bww business plan

Amway Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their Amway companies.

If you’re unfamiliar with creating an Amway business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a Amway business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Amway Business Plan?

A business plan provides a snapshot of your Amway business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Amway Business

If you’re looking to start an Amway business or grow your existing Amway network, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your Amway business to improve your chances of success. Your Amway business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Amway Businesses

With regard to funding, the main sources of funding for an Amway business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for Amway companies.

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How to write a business plan for an amway business.

If you want to start an Amway business or expand your current Amway business, you need a business plan. The guide below details the necessary information for how to write each essential component of your Amway business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of Amway business you are running and the status. For example, are you a startup, do you have an Amway business that you would like to grow, or are you operating Amway businesses in more than one state?

Next, provide an overview of each of the subsequent sections of your plan.

Give a brief overview of the Amway industry.
Discuss the type of Amway business you are operating.
Detail your direct competitors. Give an overview of your target customers.
Provide a snapshot of your marketing strategy. Identify the key members of your team.
Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of Amway business you are operating.

For example, you might specialize in one of the following types of Amway businesses:

Retail Sales Amway Business: In this type of Amway business, you will concentrate on retail sales to customers within your developing network.
Leadership Team Development Business: If you are concentrating on developing leaders within Amway networks, your concentration will be on conferences, events, training materials and other forms of leadership training and communication.
High Volume Amway Business: This type of Amway business is focused on high-volume network customers who buy in bulk in order to distribute to Amway business owners who have a lower-level volume of sales.
Online Amway Business: Offering select Amway items that are available in an online-only format, this type of Amway Business has online customers and network growth via digital sales exclusively.

In addition to explaining the type of Amway business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

When and why did you start the business?
What milestones have you achieved to date? Milestones could include the number of customers served, the amount of revenue during the past six months, opening a second Amway network, etc.
Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the Amway industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the Amway industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your Amway business plan:

How big is the Amway industry (in dollars)?
Is the market declining or increasing?
Who are the key competitors in the market?
Who are the key suppliers in the market?
What trends are affecting the industry?
What is the industry’s growth forecast over the next 5 – 10 years?
What is the relevant market size? That is, how big is the potential target market for your Amway business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your Amway business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, corporations, medical distributors, and civic organizations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of Amway business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regard to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other Amway businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes warehouse store chains, grocery stores, mail-order companies, and wholesalers. You need to mention such competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

What types of customers do they serve?
What type of Amway business are they?
What is their pricing (premium, low, etc.)?
What sets their business apart from others?
What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And, don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

Will you provide options for volume discounts or special deliveries?
Will you offer products or services that your competition doesn’t?
Will you provide better customer service?
Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a Amway business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of Amway company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide Amway products with a 2-day delivery service for senior orders?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your Amway company. Document where your company is situated and mention how the site will impact your success. For example, is your Amway business located in a business district, a home office, or is it purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your Amway marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

Advertise in local papers, radio stations and/or magazines
Reach out to websites
Distribute direct mail pieces to your target audience
Engage in email marketing
Advertise on social media platforms
Improve the SEO (search engine optimization) with target keywords on your website

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your Amway business, including answering calls, taking orders, planning and scheduling Amway deliveries, paying invoices, contacting customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to reach a high-level in the network , or when you hope to reach $X in revenue. It could also be when you expect to expand your Amway business to include additional Amway networks.

Management Team

To demonstrate your Amway business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing Amway businesses. If so, highlight this experience and expertise. But, also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an Amway business or successfully running an Amway distributorship.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 25 online customers per day, and/or offer special Amway volume sales with an online order? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your Amway business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit, but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a Amway business:

Cost of inventory and related packaging
Cost of furnishings or accessories
Payroll or salaries paid to staff
Business insurance
Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, office supplies and equipment

Attach your full financial projections in the appendix of your plan, along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of friends and associates who are already lined up to buy Amway from your business.

Writing a business plan for your Amway business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the Amway industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful Amway business.

Amway Business Plan FAQs

What is the easiest way to complete my amway business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your Amway business plan.

Where Can I Download an Amway Business Plan PDF?

You can download our amway business plan PDF here. This is a business plan template you can use in PDF format.

How Do You Start an Amway Business?

Starting an Amway business is easy with these 14 steps:

Choose the Name for Your Amway Business
Create Your Amway Business Plan
Choose the Legal Structure for Your Amway Business
Secure Startup Funding for Your Amway Business (If Needed)
Secure a Location for Your Business
Register Your Amway Business with the IRS
Open a Business Bank Account
Get a Business Credit Card
Get the Required Business Licenses and Permits
Get Business Insurance for Your Amway Business
Buy or Lease the Right Amway Business Equipment
Develop Your Amway Business Marketing Materials
Purchase and Setup the Software Needed to Run Your Amway Business
Open for Business

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Buffalo Wild Wings was sucked into a downward spiral as millennials ditched the chain — but the new CEO has a plan for a comeback

The parent company of Arby's, Roark Capital Group, completed its $2.9 billion acquisition of Buffalo Wild Wings on Monday.
Paul Brown, who led an effort to turn around Arby's business, will be CEO of the newly formed operating company that will oversee both Buffalo Wild Wings and Arby's.
Brown told Business Insider that the major changes on Buffalo Wild Wings' horizon include a new menu and new marketing strategies.
The biggest problem Brown says he has to solve: Buffalo Wild Wings lost what made it unique.
You can read Business Insider's full interview with Brown here .

Buffalo Wild Wings needs a savior — and it may have found one in the CEO who led an effort to transform Arby's business.

Buffalo Wild Wings has struggled over the past two years with slumping sales and a monthslong battle between executives and an activist investor.

On February 5, the parent company of Arby's, Roark Capital Group, closed a $2.9 billion deal to acquire Buffalo Wild Wings. Paul Brown will serve as the CEO of the newly formed holding company Inspire Brands, which encompasses Arby's, Buffalo Wild Wings, and R Taco.

The next day, Brown sat down with Business Insider to talk about Inspire Brands and his plan for Buffalo Wild Wings.

"There will obviously be some changes to the menu, changes to the experience, and changes to the marketing," Brown said.

And while Buffalo Wild Wings isn't going to transform into Arby's 2.0, the sandwich chain's turnaround over the past five years — which primarily involved shifts in its menu and marketing — has become a blueprint for the future of the chicken-wings chain.

"I think the process and the mindset of how we went about it is exactly how we're going about it with Buffalo Wild Wings too," Brown said.

Solving Buffalo Wild Wings' biggest problem

Brown says Buffalo Wild Wings' biggest problem is that it lost what set it apart from the competition.

"I think that if you look back when Buffalo Wild Wings was really, really, really successful, it was really the only one out there doing what it was doing," Brown said. "We had a nationalized local sports bar, and then more competition has come in, and I think that some of that competition has been a little bit more innovative."

Brown continued: "I think there's an opportunity to figure out the 21st-century incarnation of what made it so successful during particularly the early 2000s."

A " sea of sameness " has emerged as a common problem in the sit-down casual-dining industry in recent years. Buffalo Wild Wings, which has sought to market itself less as a sports bar and more as a general casual-dining chain, was caught up in the industry sales slump as more millennial diners ditched the sector.

In May, Buffalo Wild Wings' CEO at the time, Sally Smith, wrote in a letter to shareholders explaining its slumping sales that "millennial consumers are more attracted than their elders to cooking at home, ordering delivery from restaurants, and eating quickly, in fast-casual or quick-serve restaurants."

Brown plans to emphasize what makes Buffalo Wild Wings different from other sit-down chains.

"When it was growing gangbusters, it didn't position itself against its traditional cast of casual-dining players," Brown said.

He added: "I think there's an opportunity to step way back and say it's not and let it define its own category — a little bit of what we did with Arby's."

Buffalo Wild Wings needs a menu no one else could serve

Brown has signaled that Buffalo Wild Wings needs a new menu strategy. Currently, much of the chain's success depends on chicken prices , which can be extremely volatile.

"Ultimately, if you're in the restaurant business, it comes down to food and innovation," Brown said.

To update Buffalo Wild Wings' menu, Inspire Brands is turning to Arby's for inspiration.

A new 'persona' is on the horizon

Arby's success has also been tied to its creative and sometimes borderline bizarre marketing strategy.

The chain debuted the bold "We Have the Meats" campaign in 2014. Its social-media manager was given more freedom that year after a tweet comparing Pharrell Williams' hat at the Grammys to Arby's logo went viral.

Brown described the approach as "create the personality, the brand, use earned media and all forms of earned media to create a persona around it as well as an awareness around it."

"If you think about it, the Buffalo Wild Wings brand is made for that," he said.

He suggested Buffalo Wild Wings' "persona" wouldn't be a rip-off of Arby's but would involve taking similar risks.

"If we sit here a year from now saying that Buffalo Wild Wings is sounding a lot like Arby's, then we failed," Brown said.

Brown continued: "I think that is going to be the key — how we actually take the learnings and the capabilities from what we've done and leverage those learnings, leverage the infrastructure, and do it in a way that the brands look completely different from each other."

Nothing at Buffalo Wild Wings will change — yet

When asked what customers can expect to change at Buffalo Wild Wings, Brown said, "Nothing."

Much of the work to turn the chain around will be occurring behind the scenes, at least for the next few months, he said.

Brown says he's already met with some Buffalo Wild Wings franchisees. And in January, before the deal officially closed, Inspire Brands started consumer research to figure out what is going wrong at the chain and determine what Buffalo Wild Wings' new era should look like.

Arby's provides a blueprint for change, Brown said. However, he'll need to prove that its success wasn't a fluke.

Inspire Brands plans to acquire a diverse array of chains in need of "repositioning," Brown said. Meanwhile, Buffalo Wild Wings will be the test drive of whether Arby's turnaround can be replicated — or whether Brown is operating with a flawed blueprint.

Watch: Buffalo Wild Wings' Blazin' Wing Challenge requires a waiver before attempting

Main content

Buffalo Wild Wings Franchise: 7 FAQs on its Profit Potential!

By henry sheykin, resources on buffalo wild wings franchisee.

Financial Model
Business Plan
Value Proposition
One-Page Business Plan
SWOT Analysis
Business Model
Marketing Plan

How much does it cost to open a Buffalo Wild Wings franchise?

Opening a franchise of any kind comes with significant investments and costs, and Buffalo Wild Wings is no exception. The cost of opening a Buffalo Wild Wings (BWW) franchise can vary depending on several factors, such as real estate, location, size, equipment, staffing, and other expenses.

According to the BWW franchise disclosure document, the average total investment to open a restaurant ranges between $1.6 million and $3.9 million. This investment includes several items such as:

Franchise fee – BWW charges a one-time franchise fee of $50,000 for each restaurant that you open.
Real estate – The cost of renting or purchasing a location can vary, but it typically ranges between $450,000 and $750,000.
Construction – The cost of building a restaurant can vary depending on the size and location, but this expense can range between $500,000 and $1.5 million.
Initial inventory – You will need to purchase initial inventory, including food, beverages, supplies, and other goods, which can cost between $70,000 and $120,000.
Equipment and furnishings – This expense can range from $175,000 to $475,000 and includes kitchen equipment, furniture, and fixtures.
Marketing – The cost of marketing, advertising, and promoting your restaurant can vary, but it is essential to invest in a proper marketing strategy to attract customers.
Training and support – BWW offers training and support to franchisees to ensure they understand the business model and are prepared to run a successful restaurant.

It is essential to note that these costs are estimates, and the actual costs may vary based on many factors. As a potential franchisee, it is essential to conduct thorough research and create a detailed business plan that includes projected expenses and revenues.

Furthermore, to reduce the risk of investing in a new franchise, consider partnering with an experienced business consultant, such as a franchise lawyer or financial adviser, to help review the franchise agreement, understand the costs, and mitigate potential risks. Additionally, ensure that you have adequate funding to cover potential losses, such as marketing expenses and other operating costs.

In conclusion, opening a BWW franchise is a significant investment that requires dedication, hard work, and financial resources. By researching and understanding the costs involved, creating a detailed business plan, and seeking professional advice, you can increase your chances of successfully opening and operating a BWW franchise.

Becoming a Buffalo Wild Wings franchisee requires financial stability, business experience, leadership skills, and a commitment to the brand.
Successful franchisees also typically have excellent communication skills, strategic thinking abilities, flexibility, and the ability to adapt to changing circumstances.
Buffalo Wild Wings offers comprehensive training to its franchisees, including pre-opening, on-site, and management training, as well as ongoing support.
The term of a Buffalo Wild Wings franchise agreement typically ranges from 10 to 20 years, and potential franchisees should conduct thorough research before signing.
Buffalo Wild Wings provides numerous support services to its franchisees, including training, site selection and lease negotiation, marketing and advertising, procurement, operations support, technology support, and financial assistance.
As a franchisee, it is essential to take advantage of these resources and work closely with the franchisor to maximize the potential of your business.

What is the royalty fee for Buffalo Wild Wings franchise?

Buffalo Wild Wings is a popular American sports bar franchise that offers a variety of food and drinks to customers. To open a Buffalo Wild Wings franchise, one must first meet stringent criteria and pay a number of fees, including a royalty fee. A royalty fee is the amount of money a business owner must pay the franchisor for continued use of the company’s brand and services. The fee is generally paid on a monthly basis and is calculated as a percentage of the franchisee’s gross sales.

In the case of Buffalo Wild Wings, the royalty fee is 5% of the franchisee’s gross sales. This means that if a franchisee earns $50,000 in sales for a particular month, they would be required to pay a royalty fee of $2,500 to the company. While this may seem like a significant amount, it is important to keep in mind that this fee includes access to Buffalo Wild Wing’s established brand, marketing support, and ongoing training and support for the franchisee and their staff.

Franchisees must also be prepared to pay an initial franchise fee, which is the cost of obtaining the franchise rights. The initial fee for Buffalo Wild Wings varies, but it typically ranges from $40,000 to $80,000 depending on the size and location of the franchise. This fee covers the cost of initial training, site selection, construction or renovation, and other expenses associated with opening a new franchise location.

Tip 1: Do your research

Before investing in a Buffalo Wild Wings franchise, it is important to do your research and ensure that it is the right fit for you. This includes learning more about the company’s history, operations, and franchise requirements.

Tip 2: Plan for additional expenses

In addition to the initial franchise fee and ongoing royalty fees, franchisees should also plan for additional expenses such as rent, utilities, inventory, and advertising costs. It is important to create a realistic budget to avoid unexpected costs and financial strain.

Tip 3: Take advantage of support and resources

Buffalo Wild Wings offers ongoing training and support to franchisees, including marketing and operational support. By taking advantage of these resources, franchisees can better position themselves for success and growth.

In conclusion, the royalty fee for a Buffalo Wild Wings franchise is 5% of the franchisee’s gross sales. While this may seem like a significant amount, it includes valuable resources and support from the company. Franchisees should carefully consider the initial investment and ongoing expenses before committing to a franchise, but with careful planning and support, a Buffalo Wild Wings franchise can be a successful and profitable venture.

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How Much Can You Make Owning a Buffalo Wild Wings Franchise?

Investing in a Buffalo Wild Wings franchise is a lucrative opportunity that can lead to significant profits. However, the amount of money you can make owning a Buffalo Wild Wings franchise can vary based on several factors, including location, size of the restaurant, competition, and operational costs.

According to Franchise Direct, the estimated initial investment for a Buffalo Wild Wings franchise ranges from $1.5 million to $4 million. This includes the franchise fee, real estate, equipment, inventory, and other startup costs.

Once the franchise is up and running, the success of the business depends on factors such as location, customer service, menu offerings, marketing strategies, and operational efficiency. A well-managed Buffalo Wild Wings franchise can easily generate millions of dollars in revenue each year.

For example, the Franchise Disclosure Document for 2018 shows that the average annual sales for a Buffalo Wild Wings restaurant were $3.8 million, with some locations generating revenue of up to $6 million per year.

However, it's important to note that operating costs such as rent, employee salaries, and food and beverage expenses can significantly impact profits. In addition, franchises are required to pay a 5% royalty fee and 4% advertising fee to Buffalo Wild Wings for using the brand and operating under their guidelines.

In order to maximize profits, franchise owners can implement strategies such as reducing overhead costs, increasing sales through effective marketing and promotions, and providing exceptional customer experiences to build a loyal customer base.

Tips for Owning a Successful Buffalo Wild Wings Franchise

Location is crucial. Choose a location with high foot traffic and easy accessibility.
Hire and train a skilled management team and staff who are dedicated to providing exceptional service.
Offer a diverse menu with quality food and beverage options that cater to a variety of tastes and preferences.
Create a welcoming atmosphere with a fun, sports-centric theme that appeals to customers.
Implement cost-saving measures such as energy-efficient equipment and inventory management systems.
Develop a strong marketing strategy that engages and attracts customers through social media, print advertising, and promotions.

Ultimately, owning a Buffalo Wild Wings franchise can be a lucrative and rewarding investment for entrepreneurs who are willing to put in the effort to create a successful business.

What qualifications do I need to become a Buffalo Wild Wings franchisee?

Becoming a Buffalo Wild Wings franchisee requires a variety of qualifications and experience. To start with, you need to have a good understanding of the restaurant industry and a passion for serving customers. Additionally, the company has set specific requirements for franchisees to meet.

Financial Stability: You need to have a minimum net worth of $1.5 million and liquid assets of $750,000. This requirement ensures that you have the resources to invest in the restaurant and sustain its operations.
Business Experience: Buffalo Wild Wings seeks franchisees who have owned or managed at least one multi-unit restaurant operation. This experience helps to ensure that you understand the complexities of running a restaurant business and can handle the challenges that come with it.
Leadership Skills: As a franchisee, you will be responsible for managing a team of employees, overseeing day-to-day operations, and ensuring that the business is profitable. Therefore, strong leadership skills are essential for success.
Commitment to the Brand: Buffalo Wild Wings wants to partner with franchisees who understand and are committed to the company's values, culture, and brand standards. This dedication ensures that the Buffalo Wild Wings experience remains consistent across all locations.

In addition to meeting the requirements mentioned above, successful franchisees also typically have excellent communication skills, strategic thinking abilities, flexibility, and the ability to adapt to changing circumstances.

Once you meet the qualifications and complete the company's application process, you will be considered for franchise ownership. If you are selected, the company will provide you with extensive training and ongoing support to help you start and operate your Buffalo Wild Wings franchise.

Is There Training Provided to Buffalo Wild Wings Franchisees?

Yes, Buffalo Wild Wings provides comprehensive training to its franchisees. The company offers both classroom and hands-on training programs to ensure that franchisees understand the business model, brand standards, and operations.

The training program is designed to help franchisees learn everything they need to know about running a successful Buffalo Wild Wings restaurant, including pre-opening training, management training, and ongoing support. Here are examples of training provided to franchisees:

Pre-opening training: Before a franchisee's restaurant opens, the company offers three weeks of classroom training at their training center. During this time, franchisees learn about everything from menu to operations.
On-site training: Once a restaurant is ready to open, Buffalo Wild Wings provides five weeks of hands-on training to its franchisees and employees. This training program covers everything from food preparation to customer service.
Management training: For franchisees that will oversee multiple restaurants, the company offers additional management training. This program provides leadership development, operational training, and financial training to ensure that franchisees can effectively run and manage their restaurants.
Ongoing support: Buffalo Wild Wings provides support to its franchisees even after their restaurants have opened. This includes access to a franchise support team, ongoing training and development programs, and a franchisee portal for managing operations and finances.

As a tip for new franchisees, it’s important to take advantage of all the training and support offered by Buffalo Wild Wings. The training programs are designed to help franchisees succeed, so be sure to ask questions and seek help when it’s needed. Additionally, attend training sessions with an open mind and be willing to learn new things to make your restaurant successful.

Term of a Buffalo Wild Wings Franchise Agreement

A franchise agreement is a legal document that grants the rights and obligations to operate a business model owned by a franchisor. Before investing in a franchise, it is important to understand the terms of the franchise agreement, including the term of the agreement.

The term of a Buffalo Wild Wings franchise agreement typically ranges from 10 to 20 years. However, the actual term may vary depending on various factors, including the location of the franchise, the size of the franchise, and the agreement between the franchisor and the franchisee.

For instance, a Buffalo Wild Wings franchise in a busy city center might have a shorter term compared to a franchise in a less busy area. Meanwhile, a franchisee that invests a large amount of capital in the business might have a longer term. Ultimately, the term of a Buffalo Wild Wings franchise agreement is negotiated between the franchisor and the franchisee based on the specific circumstances of the franchisee.

It is important to note that the term of a franchise agreement does not guarantee success in the business. Rather, the success of a franchise is determined by several factors, including the franchisee’s management skills, location, marketing strategies, and competition in the local market.

Before signing a franchise agreement, it is essential to understand the terms and conditions of the agreement, including the term of the agreement. It is also crucial to conduct thorough research on the franchisor and the local market to determine the potential for success in the business.

Research the franchisor and its operations.
Analyze the local market where you plan to establish the franchise.
Seek assistance from a franchise attorney to review the franchise agreement.
Conduct a financial analysis to determine the profitability of the franchise.
Consider the ongoing support and training offered by the franchisor.

In conclusion, the term of a Buffalo Wild Wings franchise agreement is typically between 10 and 20 years. However, the actual term may vary based on various factors negotiated between the franchisor and the franchisee. Franchisees should conduct thorough research and seek professional assistance to ensure they fully understand the franchise agreement and the potential for success in the business.

What support does Buffalo Wild Wings offer to its franchisees?

Buffalo Wild Wings is a well-known restaurant brand famous for its buffalo wings, and it also has a successful franchise program. As a franchisor, the company provides numerous support services to its franchisees, including:

Training and development: Buffalo Wild Wings offers an extensive training program for its franchisees, which includes classroom training on the company's operations, policies, and procedures. The training also covers food preparation, management, and customer service. The company provides ongoing support to franchisees through training updates, webinars, and conferences.
Site selection and lease negotiation: Buffalo Wild Wings assists its franchisees with site selection and lease negotiation. The company uses a data-driven approach to help franchisees find the best locations for their restaurants. The company also has a team of experts who help franchisees negotiate favorable lease terms and conditions.
Marketing and advertising: Buffalo Wild Wings has a robust marketing and advertising program for its franchisees. The company provides national campaigns, which ensures consistency in brand messaging across all locations. Additionally, the company provides its franchisees with access to the brand's marketing materials, including digital and print advertisements, social media content, and in-store signage.
Procurement: Buffalo Wild Wings has a centralized procurement system in place to help franchisees with the purchasing process. This system enables franchisees to purchase goods and services at lower costs, thus improving their profitability.
Operations support: Buffalo Wild Wings provides continuous support to its franchisees through operations manuals, operational checklists, and periodic inspections. The company also conducts regular audits to ensure that franchisees meet the company's standards and comply with the franchise agreements.
Technology support: Buffalo Wild Wings has implemented various technologies to streamline its franchisees' operations, including point-of-sale systems, mobile ordering, and payment processing. The company also provides training on how to use these systems, as well as technical support when needed.
Financial support: Finally, Buffalo Wild Wings offers financial support to its franchisees. The company provides financing assistance to help franchisees secure loans for their restaurants. The company also provides ongoing financial guidance to help franchisees improve their profitability through efficient operations and cost management.

In conclusion, Buffalo Wild Wings offers comprehensive support services to its franchisees, ranging from training and development to financial assistance. These services are designed to help franchisees succeed and maintain the consistency and quality of the brand. As a franchisee interested in partnering with Buffalo Wild Wings, it is essential to take advantage of these resources and work closely with the franchisor to maximize the potential of your business.

After reviewing the comprehensive training and support services provided by Buffalo Wild Wings to its franchisees, it is clear that investing in a franchise with this well-known restaurant brand can be a worthwhile investment. From pre-opening training to ongoing support, Buffalo Wild Wings offers its franchisees the tools necessary to succeed in the competitive restaurant industry. However, it is important for potential franchisees to conduct thorough research, seek professional assistance, and carefully review the franchise agreement to ensure they fully understand the investment and potential for success. With the right approach, a Buffalo Wild Wings franchise can provide a profitable and rewarding business opportunity.

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Strategic Plan and Presentation Buffalo Wild Wings, Business Plan Example

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Table of Contents

Executive Summary…………………………………………………………,,,………3

Company Background………………………………………………………,,,….….4

Mission…………………………………………………………………………,,,……,, 4

Vision……………………………………………………………………………,,,,…… 5

Environmental Scan…………………………………………………..…,,,, ……….6

External Factors…………………………………………….………………..……………6

Internal Factors……………………………………………….………………………………8

Organizational Strategy..…………………….……….……………… …….….10

Implementation Summary……………………………………….……………..…10

Functional Tactics……………………………………………………………………..….12

Key Success Factors ………………………………………………………………,……13

Projected Financials and Break Even Analysis ……………………………………………13

Risk Management Plan……………………………………………………………………..14

Conclusion…………………………………………………………………………….15

Executive Summary

Buffalo Wild Wings is one of the fastest growing sports bar food chains in the United States and Canada with over 900 locations and counting. Buffalo Wild Wings the place to go with family and friends to enjoy award winning wings and tasty sauces, with beer and drinks while watching the favorite sports team. Buffalo Wild Wings specializes not only in wings but offers a wide assortment on their menu of shrimp, wraps, chicken tenders, beefy burgers, and tasty salads. There also offer a full bar of favorite mixed drinks and beverages to quench any thirst. Buffalo Wild Wings offers the viewing pleasure of catching up on the latest sports from football games, basketball games, hockey, and other games and pay per view events on their popular screen TVs. Buffalo Wild Wings is not just another bar, it serves as a friendly restaurant to bring the family, friends, or yourself to enjoy a delicious meal.

Buffalo Wild Wings is a dominant market player ranked as the eighth largest restaurant in the U.S. by Technomic Inc. (Merrill, 2002). For 2012 total revenue increased 37.8% to $303.8 million. This strategic plan will examine the company’s vision and mission Statement in order to implement an expansion strategy to plan for growth to reach the target 1000 locations, and expand globally. It will include charts and analysis of external and internal factors, access the factors in the implementation plan that might affect the whole company. These steps are essential is testing the feasibility of the growth strategy for Buffalo Wild Wings.

Company Background

Buffalo Wild Wings is a chicken wing restaurant that opened in 1982 by Scott Lowery and Jim Disbrow (Merrill, 2002). Their main target was college students thus most of the restaurant’s chains were located near colleges. With time, growth being one of the goals of the chicken wing firm, they extended their target market to not only college students, but also to the people living in emergent suburban areas. The restaurant’s specialty in chicken wings and a sports bar has made it popular among males aged between 21-34 years. Close to, a decade after the first restaurant was up and running, the chicken wing business had grown and could boast of having seven more outlets (Merrill, 2002). However, the financial state of the chains of the restaurant was in jeopardy, which forced Jim Disbrow to employ Sally Smith as the chief financial officer to restore affairs back in order. Within two, years, she had managed to correct financial affairs in the chain of restaurants, and by 1996, the firm had added 60 more outlets to its name and was still showing signs of growth. The hundredth restaurant was established in 1999 and was seeking to merge with Frito-Lay to introduce potato chips (Merrill, 2002). Buffalo Wild Wings owns, franchises, and operates in over 900 locations across 49 states and Canada. There are currently out looking in 2013 to open up 100 more stores, 60 company operated, and 45 franchised. They recently announced a multi-year partnership with the NCAA gives us exclusive marketing and promotional opportunities and makes Buffalo Wild Wings the ‘Official Hangout’ of NCAA March Madness®. We’ll increase the presence and popularity of the Buffalo Wild Wings brand and look forward to achieving a successful year of the unit and net earnings growth.” (Buffalo Wild Wings, 2013)

Mission Statement

Buffalo Wild Wings has a unique market. The target market is people from the ages of 20 to 50. Buffalo Wild Wings Inc., owns, operates, and franchises restaurants, which take part in the made-to-order menu items. Part of Buffalo Wild Wings the mission is to WOW people every day. They are guest driven, team focused, community connected, and dedicated to excellence. They strive to wow our guest by achieving the highest level of satisfaction with high focus on friendly service, food, fun and great value. They also want to WOW their team members and employees by showing the same respect and positive encouragement. Their miss is to always show good citizenship by helping to make these communities’ better places to live, work, and grow. They will dedicate ourselves to excellence by returning our franchisees and stakeholders with outstanding, industry-leading financial results and superior performance.

Vision Statement

Buffalo Wild Wings vision is short and precise, their vision is to provide the ultimate social experience through restaurant brands worldwide. They plan to reach 1000 units by the end of 2013. The CEO’s vision for the future is for continual growth and future investments to make the company a success.

Value Statement

Buffalo Wild Wings follows a strict code of conducts and places value on their customers, employees, and franchise owners. Buffalo Wild Wings depends on the character of its team members and employees. Their character is a reflection out the company’s leadership values which includes attracting and recruiting quality, knowledgeable, honest people with leadership skills, and a passion for doing their best. Buffalo Wild Wings value their guests, co-workers and communities and strive to treat them with respect. (Code of Ethics, 2008)

Environment Scan

Internal Environment

There are several factors that contribute to the success or fail of a business as Buffalo Wild Wings continues its plan for future growth, it must take into account the internal environment of the company. Buffalo Wild Wings currently at the end of 2012 owned or franchised 891 Buffalo Wild Wings restaurants in North America, of which 381 were company-owned, and 510 were franchised.(Buffalo Wild Wings, 2013) Buffalo Wild Wings currently employs approximately 25,500 Team Members. With approximately 2,800 full-time and 22,300 part-time Team Members working in the company-owned restaurants and 400 Team Members based out of the home office or in field management positions. (Buffalo Wild Wings, 2013) The management of Buffalo Wild Wings include CEO Sally Smith and CFO Mary Twinem who both came on the scene in 1994, have helped lead a successful turnaround from where it once stood. Including implementing a standard point-of-sale management information system, and changing the layout and design of the company.

(Motley fool, 2013)

There at a financial advantage that continues to show through revenue of $ 1 billion, with system wide sales at $2.5 billion and net earnings of $57 million. 15% of company-owned and franchised. Sales of the company-owned restaurants, which represented 93% of total revenue in 2012. Food and nonalcoholic beverages accounted for 78% of restaurant sales. The remaining 22% of restaurant sales was from alcoholic beverages. The menu items with the highest sales volumes are traditional and boneless wings at 20% and 19%, respectively, of total restaurant sales.(Buffalo Wild Wings, 2013) The remaining revenues is from royalties and franchise fees received from our franchisees. Their debt-free capital structure is a primary factor of the company that puts at a high advantage over their competitors, who contain significant debt, As the company is becoming more efficient, the company‘s margins are expanding. The Return on Assets has been an average of 7.01% for the last few fiscal years. Buffalo Wild Wings success is also contributed to the growing success of their franchises.

The restaurant sales for company-owned and franchised restaurants are as follows (amounts in thousands):

Increases in comparable same-store sales are as follows (based on restaurants operating at least fifteen months):

With the overall demand for chicken wings at an all-time high, Buffalo Wild Wings has placed their self in a market that is in a competitive industry. Buffalo Wild Wings differentiates itself based of the quality, price-value relationship, and taste of the food. They create a friendly, family, and gaming environment that is unique to a sports bar. The atmosphere of all the restaurants include a place to view all the latest sporting events, a focus on exceptional guest experience, and compete primarily with local and regional sports bars and national casual dining and quick casual establishments, and modern open layout.

At Buffalo Wild Wings, has updated its technology by implementing a standard point-of-sale system in all of the company-owned restaurants which is integrated to their central offices through a secure, high-speed connection. The system works in accordance with their geographic layout in restaurants, allows Buffalo Wild Wings to appeal to families, drinkers, and sports viewers alike.

External Analysis

External factors are as influential as internal factors. Buffalo Wild Wings significant external factor is its reliance on chicken wings sales, they account for over 20% of revenue. Any disruption in the wing price or demand could negatively affect their revenue and sales. As the chart shows the prices of wings over the years.

As Buffalo Wild Wings must continue to explore other purchasing strategies to lessen the severity of cost increases and fluctuations. Like adding new food choices to the menu and keeping other costs down to account for the increase in price of wings. Wings affect the cost of sales percentage of chicken wings represented in terms of total restaurant sales. The market price for traditional wings reached its lowest price in 2011, and the price rose toward the end of 2012. The chart below illustrates the fluctuation in chicken wing prices from quarter to quarter in the last five years. (Buffalo Wild Wings Annual Report, 2013)

Competition is still an external factor, as entrance in to market is easy for an entrepreneur willing to put out the same layout and business format. It is then easy to acquire the same amount of customers by copying the same business and marketing strategy. There are in some direct completion with other restaurants such as Outback Steakhouse, Applebee’s. Cheesecake Factory and other sports type restaurants, however, they are still pulling in less revenue than them all, and BWW revenue growth is much stronger. However, in order to stay ahead of the competition they need to continue to add more choices to the menu, continue the customer loyalty relationship, and price strategy.

Global expansion is also an external factor that if not managed properly could be a weakness. Over expansion and under expansion of the company can be of no benefit whatsoever, especially with the restaurant facility. Expansion of the company has it is demerits for instance, due to its expansion it strains available resources hence can lead to standstill of activities and especially, challenges can arise in the management. If the company does not expand, it fails to take advantage of emerging markets. The essence of entry into emerging markets is that the outcome is reliant on the quality of products as the competitors are placed on an equal footing with a littler advantage over each other.

Organizational Strategies

Buffalo Wild Wings is a dominant market player ranked as the eighth largest restaurant in the U.S. by Technomic Inc. (Merrill, 2002). For the firm to realize growth, it needs to analyze its SWOT analysis and come up with strategies that will seek to minimize its threats, which are mostly external, and work on its weaknesses while taking advantage of its opportunities and maximizing on its strengths. Best value discipline, generic strategy, and grand strategy are several strategies options for Buffalo Wild Wings, however for the company to seek the expansion that they desire they must implement a growth strategy. With this strategy, Buffalo Wild Wings will help to tackle the threats of finding appropriate sites in new and existing markets. It must also acquire funds for constructing new restaurants that are conventional, and get more franchise locations.

Implementation Plan

The objectives and goals of Buffalo Wild Wings must be clear and concise. With the goal of reaching 1000 units domestically and global expansion in mind. The specific goals that need to be implemented include creating a substantial need to raise awareness of the restaurants in new markets through massive advertisements. This will put the firm at par with the competitors and in turn increase sales and consumer base (Smith, 2003).

Most importantly, Buffalo Wild Wings needs to recognize adequate number of appropriate new restaurant sites for it to endure the revenue growth rate it has achieved. It is notable that market acceptance in the new geographic regions may be slow hence interfering with the rate of returns. Product diversity is essential. It will create authenticity and originality in the established and new chains hence ensuring that no restaurant affects the other one in a negative way. Lastly, the restaurant chain should choose a way in which the implementation of the expansion strategy does not strain the company’s resources. This will help the firm to keep up with their competitors and increase the financial growth.

The key functional tactics that must be addresses in order to hire quality management, thorough background and referrals must be made to provide the necessary set of standards that are then applied through employee training. The plan of action is for the hiring and training to be handle by HR, HR to go over recommendations received from applicants, and provide new hires with orientation sessions. This goal is obtainable within the next year. The resource allocation used is the investments from the HR into the new employees that will eventually make good on the return of investment.

In order to compete in the market better the tactic of advertisement on television, word of mouth, and internet campaigns must be successfully implemented using the sources of social networks with the help of marketing executives. The plan of actions include, setting up a viral campaign on YouTube, crowdsourcing for an innovative marketing idea on Facebook, and buying celebrity endorsements. This goal is achievable with a six months deadlines, with milestone that of gaining international exposure. The resource allocation will also be taken from the marketing team for the benefit of the company. In order to locate more places for future locations the tactics of selecting locations based on selection criteria, select locations that they are able to obtain agreeable lease terms, and every site is located in a marketable site with the overview of the operating manager. The action plan includes gathering market data from local offices, scouting for locations with feedback from local residents. The deadline for this is within two years as more time is needed for careful evaluation. The resource allocation will be taken from planning time for operations manager to research sites and budget figures. The last functional tactic of to be able to utilize the company’s resources for expansion strategy by planning a schedule that is efficient and cost efficient. The plan of actions are to come up with budgeted income to account for new expansion and write up a plan for design and construction. This tasks will be delegated to the operations manager with the deadline of two years. The resource allocations to obtain this goal and meet the deadline is allocated from using the operations and project manager in developing blue prints for future layouts and budgets.

The key success factors are in line with obtaining the goals set in place for more customers, better management, more franchises, and better locations for growth. If these goals are achieved then the goal of 1000 units by the end of 2013 will be obtained. The goal for global expansion is within reach, but factors including hiring qualified mangers need to be successfully completed. Further illustrated for the future of Buffalo Wild Wings is a chart for future financials. All the objectives have been budgeted to meet the needs of the company, the company continues to do business and function in the way it has, and then the financial forecast will present the company’s predicted results for the upcoming year. The company recently took in $1 billion in revenue. Employee training and hiring for qualified management is already apart of Buffalo Wild Wings budget, for this goal an additional $500,000 to $1 million operating expenses to pay for HR time and salaries, new training hours, utility bills, and research. For advertisement, the company needs to try and lock down celebrity endorsements, viral campaigns that will cost the company from upwards of $3-4 million. For expansion of new sites, Buffalo Wild Wings has already budgeted and allocated resources to support up to 1200 locations. There is no need to add any additional money to the budget. For the total expenses budgeted would equal, around $4-$5 million additional costs. The added changes would only increase revenue and sales of Buffalo Wild Wings. A forecast of additional growth is illustrated.

A break even analysis was made on the rounded total fixed costs, a variable cost per unit at roughly .10 a unit, the total sales for wings increased with wings per pound purchased at 1.97. So for a year break even analysis costs and expenses will continue to stay medium with profits continuing to rise.

Risk Management Plan

The risk plan for Buffalo Wild Wings takes into account all the outside risk factors that could affect the operations and growth of the company. To access the risks for the growth strategy Buffalo Wild Wings must minimizes individual risk and by having substantial background checks that follow a tier system, back up marketing and advertising plans if the viral campaigns were to not generate the expected outcome and generate a plan if expansion were to be delayed. Once the risks have been accessed and prioritized what risks will have the most impact cost wise, financially, and overall operations. Once all is access the necessary analysis of reducing the probability of these risks factors will be crucial. A contingency plan to reduce the impact on these risks will be made including using the money budgeted to be make up for any impact of operations or loss of sales. Implemented a newer growth strategy with the company’s goals in mind of new sites, newer menu products, and global expansion, and looking to quality headhunters for quality management.

Buffalo Wild Wings has enjoyed substantial success during the last few years and are on track to more revenue growth and earnings. The goal of expansion in reaching 1000 units by the end of 2013 is within reach with a total of 900 units at the end of 2012. Buffalo Wild Wings continued close relationship with their customer base keeps their customers loyal and coming back. The implementation plan of growth strategy will tackle some key objectives to help the company grow even more with better customer interaction and brand awareness, leadership reflected in qualified management, and global expansion to reach international markets. These objectives show to only help the company in spite of the possible risks for failure. The strategic plan includes all the necessary charts and analysis to help support the growth strategy that Buffalo Wild Wings will embark on.

Buffalo Wild Wings Annual Report. (2013). U.S. Securities and Exchange Commission Retrieved from http://www.sec.gov/Archives/edgar/data/1062449/000143774912001595/bwld_10k-12251

Buffalo Wild Wings Financial Analyst. (2013). NASDAQ. Retrieved from http://www.nasdaq.com/symbol/bwld/pe-growth-rates#. UTGSolful-w

Buffalo Wild Wings Financials. (2013). the Motley Fool. Retrieved from http://www.fool.com/quote/nasdaq/buffalo-wild-wings/bwld

Code of Ethics and Business Conduct. Buffalo Wild Wings. (n.d) http://public.thecorporatelibrary.net/ethics/eth_107322.pdf.

Merrill, A. (Feb. 5, 2002). “Hot Prospects: After a Faltering Start Buffalo Wild Wings is Finding its Stride,” Star Tribune (Minneapolis), Retrieved from http://www.fundinguniverse.com/company-histories/buffalo-wild-wings-inc-history/fundinguniverse.com/…/buffalo-wild-wings-inc-history

Smith, S., J. (Sept. 11, 2003) Securities and Exchange Commission. Retrieved on 20th Feb, 2013 from http://www.sec.gov/Archives/edgar/data/1062449/000119312503048285/ds1.htm

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Home » Sample Business Plans » Wholesale & Retail

How to Write an Amway Business Plan [Sample Template]

Are you about starting an Amway company? If YES, here is a detailed sample Amway business plan template & FREE feasibility report. Amway over the years have grown to become one of the world’s biggest direct selling companies by providing any willing entrepreneur with the platform to have a business of their own.

Known as a front – runner in the united states multilevel marketing (MLM) industry, Amway Corporation manufactures and sells its own products as well as brand name products from other companies through a network of three million independent distributors worldwide.

But unlike all other MLM firms, Amway provides a broad selection of items, from cleaning products, cosmetics, vitamins to travel services, discount car purchases, and catalog merchandise. The company’s manufacturing facilities include a 3.5-million-square-foot production plant in Ada, Michigan, as well as plants in California, South Korea, and China.

Meanwhile, Amway products are delivered to distributors in the United States and the Caribbean region through 12 Amway Service Centers.

A Sample Amway Business Plan Template

1. industry overview.

Before going further, it’s pertinent you first understand about multi-level marketing. The Multi-level marketing scheme is a model that can be used to sell goods along with the services of the company with the help of promoters and partners of the company. The total earnings which are collected from the entire sale are distributed amongst the key players. So, in the process, the seller is not the only owner of the profit accumulated from the sale.

There is also an involvement of the step where the associates will have to get paid with the help of a proper multi-level system, and there are commissions provided to these associates and promoters as well. Multi-level marketing, popularly termed as Network or Referral Marketing, has always been in the news due to its seemingly contentious scheme of marketing.

Amway Business Owner (ABO) plays a major role in channelizing the business at a different level. ABOs let the Amway products reach the customers. With the Amway Business model, the associates will be able to sell the products of the company directly and also they can make sure that they help in the promotion of the products as well. This will create different levels of people working towards one common goal.

Note that the functioning of the Amway Business Model is based upon the performance of ABOs (Amway Business Owners). So, for evaluating their performance, Amway has a term known as Product Value, i.e. PV and Group Product Value, i.e. GPV. PV is actually the MRP of the product, and commissions of ABOs are decided as per the PV of that product.

Howbeit, in the hierarchy, the top-level ABO will get the product from the company at a discounted price based upon their commission, so he or she can sell that to others by that retail margin. In addition, ABOs get the bonuses as per their performances, plus growth incentives are offered to them, so they stay motivated in making the chain to channelize the multi-level marketing program of the company.

The business model of Amway is not really that difficult to understand. There are certain roles that ABOs will be playing. They can either act as the distributor of the company, or they will be playing the role of the recruits who are recruited by the distributor.

You will also be able to easily recruit the people in order to do the job for you in the best way. So, it seems quite obvious that the Amway Business model is one of the best models from the other models of businesses.

2. Executive Summary

Amway is an American company which deals in health, beauty, and home care commodities. At Amway Chicago, which is literally an Amway product store in the heart of Chicago, we will still offer a complete line of Amway products.

Our product prices will be quite stable since we will be buying direct from Amway Corporation. Another beneficial features of this relationship which is of significant value to us is the willingness of Amway Corporation to allow our store in Chicago to place orders as small as $160. The Amway Model is acutely infiltrated into the market, that is what makes it unlike the others and appears as a sham to many.

This is because the networking needs to keep on increasing for better results – more and more people are to be made to join hands and more and more people are to be talked to. At Amway Chicago, we have made plans and drafted result oriented strategies to be able to attract consumers who will in turn become distributors

Amway Chicago, just like Amway Corporation, will offer an efficient and effective distribution model where the products are purchased direct from the Corporation ensuring the highest quality and low prices. They are then sold direct to the consumer.

MLM businesses are often confused with pyramid schemes which are illegal in the U.S. Pyramid schemes are business forms that offer compensation specifically for the recruitment of new sellers. People are promised economic rewards for the more people they recruit, independent of what these people sell.

Herein lies the crucial distinction that regulatory authorities analyze when determining if a business is a pyramid scheme: the way compensation is rewarded. If it is based on recruitment, it is presumed illegal. At Amway Chicago, we will only compensate distributors for sales, an effective and efficient sales and distribution system.

Amway Chicago is an exciting new business which will leverage individuals’ needs for good and quality products and the ability to make money while sharing this need with friends and colleagues. By carefully using the efficient multi-level marketing business model, we will quickly generate sustainable revenue.

Sales forecasts indicate that sales for year two and three respectively will be $1,200,000 and $2,340,000. Net profit for the same years will reach 6.19 percent and 9.81 percent.

3. Our Products and Services

Amway Corporation is known to manufacture and sell a wide variety of products that are of top-notch quality which helps the company in making good money. At Amway Chicago, we will still offer a complete line of Amway products to the people of Chicago. These products include;

Household Cleaners
Original multi-purpose cleaning product LOC
SA8 laundry detergent
Dish Drops dish-washing liquid
Health and Beauty
Body Series
Atmosphere and iCook as well as XL and XS Energy drinks

4. Our Mission and Vision Statement

Our vision at Amway Chicago is to grow an organization that compensates individuals for sales made by other people that they recruit, while also satisfying the need for Amway products all over Chicago.
At Amway Chicago, our mission is to build of a environmentally friendly distribution company that uses grassroots and network marketing techniques to sell the product and make a meaningful contribution to the environment. Earthly Clean exists to support its members and to support the environment.

Our Business Structure

In Amway business functioning, Amway Business Owners have the right to sell the products at different levels. The hierarchy is like: Amway – ABO1 – ABO2 – ABO3 – Customer. ABO gives a fix commission to ABOs, plus income of 1st ABO added when he or she adds the second ABO.

This hierarchy continues, and in some way, the commission gets added in the account of every ABO. We at Amway Chicago, with our salespeople who are a part of the company, will be working down the entire hierarchy. We will be selling all the products from the list and to the distributors that are working in the retail markets. We plan to do this with the help of some great promotional marketing options and schemes.

Our distributors who will be entrusted with all sales methods will also get to recruit some other new dispensers that they want around the entire hierarchy which can be further helped when it comes to the expansion of the network in the best way. We at Amway Chicago also plan to recruit employees to help in the running of our open store.

Leveraging an effective interview process designed to staff our store with highly qualified people for each position, we will also create a path to let them join the network. Background checks will be utilized for designated positions. Recruiting efforts will always center on referrals. These roles include:

Store Operator

Information officer

Department managers

Store manager

5. Job Roles and Responsibilities

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counselling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
Creating, communicating, and implementing the store’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall store’s strategy.
Tasked with fixing prices and signing business deals
Tasked with providing direction for the business
Tasked with signing checks and documents on behalf of the Amway Chicago

Financial Officer

Tasked with preparing financial reports, budgets, and financial statements for the store
Provides managements with financial analyses, development budgets, and accounting reports
Tasked with financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting
Tasked with developing and managing financial systems and policies
Tasked with administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the store
Serves as internal auditor for the store
Provide technological guidance within the store.
Supervise information system and communications network.
Develop and implement a customer service platform to serve the store in every aspect.
Design, establish, and maintain a network infrastructure for local and wide area connectivity and remote access.
Consult with administration, department managers, and manufacturing representatives to exchange information, present new approaches, and to discuss equipment/system changes.
Oversee Internet and computer operations.
Assess and anticipate technology projects and recommend appropriate action and resources.
Establish and direct the strategic and tactical goals, policies, and procedures for the information technology department.
Propose hardware/software solutions to accomplish Amway Chicago’s business objectives.
Identify user needs and resolve problems.
Maintains receiving, warehousing, and distribution operations by initiating, coordinating, and enforcing program, operational, and personnel policies and procedures.
Complies with federal, state, and local warehousing, material handling, and shipping requirements by studying existing and new legislation; enforcing adherence to requirements; advising management on needed actions.
Safeguards store operations and contents by establishing and monitoring security procedures and protocols.
Controls inventory levels by conducting physical counts; reconciling with data storage system.
Maintains physical condition of store by planning and implementing new design layouts; inspecting equipment; issuing work orders for repair and requisitions for replacement.
Completes store operational requirements by scheduling and assigning employees; following up on work results.
Maintains store staff by recruiting, selecting, orienting, and training employees.
Maintains store staff job results by coaching, counselling, and disciplining employees; planning, monitoring, and appraising job results.
Provides the client with a personalized customer service experience of the highest level
Through interaction with customers on the phone, uses every opportunity to build client’s interest in the Amway Chicago ’s products
Takes care of administrative duties assigned by the operator in an effective and timely manner
Consistently stays abreast of any new information on Amway Chicago, promotional campaigns etc. to makes sure accurate and helpful information is supplied to customers when they make enquiries
Tasked with cleaning the store at all times
Makes sure that toiletries and supplies don’t run out of stock
Any other duty as assigned by the operator.

6. SWOT Analysis

Just like Amway Corporation, our goal at Amway Chicago is to grow a more efficient marketing machine that does away with the inefficient traditional distribution systems. We’ve gone the length of analyzing our chances in the Chicago market and have properly stated our SWOT analysis. Clearly summarized below is the result of our SWOT Analysis;

All our products are of high quality and their demand in our Chicago market has peaked.
We will only recruit experienced salespersons to assist in the sales of the products.
Build the company on a solid basis of integrity.
Recruiting and retaining quality employees
Tight margins will allow little wiggle room for error

Opportunities

Little barriers to entry allows for immediate business opportunities
New and viable market
Multi Level Marketing has always been in the news due to its seemingly contentious scheme of marketing.
Rising operating costs
Building/maintaining sales volume
Parent Club legal issues

7. MARKET ANALYSIS

8. our target market.

The reality of Amway’s networking business model is that besides the retail end customer, the very salespersons recruited or sponsored by the ones higher up in the network also act as end-user retail customers for Amway as they are required to pay an entry fee to join the network.

Aside that, we at Amway Chicago have identified two distinct type of customers for our Chicago store. The first customer is the end user of Amway products. These are people who have needs for health, beauty, and home care commodities. The second customer group will be a good number of people from the first group with an interest in becoming distributors of Amway products.

These two customer segments are very much attractive because they represent people who are most likely to be consumers of all Amway manufactured supplies. The distributors will be individual consumers who have an even stronger conviction and belief in the products as well as have the time to sell the products and find potential people to recruit into the distribution effort.

To be a distributor does not require a huge sacrifice of time, the majority of distributors will have full-time jobs in addition to marketing Amway. This makes the job of distributor all that more attractive, the person is able to adjust their already existing job with another source of income.

Our Competitive Advantage

From our due diligence, we at Amway Chicago have been able to properly identify concrete competitive advantages that will help us succeed.

Quality Products

Every product sold at/by Amway Chicago are manufactured and supplied by Amway Corporation. This offers us the unique platform to sell very competitive products that meet the needs of the market.

Stable Pricing

At Amway Chicago, we will be able to offer great pricing because all our products are sourced directly from Amway Corporation. Although Amway Corporation pays out sale commissions to the various layers of distributors, this grassroots distribution model is still more efficient than the traditional distribution channel, keeping prices competitive.

Favorable Business Model

Unlike other businesses in the industry, instead of profits going to a large corporation, all profits are dispersed among the user distributors that assist Amway. This arrangement is quite rare, and attractive for the targeted customer segment.

9. SALES AND MARKETING STRATEGY

At Amway Chicago, our marketing strategy will focus on the need to generate visibility for Amway as a company that offers health, beauty and home care commodities. Our primary marketing strategy will be based on grassroots networking. We believe that this strategy is most effective when the person selling the products knows the products and is passionate about what they are selling.

This is specifically why we chose to sell Amway products. We understand that in the MLM industry, networking is the key to increased visibility and distribution. Networking will take place in a number of venues including: the traditional work environment, social organizations, religious organizations, and other gatherings/situations that bring people together.

Distributors are expected to set up a meeting with the prospective person (someone they generally already know and have some sort of relationship with), show them the product catalog and provides them with samples.

Immediately the client must have used the products and impressed by them, another meeting can be scheduled to determine if the person is interested in making a purchase, and/or is interested in an additional source of income selling Amway products.

10. Sales Forecast

At Amway Chicago, we will be tracking both the sales to the individual consumers and the revenue received through commissions from sales from the various distributors. Our sales forecast indicates that initially the bulk of revenue will be from sales to the individual customers.

But as time progresses and more distributors are secured, the amount of revenue from the distributors will increase. We at Amway Chicago have adopted a reasonably conservative sales forecast. We estimate that our total first year sales should reach $1,200,000. Our second year will see sales increase to $2,340,000. The third year, with the addition of such a significant number of outlets, we will see sales increase to $5,192,440.

11. Publicity and Advertising Strategy

At Amway Chicago, our plan is to gather enough brand awareness to leverage the product line into other regions and gain inquiries from potential investors. To achieve this goal to expand and grow, we plan to do the following;

Amway Chicago will spend $1,450 per month on Public relation services for the next year intended to build awareness of editors and product information insertions, reviews, etc.
Amway Chicago will also spend $440 per month concentrating on drive time Radio advertising. We plan to experiment with different stations, keeping careful track of results. As with the school fundraising program, we expect the stand and signage to be a substantial portion of our advertising.
List our business on local directories
Attend relevant international and local health, finance and business expos, seminars, and business fairs et al
Leverage on the internet to promote our business
Engage direct marketing approach
Encourage word of mouth marketing from loyal and satisfied clients

Sources of Income

With the help of the products and services that are provided by Amway Corporation, we at Amway Chicago will be able generate encouraging revenue. Amway Corporation manufactures more than 450 products, and via its MLM model, it sells those products all across the globe, generating a good amount of money.

Amway practices direct selling which is ‘A method of selling goods directly to the consumer by an independent Distributor. A Distributor can then introduce further Distributors and generate income from retail profits supplemented by bonus payments based upon the total sales of the group built by a Distributor”. We at Amway Chicago will generate income through:

The retailing of Amway goods to consumers. Retail margins (mark-ups) on the basic wholesale price represent income to the selling distributor.
Additional performance and leadership bonuses, paid on the volume of personal business and the business volume we plan to introduce into the business. Various levels of leadership bonuses, dependent upon the overall size and shape of the business, paid on achieving different levels of business performance.

12. Our Pricing Strategy

Amway as a company maintains a stable price for all products. With the Amway Business models, all associates will be able to sell the products of the company directly and also they can make sure that they help in the promotion of the products as well. This will create different levels of people working towards one common goal, and that is to make sure that the company of Amway is able to make a lot of money.

Meanwhile, the functioning of the Amway Business Model is based upon the performance of ABOs (Amway Business Owners). So, for evaluating their performance, Amway has a term known as Product Value, i.e. PV and Group Product Value, i.e. GPV. PV is actually the MRP of the product, and commissions of ABOs are decided as per the PV of that product.

So, in the hierarchy, the top-level ABO will get the product from the company at a discounted price based upon their commission, so he or she can sell that to other by that retail margin. In addition, ABOs get the bonuses as per their performances, plus growth incentives are offered to them, so they stay motivated in making the chain to channelize the multi-level marketing program of the company.

Payment Options

All our payment options at Amway Chicago will be inclusive and acceptable because we understand greatly that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

Payment by cash
Payment via Point of Sale (POS) Machine
Payment via online bank transfer (online payment portal)
Payment via Mobile money

We have also chosen banking platforms that will help us achieve our plans with little or no issues. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our products charge.

13. Startup Expenditure (Budget)

To get started with Amway, Individual Business Owners need to pay a $62 registration fee. This is direct profit for the company, but it also comes with a 100% satisfaction guarantee for the first 90 days. The fee provides a welcome kit that helps to get new representatives up-to-date with the various product lines that are offered.

Those who are just starting are also recommended to purchase an $83.90 product kit so the items that Amway sells can be sampled and sold with authenticity. The product kit contains $160 worth of full-sized Amway products to try. Meanwhile, we at Amway Chicago have incurred the following expenses for the launching of our store:

Storage space: This will be used for the storage of product inventory.
Service provider fees: We’ve incurred both accountant and attorney fees in the setting up of the business. The accountant will set up the Linton accounting system and the attorney will develop and register the business formation as well as draft some sale agreements for distributors.
Computer system: The computer system will be used for correspondence, accounting purposes as well as to develop marketing and sales information. The system will include a laptop computer, printer, fax/scanner, and a broadband Internet connection. Earthly Clean will use Microsoft Office and Linton Accounting as their preferred software.
Assorted types of paper and stationery: Personalized with a logo, return addresses, etc. for catalogs, and brochures.
Assorted office furniture and accessories

Generating Funding/Start up Capital for Amway Chicago

Amway Chicago is a Store owned by Martha Flinch and Damson Cone. Both have been with Amway Corporation for over 10 years and understand the visions and values of the company. At Amway Chicago, we hope to raise our startup fund through the following ways;

Generate part of the startup capital from personal savings
Source for soft loans from friends and family
Generate fund from angel investors

Note : The owners of the company are willing to invest $200,000 to start up Amway Chicago.

14. Sustainability and Expansion Strategy

The key to a successful business with Amway has to be in the building of the downstream. When working appropriately, the Amway business model is one that can work. The tiered levels of sales representatives in each up line can all help us and our distributors succeed.

The unfortunate fact, however, is that many Amway representatives get involved thinking that they can start their own business for a small price and very little overhead. The reality is that Amway is just like any other business opportunity, but with a small twist – sales reps don’t actually have their own business.

For those in Chicago that are good at sales and love to be social with people, we will offer them a tremendous opportunity for success. The underlying fact is that the Amway Business Model is not a scam. Just that it is not really a pyramid model of business – all it relies on is a granted hierarchy of partakers who purchase, retail and further spread out this sequence to earn more proceed-fractions, which is more of a network than a pyramid.

At Amway Chicago, our sales strategy will emphasize our high quality products and 100% customer satisfaction. We believe that by combining these two benefits, consumers are able to try the available products risk free. This provides them with the opportunity to test them out and determine if they are as good as they claim to be. Once the consumer has recognized the outstanding quality that Amway offers, the option of becoming a distributor becomes more attractive.

If the consumer truly believes in the product, then it becomes that much easier to convince them that there is an excellent opportunity available that allows them to sell a product that they believe in, obtain an additional source of revenue, and make a positive impact on the environment. All of this will be done on a grassroots, one-to-one level.

Also, retailing Amway products enables us provide immediate financial incentive rewards to our distributors. Direct selling involves sales people showing and demonstrating products to obtain orders. The objective involves matching consumer needs with the product.

The better the match, the more lasting the potential for the relationship between the seller and the buyer. The selling process is aided by Amway’s retail strategy to provide high quality, readily purchasable items with a good environmental positioning, offering consumers good value for money.

As with all direct selling activities, the process involves two-way communication and this can be time-consuming. Business success and the resulting financial results are a direct consequence of effort, commitment and personal group motivation.

Personal contact between distributors at one-to-one or group meetings provides the opportunity for individuals to discuss strategies, difficulties, levels of involvement and plans for the future. The income objectives and individual targets may be determined by each distributor based upon what he or she wants to earn.

Checklist /Milestone

Business Name Availability Check : Completed
Business Incorporation: Completed
Opening of Corporate Bank Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Conducting feasibility studies: Completed
Leasing, renovating and equipping our store: Completed
Generating part of the start – up capital from the founder: Completed
Applications for Loan from our Bankers: In Progress
writing of business plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents: In Progress
Design of The Company’s Logo: Completed
Printing of Packaging/Promotional Materials: Completed
Recruitment of employees: In Progress
Purchase of software applications, furniture, office equipment, electronic appliances and store facelift: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business (Business PR): In Progress
Health and Safety and Fire Safety Arrangement: In Progress
Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress

More on Wholesale & Retail

Buffalo Wild Wings’ New Concept is Ready for Take-Off

BWW GO just crossed the 100-unit mark, with more than 600 commitments in place.

In some respects, the growth story of BWW GO—Buffalo Wild Wings’ counter-service offshoot—has felt clandestine. The brand just celebrated its 100 th standalone opening in New York City by cutting the ribbon and giving the first 100 guests a booklet redeemable for free wings for a year.

And while reaching triple-digit units is no mean feat, the quiet approach was by design. Inspire Brands wanted to lead the project before it unlocked the floodgates, running, as it does across the organization’s portfolio , stores from the corporate side before spurring franchise growth.

That inflection point has arrived. BWW GO expects to close 2024 with 150 stores and today boasts commitments for nearly 600 more locations, Buffalo Wild Wings brand president John Bowie shares with QSR . And it’s looking to sign another 350 this calendar.

At the start of 2021, there were zero standalone BWW GO franchises. There was just one to begin 2022 and four before 2023. That number reached 31 by year’s end.

On the company side, though, Inspire built 15 in 2021, had 37 the following year, and exited 2023 with 48. In all, BWW GO went from 16 total locations to 79 before January 1, 2024. As mentioned, the figure is up to 100, with 150 in sight.

What’s unique about BWW GO and its whitespace, Bowie says, is the jump-off point, which, naturally, is 1,300-unit Buffalo Wild Wings itself. All of those venues will now be equipped with GO for takeout and delivery as well. The brand also launched a new Visual ID, a GO branded e-commerce experience, GO-only menu items, and branded creative, most recently seen in this an advertisement during the NCAA Tournament’s Final Four.

The off-premises experience isn’t new at Buffalo Wild Wings—it’s getting amplified and refined.

COME HEAR INSPIRE BRANDS SPEAK: Chief Brand Officer Scott Murphy is taking the keynote stage at this year’s QSR Evolution Conference

Back in 2019, the brand had online ordering and an app for loyalty. But 79 percent of its business took place within the four walls.

Naturally, off-premises mix ballooned to 100 percent as COVID darkened dining rooms. Bowie says it has settled in at about a third. So Buffalo Wild Wings essentially more than doubled that bucket in the last five years.

“And the bottom line is we’re operating out of our sports bars a formidable business within a business with our takeout,” he says. “It’s significant volume.”

The idea of BWW GO, or what would ultimately come to be labeled that, was kicked around not only as a reaction to this shifting off-premises reality, but as a way for Buffalo Wild Wings to tap into a new occasion. Could it get closer to guests who made the decision to get takeout?

“We have a whole bunch of upside when it comes to driving consideration for takeout and delivery,” says Tristan Meline, Buffalo Wild Wings’ CMO, who previously served as VP of brand management before elevating in February. “People have historically known us as the place where you come, watch games, drink a beer, eat some wings, it’s a place of social gathering, but we have a great takeout and delivery offering as well. So it’s about driving that penetration and driving that consideration with the consumer about that particular offering.”

The initial standalone BWW GO debuted in 2020 in Atlanta at 1,800 square feet with a walk-up counter, digital menuboards, and a small seating area with TVs to entertain customers while they waited.

Bowie says just 9 percent of the BWW GO standalone business is call or walk-in. The staffing model allows for somebody at the front counter to assist guests whether they’re grabbing food from a cubby (self-service pickup) or ordering at the cashier. It’s really designed, Meline adds, to reflect how consumers have become more digital in their shopping behaviors. BWW GO is a digitally native concept where the majority of transactions flow through ecommerce—the website, app, and third-party delivery. “For most people, the interaction they’re going to have with Buffalo Wild Wings GO will be on their phone,” he says.

And in turn, Meline says, expect to see a lot of the brand in the digital and social advertising space in the months to come. “That’s where you’ll see the lion’s share of our advertising,” he says.

As for interest from franchisees, Bowie notes the reception has been “beyond our expectations.”

The total investment to begin operation of a traditional Buffalo Wild Wings sports bar ranges from $2.44 million to $4.83 million. They cover 3,500–6,500 square feet and seat 155–285 people. Stores last year averaged $3.343 million per unit.

Standalone BWW GO’s opening investment spans from $564,345 to $1.05 million. All reporting restaurants last year, of which there were 60 counted, posted weekly AUVs of $16,549, or in the ballpark of $860,000 per annum.

The 100 th BWW GO was brought to market by The Munson Group, which now has four in addition to traditional sports bars and Sonic Drive-In locations in the Northeast (Inspire owns Sonic, Dunkin’, Jimmy John’s, Buffalo Wild Wings, Arby’s, and Baskin-Robbins). Jack Litman, president of the group, said BWW GO’s operational efficiencies, streamlined marketing resources, and “tremendous brand awareness,” are anchoring growth. “Add to that the flexibility of the footprint and the speed to market, and you have a very desirable concept,” he said in a statement.

One of the most telling stats concerns where that 600-commitment pipeline is filling from. Bowie says 85 percent of BWW GO sign-ups have stemmed from existing Inspire Brands franchisees.

“Our interests are their interests,” he says, reiterating the benefit of having skin in the game. “We operate a significant company footprint so people sleep calmly at night knowing that we’re not just trying to drive a top line and pick up a royalty.”

Dunkin’, in particular, represents a pool of operators Bowie says who have been attracted to BWW GO. Their business is more of a morning one, with an afternoon snack daypart added in, while wings track toward evenings and weekends.

BWW GO gives them an inexpensive cost to build and lower barrier of entry to expand offerings. This is especially true, Bowie continues, for Dunkin’ franchisees in penetrated markets where there’s not a lot of headroom to build more stores. “It’s a huge opportunity for them now to rapidly expand their business,” he says.

As The Munson Group explained, the same general notion applies to operators who run traditional Buffalo Wild Wings. BWW GOs present a roadmap to infill areas where dropping additional 6,000-square-foot sports bars might not make sense. However, using BWW GOs to close the radius does, Bowie says. “They can get closer to the consumer and drive convenience,” he says, “and make more money in a particular market.”

Inspire tested these approaches from all sides. It looked at different trade areas, demographics, and proximity to Buffalo Wild Wings sports bars. “If we were going to make a mistake, we wanted to make it on our own dime,” he says. “So when I talk about encroachment to a sports bar we build, how close can we get to one of our company-operated sports bars? What impact did that have? We wanted to understand all of that before we opened it up to franchising.”

The answer was BWW GOs worked wherever population density supported expansion. It didn’t matter if it was a city market or a small town. Philadelphia, New York City, Chicago, Seattle, California, and Texas are near-term targets.

“We still have significant interest internally,” Bowie says. “We have a lot of franchisees, but we only scratched the surface with the number of franchisees that we have [across Inspire]. There’s still a huge opportunity and a lot of the big franchisees who are operating multiple brands are very interested.”

“We refer to them as the top 100 or top 200 franchisees,” he adds, “that aren’t in our system today. We have significant interest from those folks looking to get in and add another brand to their portfolio of franchises. So we have aggressive targets for commitments this year and I don’t imagine that those targets will soften for the foreseeable future.”

Refining the menu was a balance of familiarity and efficiency. BWW GO stores serve a select lineup of high-volume options, like wings, chicken sandwiches, burgers, hand-breaded tenders, and all 26 Buffalo Wild Wings sauces and dry rubs.

Bowie says everything you can get at a freestanding BWW GO is available at a Buffalo Wild Wings. Management looked at the traditional concept’s off-premises mix to see what guests ordered most for takeout. And the menu was constructed from there. “It just worked out at about 90 percent of the product mix that we’re selling to go from a sports bar,” he says. “… That’s what [guests] were purchasing—the most portable foods that we have.”

Something to further highlight as well is that the traditional Buffalo Wild Wings landscape is, as mentioned, now equipped with GO for takeout and delivery. That’s part of the deliberate messaging ahead.

How this generally manifests is as a separate space within restaurants that offer a dedicated counter and door, often adjacent to the bar. Pickup guests or couriers walk in and get their food without having to enter the restaurant proper or flow through the lobby.

Returning to Meline’s point, however, where the brand plans to drive this is from an awareness standpoint. While the term “rebrand” might not fit exactly, Buffalo Wild Wings plans to take its off-premises strengths and hover the spotlight.

“It’s more branding our takeout and delivery business writ large as Buffalo Wild Wings GO,” he says, “to telegraph to consumers that when it comes to takeout and delivery, when you want the best wings and sauces around, Buffalo Wild Wings GO is the brand for you to choose.”

BWW GO as an option, inside traditional sports bars and on their own, are going to become clearer in the guest’s mind, Meline says.

As a marketer, it’s been an enviable project, he adds. BWW GO didn’t spring to life as much as it arrived on the coattails of a massive brand. Meline worked to identify the differentiators that apply specifically to Buffalo Wild Wings’ takeout business, such as 26 sauces and dry rubs and more variety than your general wing joint, and provide them a platform.

The brand’s recent campaign (Hank the Buffalo, which you’ve likely seen during March Madness) is Buffalo Wild Wings’ logo in action. Meline says it gives the brand a voice and more recently, a chance to thrust BWW GO forward. “That’s the linear TV side of it. But we’ve got a huge digital push coming,” he says.

Meline notes the social DNA of Buffalo Wild Wings remains core to the chain’s larger positioning. Standalone BWW GOs are simply an incremental opportunity intended to get in front of customers who trust the brand, but perhaps didn’t plan to go out that night. “They’ve decided they’re going to stay at home and they’re just trying to figure out who to order from,” he says. “For us, the opportunity is to take that incremental occasion and incremental consumer who isn’t choosing between the two.”

Those BWW GOs won’t pull customers from the sports bar. It will bring the brand to guests who aren’t going to Buffalo Wild Wings that night.

“We still love our dine-in business,” Bowie says. “It’s strong and we’re going to continue to build sports bars. We have a lot of head room from coast to coast and continue to build, and we’re very bullish on that business as well. This is just more of a penetration opportunity for us to get closer to consumers who have made that decision first and foremost. I’m eating my wings at home. So I want to get them in the most convenient way.”

And that vision will include nontraditional as well. The first airport location of BWW GO is headed to Boston in June. Bowie says airports draw major potential. So do colleges and universities, perhaps even more so. “We work closely with them and all the other brands that the contract feeders that have full food and beverage contracts with the school to bring us into the portfolio—they’re licking their chops,” he says.

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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.

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The business goals
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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.

Four Steps to Create a Competitive Marketing Analysis

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.

Create Management Team For Business Plan

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.

Choosing the right social media platform

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.

Exit Strategy Section of Business Plan Infographic

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 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.

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Marketing Plan. Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a Amway business plan, your marketing strategy should include the following: Product: In the product section, you should reiterate the type of Amway company that you documented in your company overview.
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Write your business plan
Common items to include are credit histories, resumes, product pictures, letters of reference, licenses, permits, patents, legal documents, and other contracts. Example traditional business plans. Before you write your business plan, read the following example business plans written by fictional business owners.
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Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. A good business plan is much more than just a document that you write once and forget about. It's also a guide that helps you outline and achieve your goals. After completing your plan, you can ...
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Business Glossary. Definitions for common terminology and acronyms that every small business owner should know. Bplans offers free business plan samples and templates, business planning resources, how-to articles, financial calculators, industry reports and entrepreneurship webinars.
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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.
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Amway Business Plan Template

What is an Amway Business Plan?

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Solving Buffalo Wild Wings' biggest problem

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3. Our Products and Services

4. Our Mission and Vision Statement

5. Job Roles and Responsibilities

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