3 phases: 1) website design and development; 2) information architecture, and 3) host and domain setup. Note, these phases can be edited to suit your specific scope. It also has a section to list all the tasks associated with the 3 phases
• A deliverables, components, and requirements section with tables to easily organize and visualize all the project deliverables, the project schedule, and the delivery dates
• A final price, assumptions, and acceptance where you can provide detailed estimates of expenses, list project assumptions, and get client sign-off

This template gives you a clear and organized website project game plan you can share with clients. Together, use this visual to work through the project process and keep them informed of and update and progress activity.

The ClickUp Scope Management Plan Template outlines how a project’s scope will be defined, validated, and controlled throughout its lifecycle. Along with the standard project details like objectives, deliverables, and timelines, scope management plans focus on how your team will manage scope creep – doing more than originally planned.

The Scope Management Template features: 

• A problem statement section where you can identify and describe the problem the project will solve
• An opportunities section where you’ll explain how you’ll capitalize on this problem and the solutions you plan to bring to the table
• A project goals section where you can list out the achievements you’d like this project to meet
• A scoping section where you can clearly determine what tasks or concerns fall within the project’s scope and which do not
• An approvals section to get the project manager and sponsor to sign off

Let this template serve as a guide for your team to ensure that the project stays on track and that all stakeholders are aware of the project’s boundaries and objectives.

App developers often have project scopes that differ significantly from other types of projects, so we created The ClickUp App Scope Outline Template just for you!

The App Scope Outline Template features: 

• A project background section to give a quick overview of the problem or pain point the new app aims to solve, what the app intends for its users to experience and feel, and the objectives of creating the app
• A business requirements section where you can design a checklist of the tasks the completed app needs to be able to handle
• An application scope section where you can list the different components of the project scope (ie, platform, UX design, analytics, landing page, help page, etc) and add any notes or comments about each requirement

This App Project Scope Document Template can be utilized by app developers to organize, track, and archive the necessary business requirements for creating and executing an application.

A project charter documents the formal initiation of a project, providing the project manager with the authority to use organizational resources to complete it. It’s an important step in the project management process, so we made The ClickUp Project Charter Template to ensure you cover all your required bases.

The charter acts as a reference throughout the project’s lifecycle, ensuring that all team members and stakeholders are aligned. It also provides a foundation for decision-making, issue resolution, and change management.

Bonus: Team Charter & Team Charter Templates !

The ClickUp Project Execution Plan Template can help standardize your organization’s project planning and execution procedures. It serves as a guide for project team members, enabling them to execute the project efficiently and effectively while ensuring that it aligns with the project scope.

The Project Execution Plan Template features:

• A home page that lists all the subcategories along with their owners and contributors
• 6 main sections, including project scope, project goals, specifications, resource allocation, project schedule, and communication plan

Note: this template can be utilized as a tool within your project management software solution!

While many of our other templates have a deliverables section, the ClickUp Project Deliverables Template gives you the utmost oversight and management of all the moving parts related to your project.

The Project Deliverables Template features: 

• Custom fields that can be adjusted to your preferences, including dropdown menus, an automatically calculated progress bar, and cell formatting for numerals, money, formulas, and plain text
• A fully editable and customizable template so you can customize views, automate and add dependencies, and create custom formula fields that suit your requirements to perfection.

Use this template by itself to manage your project’s subtasks, or as a more in-depth version of the deliverables list you create in one of the more comprehensive project scope templates.

While we’re fairly certain ClickUp makes the best project scope templates and management software around, we know that you aren’t always allowed to choose your own productivity platform for business use. If you’re constrained to Microsoft Office, the good news is that Microsoft Word has a searchable library of Office templates that might suit your needs.

When you search the template library for “project scope,” several promising-looking options appear, including a financial project scope template, a project planner template, a project performance report, and a detailed schedule planner.

It may take a bit of legwork and creativity, but with the right search fields, you can compile several documents that, when used together, can help you keep your projects visible and organized.

Another option within the Microsoft suite of solutions is this Project Scope Statement Template designed to be used in Excel. The template includes sections for project details and document control, project scope description, deliverable scope descriptions, project acceptance criteria, assumptions, and constraints, and project exclusions.

While not quite as user-friendly as the ClickUp templates, this Excel alternative nonetheless covers the most critical components of the project scope and will get the job done in a pinch.

Now that you have an arsenal of project scope templates at your disposal, the next step is to learn how to write a proper project scope document. Here are some tips for creating an effective and comprehensive project scope:

• Start with the basics: Begin by outlining the project’s purpose, objectives, and desired outcomes. This will give you a clear idea of what needs to be accomplished.
• Define the project’s boundaries: Clearly define what is included in the project and what is not. This will help prevent scope creep and ensure that everyone involved understands their roles and responsibilities.
• Identify stakeholders: List all parties involved in the project, including clients, team members, and any third-party contractors or vendors.
• Establish timelines: Set realistic deadlines for each phase of the project and assign tasks accordingly.
• List deliverables: Identify all the project’s key deliverables and their expected delivery dates. This will help keep everyone on track and accountable for their responsibilities.
• Create a communication plan: Establish a system for communicating progress updates, changes, or any other relevant information to stakeholders.
• Consider potential risks: Anticipate any potential roadblocks or challenges that may arise during the project and have a contingency plan in place to minimize their impact.
• Get approval: Once the project scope document is complete, make sure to obtain sign-off from all stakeholders before proceeding with the project.

Remember, when writing a project scope document, it’s essential to be as detailed and specific as possible. This will help ensure everyone is on the same page and minimize any misunderstandings or misinterpretations.

Optimize Your Project Scopes with Templates Today

Project scope templates provide the valuable roadmap you need to unify your team and get everyone working toward the shared goal of a successful project outcome. Providing this information in an organized and clear format upfront reduces the risk of project lag or miscommunication leading to mistakes.

ClickUp offers the gold standard in project management and team collaboration. Select from our wide variety of management templates to customize your workspace to suit your project needs. Easily break down your project with subtasks, and assign team members to each one to ensure things stay on schedule. And when you need to collaborate with other stakeholders or team members, easily share tasks, add comments, and attach files right within your workspace.

It’s free to get started with ClickUp, so give us a try today to see how a bit of scope planning upfront can lead to project success down the road.

Questions? Comments? Visit our Help Center for support.

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

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

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

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

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

Let’s get started.

What Do You Need A Business Plan For?

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

1. Secure Funds

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

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

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

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

2. Monitor Business Growth

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

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

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

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

3. Measure Business Success

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

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

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

4. Document Your Marketing Strategies

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

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

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

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

How to Write a Business Plan Step-by-Step

1. create your executive summary.

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

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

A good executive summary should do the following:

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

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

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

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

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

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

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

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

2. Add Your Company Overview

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

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

Your company overview should contain the following:

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

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

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

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

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

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

• Mission Statement

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

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

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

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

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

Business Objectives

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

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

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

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

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

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

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

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

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

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

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

Market Analysis

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

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

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

• Market Research

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

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

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

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

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

How to Quantify Your Target Market

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

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

What Does a Good Market Analysis Entail?

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

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

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

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

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

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

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

Competitive Analysis

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

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

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

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

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

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

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

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

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

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

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

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

Direct vs Indirect Competition

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

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

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

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

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

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

Factors that Differentiate Your Business from the Competition

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

1. Cost Leadership

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

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

2. Product Differentiation

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

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

3. Market Segmentation

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

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

4. Define Your Business and Management Structure

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

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

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

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

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

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

Management Team

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

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

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

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

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

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

Key Questions to Answer When Structuring Your Management Team

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

Additional Tips for Writing the Management Structure Section

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

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

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

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

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

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

Organizational Chart

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

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

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

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

5. Describe Your Product and Service Offering

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Avoid Technical Descriptions and Industry Buzzwords

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

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

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

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

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

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

3. Long or Short Products or Services Section

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

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

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

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

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

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

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

4. Describe Your Relationships with Vendors or Suppliers

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

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

5. Your Primary Goal Is to Convince Your Readers

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

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

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

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

Key Questions to Answer When Writing your Products and Services Section

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

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

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

6. Show and Explain Your Marketing and Sales Plan

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

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

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

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

Outline Your Business’ Unique Selling Proposition (USP)

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

Target Market and Target Audience

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

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

Creating a Smart Marketing and Sales Plan

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

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

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

Your Positioning Statement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Basic Rules to Follow When Pricing Your Offering

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

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

Pricing Strategy

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

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

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

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

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

Advertising

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

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

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

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

Public Relations

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

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

Content Marketing

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

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

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

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

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

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

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

Social Media

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

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

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

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

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

Strategic Alliances

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

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

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

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

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

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

2. Evaluate Your Competition

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

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

These questions can help you know your competition.

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

3. Consider Your Brand

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

4. Focus on Benefits

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

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

5. Focus on Differentiation

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

Key Questions to Answer When Writing Your Marketing and Sales Plan

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

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

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

7. Clearly Show Your Funding Request

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

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

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

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

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

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

Funding Request: Debt or Equity?

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

Case for Equity

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

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

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

Case for Debt

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

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

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

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

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

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

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

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

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

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

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

8. Detail Your Financial Plan, Metrics, and Projections

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

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

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

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

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

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

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

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

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

Use Graphs and Charts

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

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

Address the Risk Factors and Show Realistic Financial Projections

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

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

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

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

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

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

1. Sales Forecast

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

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

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

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

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

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

2. Personnel Plan

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

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

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

3. Income Statement

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

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

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

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

4. Cash Flow Statement

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

5. Balance Sheet

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

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

6. Exit Strategy

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

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

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

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

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

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

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

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

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

9. Add an Appendix to Your Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

Tips and Strategies for Writing a Convincing Business Plan

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

1. Know Your Audience

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

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

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

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

2. Get Inspiration from People

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

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

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

3. Avoid Being Over Optimistic

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

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

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

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

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

4. Keep it Simple and Short

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

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

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

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

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

5. Make an Outline and Follow Through

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

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

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

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

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

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

6. Ask a Professional to Proofread

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

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

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

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

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

1. hubspot's one-page business plan.

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

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

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

2. Bplan’s Free Business Plan Template

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

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

3. HubSpot's Downloadable Business Plan Template

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

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

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

4. Business Plan by My Own Business Institute

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

The comprehensive template consists of a whopping 15 sections.

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

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

5. Score's Business Plan Template for Startups

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

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

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

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

6. Minimalist Architecture Business Plan Template by Venngage

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

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

7. Small Business Administration Free Business Plan Template

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

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

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

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

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

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

9. PandaDoc’s Free Business Plan Template

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

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

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

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

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

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

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

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

Alternatives to the Traditional Business Plan

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

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

Business Model Canvas (BMC)

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

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

Segments of the Business Model Canvas

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

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

Lean Canvas

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

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

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

Startup Pitch Deck

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

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

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

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

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

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

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

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

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

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

Business Plan FAQ

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

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

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

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

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

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

Exlore Further

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

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Martin luenendonk.

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

Free Project Scope Templates

By Kate Eby | May 17, 2019

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Download the most useful project scope templates for a variety of uses, from construction to IT and CRM projects. Choose from Microsoft Excel and Word, as well as PDF templates. All are professionally designed, ready to print, and fully customizable.

Included on this page, you'll find a project plan scope example , a simple project scope statement , a project scope baseline template , and many more templates to help you plan and manage your project scope.

Project Plan Scope Example

This template provides examples of what to include in a preliminary scope statement, with sections for high-level objectives, deliverables, assumptions and constraints, and important milestones. Use the template as a guide when creating your own plan, and customize it to suit your specific project. This is an easy-to-use form to help save time with project planning.

‌ Download Project Plan Scope Example - Word

Simple Project Scope Statement

Whether you’re working on a large or small project, this Word template provides a simple layout for creating a scope statement. Outline the project scope, deliverables, exclusions, milestones, and costs. The template includes project details at the top and an approval section for stakeholder signatures at the bottom.

Download Simple Project Scope Statement

Excel | Word | PDF

Project Scope Baseline Template

Manage scope creep with this baseline template, comprised of a project scope statement, work breakdown structure , and WBS dictionary. The dictionary includes WBS numbering, task information (including owner and status), and other details for planning and tracking. The tree diagram makes it easy to visually break down project levels and tasks.

‌ Download Project Scope Baseline Template - Excel

Construction Project Scope Template

This template provides an outline for creating a comprehensive scope of work for a construction project. It includes sections for a project overview, scope breakdown, schedule (with starting and ending dates), and list of deliverables and reports that the contractor will provide. You can modify the outline for a range of construction projects or customize the outline to create an engineering project scope template.

Download Construction Project Scope Template

IT Project Scope Template

Create an IT project scope that includes background information, resource requirements, a timeline, risks, and more. You can also include details on project team members, itemized expenses, and criteria for completion. This Excel template will help you to keep your IT project on track and plan for a successful outcome.

Download IT Project Scope Template

Excel | PDF

Website Project Scope Template

Use this template to manage a website design project. It includes sections for a detailed scope of work, as well as descriptions and scheduling for deliverables, costs, and assumptions and constraints. Edit the template to include whatever information is needed for your design project, and customize it further by adding a company logo.

Download Website Project Scope Template

Software Project Scope Template

List all of the pertinent information about your software project in this scope template, from team members and other stakeholders to deliverables and milestones. Include a summary of costs, delivery dates, and risk mitigation plans. This form can also be modified to create an Agile project scope template by including a breakdown of iterations and associated timelines and resources.

Download Software Project Scope Template

Customer Relationship Management Project Scope Template

This template is designed to assist organizations with customer relationship management (CRM) project scoping, whether you’re implementing a CRM plan for an entire enterprise or addressing a specific CRM project. Available as a Word or PDF file, this template allows you to create a project scope report that covers opportunities, risks, financial obligations, roles and responsibilities, and project recommendations. This is a strategic template for assessing and planning CRM projects.

Download CRM Project Scope Template

Enterprise Resource Planning Project Scope Template

Use this template when implementing enterprise resource planning (ERP) software in your organization. This is a Word template that outlines the ERP project scope, including objectives, project roles, functional requirements, deliverables, change control procedures, and more. Develop a thorough project scope, from overall goals to authorized approvals.

Download ERP Project Scope Template

Streamline Your Project Scoping Process with Smartsheet for Project Management

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What is a scope management plan with examples & tips on creating one.

What is a scope management plan?

Why is a scope management plan important, what are the key elements of a scope management plan, how do i create a scope management plan.

• Example of a scope management plan.

How can Workamajig help you with your scope management plan?

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Once a project has started, there are many factors that can cause a change in the project scope . Armed with a scope management plan, scope changes can be absorbed into a project seamlessly without causing damage. Without one, however, scope creep is likely to derail your project faster than you can say “I thought we could manage without one!”

In this blog, we’re going to discuss what exactly a scope management plan is, how to create one, and give some examples.

Let’s begin! 

Well, how about we start with what it’s not ? A scope management plan is not a physical document, but rather a series of implementations that help manage project scope. It’s a plan for how the project scope will be documented, rolled out, and approved by stakeholders .

But wait, what exactly is project scope?

Project scope is the agreed-upon deliverables for a project. Going beyond what was originally intended for the project means going beyond the project scope.

Scope creep is the term used for the unfortunate reality of projects going beyond the scope.

A project scope management plan ensures that everything required of the project gets done in the right way by defining how, what, and by when tasks should be done. 

Having a concrete scope management plan also helps you avoid project enemies, such as scope creep, budget overrun , an accumulation of non-billable hours, and missed deadlines. When you have a plan to refer to, you’re much more likely to notice if things start to veer off course and catch it before it’s too late.

Having said that, some sort of scope change is almost inevitable in any project. The way to handle scope change so as not to let it derail your project  is by having a change request process. Types of change request processes vary from project to project, but it generally involves having a plan for when change is requested, such as a document for the change request to be detailed on, with a place for stakeholder signatures. This document also makes it clear that if the change request is approved, there may be a condition, such as an increased budget, or a pushed-off deadline.

Having a change request process should be part of how you plan scope management.

• Define who the project stakeholders are and what they want out of the project
• Detail the project requirements in a SOW ( Scope of Work )
• Further, break down project tasks with a WBS ( Work Breakdown Structure) .
• Decide and document how the WBS will be controlled and kept up to par.
• Determine how deliverables will be handed to stakeholders.
• Prepare a change control process to effectively handle change requests .

Now, let’s get more nitty gritty and define what exactly is involved in all of the aforementioned steps.

What is the first step in developing the project scope management plan?

1. Define project stakeholders & expectations

Once you know which stakeholders you’re dealing with, it’s time to gain clarity on what they would like you to do. A good way to do this is by holding a meeting for the purpose of laying out project requirements and making sure everyone is on the same page. It’s highly recommended to show stakeholders visuals of what you see as being the end deliverables , as visuals are a great way to ensure that there are no misunderstandings. 

2. Detail the project requirements in a SOW (Scope of Work)

Now that you know what exactly your stakeholders want to be done, you can send them a SoW (Statement of Work) and ask for a signature. This will give you the security that you’re on the same page and you have correctly understood what is wanted out of the project.

3. Further break down project tasks with a WBS (Work Breakdown Structure)

With a WBS, you can visually show team members the breakdown of tasks expected of them. You can also use a WBS  to track progress throughout the project by checking development against the WBS.

4. Document how the WBS will be implemented

It’s important to put someone in charge of ensuring that whatever is on the WBS is carried out in real life. Without this in place, there isn’t much point in spending time creating a WBS.

5. Determine how deliverables will be handed to stakeholders

Imagine you had a deliverable all ready to be sent off, but instead of being sent off to the right people, it remains with your project team…until the annoyed phone call comes, asking why the deliverable is late. There needs to be a procedure in place for who is going to hand over the deliverable and to whom.

6. Prepare a change control process to effectively handle change requests

As mentioned above, a change control process is an important part of a scope management plan. When a change request is made, you can handle it cooly and calmly by getting the stakeholder requesting the change to fill out the change request form. You can then discuss what actions will be necessary for your team to handle the scope change, such as an increased budget or timeline, or additional personnel. And don’t forget, if the change request is not something feasible, you have the right to say no!

What is a scope management plan example?

Let’s put things into context with a real-life example:

A creative agency has taken on a website project. Their client has asked them to build a website for their company that sells gourmet chocolate arrangements.

How will they create their scope management plan?

Let’s go through the steps that this company would go through to create its scope management plan, as listed above.

•  Write a list of stakeholders-Mr Willy Wonker, Charlie Bucket's grandparents, and Veruca Salt’s parents. Document what they would like out of the project-a flashy, five-page website with a brown color scheme.
• Write an SOW document with all the project requirements and terms, and get it signed by stakeholders.
• Create a WBS to make things simpler for the project team. E.g. Jack to gather company details, Sally to build a website wireframe, Taylor to design the perfect golden chocolate bar to use as the company icon on the website, and Jason to write hilarious, lip-smacking copy to match the company's tone of voice.
• Put PM, Venessa, in charge of ensuring that the WBS is carried out.
• Set a date for sending Willy Wonker the finished website and put Tim in charge of sending it.
• Decide on a change control process in case Veruca Salt begs her parents to make real chocolate bars pop off the website, or Charlie Bucket really can’t wait and his grandparents ask for the website to be ready tomorrow.

In this sample scope management plan, you can see what a good head start the scope management plan will give the project. Without it, the company would be unsure about who’s meant to be doing what, vague of project requirements, and unprepared for scope change requests.

So you have your scope management plan, and you’re all raring to go that’s great! But just before you jump in, how are you going to make sure that all your careful planning gets put into practice? And how will you know whether resources are being put to use according to your plan, or whether you are safely within your budget and project timeline ?

As our Workamajig users will attest: Workamajig gives you the confidence to dive head first into a project, knowing that your scope management plan is not just a plan, but will be put into practice through Workamajig’s all-in-one project management software . How? In all sorts of ingenious ways, like:

• Giving you real-time updates on project status, including how much time is being spent on what.

• Showing you exactly where your finances are holding and if you’re within budget.

• Showing you exactly how close your project is to completion, and what still needs to be done.

Sit back, relax, and enjoy your project-put Workamajig is in charge behind the scenes

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What’s a project scope, and how do you write one?

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What’s a project’s scope? Scope statement and project scope definitions

6 benefits of defining project scope in the early stages

How to define the scope of a project

Project scope planning and management

Project scope examples, don’t skip the scope.

As you gear up for your next project, it's crucial to set off on the right foot by crafting a roadmap for your success. Whether you're gunning for that well-deserved promotion or aiming to foster better collaboration with your boss or coworkers, this is a key moment to flex your leadership skills and unite everyone under a common goal.

However, it's easy to get caught up in the excitement and rush ahead, inadvertently overlooking crucial details during the planning phase. Sometimes, that eagerness to make progress can undermine the importance of thorough preparation.

Amidst this hustle, a pivotal aspect of project planning can keep you grounded: your project scope. Defining scope encourages you to visualize the entire lifecycle of your project and narrow your team’s focus to what’s strictly necessary. Let’s explore how to use this project management step to assess the feasibility of your goals and make sure you give all the details their due diligence.

What’s a project’s scope? Scope statement and project scope definitions 

Project scope is used in project planning to define the main deliverables, goals , costs, and deadlines you need to complete a project. Defining these details helps you create a clear action plan according to your timeline and budgeting constraints.

These individual details collectively form the scope statement, which acts as a valuable reference for team members and project managers , offering them a clear understanding of their responsibilities and the anticipated outcomes.

Depending on the complexity of your project, you may need to distribute this document across departments to ensure everyone is on the same page. For example, if you’re working on a sneaker launch promotion, you want to align with the photography, product, and marketing teams to confirm all objectives can be met by the launch date.

No matter your project’s size and how many stakeholders are involved, proper planning is crucial to ensure everything goes according to your vision.

Although it’s exciting to start a new project and dive in as soon as possible, what saves you time in the beginning often comes back around. Here are seven benefits of defining your project’s scope in the early stages of project planning:

• Outlines the project’s objectives and the metrics for success
• Defines a reasonable timeframe for achieving the project’s objectives
• Ensures all tasks are within the designated budget
• Reduces the risk of scope creep (when project deliverables balloon throughout the project)
• Ensures all teams have an understanding of the project’s requirements
• Manages and sets expectations for the boundaries of the project
• Clarifies the delegation and ownership process down the line

How to define the scope of a project 

According to the Project Management Institute, “ambiguous or unrefined scope definition” is the number one cause of scope creep . In other words, without a clear scope, you risk wasting time and money on work that doesn’t benefit your end goal. 

Outlining your project scope lays the groundwork for your project’s success by flagging the necessary milestones and making the right exclusions. Here are eight steps to follow when creating a project scope statement:

1. Outline project objectives

Your project’s objectives are the outcomes you want to achieve by its completion date. Outlining these objectives gives purpose and direction to the entire initiative — and your team. Without clear, realistic goals , your project is more susceptible to scope creep and can branch off to include deliverables or details that aren’t necessary.

2. Create a resource management plan

In scope project management, resources can refer to budgets, inventory, and human bandwidth. A resource management plan outlines the available resources and how you intend to use them throughout the project. Knowing what resources are available from the beginning empowers you to create a reasonable timeline, define project boundaries , and gauge the feasibility of the project’s final outcome.

3. Collect additional project requirements

Before drafting your statement, you should collect and define any additional requirements that may influence your project’s scope. This could include external factors such as client deadlines or company policy. For example, if you’re a software engineer working on a sensitive company project, your work may require additional security requirements, such as encryption.

4. Draft your project scope statement

Once you’ve noted your goals and objectives and collected additional project requirements, it’s time to draft your project scope statement. Your statement should outline your project’s intended outcomes and the work your team will cover within the defined timeline.

5. Acquire approval from key stakeholders

Before running with your project scope statement and introducing it to the rest of your team, make sure to receive a sign-off from key stakeholders. This allows you to gain an outsider’s opinion on your project’s deliverables and make any necessary changes to ensure the client or C-suite is happy. This is especially important when answering to a higher-up within your organization who approves your budget and resources.

6. Create a change control process

When working on large projects, deliverables, resources, and timelines often need to be adjusted as your team makes progress. Maybe funding fell through for the project budget and the scope of the project needs to be changed, or perhaps a product’s design didn’t meet expectations and needs to be redeveloped.

If you’re managing a complex project with multiple stakeholders, creating a change control process can help you reduce the risk of scope creep while promoting adaptability . A change control process is a predetermined procedure team leaders must go through before making changes to the project scope.

This process requires the project team to submit change requests to important stakeholders for approval each time they’d like to alter the content of their work.

7. Share the project scope statement with the team

Once your key stakeholders have reviewed the project scope statement and you’ve developed a proper change control process, it’s time to share the statement with your team. During this phase, team members can ask questions and discuss any concerns about the project’s progression or deliverables.

Often, individual contributors have the best insight into what is and isn’t achievable given their resources and skills.

8. Review the project scope statement during the project

Your project scope statement is more than a starting point for your project — it’s a great reference to review while conducting your work. Looking over the statement during each stage ensures you follow the correct order of operations while working on the initiative.

And as a manager , it can help you assess whether each team member is performing and actively contributing to the project’s success.

Although project scope statements lay the foundation for staying on track, unexpected changes and updates are part of the management process. It’s the project manager’s responsibility to evaluate possible modifications and document any changes made to the project’s scope.

When new information and opportunities arise, you must decide whether they contribute to the project's scope or deviate from achieving your intended objectives.

These change management processes grant the flexibility to make beneficial tweaks to workflow and resource management while remaining true to your project’s goals. Remember to stay open-minded when receiving ideas from your stakeholders and team members, as they may share valuable insight on how to improve your processes and the overall outcome of your project.

Knowing which components to include in your project scope statement and seeing an example in action are two very different things. Here are two templates for inspiration when creating your own statement:

Example 1: project scope statement for a product launch

If you’re a small designer launching a new sneaker, your project scope statement may look like this:

Project objective: to create a stylish, on-trend platform sneaker to launch in the spring/summer collection that caters to Gen Z and boosts overall brand recognition.

• Footwear design team (10 people) available for 30 hours of work per week per person
• Shoemakers (40 people) available for 30 hours of work per week per person
• Photography team (8 people) available for 30 hours of work per week per person for two weeks
• Marketing team (5 people) available for 30 hours of work per week per person
• Graphic designers (5 people) available for 25 hours of work per week per person for two weeks

Additional requirements

• The new sneaker needs to be designed and tested by January to go to market in the spring/summer collection

Project roadmap and timeline

• August 15: Give brief to the footwear design team and begin brainstorming new sneaker design
• August 22: Present the first round of ideas to the footwear design team
• August 25: Choose the top three designs to develop further
• September 8: Present new renditions of the top three designs to the footwear design team
• September 13: Determine the final design with the footwear design team
• September 15: Make minor design adjustments before passing them along to the shoemaking team
• September 20: Begin the manufacturing process with the shoemaking team
• September 29: Present the first draft of the final shoe design
• October 3: Order supplies necessary to refine the shoe design
• October 17: Make a second draft of the final shoe design
• October 20: Test the sneaker prototype
• October 31: Make necessary changes to the final design
• November 10: Re-test the sneaker design
• November 24: Begin manufacturing a small batch of the final sneaker design
• December 12: Take product and content photos of the new design
• December 13: Begin retouching product photos
• December 20: Finalize marketing materials with new product photos
• January 2: Launch new sneaker design on the company website and social media platforms

Example 2: project scope statement for redesigning a company website

If you’re in charge of organizing a new website launch, your project scope statement could look like this:

Project objective: to redesign the company website to fit the new branding material and improve customer experience.

• Web developer available for 25 hours of work per week
• Art director available for 30 hours of work per week
• Photography team (4 people) available for 10 hours of work per week
• Content writers (2 people) available for 30 hours of work per week
• Marketing team (3 people) available for 6 hours of ad hoc work per week
• The website needs to be launched by October 3, before the product launch on October 10
• August 18: Begin creating a website template for Art Director’s approval
• August 21: Have the photography team take content photos for the website
• August 22: Give content writers outlines for new website copy
• August 29: Review and upload new images onto the website template
• September 5: Have the marketing team review the writer’s written copy
• September 8: Approve and upload written content
• September 13: Have art direction review the website and offer recommendations
• September 15: Begin implementing recommendations
• September 20: Perform quality control on website design and new content
• September 29: Launch new website

Defining the project scope is an important step in project management that points you and your team in the right direction. Before embarking on your next venture, create objectives, compile resources, and note project requirements to better understand how your initiative will run.

By laying this groundwork before kicking off work, you can account for any barriers and gauge your project’s potential for success more accurately.

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Elizabeth Perry, ACC

Elizabeth Perry is a Coach Community Manager at BetterUp. She uses strategic engagement strategies to cultivate a learning community across a global network of Coaches through in-person and virtual experiences, technology-enabled platforms, and strategic coaching industry partnerships. With over 3 years of coaching experience and a certification in transformative leadership and life coaching from Sofia University, Elizabeth leverages transpersonal psychology expertise to help coaches and clients gain awareness of their behavioral and thought patterns, discover their purpose and passions, and elevate their potential. She is a lifelong student of psychology, personal growth, and human potential as well as an ICF-certified ACC transpersonal life and leadership Coach.

How to create a scope of work in 8 steps

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Project management

How to write a project scope document from scratch (free template included)

Every manager needs a clear scope for every project in their pipeline. Without planning for project scope, how will you manage expectations effectively and avoid problems like increased expenses or missed deadlines?

Let's just say no project is perfect. That's why using a project scope template is essential to plan for any surprises or potential setbacks.

Working off a project scope template not only helps guide your process but it empowers your team to focus on specific tasks without adding more to their plates. On the flip side, if you don't have anything properly planned for project scope, your team will more than likely have to work additional hours because of overloaded schedules, which means going over budget.

A 2020 study found that just 29% of organizations complete project on time.

The good news is that creating a project scope is like building a recipe: once you get the ingredients right, following the steps is almost foolproof.

Say goodbye to burnout

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• What is project scope?

Project scope is a project planning process that outlines deliverables, deadlines, and budgets, so teams work more efficiently by understanding the full view of the project and each task.

Before any work is done, the project scope should be agreed upon and signed by both your company and any stakeholders involved in the project. This helps create clear expectations of what will be included and delivered when the project is completed. 

Think of the scope like an insurance policy: it prevents your workload from expanding beyond agreed-upon deliverables and can act as a stopgap if the project strays from the original scope of work. This keeps you from missing deadlines or exceeding your budget, allowing the project to stay on track. 

If you don’t agree to a project scope before kickoff, clients may ask for changes or extras that you didn’t plan for. This is where things can get tricky. 

Get started with our free project scope document template

To make things easier, try starting things off with a free project scope template. Avoid the dreaded scope creep and see jobs finished from beginning to end.

To get started, make a copy of our free project scope template .

You don't want to take scope creep too lightly. In a co-study by Hubspot and Teamwork.com titled When Projects Go Wrong , agency experts were interviewed about the lessons they learned from unsuccessful projects and scope creep was far too common.

Agencies explained how scope creep is a gradual slope and not a sudden precipice. It can be hard to spot scope creep until you’ve already tumbled over the edge. 

Experts told stories of spending surplus hours on tasks that weren’t agreed upon in a brief. And before they knew it, their teams were burning through resources that were supposed to be used elsewhere. 

The solution to all of this? Work off a well-defined project scope template so you keep everyone on track and ultimately avoid scope creep.

What do you need to include in a project scope template?

A waterproof project scope template should include:

A timeline. A timeline helps clients understand when critical milestones will be delivered. It also establishes beginning and end dates for each milestone as well as the project on the whole. It's best to present this as a dot-pointed list or as a visual so that your client can quickly review, collect, and send back recommendations without spending too much time delving into the details.

Set milestones. Milestones are stages throughout the project that signify an important step, like meetings, major deliverables (such as a website going live), and deadlines. Outlining milestones provides your client with a clear picture of when key parts of the project will be delivered and when meetings will happen. 

Clear deliverables. Defining deliverables is very important because they let clients know exactly what they are getting at the end of the project. For example, if you are looking into how to set up a website , the deliverables could be a project brief, wireframe, mockups, and a final prototype. These deliverables ensure that a client knows what tangible assets they’ll have in their hands when a project is complete. 

Regular reports. As a project kicks off, you need to update clients and stakeholders on its progress. You can inform everyone what stage the project is at, how many milestones you have reached, and whether or not it is staying within budget. Make it clear when stakeholders should receive a report (i.e., every Friday by E.O.D.) to manage expectations. 

A budget. Finally, tell your client in black and white what will be delivered for the project budget and what it will cost. This is the place to include a disclaimer about tasks outside of scope being charged an extra fee to minimize scope creep. 

So, how can you piece all these conditions together to create a project scope? Let’s find out

Step 1: Create a rough outline to get started

Start by making a rough outline of the project scope. Along with the key components we’ve just described, you also need to add:

Key details. Including the project name, manager, and start date

Project purpose. Why is the project taking place? Write down the goals behind the project and what the stakeholders hope to achieve.

Exclusions: This section describes anything not covered by the scope of work. For example, if you are building a client website, you need to state that hosting services are not included once the website is live.

Sign-off. Space for stakeholders to sign their names to show they agree with the project scope.

To create an accurate timeline, it’s best practice to get your team’s input at this stage. After all, they know how long it takes to create a wireframe or do site testing, for example, so their insights will ensure accuracy in your scope and reduce potential friction down the line.

Step 2: Get your team together

The key to getting your team to complete your project on time is for them to agree with the deliverables, timeline, and goals. 

Getting your team involved from the start and giving them a sense of ownership in the project is the best way to accomplish that. 

It’s also a good idea to ask their opinion on other parts of the project, such as:

Project goals. Are the goals and timeframe realistic? 

Expectations. How long will it take to complete each deliverable? What is a reasonable amount of time between each deliverable to wait for client feedback? How much time do they need to act on each piece of feedback before moving onto the next deliverable?

Exclusions. Has the client asked for any deliverables that normally fall outside of project scope? Can the team think of any tasks that have appeared in previous projects that have led to scope creep that should be listed as an exclusion this time around?

Once you have your team’s input, it’ll be easier to fill in sections of your outline like deliverable dates.

Step 3: Nail down the project’s deliverables and milestones

Unlike a work detail structure, a project scope does not contain a detailed breakdown of project deliverables , so it's crucial to ensure every task you include is necessary. 

Clients usually refer back to the project scope to check that you are keeping your promises. If one of the deliverables is vague or can't be tied to a milestone, you need to consider whether it belongs in the scope at all. 

It is best to clarify the deliverables in your project scope by asking: does it require your team to work towards a goal and produce something? For example, a marketing campaign is a tangible asset that should be allocated as a deliverable, but a meeting to plan a marketing campaign is not.

Once you have these deliverables finalized, you need to tie them to milestones with a specific deadline. This will help you create a schedule for your project and keep everyone on task.

Pro-tip: Using a tool like Teamwork.com allows you to turn deliverables and milestones into a digital project timeline. Using a project board, you can create a timeline, add milestones and tasks, and collaborate with your team. Tools such as Gantt charts can provide a visual representation of milestones and delivery dates and help your team understand how every project is progressing. 

Step 4: Make it clear what’s included (and what’s not)

The only way to avoid the dreaded scope creep is to outline exactly what's included in the project. 

Everything from tangible tasks (e.g. whether or not hosting is included in a website build) to feedback rounds (e.g. how many rounds of client feedback are free of charge before a fee applies) should be included. 

PS, if you're looking for free hosting, Hubspot is about to launch free website hosting as part of their CMS.

It’s essential to think about exclusions carefully and learn from any past experiences with scope creep. By outlining exclusions, it’s easier to point out to a client later that what they’re asking for isn’t included in the project scope. 

Step 5: Finalize the scope and get it signed

Finally, make sure that you’ve included everything as intended and then get it signed. 

Keep in mind that your project scope should be easy to digest, so limit it to one or two pages. Clients and stakeholders should be able to scan it and contact you with any questions about deliverables and deadlines without having to sift through a document that’s the size of a textbook. 

As soon as everyone agrees with the scope and every stakeholder has signed off, make sure everyone has a copy (including you) so you can refer back to it once the project kicks off.

Then—it’s time to get to work! 

Are you ready to turn project scopes into digital timelines with the perfect tool? Find out how you can keep track of tasks, juggle multiple projects, and balance workloads under one roof with Teamwork.com !

TABLE OF CONTENTS

How to write a project scope document from scratch

• Our project scope template
• What needs to be in a project scope template
• How to create a rough outline
• Getting your team together
• How to set project deliverables & Milestones
• Making it clear what is included
• Getting the scope signed

Ben is a Senior Content Marketing Specialist at Teamwork.com. Having held content roles at agencies and SaaS companies for the past 8 years, Ben loves writing about the latest tech trends and work hacks in the agency space.

The engineer’s guide to project management software

How architects use project management software (+ 5 top tools)

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Standardizing your product management workflow for superior project outcomes

How product leads leverage the sprint cycle to meet client deadlines

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• Project management

Project Scope Examples

43 project scope statement templates & examples.

A great project scope example is an effective tool typically used in project management. It is used to explain the most important deliverables of a project. These include the major milestones, top level requirements, assumptions as well as limitations. It’s extremely useful to make such a document to aid in decision making throughout the project process. Especially when requests for change are thought about to modify the project scope. Aside from that, it also establishes the restrictions of a specific project and makes clear which deliverables are within and out of the scope.

Table of Contents

• 1 Project Scope Examples
• 2 The Key Elements of a Project Scope Statement
• 3 Project Scope Templates
• 4 Tips for Writing a Great Project Scope Example 
• 5.1 The Role in Project Management
• 5.2 The Relevance of the Scope
• 5.3 The Statement
• 5.4 Writing the Project Scope Statement

A project scope template is used to establish all of the work and the tasks which need to be completed in the project. It describes:

• everything which needs to be accomplished throughout the project,
• the results or end products which are to be supplied by the customer at any given time, within a specific budget,
• the limitations of the work and tasks , which will allow the project members to correctly evaluate which is part and not part of the effort needed.

To be able to make the scope of the project, the project manager needs to work with all other project participants. The participants include the members of the team, the customers or clients, the executive sponsors and the major stakeholders. They all work together to understand and be able to describe the output which is required for the initiative of the project. This output is also known as the deliverable. The cost or at least a satisfactory range of cost is verified in planning out and estimating the activities in the project. This is included in the deliverables.

Once you’ve determined the deliverables, it’s time to make the scope. It will define the major features which need to be included and the schedule for the completion of the whole project. Once everyone agrees on everything, then it can be finalized. Once finalized, any modifications to this document have to be made through a change process which is carefully controlled and recorded.

Once the scope document has been finalized, the participants of the project make use of the information in it to make an estimation of their tasks, the time-frame which they need to work with and the budget. The more specific the document is, the higher the likelihood is that the participants will be able to come up with accurate estimates. However, there are also cases when the document also includes some items which are not part of the actual scope, so they are not part of the work which is to be supplied.  

The Key Elements of a Project Scope Statement

Making such a document is easy if you know what elements need to be included in it. To be able to make an effective document, then you will be able to use it as a powerful tool for your project. Read on to learn about the key elements of a good project scope example:

To be able to make effective objectives, make sure to include the time the results are to be supplied along with the estimated budget or cost .

Include all these elements when making your scope so that you’re sure it’s complete. Before we move on to making your actual document, it’s helpful to know the benefits of making it. As you will see in the next section, it’s very beneficial to make a scope of your project.

Project Scope Template s

The project scope is an essential part of the project process. It contains important information about what is included in the whole project and what isn’t. In any organization, you will be tasked to start a project, which has its own objectives. Before starting, coming up with a document containing the whole scope is very beneficial. Here are the reasons why:

• The document will permit the project participant as well as the clients or customers to make sure that they are on the same page. It shows that they all share the same view of what features are to be expected as well as the quality and the timeframe of the whole project.
• It gives the project participants the ability to clearly establish and have conversations with the major stakeholders. These are the people or groups of people who have a great impact on the project, so it’s important for you to acquire their support.
• It serves in aiding the project participants to focus on the work they need to do specifically, in order to meet the needs of the clients or customers.
• If there are any modifications to be made, the statement will serve as a reference for making estimations and proposal for the said modifications. If the changes are approved by the major stakeholders, then the statement can be modified.
• It helps the project participants prioritize the work they need to do. This saves the organization a lot of time, money and effort too.
• It is used as an effective tool in project management. You can use it to manage the expectations of your clients or customers, balance the workloads and up the morale of the team, especially in the case where you are able to accomplish milestones.

As you can see, making such a statement is very important. It works for the benefit of your organization mainly because it keeps everyone involved in the loop and well informed. Now let’s go through some helpful tips you can use to write your document.

Tips for Writing a Great Project Scope Example  

To be able to make a great project scope example, you will need a few helpful tips. These tips will guide you in making a SMART document . This is an acronym which you can keep in mind as you are writing your template.  

Project Scope Statement  

Writing a project scope example involves a lot of time and effort, but that doesn’t mean it has to be difficult. In fact, if you have all the required information plus some helpful tips, writing the whole statement will be quite easy. Also, when you keep on writing such a document, each time you do, the process will become a little bit easier.

As you’ve read in one of the previous sections, it’s very beneficial for you to make such a statement before starting your project. Without this document (and the research which goes along with it), you might have a hard time implementing your project. The people involved in the project won’t be very well informed, which will lead to poor performance and productivity. The scope defines the limitations of your project so if it isn’t clearly established, the project might suffer. You may encounter delays or you might go over the budget which you have for your project.

The Role in Project Management

A project is basically a non-permanent venture to come up with a particular service, product or result. Therefore the scope of the project plays a big role in it. It established what tasks or work is part of the project and what isn’t. It identifies the purpose of your project, the objectives and how the project will accomplish the objectives. So basically, it defines your entire project.  

The Relevance of the Scope

Without a scope, your project has a high likelihood of failure. If you don’t define the limitations of the project, you won’t be able to expect the risks and issues which will come up. When that happens, then the project participants will have no idea what to do when these issues arise, and so your project might end up crashing and burning. The scope contains all this important information, which is why you must come up with it as a first step.  

The Statement

The actual document is important to avoid any unpredicted and unpleasant occurrences which can happen while the project is in implementation. The scope is an important statement for the project participants and for the major stakeholders. It allows for communication before the project is actually started, therefore saving your organization a lot of time and money.

Writing the Project Scope Statement

• When writing the scope of your project, you have to pace yourself. Don’t rush through it as you might miss important details and elements. But don’t take too much time when writing it too. Chances are you have a deadline to submit this document for the project to be able to start on time too.
• Be very specific. The more specific you are, the better it is. When you specify all the information in the document, the readers will understand it easier. Also, you won’t have to answer to many questions just because your statements are vague.
• Make your document a good length. It should not be too long or too short. The very minimum length of a statement is that which still gives all the relevant information which needs to be communicated about in the project. If you want to make a brief scope, then don’t include information which is of no value. General statements aren’t very useful so you can choose to omit them. Instead, use specific data which will reduce the risk of having to modify your statement later on.
• If you make a document which is too lengthy, your readers might not be very interested reading the whole thing. Don’t take too much time when writing your document. As long as you have written everything important down, then that’s enough.
• Overall description of the work which is to be done;
• The deliverables which will be produced by the project along with the major features;
• The justification for your project to be able to give your readers a better understanding of the whole scope;
• The limitations of your project or any risks which you might run into throughout the entire process;
• The assumptions which are relevant to the project;
• And the inclusions and exclusions to provide more clarity to your project.
• Create objectives for your scope which are very much achievable. Don’t make-up objectives which are impressive, but hard to achieve. Then you might end up ruining your project from the beginning.
• Accept the uncertainties as risks. If the risks do happen, then at least you’re prepared for them. Write down what needs to be done if you end up having to deal with them. The more prepared you are for the risks, the better it is for your project.
• Transfer the risk to another party. If you run into the risk you had listed down, then you may transfer the responsibility to a third party. If the third party agrees, then you are covered and your project won’t have to be delayed.
• Mitigate the risk. Once you know what the risks are, you can do something about it. Work with the plans you’ve made to lessen the risks of uncertainty.
• Defining uncertainties is important in your statement to keep yourself prepared for anything.
• Make a list of all the major stakeholders of your project. This is important so you have an idea of your audience and you will be able to write your document for them.
• When writing the limitations of your project, write them in bullet form. Also, try writing the information while thinking about the point of view of the stakeholders. Make sure that your points are easy to read and understand.
• Take note of all the major risks which might hinder the success of your project. This will help you plan necessary steps to take when they arise.
• Take note of the most major objective of the project. Your project may have more than one objectives, but you have to know which one is the most important one.
• List down all the most relevant boundaries as well as the risks of the project.

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Project scope management plan template

A project’s scope is just as important as its budget or timeline, but it’s often overlooked. Prioritize this crucial part of project management by creating a project scope management plan template.

Sign up to create your own template.

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What is project scope?

Project scope is a way to predetermine boundaries for your project, including deadlines, budget, and deliverables . By determining your project scope before you begin your work, you know how to allocate resources and set realistic expectations for stakeholders. 

Project scope management is comprised of a variety of related initiatives including:

Scope creep : When a project grows beyond its original scope with additional deliverables, an extended timeline, or more costs than originally planned.

Project management triangle : The trifecta of project management—scope, budget, and timeline. When you properly coordinate all three of these, you complete your projects without needing additional resources. 

Project scope statement: Guidelines to help your team determine what's in and out of scope.

Project scope management plan : The plan you use to define and oversee your project scope.

What is a project scope management plan template, and do you need one?

A project scope management plan template is a reusable template you can use to plan a new project’s scope. With a project scope management plan template, you can standardize all the projects in your program or project team. 

Many teams overlook the project scope, either prioritizing it below a project's budget and timeline or not defining it at all—which is dangerous. Your scope is just as important as every other component of the project management triangle—skipping or brushing over it can result in scope creep and an overworked, under-resourced team. A project scope management plan template makes it easy for your team to define the project scope for every project they launch, making it more likely that you'll hit your deliverables on time and on budget.

Benefits of using a project scope management plan template

The main benefit of creating a project scope management plan template is that it encourages everyone on your team to establish a project scope for each new project they create. In addition, your template gives you full scope control over your projects. Thanks to your template, you can:

Standardize the project scope management planning process.

Get buy-in from stakeholders, especially leadership, who want to ensure that the project is viable.

Allow new team members to step in and manage projects because processes are already established.

Project scope management plan template sections

Your project scope management plan template is the backbone of your project scope processes. This is where you’ll define scope, set expectations for stakeholders, and set up your project plan . 

If you’re using project management software , you can use your template teamwide to ensure that you’re always communicating the right information during the scope management process. When you create your template, be sure to include sections (like the ones below) to define scope throughout the entire project lifecycle. 

Project deliverables that are in scope

One of the main goals of your project management plan template is to establish what items, metrics, or tasks need to be completed in order for this project to be a success. Your deliverables can be smaller things (like completed project documents) or larger outputs (such as the launch of your new website). Connect these deliverables to your goals and team-wide objectives to ensure that every deliverable supports these larger initiatives.  

Work breakdown structure

Your work breakdown structure (WBS) is exactly what it sounds—it takes your deliverables and breaks them down further into the sub-tasks and sub-sub tasks you need to complete in order to complete each larger task. Creating a section for a WBS can help your team track critical sub-deliverables and key dependencies. This WBS should include your project objectives, your project scope statement, and project schedule, all displayed visually. 

The project timeline

Include your projected project timeline here so you have a way to track your project’s progress against significant deadlines and milestones. Use dynamic software, such as a project management tool , so you can update your timeline if your scope changes—without needing to go in and manually edit every date. 

Work that is out of scope

In previous sections, you’ve defined what you’re working towards. But it’s equally as important to define the tasks that aren’t in scope. The goal is to set guidelines and boundaries so everyone has realistic expectations and knows what’s needed for project success. If a stakeholder has an additional request that’s out of scope later on, you can point to this section of your template and explain that this wasn’t included in the original project scope, so you can’t work on it at this time. 

Stakeholder RACI or RAPID 

Your project stakeholders—like your team members, project sponsor, and executive leadership—want to be involved in the project. That's a good thing. But without careful monitoring and guardrails, even the best-meaning stakeholders can accidentally derail a project and even lead to scope creep . To prevent this from happening, use stakeholder assignment charts (such as RACI or RAPID ) to clearly define each stakeholders' responsibility. 

A change control process or form

Even the best-planned projects run into roadblocks and unexpected changes. There may be instances when you need to add a deliverable or change the timeline. And while you want the scope of the project to be firm—it shouldn't be completely set in stone. A change control process allows stakeholders to submit change requests that may impact the project scope. By using a change process and setting up a change control form, you can get information on why the change is being requested, what the impact is, and whether or not it’s worth including in your project.

How to create a project scope management plan template

First, review your previous scope plans to determine what information you need for your template. Your template should be completely customized for your project work, so look at your recent project scope management plans and see what project requirements are universal to your program or team. Include sections for each of these. For example, if you always create design prototypes, make sure to include that section in your template. Remember, the most effective scope management plan is the one that works best for your work, team, and organization.

Integrated features

List View . List View is a grid-style view that makes it easy to see all of your project’s information at a glance. Like a to-do list or a spreadsheet, List View displays all of your tasks at once so you can not only see task titles and due dates, but also view any relevant custom fields like Priority, Status, or more. Unlock effortless collaboration by giving your entire team visibility into who’s doing what by when.

Board View . Board View is a Kanban board-style view that displays your project’s information in columns. Columns are typically organized by work status (like To Do, Doing, and Done) but you can adjust column titles depending on your project needs. Within each column, tasks are displayed as cards, with a variety of associated information including task title, due date, and custom fields. Track work as it moves through stages and get at-a-glance insight into where your project stands.

Reporting . Reporting in Asana translates project data into visual charts and digestible graphs. By reporting on work where work lives, you can reduce duplicative work and cut down on unnecessary app switching. And, because all of your team’s work is already in Asana, you can pull data from any project or team to get an accurate picture of what’s happening in one place.

Project status updates . Say goodbye to sorting between multiple tools to find project status information or sitting through another meeting that could have been an email. Project status updates in Asana aren’t just easier to use—they’re also directly connected to the work your team does. This makes it easy for team members to access additional project information, like your project plan, communication plan, project goals, milestones, deliverables, and more. Ultimately, project status reports reduce your manual work, centralize information, and keep everyone up to date.

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

Miro . Connect Miro and Asana to streamline workflows and see the full picture of every project, all in one place. Embed Miro boards into Asana project briefs, allowing team members to interact, view, comment, or edit directly from within Asana. Or, attach an existing or new Miro board to any Asana task, automatically inviting task collaborators to view, comment, or edit the board. 

OneDrive . Attach files directly to tasks in Asana with the Microsoft OneDrive file chooser, which is built into the Asana task pane. Easily attach files from Word, Excel, PowerPoint, and more.

Lucidchart . The Lucidchart + Asana integration seamlessly embeds diagrams, flowcharts, process maps, and wireframes into your Asana project. Important project context lives right where you need it: in Asana. Teams can have easy access to all the right information as they work—without switching between different applications.

What is the purpose of a scope management plan template? .css-i4fobf{-webkit-transition:-webkit-transform 200ms ease-in-out;transition:transform 200ms ease-in-out;-webkit-transform:rotateZ(0);-moz-transform:rotateZ(0);-ms-transform:rotateZ(0);transform:rotateZ(0);}

The purpose of your project scope management plan template is to coordinate and standardize the process for defining your project scope. Project scope is often overlooked by teams, despite its importance. By creating a template, you ensure that teams create a project scope for each new project, alongside a project's budget and timeline.

What is the difference between scope and scope management?

A project’s scope is a defined set of boundaries for your project—in other words, your scope establishes what you’re going to do, create, and achieve during your project. Scope management is the process of overseeing that scope, ensuring that any changes go through a proper change control process, and looking out for changes that would lead to scope creep.

What is the difference between a scope management plan and a scope management plan template?

A scope management plan is the plan you’re using for that specific project. A scope management plan template is a fill-in-the-blank version of that plan. You can save your template, and then duplicate it to create a new scope management plan for every new project.

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18 of My Favorite Sample Business Plans & Examples For Your Inspiration

Published: July 01, 2024

I believe that reading sample business plans is essential when writing your own.

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As you explore business plan examples from real companies and brands, it’s easier for you to learn how to write a good one.

So what does a good business plan look like? And how do you write one that’s both viable and convincing? I’ll walk you through the ideal business plan format along with some examples to help you get started.

Table of Contents

Business Plan Types

Business plan format, sample business plan: section by section, sample business plan templates, top business plan examples.

Ultimately, the format of your business plan will vary based on your goals for that plan. I’ve added this quick review of different business plan types that achieve differing goals.

For a more detailed exploration of business plan types, you can check out this post .

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1. Startups

Startup business plans are for proposing new business ideas. If you’re planning to start a small business, preparing a business plan is crucial. The plan should include all the major factors of your business.

You can check out this guide for more detailed business plan inspiration .

2. Feasibility Studies

Feasibility business plans focus on that business's product or service. Feasibility plans are sometimes added to startup business plans. They can also be a new business plan for an already thriving organization.

3. Internal Use

You can use internal business plans to share goals, strategies, or performance updates with stakeholders. In my opinion, internal business plans are useful for alignment and building support for ambitious goals.

4. Strategic Initiatives

A strategic business plan is another business plan that's often shared internally. This plan covers long-term business objectives that might not have been included in the startup business plan.

5. Business Acquisition or Repositioning

When a business is moving forward with an acquisition or repositioning, it may need extra structure and support. These types of business plans expand on a company's acquisition or repositioning strategy.

Growth sometimes just happens as a business continues operations. But more often, a business needs to create a structure with specific targets to meet set goals for expansion. This business plan type can help a business focus on short-term growth goals and align resources with those goals.

I’m going to focus on a startup business plan that needs to be detailed and research-backed as well as compelling enough to convince investors to offer funding. In my experience, the most comprehensive and convincing business plans contain the following sections.

Executive Summary

This all-important introduction to your business plan sets the tone and includes the company description as well as what you will be exchanging for money — whether that’s product lines, services, or product-service hybrids.

Market Opportunity

Information about gaps in your industry’s market and how you plan to fill them, focused on demand and potential for growth.

Competitive Landscape Analysis

An overview of your competitors that includes consideration of their strengths and how you’ll manage them, their weaknesses and how you’ll capitalize on them, and how you can differentiate your offerings in the industry.

Target Audience

Descriptions of your ideal customers, their various problems that you can solve, and your customer acquisition strategy.

Marketing Strategy

This section details how you will market your brand to achieve specific goals, the channels and tactics you’ll utilize to reach those goals, and the metrics you’ll be using to measure your progress.

Key Features and Benefits

This is where you’ll use plain language to emphasize the value of your product/service, how it solves the problems of your target audiences, and how you’ll scale up over time.

Pricing and Revenue

This section describes your pricing strategy and plans for building revenue streams that fit your audiences while achieving your business goals.

This is the final section, communicating with investors that your business idea is worth investing in via profit/loss statements, cash flow statements, and balance sheets to prove viability.

Okay, so now that we have a format established, I’ll give you more specific details about each section along with examples. Truthfully, I wish I’d had this resource to help me flesh out those first business plans long ago.

1. Executive Summary

I’d say the executive summary is the most important section of the entire business plan. It is essentially an overview of and introduction to your entire project.

Write this in such a way that it grabs your readers' attention and guides them through the rest of the business plan. This is important because a business plan can be dozens or hundreds of pages long.

There are two main elements I’d recommend including in your executive summary: your company description and your products and services.

Company Description

This is the perfect space to highlight your company’s mission statement and goals, a brief overview of your history and leadership, and your top accomplishments as a business.

Tell potential investors who you are and why what you do matters. Naturally, they’re going to want to know who they’re getting into business with up front. This is a great opportunity to showcase your impact.

Need some extra help firming up your business goals? I’d recommend HubSpot Academy’s free course to help you set meaningful goals that matter most for your business.

Products and Services

Here, you will incorporate an overview of your offerings. This doesn’t have to be extensive, as it is just a chance to introduce your industry and overall purpose as a business. I recommend including snippets of information about your financial projections and competitive advantage here as well.

Keep in mind that you'll cover many of these topics in more detail later on in the business plan. The executive summary should be clear and brief, only including the most important takeaways.

Executive Summary Business Plan Examples

This example was created with HubSpot’s business plan template . What makes this executive summary good is that it tells potential investors a short story while still covering all of the most important details.

Our Mission

Maria’s Gluten Free Bagels offers gluten-free bagels, along with various toppings, other gluten-free breakfast sandwich items, and coffee. The facility is entirely gluten free. Our team expects to catch the interest of gluten-free, celiac, or health-conscious community members who are seeking an enjoyable cafe to socialize. Due to a lack of gluten-free bagel products in the food industry currently, we expect mild competition and are confident we will be able to build a strong market position.

The Company and Management

Maria’s Gluten Free Bagels was founded in 2010 by Maria Jones, who first began selling her gluten-free bagels online from her home, using social media to spread the word. In 2012 she bought a retail location in Hamilton, MA, which now employs four full-time employees and six part-time employees. Prior to her bagel shop, Maria was a chef in New York and has extensive experience in the food industry.

Along with Maria Jones, Gluten Free Bagel Shop has a board of advisors. The advisors are:

• Jeni King, partner at Winding Communications, Ltd.
• Henry Wilson, president of Blue Robin, LLP.

Our Product

We offer gluten-free products ranging from bagels and cream cheese to blueberry muffins, coffee, and pastries. Our customers are health-conscious, community-oriented people who enjoy gluten-free products. We will create a welcoming, warm environment with opportunities for open mic nights, poetry readings, and other community functions. We will focus on creating an environment in which someone feels comfortable meeting a friend for lunch, or working remotely.

Our Competitive Advantages

While there are other coffee shops and cafes in the North Shore region, there are none that offer purely gluten-free options. This restricts those suffering from gluten-free illnesses or simply those with a gluten-free preference. This will be our primary selling point. Additionally, our market research [see Section 3] has shown a demand for a community-oriented coffee and bagel shop in the town of Hamilton, MA.

Financial Considerations

Our sales projections for the first year are $400,000. We project a 15% growth rate over the next two years. By year three, we project 61% gross margins.

We will have four full-time employees. The salary for each employee will be $50,000.

Start-up Financing Requirements

We are seeking to raise $125,000 in startup to finance year one. The owner has invested $50,000 to meet working capital requirements, and will use a loan of $100,000 to supplement the rest.

Example 2 :

Marianne and Keith Bean have been involved with the food industry for several years. They opened their first restaurant in Antlers, Oklahoma in 1981, and their second in Hugo in 1988. Although praised for the quality of many of the items on their menu, they have attained a special notoriety for their desserts. After years of requests for their flavored whipped cream toppings, they have decided to pursue marketing these products separately from the restaurants.

Marianne and Keith Bean have developed several recipes for flavored whipped cream topping. They include chocolate, raspberry, cinnamon almond, and strawberry. These flavored dessert toppings have been used in the setting of their two restaurants over the past 18 years, and have been produced in large quantities. The estimated shelf life of the product is 21 days at refrigeration temperatures and up to six months when frozen. The Beans intend to market this product in its frozen state in 8 and 12-ounce plastic tubs. They also intend to have the products available in six ounce pressurized cans. Special attention has been given to developing an attractive label that will stress the gourmet/specialty nature of the products.

Distribution of Fancy's Foods Whipped Dream product will begin in the local southeastern Oklahoma area. The Beans have an established name and reputation in this area, and product introduction should encounter little resistance.

Financial analyses show that the company will have both a positive cash flow and profit in the first year. The expected return on equity in the first year is 10.88%

Tips for Writing Your Executive Summary

• Start with a strong introduction of your company that showcases your mission and impact, then outline the products and services you provide.
• Clearly define a problem, explain how your product solves that problem, and show why the market needs your business.
• Be sure to highlight your value proposition, market opportunity, and growth potential.
• Keep it concise and support ideas with data.
• Customize your summary to your audience. For example, you might emphasize finances and return on investment for venture capitalists, whereas you might emphasize community benefits and minimal environmental impact for progressive nonprofits.

For more guidance, check out our tips for writing an effective executive summary .

2. Market Opportunity

This is where you'll detail the opportunity in the market. Ask and answer: Where is the gap in the current industry, and how will my product fill that gap?

To get a thorough understanding of the market opportunity, you'll want to conduct a TAM, SAM, SOM analysis , a SWOT analysis , and perform market research on your industry to get some insights for this section. More specifically, here’s what I’d include.

• The size of the market
• Current or potential market share
• Trends in the industry and consumer behavior
• Where the gap is
• What caused the gap
• How you intend to fill it

Market Opportunity Business Plan Example

I like this example because it uses critical data to underline the size of the potential market and what part of that market this service hopes to capture.

Example: The market for Doggie Pause is all of the dog owners in the metropolitan area and surrounding areas of the city. We believe that this is going to be 2/3 of the population, and we have a goal of gaining a 50% market share. We have a target of a 20% yearly profit increase as the business continues.

Tips for Writing Your Market Opportunity Section

• Focus on demand and potential for growth.
• Use market research, surveys, and industry trend data to support your market forecast and projections.
• Add a review of regulation shifts, tech advances, and consumer behavior changes.
• Refer to reliable sources.
• Showcase how your business can make the most of this opportunity.

3. Competitive Landscape Analysis

Since we’re already speaking of market share, you‘ll also need to create a section that shares details on who the top competitors are. After all, your customers likely have more than one brand to choose from, and you’ll want to understand exactly why they might choose one over another.

My favorite part of performing a competitive analysis is that it can help you uncover the following:

• Industry trends that other brands may not be utilizing.
• Strengths in your competition that may be obstacles to handle.
• Weaknesses in your competition that may help you develop selling points.
• The unique proposition you bring to the market that may resonate with customers.

Competitive Landscape Business Plan Example

I like how the competitive landscape section of this business plan shows a clear outline of who the top competitors are. It also highlights specific industry knowledge and the importance of location. This demonstrates useful experience in the industry, helping to build trust in your ability to execute your business plan.

Competitive Environment

Currently, there are four primary competitors in the Greater Omaha Area: Pinot’s Palette Lakeside (franchise partner), Village Canvas and Cabernet, The Corky Canvas, and Twisted Vine Collective. The first three competitors are in Omaha and the fourth is located in Papillion.

Despite the competition, all locations have both public and private events. Each location has a few sold-out painting events each month. The Omaha locations are in new, popular retail locations, while the existing Papillion location is in a downtown business district.

There is an opportunity to take advantage of the environment and open a studio in a well-traveled or growing area. Pinot’s Palette La Vista will differentiate itself from its competitors by offering a premium experience in a high-growth, influential location.

Tips for Writing Your Competitive Landscape

• Complete in-depth research, then emphasize your most important findings.
• Compare your unique selling proposition (USP) to your direct and indirect competitors.
• Show a clear and realistic plan for product and brand differentiation.
• Look for specific advantages and barriers in the competitive landscape. Then, highlight how that information could impact your business.
• Outline growth opportunities from a competitive perspective.
• Add customer feedback and insights to support your competitive analysis.

4. Target Audience

Use this section to describe who your customer segments are in detail. What is the demographic and psychographic information of your audience? I’d recommend building a buyer persona to get in the mindset of your ideal customers and be clear about why you're targeting them. Here are some questions I’d ask myself:

• What demographics will most likely need/buy your product or service?
• What are the psychographics of this audience? (Desires, triggering events, etc.)
• Why are your offerings valuable to them?

Target Audience Business Plan Example

I like the example below because it uses in-depth research to draw conclusions about audience priorities. It also analyzes how to create the right content for this audience.

The Audience

Recognize that audiences are often already aware of important issues. Outreach materials should:

• Emphasize a pollution-prevention practice
• Tell audience a little about how to prevent pollution
• Tell audience where they can obtain information about prevention.

Message Content

• Focus the content for outreach materials on cost savings, such as when and where pollution prevention is as cheap as or cheaper than traditional techniques. Include facts and figures.
• Emphasize how easy it is to do the right thing and the impacts of not engaging in pollution prevention.
• Stress benefits such as efficiency or better relations with government, for businesses not primarily concerned with public image.

Tips for Writing Your Target Audience Section

• Include details on the size and growth potential of your target audience.
• Figure out and refine the pain points for your target audience , then show why your product is a useful solution.
• Describe your targeted customer acquisition strategy in detail.
• Share anticipated challenges your business may face in acquiring customers and how you plan to address them.
• Add case studies, testimonials, and other data to support your target audience ideas.
• Remember to consider niche audiences and segments of your target audience in your business plan.

5. Marketing Strategy

Here, you‘ll discuss how you’ll acquire new customers with your marketing strategy. I think it’s helpful to have a marketing plan built out in advance to make this part of your business plan easier. I’d suggest including these details:

• Your brand positioning vision and how you'll cultivate it.
• The goal targets you aim to achieve.
• The metrics you'll use to measure success.
• The channels and distribution tactics you'll use.

Marketing Strategy Business Plan Example

This business plan example includes the marketing strategy for the town of Gawler. In my opinion, it works because it offers a comprehensive picture of how they plan to use digital marketing to promote the community.

You’ll also learn the financial benefits investors can reap from putting money into your venture rather than trying to sell them on how great your product or service is.

This business plan guide focuses less on the individual parts of a business plan, and more on the overarching goal of writing one. For that reason, it’s one of my favorites to supplement any template you choose to use. Harvard Business Review’s guide is instrumental for both new and seasoned business owners.

7. HubSpot’s Complete Guide to Starting a Business

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What Is Business Scope (Explained: All You Need To Know)

Looking for Business Scope ?

What does scope mean in business?

What’s essential to know?

In this article, I will break down the meaning of Business Scope so you know all there is to know about it!

Keep reading as we have gathered exactly the information that you need!

Let me explain to you what business scope means once and for all!

Are you ready?

Let’s get started!

Table of Contents

Business Scope Meaning

You’re looking to write a business plan, apply for a business loan, or register a new business entity and you’re asked to provide the “scope” of your business…

What does business scope mean?

What should you indicate there?

Defining and properly understanding your business scope is very important for all businesses to ensure that all employees, managers, executives, and directors are all paddling in the same direction.

In the English language, the word scope is defined as “area” or “subject matter”.

In essence, “business scope” means the “area” in which your business operations (your business objective).

Depending on your business, you may have to define your business scope per department, per region, per product line, or for the entire business.

For example, a small boutique selling t-shirts will have a highly defined scope (the sale of consumer goods at retail).

On the other hand, a large conglomerate having subsidiaries operating in different lines of business will have to define its scope per subsidiary or line of business.

Business Scope Definition

How do you define business scope?

If you ask ten people to define business scope, you may potentially get ten different answers.

Business scope is a broad term that can be defined in many ways.

Scope in business tends to summarize in a few words what your company does.

Here is a definition of business scope that can be considered:

Business scope refers to the main strategic direction of your company Author

In other words, your business scope refers to the reason why company shareholders appoint the board of directors and the board’s overall objectives.

Your “business scope” should refer to every business activity performed by your company from sales, marketing, product development, contracting, and all other functions.

Why Is Business Scope Important

Defining the scope of your business is quite important.

For a new company starting out, defining your business scope allows you to better target your business plan, increase your chance of getting the business financing or loan that you need, and ensure that everyone in your company is working on the same objective.

Having a good understanding of your business scope will also allow you to properly define your business when you’re looking to form a new business entity.

In many states, you’ll be asked to provide the “business scope” when you’re looking to form a new business entity.

Having defined your business scope, especially for a new business, will help you immediately answer this question.

In other jurisdictions, the scope of your business is also mentioned in the company’s incorporation papers, charter, memorandum, articles of association, or similar documents.

Related article:

• Need of business

How To Write A Business Scope

The scope of your business should be clear enough allowing everyone to quickly understand what your business does.

To define your business scope, you’ll first need to understand the nature of your business.

There are three broad nature of business categories: service business , merchandising business , and manufacturing business.

For example, a consulting firm will be in the service business whereas a grocery store will be in the merchandising business.

Once you have defined your overall business nature, then you can start defining your scope.

For most small businesses, the business scope should cover what your company does as a whole.

However, large businesses may need to consider their scope per unit, region, industry, or other segments.

To narrow your scope, consider the strategic direction of your company.

What is your company looking to achieve?

What’s the overall purpose of your company?

Who are you trying to serve?

Your scope should cover the products and services you offer, all your physical locations, and the markets you serve.

For example, a shoe store will potentially have the following business scope: provide affordable sports shoes to sports amateurs and athletes.

• Nature of business meaning

Business Scope Example

Let’s look at a few examples of business scope to better understand the topic.

A family-owned catering business can define its scope as “providing catering services to individuals and companies in the city”.

A small boutique could define its scope to be “purchase consumer goods wholesale and sell to consumers at retail”.

A large company having different lines of business can define a scope for each line of business, such as:

• Provide professional services to companies for the implementation of network security products and equipment 
• Provide network security products and equipment to companies of all size 
• Types of businesses

Takeaways 

So there you have it folks!

What does business scope mean in simple terms?

Scope in business refers to a statement summing up all the activities performed by a company from sales, marketing, product, contracts, and more.

For most businesses (small businesses and SMEs), business scope covers all departments and all functions of the business.

For larger organizations, the scope may be defined per region, industry, or other qualifications.

Properly defining your business “ scope ” is crucial allowing you to quickly verbalize what your company does and the results it is looking to achieve.

Now that you know what “business scope” means, why it’s important, and how to define one, good luck with your business!

If you enjoyed this article on Business Scope , I recommend you look into the following terms and concepts. Enjoy!

You May Also Like Related to What Is Scope In Business

Product scope Project scope  Project scale Economies of scale  Economies of scope  What is scope  Scope creep  Scope management  What is a business Author

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What is project scope management? Examples and template

My first encounter with project scope was a challenging experience. As a software engineer, I remember attending numerous meetings to ensure our project remained on track. I had never felt so restricted in my life.

This experience exemplifies rigid scope management, which can hinder the creation of a valuable project or product.

It took me some time to make peace with the concept of scope because I rarely saw reasonable results. However, when executed properly, project scope management can deliver significant value.

In this guide, I’ll help you understand more about project scope and how to manage it effectively so you can avoid feeling trapped as I once did.

What is project scope?

In a nutshell, project scope defines the boundaries of what you’re trying to achieve. It outlines what will be part of your project and what won’t.

For instance, when organizations outsource a project, they typically specify a list of items that are part of the project and identify others that aren’t. This information constitutes the project scope and can be found in both public and private tenders.

It’s crucial to understand that traditional project scope outlines the outputs required to complete the project. While this approach works well with predictable systems, such as civil engineering, it can lead to frequent scope changes in complex systems when too many outputs are defined upfront.

Planning your project scope

How you plan your project scope will ultimately determine your level of empowerment. Rigid requirements established upfront don’t work well with digital product management due to the complexity and unpredictability of the digital product world.

Creating an environment that promotes rapid learning increases the likelihood of success.

Here’s how I approach project scope planning:

• Project goal — Define the ultimate result you want to achieve
• Timeframe — Set a deadline to determine your investment
• Key milestones — Identify the essential steps required to reach your goal
• Scope — Use a tool such as story mapping to define the scope
• Assumptions — Identify your assumptions and test them as quickly as possible

Setting the project scope

The key to setting the scope of a project is to identify the characteristics of what you’re trying to achieve instead of specifying what you need to deliver. The more outputs you define, the more time you’ll waste managing scope change processes.

A common way of setting the project scope is by using a work breakdown structure (WBS). This is typically done in collaboration with domain experts and project sponsors. While a WBS can be helpful, it’s challenging to prioritize because it defines the scope without telling a story.

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Let me provide a simple example. Suppose you’re creating a marketplace to connect service providers with customers. A basic WBS might look like this:

[INSERT IMAGE]

The challenge with the example above is that it’s difficult to prioritize tasks. That’s why I prefer story mapping as a tool to define project scope.

Story mapping is a method created by Jeff Patton that involves examining the entire journey from start to finish. You then draw a line to indicate your prioritization. This technique works best when a diverse group of people collaborate, including customers.

Here’s an example:

Story mapping helps you gain a better understanding of the overall goal of your project, making it easier to identify what you need to discover and prioritize accordingly.

Managing scope changes

In traditional project management, breaking the scope, also known as scope creep , was considered a sign of poor product management. Changes had to be negotiated and the scope reviewed. This rigid approach is still used in public and private tenders, but it often fails to contribute to the project’s ultimate goal.

Change is the only certainty in any project. You can either resist or accept change. The former will slow you down, while the latter will accelerate progress. That’s why it’s essential to focus on goals rather than outputs when defining project scope.

Here are my tips for managing project scope effectively:

• Evaluate goals — Assess the team’s progress towards the goal, and adjust your actions accordingly
• Learn iteratively  — Identify what the team has learned in recent weeks and understand how these insights impact the goal. Adapt your actions based on newfound knowledge. It’s natural to discover that something won’t work as expected and wise to adjust your next steps accordingly
• Be transparent  — Whenever you make scope or action adjustments, be transparent and communicate changes to the project sponsor and team
• Make tough decisions — There may be instances when you discover that the goal has become unattainable. In such cases, involve the project sponsor and present facts and evidence to support your findings. You can choose to stop the project, pivot, or persist

Tips for effective scope management

I began this post by sharing a negative experience with scope management, marred by antipatterns that are still prevalent today. Effective scope management enables teams to concentrate on what matters, while poor scope management hinders value creation.

Here are some characteristics that can help you derive value from scope management:

• Outcomes, not outputs — Focus on what the team is supposed to achieve rather than defining features and requirements. This approach provides multiple alternatives to problem-solving without limiting your team
• Flexibility — Embrace change as a natural part of the project process. Allow your team the flexibility to adapt to new information and make necessary adjustments to achieve the project’s goal
• Collaboration — Involve a diverse group of stakeholders, including customers, in the scope-setting process. This helps ensure that the project addresses real needs and enhances the likelihood of success
• Regular review — Conduct regular reviews to assess progress towards the goal, learn from new insights, and make any necessary changes to the project scope. Communicate these changes clearly to all stakeholders
• Clear communication — Establish open and transparent communication channels within the project team and with external stakeholders. This will enable everyone to stay informed and aligned with the project’s goal and any scope adjustments
• Documentation — Document scope changes, decisions, and the rationale behind them. This helps maintain a clear understanding of the project’s direction and provides a basis for future reference and learning

By incorporating these tips into your project scope management strategy, you can effectively manage the project scope and deliver valuable outcomes.

Remember, the key is to focus on the project’s goal and adapt as necessary based on new information and learning. This approach enables your team to create valuable products and solutions that meet the needs of your stakeholders and customers.

Project scope management template

You can use this simple project scope template to guide your project planning and scope management process. Replace the text in italic with the details specific to your project or product:

• Project title [Briefly describe the project]
• Project objective [Define the primary goal of the project]
• Inclusions: [List the specific deliverables, features, and tasks that are part of the project]
• Exclusions: [List items, features, or tasks that are specifically not part of the project]
• Key stakeholders [Identify the main stakeholders involved in the project]
• Project milestones [List the major milestones with target completion dates]
• Assumptions [List any assumptions made during the planning process that need to be validated]
• Constraints [Describe any limitations, such as budget, resources, or time, that may affect the project]
• Risks and mitigation strategies [Identify potential risks, their likelihood, impact, and mitigation strategies]
• Change management process [Outline the procedure for requesting, reviewing, and implementing scope changes]

This project scope template is also available as a Google Doc, which you can customize to suit your own project by selecting File > Make a copy from the main menu bar.

A product is never final; it’s in constant evolution.  That’s why you cannot have rigid scope management.

At the same time, no team will innovate without focus. Aim to provide guidance and focus, then let the team do the work.

Guidance over control will help you and your teams create outstanding results.

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Business Plan Example and Template

Learn how to create a business plan

What is a Business Plan?

A business plan is a document that contains the operational and financial plan of a business, and details how its objectives will be achieved. It serves as a road map for the business and can be used when pitching investors or financial institutions for debt or equity financing .

A business plan should follow a standard format and contain all the important business plan elements. Typically, it should present whatever information an investor or financial institution expects to see before providing financing to a business.

Contents of a Business Plan

A business plan should be structured in a way that it contains all the important information that investors are looking for. Here are the main sections of a business plan:

1. Title Page

The title page captures the legal information of the business, which includes the registered business name, physical address, phone number, email address, date, and the company logo.

2. Executive Summary

The executive summary is the most important section because it is the first section that investors and bankers see when they open the business plan. It provides a summary of the entire business plan. It should be written last to ensure that you don’t leave any details out. It must be short and to the point, and it should capture the reader’s attention. The executive summary should not exceed two pages.

3. Industry Overview

The industry overview section provides information about the specific industry that the business operates in. Some of the information provided in this section includes major competitors, industry trends, and estimated revenues. It also shows the company’s position in the industry and how it will compete in the market against other major players.

4. Market Analysis and Competition

The market analysis section details the target market for the company’s product offerings. This section confirms that the company understands the market and that it has already analyzed the existing market to determine that there is adequate demand to support its proposed business model.

Market analysis includes information about the target market’s demographics , geographical location, consumer behavior, and market needs. The company can present numbers and sources to give an overview of the target market size.

A business can choose to consolidate the market analysis and competition analysis into one section or present them as two separate sections.

5. Sales and Marketing Plan

The sales and marketing plan details how the company plans to sell its products to the target market. It attempts to present the business’s unique selling proposition and the channels it will use to sell its goods and services. It details the company’s advertising and promotion activities, pricing strategy, sales and distribution methods, and after-sales support.

6. Management Plan

The management plan provides an outline of the company’s legal structure, its management team, and internal and external human resource requirements. It should list the number of employees that will be needed and the remuneration to be paid to each of the employees.

Any external professionals, such as lawyers, valuers, architects, and consultants, that the company will need should also be included. If the company intends to use the business plan to source funding from investors, it should list the members of the executive team, as well as the members of the advisory board.

7. Operating Plan

The operating plan provides an overview of the company’s physical requirements, such as office space, machinery, labor, supplies, and inventory . For a business that requires custom warehouses and specialized equipment, the operating plan will be more detailed, as compared to, say, a home-based consulting business. If the business plan is for a manufacturing company, it will include information on raw material requirements and the supply chain.

8. Financial Plan

The financial plan is an important section that will often determine whether the business will obtain required financing from financial institutions, investors, or venture capitalists. It should demonstrate that the proposed business is viable and will return enough revenues to be able to meet its financial obligations. Some of the information contained in the financial plan includes a projected income statement , balance sheet, and cash flow.

9. Appendices and Exhibits

The appendices and exhibits part is the last section of a business plan. It includes any additional information that banks and investors may be interested in or that adds credibility to the business. Some of the information that may be included in the appendices section includes office/building plans, detailed market research , products/services offering information, marketing brochures, and credit histories of the promoters.

Business Plan Template

Here is a basic template that any business can use when developing its business plan:

Section 1: Executive Summary

• Present the company’s mission.
• Describe the company’s product and/or service offerings.
• Give a summary of the target market and its demographics.
• Summarize the industry competition and how the company will capture a share of the available market.
• Give a summary of the operational plan, such as inventory, office and labor, and equipment requirements.

Section 2: Industry Overview

• Describe the company’s position in the industry.
• Describe the existing competition and the major players in the industry.
• Provide information about the industry that the business will operate in, estimated revenues, industry trends, government influences, as well as the demographics of the target market.

Section 3: Market Analysis and Competition

• Define your target market, their needs, and their geographical location.
• Describe the size of the market, the units of the company’s products that potential customers may buy, and the market changes that may occur due to overall economic changes.
• Give an overview of the estimated sales volume vis-à-vis what competitors sell.
• Give a plan on how the company plans to combat the existing competition to gain and retain market share.

Section 4: Sales and Marketing Plan

• Describe the products that the company will offer for sale and its unique selling proposition.
• List the different advertising platforms that the business will use to get its message to customers.
• Describe how the business plans to price its products in a way that allows it to make a profit.
• Give details on how the company’s products will be distributed to the target market and the shipping method.

Section 5: Management Plan

• Describe the organizational structure of the company.
• List the owners of the company and their ownership percentages.
• List the key executives, their roles, and remuneration.
• List any internal and external professionals that the company plans to hire, and how they will be compensated.
• Include a list of the members of the advisory board, if available.

Section 6: Operating Plan

• Describe the location of the business, including office and warehouse requirements.
• Describe the labor requirement of the company. Outline the number of staff that the company needs, their roles, skills training needed, and employee tenures (full-time or part-time).
• Describe the manufacturing process, and the time it will take to produce one unit of a product.
• Describe the equipment and machinery requirements, and if the company will lease or purchase equipment and machinery, and the related costs that the company estimates it will incur.
• Provide a list of raw material requirements, how they will be sourced, and the main suppliers that will supply the required inputs.

Section 7: Financial Plan

• Describe the financial projections of the company, by including the projected income statement, projected cash flow statement, and the balance sheet projection.

Section 8: Appendices and Exhibits

• Quotes of building and machinery leases
• Proposed office and warehouse plan
• Market research and a summary of the target market
• Credit information of the owners
• List of product and/or services

Related Readings

Thank you for reading CFI’s guide to Business Plans. To keep learning and advancing your career, the following CFI resources will be helpful:

• Corporate Structure
• Three Financial Statements
• Business Model Canvas Examples
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9 Business Plan Examples to Inspire Your Own (2024)

Need support creating your business plan? Check out these business plan examples for inspiration and guidance.

Any aspiring entrepreneur researching how to start a business will likely be advised to write a business plan. But few resources provide business plan examples to really guide you through writing one of your own.

Here are some real-world and illustrative business plan examples to help you craft your business plan .

Business plan format: 9 examples

The business plan examples in this article follow this template:

• Executive summary
• Company description
• Market analysis
• Products and services
• Marketing plan
• Logistics and operations plan
• Financial plan
• Customer segmentation

1. Executive summary

Your executive summary is a page that gives a high-level overview of the rest of your business plan. While it appears at the beginning, it’s easiest to write this section last, as there are details further in the report you’ll need to include here.

In this free business plan template , the executive summary is four paragraphs and takes a little over half a page. It clearly and efficiently communicates what the business does and what it plans to do, including its business model and target customers.

2. Company description

You might repurpose your company description elsewhere, like on your About page , social media profile pages, or other properties that require a boilerplate description of your small business.

Soap brand ORRIS has a blurb on its About page that could easily be repurposed for the company description section of its business plan.

You can also go more in-depth with your company overview and include the following sections, like in this business plan example for Paw Print Post:

Business structure

This section outlines how you registered your business —as an LLC , sole proprietorship, corporation, or other business type : “Paw Print Post will operate as a sole proprietorship run by the owner, Jane Matthews.”

Nature of the business

“Paw Print Post sells unique, one-of-a-kind digitally printed cards that are customized with a pet’s unique paw prints.”

“Paw Print Post operates primarily in the pet industry and sells goods that could also be categorized as part of the greeting card industry.”

Background information

“Jane Matthews, the founder of Paw Print Post, has a long history in the pet industry and working with animals, and was recently trained as a graphic designer. She’s combining those two loves to capture a niche in the market: unique greeting cards customized with a pet’s paw prints, without needing to resort to the traditional (and messy) options of casting your pet’s prints in plaster or using pet-safe ink to have them stamp their ’signature.’”

Business objectives

“Jane will have Paw Print Post ready to launch at the Big Important Pet Expo in Toronto to get the word out among industry players and consumers alike. After two years in business, Jane aims to drive $150,000 in annual revenue from the sale of Paw Print Post’s signature greeting cards and to have expanded into two new product categories.”

“Jane Matthews is the sole full-time employee of Paw Print Post but hires contractors as needed to support her workflow and fill gaps in her skill set. Notably, Paw Print Post has a standing contract for five hours a week of virtual assistant support with Virtual Assistants Pro.”

Your mission statement may also make an appearance here. Passionfruit shares its mission statement on its company website, and it would also work well in its example business plan.

3. Market analysis

The market analysis consists of research about supply and demand , your target demographics, industry trends, and the competitive landscape. You might run a SWOT analysis and include that in your business plan. 

Here’s an example SWOT analysis for an online tailored-shirt business:

You’ll also want to do a competitive analysis as part of the market research component of your business plan. This will tell you which businesses you’re up against and give you ideas on how to differentiate your brand. A broad competitive analysis might include:

• Target customers
• Unique value proposition , or what sets the products apart
• Sales pitch
• Price points for products
• Shipping policy

4. Products and services

This section of your business plan describes your offerings—which products and services do you sell to your customers? Here’s an example for Paw Print Post that explains its line of custom greeting cards, along with details on what makes its products unique.

5. Marketing plan

It’s always a good idea to develop a marketing plan before you launch your business. Your marketing plan shows how you’ll get the word out about your business, and it’s an essential component of your business plan as well.

The Paw Print Post focuses on four Ps: price, product, promotion, and place. However, you can take a different approach with your marketing plan. Maybe you can pull from your existing marketing strategy , or maybe you break it down by the different marketing channels. Whatever approach you take, your marketing plan should describe how you intend to promote your business and offerings to potential customers.

6. Logistics and operations plan

The Paw Print Post example considered suppliers, production, facilities, equipment, shipping and fulfillment, and inventory. This includes any raw materials needed to produce the products.

7. Financial plan

The financial plan provides a breakdown of sales, revenue, profit, expenses, and other relevant financial metrics related to funding and profiting from your business.

Ecommerce brand Nature’s Candy’s financial plan breaks down predicted revenue, expenses, and net profit in graphs.

It then dives deeper into the financials to include:

• Funding needs
• Projected profit-and-loss statement
• Projected balance sheet
• Projected cash-flow statement

You can use a financial plan spreadsheet to build your own financial statements, including income statement, balance sheet, and cash-flow statement.

8. Customer segmentation

Customer segmentation means dividing your target market into groups based on specific characteristics. These characteristics can be demographics, psychographics, behavior, or geography. Your business plan will provide detailed information on each segment, like its size and growth potential, so you can show why they are valuable to your business. 

Airsign , an eco-friendly vacuum cleaner company, faced the challenge of building a sustainable business model in the competitive home appliance market. They identified three key customer personas to target:

• Design-oriented urban dwellers
• Millennials moving to suburbs
• Older consumers seeking high-quality appliances

The company utilized Shopify’s customer segmentation tools to gain insights and take action to target them. Airsign created targeted segments for specific marketing initiatives.

Put your customer data to work with Shopify’s customer segmentation

Shopify’s built-in segmentation tools help you discover insights about your customers, build segments as targeted as your marketing plans with filters based on your customers’ demographic and behavioral data, and drive sales with timely and personalized emails.

9. Appendix

The appendix provides in-depth data, research, or documentation that supports the claims and projections made in the main business plan. It includes things like market research, finance, résumés, product specs, and legal documents. 

Readers can access detailed info in the appendix, but the main plan stays focused and easy to read. Here’s an example from a fictional clothing brand called Bloom:

Appendix: Bloom Business Plan

Types of business plans, and what to include for each

This lean business plan is meant to be high level and easy to understand at a glance. You’ll want to include all of the same sections in one-page business plan, but make sure they’re truncated and summarized:

• Executive summary: truncated
• Market analysis: summarized
• Products and services: summarized
• Marketing plan: summarized
• Logistics and operations plan: summarized
• Financials: summarized

A startup business plan is for a new business. Typically, these plans are developed and shared to secure funding . As such, there’s a bigger focus on the financials, as well as on other sections that determine viability of your business idea—market research, for example:

• Market analysis: in-depth
• Financials: in-depth

Your internal business plan is meant to keep your team on the same page and aligned toward the same goal:

A strategic, or growth, business plan is a big-picture, long-term look at your business. As such, the forecasts tend to look further into the future, and growth and revenue goals may be higher. Essentially, you want to use all the sections you would in a normal business plan and build upon each:

• Market analysis: comprehensive outlook
• Products and services: for launch and expansion
• Marketing plan: comprehensive outlook
• Logistics and operations plan: comprehensive outlook
• Financials: comprehensive outlook

Feasibility

Your feasibility business plan is sort of a pre-business plan—many refer to it as simply a feasibility study. This plan essentially lays the groundwork and validates that it’s worth the effort to make a full business plan for your idea. As such, it’s mostly centered around research:

Nonprofit business plans are used to attract donors, grants, and partnerships. They focus on what their mission is, how they measure success, and how they get funded. You’ll want to include the following sections in addition to a traditional business plan:

• Organization description
• Need statement
• Programs and services
• Fundraising plan
• Partnerships and collaborations
• Impact measurement

Set yourself up for success as a business owner

Building a good business plan serves as a roadmap you can use for your ecommerce business at launch and as you reach each of your business goals. Business plans create accountability for entrepreneurs and synergy among teams, regardless of your business model .

Kickstart your ecommerce business and set yourself up for success with an intentional business planning process—and with the sample business plans above to guide your own path.

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Business plan examples FAQ

How do i write a simple business plan.

To write a simple business plan, begin with an executive summary that outlines your business and your plans. Follow this with sections detailing your company description, market analysis, organization and management structure, product or service, marketing and sales strategy, and financial projections. Each section should be concise and clearly illustrate your strategies and goals.

What is the best format to write a business plan?

The best business plan format presents your plan in a clear, organized manner, making it easier for potential investors to understand your business model and goals. Always begin with the executive summary and end with financial information or appendices for any additional data.

What are the 4 key elements of a business plan?

• Executive summary: A concise overview of the company’s mission, goals, target audience, and financial objectives.
• Business description: A description of the company’s purpose, operations, products and services, target markets, and competitive landscape.
• Market analysis: An analysis of the industry, market trends, potential customers, and competitors.
• Financial plan: A detailed description of the company’s financial forecasts and strategies.

What are the 3 main points of a business plan?

• Concept: Your concept should explain the purpose of your business and provide an overall summary of what you intend to accomplish.
• Contents: Your content should include details about the products and services you provide, your target market, and your competition.
• Cash flow: Your cash flow section should include information about your expected cash inflows and outflows, such as capital investments, operating costs, and revenue projections.

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

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A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

Harvard Business Review. " How to Write a Winning Business Plan ."

U.S. Small Business Administration. " Write Your Business Plan ."

SCORE. " When and Why Should You Review Your Business Plan? "

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How to Make a Scope Management Plan

Scope can make or break a project. If you’re not keeping a finger on the scope of the project, it can quickly go off-track, messing up your schedule and depleting the budget. That is how many projects fail.

Yes, scope management is one more constraint a project manager must master, but then project managers love making plans to overcome challenges . A scope management plan is just another meaty piece of the project that any project manager will love to sink their teeth into.

After all, the project manager is tasked with ensuring that the project reaches a satisfactory conclusion. That cannot be done without having a scope management plan. But first, what is the project scope ?

What is Project Scope?

Project scope is how a project’s goals and objectives are defined. The project scope statement lists those goals, what the deliverables will be, the tasks needed to make the deliverables, what the costs for that will be and the deadlines. It is, in fact, the parameters of the whole project.

Scope helps not only with the boundaries of the project but with who will be responsible for the tasks that make up the project and the process that will be applied to make sure everything is done correctly and approved. This information is usually collected in a scope statement, which is also known as a statement of work .

The statement of work is a cornerstone for project managers. Changes are going to happen in a project, but managing those changes to stay within scope must happen or the success of the project is threatened. The scope of a project can only be changed by submitting a change request to the project’s change control board.

In construction projects, a change order form is used when changing the scope of a project and must be approved by the owner and the contractor.

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Project Scope Template

Use this free Project Scope Template for Word to manage your projects better.

What Is Scope Creep?

If you think scope creep sounds unpleasant, you’d be right. Scope creep is what happens when changes in the project occur without being managed and controlled. Think of a project where new requirements are added after the project has already been executed. If those new requirements can’t be reviewed and delivered with the same resources and at the same time as originally planned, then you have scope creep.

Another example of scope creep coming from the opposite direction is when there are lots of changes in a project and all those changes are approved. Sounds good, right? Well, not if those changes, approved or not, create a never-ending project with no end in sight.

One way to make sure that your project doesn’t have scope creep is to plan against it. That brings us back to the importance of a scope management plan.

What is a Scope Management Plan?

Like any plan, a scope management plan is a bunch of processes that are in place to make sure that the project includes all the necessary tasks. The scope management plan is primarily concerned with defining how the scope is explained, developed, structured and verified.

By using a scope management plan, project managers can define and map their project, so it remains within the planned scope. The scope management plan helps project managers allocate resources in such a manner that the project can finish on time, within budget and with the quality expected by stakeholders.

Project scope management is about:

• Planning the process to define the work that must be done throughout the project
• Controlling and monitoring those processes
• Tracking the project to avoid scope creep when approving or disapproving changes
• Closing, including an audit of deliverables and assessing the outcome against the plan
• Scheduling the resources that are needed to complete the work

To begin, you need to have a series of inputs, starting with a project charter . This defines the objective of the project. It sets the project goals, roles and responsibilities. Stakeholders are also identified at this point. The charter is a high-level description of the project.

The project management plan is fundamental to creating the project scope plan. The project management plan is a baseline against which the project scope plan can be measured. This includes the quality management plan, a description of the project life cycle and the methodology that will be used.

It’s important to also think about the organization’s culture, as this will have an impact on the project. Resource availability will also have a great impact on the scope of the project and therefore must be included as part of the plan. Then there is the personnel administration to consider as a resource that is either well-qualified or in need of training. Of course, marketplace conditions influence the scope of the project, so keep it in mind.

Other factors to consider are the processes and procedures, which are key to any project’s success, and the corporate knowledge base. This includes policies, financial databases, historical data and more. All of these with good judgment, data analysis and meetings, are the materials that will help a project manager to create a scope management plan.

Steps for a Scope Management Plan

The steps to making a scope management plan are as follows:

• Identify stakeholders and get requirements from them.
• Create a detailed project scope statement that identifies the project’s goals and objectives.
• Create a work breakdown structure (WBS) to map all the necessary tasks.
• Develop the process by which the WBS will be maintained and approved.
• List roles and responsibilities of the project team.
• Establish the process for formal acceptance of completed project deliverables.
• Determine how to control and document change requests against the scope statement.

This project scope template for Word helps you identify the tasks, deliverables, constraints and assumptions that will help you define the scope of your project. It also has a section where you can list costs to assess the feasibility of your plan.

Templates to Help Your Scope Management Plan

There are a lot of pieces to assemble to build a good scope management plan. Having the tools to help you gather all this data is helpful. That’s where project management templates come in. While templates are static documents that only offer a helping hand, they can still streamline the process and make sure you don’t leave out any valuable information.

We have selected a few of the free project templates to get you started on your scope management plan:

Project Plan Template

Plan is the operative word in a scope management plan, and the project plan template will give you a place to collect the tasks and resources you’ll need in the project. The first part of the template addresses the scope and provides space for you to reiterate the scope of the project as it is defined in the project charter.

Risk Register Template

Nothing can change the scope of a project quicker than a realized risk. Being able to identify and then track the resolution of those risks that arise in your project should be part of any scope management plan. The free risk register template allows you to define the priority of each risk, assign a team member to own the process and monitor their progress dealing with it.

Change Log Template

Managing risk is important, but change can come from more than one direction. What if a stakeholder adjusts their expectations in the middle of the project? You need a process to manage that change from approval to completion. That’s where the free change log template comes in handy. Now you can capture that change and track it throughout the life cycle of your project.

ProjectManager Can Track and Report on Your Scope Management Plan

There are many points in the development of your scope management plan where ProjectManager can make the process easier and more effective.

Gantt Charts for Scheduling

ProjectManager has a robust Gantt chart feature. When you input all your project’s tasks, our software automatically creates a Gantt chart with a list to the left and a timeline to the right. Next, you’ll add the start and end dates to each task, which will show the duration of each task.

Because some tasks can’t start until the task before they have finished, these dependent tasks can be easily linked on the Gantt chart. Setting up dependent tasks can go a long way when it comes to preventing scope creep.

Dashboards for Tracking

Because ProjectManager is a cloud-based project management software, status updates are instantly reflected, and progress is seen in real time on our project dashboard. The real-time dashboard has metrics for progress, workload, tasks and more, which crunch project numbers automatically and display them in easy-to-read colorful graphs and charts.

When using a scope management plan, tracking and reporting is key. The real-time dashboard tracks progress as it happens, so if things go off-track, you’ll be able to respond quickly and effectively. Part of that means reporting on the progress of the project, which is where our real-time dashboard has your back.

Kanban for Task Management

ProjectManager also has multiple views, so if your team wants to just see their task list, they can. Or if you want a visual tool to track workflow, you can view the project as a kanban board, where tasks are cards under columns that represent the phases of your project.

You can also view the project on a calendar. Scope creep won’t have the time to set in with ProjectManager giving you multiple views on the project in real-time.

Don’t let scope threaten your project, manage it with ProjectManager. Our cloud-based project management software has the tools to implement your scope management plan and keep scope creep at bay. Try it now for free with this free 30-day trial.

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Blog Business 15+ Best Business Plan Examples for Entrepreneurs & Startups

15+ Best Business Plan Examples for Entrepreneurs & Startups

Written by: Jennifer Gaskin Jun 09, 2021

Not having a solid plan makes it unlikely for you to achieve the goals you seek, whether it’s getting your to-do list done or launching a successful organization.

In the early stages of a company, that means developing things like pitch decks, business plans, one-sheeters and more. With Venngage’s Business Plan Builder , you can easily organize your business plan into a visually appealing format that can help you win over investors, lenders or partners.

Learn more about how to create a business plan so you can hit the ground running after reading through this list for inspirational business plan templates .

15+ Best business plan examples for entrepreneurs and startups

Simple business plan example, startup business plan example, small business plan example, nonprofit business plan example, strategic business plan example, market analysis business plan example, sales business plan example, organization and management business plan example, marketing and sales strategy business plan example, apple business plan example, airbnb business plan example, sequoia capital business plan example.

While your business plan should be supported by thorough and exhaustive research into your market and competitors, the resulting document does not have to be overwhelming for the reader. In fact, if you can boil your business plan down to a few key pages, all the better.

Simple business plan outline:

• Table of contents : List all sections and sub-sections within the business plan.
• Business review : Include an overview of the business’s purpose, history, and key objectives.
• The market : Analyze the target market, including customer demographics and market needs.
• The competition : Evaluate the main competitors and their strengths and weaknesses in the market.

The simple, bold visual aesthetic of this  business plan template  pairs well with the straightforward approach to the content and various elements of the business plan itself.

Use Venngage’s My Brand Kit  to automatically add your brand colors and fonts to your business plan with just a few clicks.

An essential startup business plan should include a clear and compelling value proposition, market analysis, competitive analysis, target audience identification, financial projections, and a well-defined marketing and operational strategy.

For a typical startup, the need to appear disruptive in the industry is important. After all, if you’re not offering anything truly new, why would an investor turn their attention toward your organization. That means establishing a problem and the ways in which you solve it right away.

Startup business plan outline:

• The problem : Identify the specific issue or pain point your startup aims to solve.
• Target market & opportunity : Define your customers and the potential market size.
• The solution : Describe the product or service that addresses the identified problem.
• Traction and validation/roadmap : Outline the progress made so far and the future milestones and goals.

Whether it’s a full-scale business plan or, in this case, a pitch deck, the ideal way for a startup to make a splash with its plans is to be bold. This successful business plan example is memorable and aspirational.

In the Venngage editor, you can upload images of your business. Add these images to your plans and reports to make them uniquely your own.

All businesses start out small at first, but that doesn’t mean their communications have to be small. One of the best ways to get investors, lenders and talent on board is to show that you’ve done your due diligence.

Small business plan outline:

• Table of contents : List down of all the sections and sub-sections in the business plan.
• Business overview : Include a quick overview of what your business is all about, including your mission and goals.
• The market : Analyzes who your customers are, what they need, and how big the market is.
• The competition : Look into your main competitors and what they’re good at (and not so good at).
• Sales and marketing plan : Lay out your game plan for attracting and keeping customers.
• Operating plan : Explain how you’ll run the day-to-day operations and manage the business.

In this small business plan example, the content is spread over many pages, which is useful in making lengthy, in-depth research feel less like a chore than packing everyone on as few pages as possible.

Organizations that set out to solve problems rather than earning profits also benefit from creating compelling business plans that stir an emotional response in potential donors, benefactors, potential staff members or even media.

Nonprofit business plan outline:

• Table of contents : Lists all sections and sub-sections of your nonprofit business plan.
• Introduction : Provide an overview of your mission and purpose.
• Goal : State the specific objectives your nonprofit organization aims to achieve.
• Impact & strategy : Explain how you plan to create positive change and the methods you will use.

Simplicity is the goal for nonprofits when it comes to business plans, particularly in their early days. Explain the crisis at hand and exactly how your organization will make a difference, which will help donors visualize how their money will be used to help.

Business plans are also helpful for companies that have been around for a while. Whether they’re considering new products to launch or looking for new opportunities, companies can approach business plans from the strategy side of the equation as well.

Strategic business plan outline:

• The problem, issue, or job at hand : Define the specific challenge or task the strategic plan addresses.
• Approach & methodology : Describe the methods and strategies that will be used to tackle the problem or achieve the objective.

Strategic business plans or strategy infographics should be highly focused on a single area or problem to be solved rather than taking a holistic approach to the entire business. Expanding scope too much can make a strategy seem too difficult to implement.

Easily share your business plan with Venngage’s multiple download options, including PNG, PNG HD, and as an interactive PDF.

One-page business plan example

For organizations with a simple business model, often a one-page business plan is all that’s needed. This is possible in any industry, but the most common are traditional ones like retail, where few complex concepts need to be explained.

This one-page strategic business plan example could be easily replicated for an organization that offers goods or services across multiple channels or one with three core business areas. It’s a good business plan example for companies whose plans can be easily boiled down to a few bullet points per area.

Especially when entering a saturated market, understanding the landscape and players is crucial to understanding how your organization can fit it—and stand out. That’s why centering your business plan around a market analysis is often a good idea.

Market analysis business plan outline:

• Table of contents : Lists all sections and sub-sections of the market analysis business plan.
• Executive summary : Provide a brief overview of the key points of the market analysis.
• Business overview : Summarize your business’s mission, vision and core activities.
• The market : Analyze the target market, including customer demographics and market trends.
• The competition : Review the main competitors and their market positioning.
• Sales & marketing plan : Outline strategies for reaching and engaging customers.
• Operating plan : Details the day-to-day operations and management structure.

In this example, the majority of the content and about half the pages are focused on the market analysis, including competitors, trends, pricing, demographics and more. This successful business plan example ensures the artwork and style used perfectly matches the company’s aesthetic, which further reinforces its position in the market.

You can find more memorable business plan templates to customize in the Venngage editor. Browse Venngage’s  business plan templates  to find plans that work for you and start editing.

Company description business plan example

Depending on the market, focusing on your company story and what makes you different can drive your narrative home with potential investors. By focusing your business plan on a company description, you center yourself and your organization in the minds of your audience.

Company description business plan outline:

• Executive summary : Briefly summarize the key components and objectives of the company description section.
• Approach & direction : Outline the company’s strategy, goals and the direction it intends to take in achieving them.

This abbreviated plan is a good business plan example. It uses most of the content to tell the organization’s story. In addition to background about the company, potential investors or clients can see how this design firm’s process is different from their rivals.

With Venngage Business , you can collaborate with team members in real-time to create a business plan that will be effective when presenting to investors.

Five-year business plan example

For most startups or young companies, showing potential investors or partners exactly how and when the company will become profitable is a key aspect of presenting a business plan. Whether it’s woven into a larger presentation or stands alone, you should be sure to include your five-year business plan so investors know you’re looking far beyond the present.

With Venngage’s Business Plan Builder , you can customize a schedule like this to quickly illustrate for investors or partners what your revenue targets are for the first three to five years your company is in operation.

The lifeblood of any company is the sales team. These are the energetic folks who bring in new business, develop leads and turn prospects into customers. Focusing your energy on creating a sales business plan would prove to investors that you understand what will make your company money.

Sales business plan outline:

• Table of contents : List all sections and subsections within the sales business plan.
• Target market : Identify the specific segment or segments of customers the sales efforts will focus on.
• Customer profile : Provide detailed descriptions of the ideal customers, including demographics, preferences and needs.
• Action plan : Outline the specific steps and strategies to be taken to reach and engage the target market and achieve sales objectives.

In this example sales business plan, several facets of ideal buyers are detailed. These include a perfect customer profile that helps to convey to your audience that customer relationships will be at the heart of your operation.

You can include business infographics in your plan to visualize your goals. And with Venngage’s gallery of images and icons, you can customize the template to better reflect your business ethos.

Company mergers and shakeups are also major reasons for organizations to require strong business planning. Creating new departments, deciding which staff to retain and charting a course forward can be even more complex than starting a business from scratch.

Organization and management business plan outline:

• Table of contents : List all sections and subsections within the organization and management business plan.
• About us : Provide an overview of the organization, its mission, vision and values.
• Project summary : Summarize the key details and objectives of the project.
• Project timeline : Outline the milestones and schedule for completing the project.

This organization and management business plan focuses on how the company can optimize operations through a few key organizational projects.

Executive summary for business plan example

Executive summaries give your business plan a strong human touch, and they set the tone for what’s to follow. That could mean having your executive leadership team write a personal note or singling out some huge achievements of which you’re particularly proud in a business plan infographic .

Executive summary business plan outline:

• Table of contents : Lists all sections and subsections within the executive summary business plan.
• Executive summary : Provide a concise overview of the entire business plan, highlighting key points and objectives.
• Statement of problem : Clearly define the specific issue or challenge the business aims to address.
• Approach & methodology : Outline the methods and strategies that will be employed to solve the stated problem or achieve the desired goals.

In this executive summary for a business plan, a brief note is accompanied by a few notable achievements that signal the organization and leadership team’s authority in the industry.

Marketing and sales are two sides of the same coin, and clever companies know how they play off each other. That’s why centering your business plan around your marketing and sales strategy can pay dividends when it comes time to find investors and potential partners.

Marketing and sales strategy business plan outline:

• Table of contents : List all sections and subsections within the marketing and sales strategy business plan.
• Positioning : Describe how the business intends to position its products or services in the market to stand out from competitors.
• Value prop : Highlight the unique value proposition that the business offers to its target customers, including its benefits and advantages.
• Marketing strategy : Outline the overall approach and tactics that will be used to promote the products or services and attract customers.

This marketing and sales business plan example is the picture of a sleek, modern aesthetic, which is appropriate across many industries and will speak volumes to numbers-obsesses sales and marketing leaders.

Do business plans really help? Well, here’s some math for you; in 1981, Apple had just gone public and was in the midst of marketing an absolute flop , the Apple III computer.  The company’s market cap, or total estimated market value,  could hit $3 trillion this year.

Did this Apple business plan make the difference? No, it’s not possible to attribute the success of Apple entirely to this business plan from July 1981, but this ancient artifact goes to show that even the most groundbreaking companies need to take an honest stock of their situation.

Apple’s 1981 business plan example pdf covers everything from the market landscape for computing to the products that founder Steve Jobs expects to roll out over the next few years, and the advanced analysis contained in the document shows how strategic Jobs and other Apple executives were in those early days.

Inviting strangers to stay in your house for the weekend seemed like a crazy concept before Airbnb became one of the world’s biggest companies. Like all disruptive startups, Airbnb had to create a robust, active system from nothing.

Airbnb business plan outline:

• Problem : Identify the specific challenge or need in the accommodation industry that the Airbnb business aims to address.
• Solution : Describe how Airbnb’s platform provides a solution to the identified problem by connecting hosts with guests.
• Market validation : Demonstrate through research or evidence that there is demand for Airbnb’s services.
• Market size : Estimate the total addressable market for Airbnb’s accommodation services.
• Product : Detail the features and functionalities of the Airbnb platform for both hosts and guests.
• Business model : Explain how Airbnb generates revenue and sustains its operations.
• Market adoption : Discuss the rate at which Airbnb’s services are being embraced by hosts and guests.
• Competition : Identify other players in the accommodation industry offering similar services to Airbnb.
• Competitive advantages : Highlight the unique strengths or advantages that set Airbnb apart from its competitors.

As this Airbnb business plan pitch deck example shows, for companies that are introducing entirely new concepts, it’s helpful not to get too into the weeds. Explain the problem simply and boil down the essence of your solution into a few words; in this case, “A web platform where users can rent out their space” perfectly sums up this popular company.

Sequoia Capital is one of the most successful venture capital firms in the world, backing startups that now have a combined stock market value of more than $1 trillion, according to a Forbes analysis .

For young companies and startups that want to play in the big leagues, tailoring your pitch to something that would appeal to a company like Sequoia Capital is a good idea. That’s why the company has a standard business plan format it recommends .

Sequoia capital business plan outline:

• Company purpose : Clarify the core reason for the business and its overarching goals.
• Problems : Identify specific challenges or pain points that the business aims to solve.
• Solution : Describe how the business addresses the identified problems with its products or services.
• Market potential : Assess the size and growth opportunities within the target market for the business.
• Competition : Analyze existing competitors and their strengths and weaknesses in the market.
• Business model : Outline how the business plans to generate revenue and sustain its operations.
• Our team : Introduce the key members of the team and their relevant expertise and experience.
• Financials : Provide projections and forecasts for the financial performance of the business.
• Vision : Articulate the long-term aspirations and goals that the business seeks to achieve.

Using Sequoia Capital’s business plan example means being simple and clear with your content, like the above deck. Note how no slide contains much copy, and even when all slides appear on the screen at once, the text is legible.

Use Venngage to design business plans that will impress investors

Not every business plan, pitch deck or one-sheeter will net you billions in investment dollars, but every entrepreneur should be adept at crafting impressive, authoritative and informative business plans.

Whether you use one of the inspirational templates shared here or you want to go old school and mimic Apple’s 1981 business plan, using Venngage’s Business Plan Builder helps you bring your company’s vision to life.

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How to use a Business Plan?

Business Plan Template

• Vinay Kevadia
• September 6, 2024

15 Min Read

If you’re entering the entrepreneurial world, you’ve likely been told to start with a business plan.

However, simply creating a business plan isn’t enough. The true powers of a business plan unravel when you use it actively to drive your business forward.

Whether you’re launching a business, securing funding, evaluating growth opportunities, or guiding your team— a business plan is more than just a document. It’s a versatile tool that can support almost every aspect of your business when used consistently.

Want to learn how?

Well, in this blog post, we’ll dive into more details about how to use a business plan . But before that.

Why is a business plan important?

A business plan is an important document, whether you use it for formal or internal use.

Here are a few reasons why this document is important:

• Gives you a roadmap to achieve your business goals.
• Offers a framework for making strategic decisions.
• Outlines the business goals and sets benchmarks for tracking business performance.
• Secures funding for your business by demonstrating financial sustainability.
• Helps overcome the challenges by developing mitigation strategies.
• Aligns the team members and stakeholders by facilitating clear communication.

Now, let’s understand the different use cases of a business plan to launch, grow, and fund your business.

How to use a business plan to start a business

A business plan is a quintessential document that can help you plan and launch your business. Whether you need to validate a business idea, establish your goals, or equip yourself with the understanding of a target market—a business plan helps with it all.

Here’s a more detailed overview of how a business plan can help start a business.

1. Validate your business idea

Before investing money in a business venture, you need to test the viability of your business idea.

You need answers to questions such as:

• Should I pursue this business venture?
• Who will be the target audience for my solution?
• How much sales will it make?
• What is the scope of scaling my business idea?
• How is my idea different from that of existing competitors?

A business plan can help you find answers to these critical questions.

Whether it’s the market, competitors, product offerings, expected sales, business objectives, or your finances—a business plan helps you assess each aspect of your business idea to test its overall feasibility.

Evaluating your business idea using a business plan forces you to address the gaps in your business idea.

This validation step ensures you don’t invest time and resources in an idea that may not succeed.

2. Establish business goals and mission

A business plan offers a strategic framework to transform vague business aspirations into concrete goals. It makes it easier for you to communicate what your business stands for and what it aims to achieve with a clearly defined mission statement.

A business plan helps you align the short-term goals of your business with its ultimate mission. It guides you in setting clear KPIs to help you track the progress and success of your goals.

With a well-defined mission, objectives, and value proposition, businesses tend to stay on their path.

3. Navigate market entry

Writing a business plan nudges you to understand the market space in which you will operate. It helps you determine your unique brand position and guides you to target the right set of people for your business.

A business plan details the exact steps of how you will introduce your business to the market. Whether it’s the position of your product, identifying your go-to-market strategy, strategizing the pricing, or securing the distribution channels—a business plan guides you to perfect your market launch.

To summarize, a business plan minimizes the risks associated with a new market by strategizing your market entry.

4. Plan the operations

A business plan turns your vision into an operational roadmap to help you optimize your business operations.

It helps you find answers to questions like these.

• What will be the SOP (standard operating procedure) of a business function, i.e., manufacturing, marketing, and hiring?
• Who would look after particular processes?
• How many people will you require to fulfill a task?
• Where will you perform the business activity?
• How will you ensure the quality of your services?

An operational plan outlines everything, helping you allocate the resources and establish clear workflows.

A business plan is further used to identify the gaps and bottlenecks in your operations. A regularly reviewed business plan accommodates the changing market conditions by introducing timely changes to your operations.

In short, an operational plan ensures that the business runs smoothly and is prepared to scale optimally.

5. Identify professional gaps

Even if you’re starting a business as a solopreneur, you will require the expertise of professionals to fulfill your business objectives. This is where a business plan can be of help.

Writing a business plan helps you identify the gaps in your current capacity. With this knowledge, you can determine the skills and people essential to execute your business strategy.

This can be an accountant, product developer, marketing specialist, legal head, or financial expert.

Once you identify a professional gap, a business plan can assist in onboarding the right type of people for your business. It offers you a detailed hiring and training plan to ensure everyone on the team remains aligned to a common goal.

6. Build strategic a. alliances

Entrepreneurs need to build relationships with suppliers, vendors, and other strategic partners early on to accelerate their market growth.

A business plan can help identify potential partners for your business. Besides, it can help you build valuable relationships with your potential partners by outlining the benefits and goals of the partnership for them.

When you approach someone for a partnership, they will have questions about growth, finances, business goals, and your outlook. Having a business plan handy will help you answer them confidently.

Moreover, a business plan will help evaluate the favorable terms of a strategic alliance. This knowledge can be used to guide the negotiations and get a contract that favors your business.

This excerpt by Jonathan Goldberg , the CEO of Kimberfire , demonstrates how they used a business plan to get a significant partner on board.

“ Kimberfire acquired a partnership with the World’s largest diamond manufacturer using a business plan. By clearly outlining our market strategy and growth projections we were able to demonstrate the value of a partnership that offered direct access to high-quality diamonds at competitive prices. This partnership not only bolstered our inventory but also allowed us to pass on significant savings to our customers, thereby enhancing our competitive edge.”

7. Forecast the capital requirement

Lastly, a business plan can help you understand capital requirements for your company. It helps determine the costs to start and run your business.

Such information guides you in evaluating your funding options.

By referring to your startup costs , you would know whether bootstrapping would be enough or if you would need loans and funding from investors.

These are just a few ways in which one can use a business plan to start a business. However, the use cases can be exhaustive depending on the details put into your plan.

How to use a business plan to secure funding

Most businesses may require funding from external sources to launch or grow their business.

Now, it doesn’t matter whether they secure funding through investors, banks, or grants. What’s important is that they have a business plan to prove the financial sustainability of their business.

Here’s how one can use a business plan to secure funding and convince investors:

8. Define funding needs

A business plan can help you determine the funding essential for your business. Moreover, it can also help evaluate the funding source that’s better suited for your business.

By building detailed projections for costs, expenses, sales, and cash flow, your plan helps determine the capital essential to launch or grow your business.

Additionally, a business plan can be used to justify your funding demands. A clear funding plan explains how you intend to use the investor’s money, i.e., buy new machinery, hire new staff, or expand the business operations.

This clarity demonstrates careful financial planning and builds investors’ confidence in your venture.

9. Manage fundings

Your funding plan already includes details about where you intend to use the money. However, you can now use it to create a detailed roadmap.

A well-planned business plan demonstrates how you should delegate the funding to different business departments. Additionally, it guides you in managing the secured funds efficiently by helping you set budgets, financial controls, and performance trackers.

This detailed approach assures investors that their funding is used responsibly and efficiently.

Further, as you update the plan, identify if your execution strategy requires change. If so, you can make the necessary changes and update the investors, keeping them in the loop. This will help them trust you more.

10. Support the loan application

A business plan is compulsory for everyone submitting an SBA loan application. Even private lending firms would require a business plan to make their funding decision.

A well-detailed business plan is sufficient to support your loan application. It demonstrates that you have conducted essential planning to make your business idea viable and sustainable.

A business plan answers all the questions that a lender might have to assess your creditworthiness and repayment capacity.

Questions such as:

• What will be the profitability of your business?
• What are the major cost drivers of your business?
• What will the debt-to-equity ratio be if you approach investors?
• How stable is your cash flow?
• What will the ROI and the payback period be?

Lenders can trust you more when they get essential answers backed with data.

That said, let’s understand how a business plan can drive enterprise growth.

How to use a business plan to grow your business

A business plan can be instrumental in testing different scenarios, evaluating growth opportunities, and making strategic decisions. All these help you grow your business and face the challenges efficiently.

Here’s how:

11. Guide strategic decisions

A business plan can help you make strategic decisions that align with your ultimate growth objectives.

Whether you want to launch a business at a new location, invest in new machinery, introduce a new product line, hire new employees, or onboard new technology—a business plan can help.

A business plan provides a framework to assess the risks, opportunities, and financial impact of a strategic decision on your business. It helps determine the right time to launch your growth initiative and demonstrates whether making a particular decision will be fruitful or not.

This way you won’t make a decision that can put you off your long-term goals.

12. Monitor business performance

Once you make a strategic decision, use your business plan to clarify the strategy and outline your execution plan.

A business plan can additionally assist in measuring business performance against set KPIs and performance benchmarks. Regularly evaluating these metrics allows you to identify areas that may need improvement or adjustments.

By using the business plan as a performance management tool, you can make data-driven adjustments to your approach and grow your business sustainability.

13. Adapt to market changes

A business plan isn’t set in stone. It’s a living document that adapts to changing market conditions.

It can be used to adapt your strategies based on new market data and shifts in customer preferences. Such regular updates help you remain competitive and agile in the face of changing market conditions.

Additionally, a business plan can help you develop a response to an emergency crisis.

A business plan accommodates all your strategies, milestones, metrics, tactics, and projections in one place. By using the plan as a performance dashboard, you can anticipate the changes and adjust the priorities to deal with the crisis.

Mark McShane offers a practical example of how he used a business plan to meet contingencies in his company, Cupid PR .

 “When we hit cash flow problems, we followed the financial contingency section of our plan to manage expenses and short-term funding. We were able to quickly implement the cost-saving strategies and secure a bridge loan to stabilize our finances without sacrificing growth. Business plan made it possible to respond to this challenge efficiently which gave us a 40% revenue increase the next year.”

14. Test different scenarios

A business plan can be used as a tool for scenario analysis.

As the regulatory, economic, and competitive landscape of a business evolves, you need to test and plan for different scenarios, like:

• Entry of a new competitor
• Regulatory changes
• Technological advancement
• Market demand shifts
• Natural disaster

Businesses can evaluate the financial and operational impact of these scenarios using a business plan. By using business plan forecasts as a base, they can prepare for various worst- and best-case scenarios.

Preparing for different scenarios helps you leverage the opportunities and mitigate the risks whenever they arise.

Those are quite a few ways in which a business plan can assist or facilitate growth. Entrepreneurs can find more ways to use a business plan depending on the depth that their plan covers.

How to use a business plan internally

One of the most essential uses of business plans is to guide your operations, management, and team toward the goal.

Here’s how.

15. Align team and stakeholders

A business plan is an excellent tool for aligning your team and stakeholders toward a common mission.

A well-crafted business plan documents the company’s goals, mission, KPIs, and milestones. With the basics clearly articulated, it gets easier to bring your internal team and stakeholders on the same page.

Now, you don’t need a detailed plan to convey your goals. A simple list of goals and how they contribute to your ultimate objectives is enough for internal use.

This quote from our conversation with Shawn Plummer , the CEO at the Annuity Expert , shows how he used a business plan to drive a 50% revenue increase in 2 years:

“By breaking down our growth strategy into clear, measurable goals, the business plan became more than just a document; it was a tool for uniting our team. Everyone, from marketing to operations, understood how their efforts related to our overall goals. This connection was critical to our success, resulting in a 50% revenue rise in just two years.”

16. Streamline business operations

A business plan can streamline business operations by outlining the standard operating procedures (SOPs) for different business processes. It’s further used to define the responsibilities, resource allocation, and hiring plans for your organization.

Remember, a well-crafted operations plan acts as a guidebook for your business. It details every process, responsibility, and resource essential for running a smooth operation. Referring to it can help increase efficiency, reduce waste, and enhance productivity.

Now if you’re writing a traditional plan, you’ll have a detailed section on business operations. However, if you’re writing a lean plan, we recommend building a separate internal operations plan to guide your business operations.

Simply list the business processes, create an outline, and use ChatGPT to write a business plan . Your internal use operations plan doesn’t need to follow a specific format or structure. It should just distill clarity.

17. Efficient performance reviews

A business plan outlines the KPIs and goals, offering you a benchmark to evaluate the individual performance of team members. These metrics can be used to track actual results and take appropriate actions.

A business plan helps foster the environment for continuous development by linking performance to strategic goals.

That’s a few definite ways to use business plans for internal growth and management. Internal business plans can follow any structure or format, as long as they get the task done.

How to keep your business plan relevant

As we discussed, a business plan is a living document that requires frequent updates and changes to maintain relevancy.

Ideally, one should update their business plan at least once a year to keep it useful. However, businesses in highly volatile or competitive markets should consider reviewing it quarterly.

A business plan must represent accurate market conditions. If that’s not the case, a review should incorporate new market trends into the strategy, adjust the operational realities, and revise the financials. This ensures that your plan remains relevant and realistic to help you achieve your business objectives.

Include your team members in the review process to ensure the strategies address their key concerns and align with the entire organization.

All in all, adopt a flexible planning approach to keep your plan relevant to the dynamic world.

By now, you have a thorough understanding of the different uses of a business plan. However, these use cases are only relevant if you have a realistic and actionable business plan offering a true overview of your business. Only then can you use a business plan to launch, grow, and fund your business.

Now, draft a quick business plan using the Upmetrics business planning app . Its AI planning features, business plan templates, financial forecasting assistance, and detailed guides will help you prepare a reliable business plan in no time.

Build your Business Plan Faster

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Frequently Asked Questions

What is the most common use of a business plan.

A business plan is most commonly used to secure investments from investors. Additionally, organizations use it to define strategic goals, guide business operations, and evaluate the company’s performance.

How do you use a business plan for a small business?

A business plan offers crucial help to small businesses in the following ways:

• Idea validation
• Navigating market entry
• Planning business operations
• Building strategic alliances
• Forecasting the capital requirements

How do I use a business plan to attract investors?

A business plan can be used to prove the financial sustainability of a business idea. Investors can evaluate whether their investment would offer enough ROI, profitability, and growth by referring to your in-depth business plan. When they see that you’re well-prepared to face real market situations, they feel convinced of your ability to run a business.

How often should a business plan be updated?

Ideally, you should update a business plan at least once a year. However, businesses operating in dynamic, competitive markets need more frequent reviews. This can be monthly or quarterly.

Why is it important to review a business plan over time?

A business plan offers a roadmap to achieve your business objectives. But, if not updated often, your plan won’t reflect the current market. This will make your plan irrelevant and distant from your goals. To avoid such situations, it’s important to review your plan regularly.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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