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Business Goals 101: How to Set, Track, and Achieve Your Organization’s Goals with Examples

By Kate Eby | November 7, 2022

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Learning how to set concrete, achievable business goals is critical to your organization’s success. We’ve consulted seasoned experts on how to successfully set and achieve short- and long-term business goals, with examples to help you get started.

Included on this page, you’ll find a list of the different types of business goals , the benefits and challenges of business goal-setting, and examples of short-term and long-term business goals. Plus, find expert tips and compare and contrast business goal-setting frameworks.

What Are Business Goals?

Business goals are the outcomes an organization aims to achieve. They can be broad and long term or specific and short term. Business leaders set goals in order to motivate teams, measure progress, and improve performance.

“Business goals are those that represent a company's overarching mission,” says David Bitton, Co-founder and CMO of DoorLoop . “These goals typically cover the entire business and are vast in scope. They are established so that employees may work toward a common goal. In essence, business goals specify the ‘what’ of a company's purpose and provide teams with a general course to pursue.”

For more resources and information on setting goals, try one of these free goal tracking and setting templates .

Business Goals vs. Business Objectives

Many professionals use the terms business goal and business objective interchangeably. Generally, a business goal is a broad, long-term outcome an organization works toward, while a business objective is a specific and measurable task, project, or initiative. 

Think of business objectives as the steps an organization takes toward their broader, long-term goals. In some cases, a business objective might simply be a short-term goal. In most cases, business goals refer to outcomes, while business objectives refer to actionable tasks. 

“Business objectives are clear and precise,” says Bitton. “When businesses set out to achieve their business goals, they do so by establishing quantifiable, simply defined, and trackable objectives. Business objectives lay out the ‘how’ in clear, doable steps that lead to the desired result.”

For more information and resources, see this article on the key differences between goals and objectives.

Common Frameworks for Writing Business Goals

Goal-setting frameworks can help you get the most out of your business goals. Common frameworks include SMART, OKR, MBO, BHAG, and KRA. Learning about these goal-setting tools can help you choose the right one for your company.

Here are the common frameworks for writing business goals with examples:

• SMART: SMART goals are specific, measurable, achievable, relevant, and time-bound. This is probably the most popular method for setting goals. Ensuring that your goals meet SMART goal criteria is a tried and true way to increase your chances of success and make progress on even your most ambitious goals. Example SMART Goal: We will increase the revenue from our online store by 5 percent in three months by increasing our sign-up discount from 25 to 30 percent.
• OKR: Another popular approach is to set OKRs, or objectives and key results. In order to use OKRs , a team or individual selects an objective they would like to work toward. Then they select key results , or standardized measurements of success or progress. Example Objective: We aim to increase the sales revenue of our online store. Example Key Result: Make $200,000 in sales revenue from the online store in June. 
• MBO: MBO, or management by objectives , is a collaborative goal-setting framework and management technique. When using MBO, managers work with employees to create specific, agreed-upon objectives and develop a plan to achieve them. This framework is excellent for ensuring that everyone is aligned on their goals. Example MBO: This quarter, we aim to decrease patient waiting times by 30 percent.
• BHAG: A BHAG, or a big hairy audacious goal , is an ambitious, possibly unattainable goal. While the idea of setting a BHAG might run contrary to a lot of advice about goal-setting, a BHAG can energize the team by giving everyone a shared purpose. These are best for long-term, visionary business goals. Example BHAG: We want to be the leading digital music service provider globally by 2030. 
• KRA: KRAs, or key result areas , refer to a short list of goals that an individual, department, or organization can work toward. KRAs function like a rubric for general progress and to help ensure that the team’s efforts have an optimal impact on the overall health of the business. Example KRA: Increase high-quality sales leads per sales representative. 

Use the table below to compare the pros and cons of each goal-setting framework to help you decide which framework will be most useful for your business goals.

Types of Business Goals

A business goal is any goal that helps move an organization toward a desired result. There are many types of business goals, including process goals, development goals, innovation goals, and profitability goals.

Here are some common types of business goals:

• Growth: A growth goal is a goal relating to the size and scope of the company. A growth goal might involve increasing the number of employees, adding new verticals, opening new stores or offices, or generally expanding the impact or market share of a company. 
• Process: A process goal , also called a day-to-day goal or an efficiency goal , is a goal to improve the everyday effectiveness of a team or company. A process goal might involve establishing or improving workflows or routines, delegating responsibilities, or improving team skills. 
• Problem-Solving: Problem-solving goals address a specific challenge. Problem-solving goals might involve removing an inefficiency, changing policies to accommodate a new law or regulation, or reorienting after an unsuccessful project or initiative.
• Development: A development goal , also called an educational goal , is a goal to develop new skills or expertise, either for your team or for yourself. For example, development goals might include developing a new training module, learning a new coding language, or taking a continuing education class in your field. 
• Innovation: An innovation goal is a goal to create new or more reliable products or services. Innovation goals might involve developing a new mobile app, redesigning an existing product, or restructuring to a new business model. 
• Profitability: A profitability goal , also called a financial goal , is any goal to improve the financial prospects of a company. Profitability goals might involve increasing revenue, decreasing debt, or growing the company’s shareholder value. 
• Sustainability: A s ustainability goal is a goal to either decrease your company’s negative impact on the environment or actively improve the environment through specific initiatives. For example, a sustainability goal might be to decrease a company’s carbon footprint, reduce energy use, or divest from environmentally irresponsible organizations and reinvest in sustainable ones.
• Marketing: A marketing goal , also called a brand goal , is a goal to increase a company’s influence and brand awareness in the market. A marketing goal might be to boost engagement across social media platforms or generate more higher-quality leads. 
• Customer Relations: A customer relations goal is a goal to improve customer satisfaction with and trust in your product or services. A customer relations goal might be to decrease customer service wait times, improve customers’ self-reported satisfaction with your products or services, or increase customer loyalty.
• Company Culture: A company culture goal , also called a social goal , is a goal to improve the work environment of your company. A company culture goal might be to improve employee benefits; improve diversity, equity, and inclusion (DEI) across your organization; or create a greater sense of work-life balance among employees. 

What Are Business Goal Examples?

Business goal examples are real or hypothetical business goal statements. A business goal example can use any goal-setting framework, such as SMART, OKR, or KRA. Teams and individuals use these examples to guide them in the goal-setting process. 

For a comprehensive list of examples by industry and type, check out this collection of business goal examples .

What Are Short-Term Business Goals?

Short-term business goals are measurable objectives that can be completed within hours, days, weeks, or months. Many short-term business goals are smaller objectives that help a company make progress on a longer-term goal.

The first step in setting a short-term business goal is to clarify your long-term goals. 

“My practice is to start with an aspirational vision that is the framework for my long-term goals and to compare that ‘better tomorrow’ with the realities of today,” says Morgan Roth, Chief Communication Strategy Officer at EveryLife Foundation for Rare Diseases . “Once that framework of three to five major goals is drafted and I have buy-in, I can think about how we get there. Those will be my short-term goals.”

Bitton recommends using the SMART framework for setting short-term business goals to ensure that your team has structure and that their goals are achievable. “Determine which objectives can be attained in a reasonable amount of time,” she adds. “This will help you stay motivated. Your organization may suffer if you try to squeeze years-long ambitions into a month-long project.”

Short-Term Business Goal Examples

Companies can use short-term business goals to increase profits, implement new policies or initiatives, or improve company culture. We’ve gathered some examples of short-term business goals to help you brainstorm your own goal ideas. 

Here are three sample short-term business goals:

• Increase Your Market Share: When companies increase their market share, they increase the percentage of their target audience who chooses their product or service over competitors. This is a good short-term goal for companies that have long-term expansion goals. For example, a local retail business might want to draw new customers from the local community. The business sets a goal of increasing the average number of customers who enter its store from 500 per week to 600 per week within three months. It can meet this goal by launching a local advertising initiative, reducing prices, or expanding its presence on local social media groups. Small business owners can check out this comprehensive guide to learn more about setting productive goals for their small businesses.
• Reduce Paper Waste: All businesses produce waste, but company leaders can take actions to reduce or combat excessive waste. Reducing your company’s paper waste is a good short-term goal for companies that have long-term sustainability goals. For example, a large company’s corporate headquarters is currently producing an average of four pounds of paper waste per employee per day. They set a goal of decreasing this number to two pounds by the end of the current quarter. They can meet this goal by incentivizing or requiring electronic reporting and forms whenever possible. 
• Increase Social Media Engagement: High social media engagement is essential for businesses that want to increase brand awareness or attract new customers. This is a good short-term goal for companies with long-term marketing or brand goals. For example, after reviewing a recent study, a natural cosmetics company learns that its target audience is 30 percent more likely to purchase products recommended to them by TikTok influencers, but the company’s social media team only posts sporadically on its TikTok. The company sets a goal of producing and posting two makeup tutorials on TikTok each week for the next three months.

What Are Long-Term Business Goals?

A l ong-term business goal is an ambitious desired outcome for your company that is broad in scope. Long-term business goals might be harder to measure or achieve. They provide a shared direction and motivation for team members. 

“Long-term planning is increasingly difficult in our very complex and interconnected world,” says Roth. “Economically, politically, and culturally, we’re seeing sea changes in the way we live and work. Accordingly, it’s important to be thoughtful about long-term goal-setting, but not to the point where concerns stifle creativity and your ‘Big Ideas.’ A helpful strategy I employ is to avoid assumptions. Long-term planning should be based on what you know, not on what you assume will be true in some future state.”

Tip: You can turn most short-term goals into long-term goals by increasing their scope. For example, to turn the “increase market share” goal described above into a long-term goal, you might increase the target weekly customers from 600 to 2,000. This will likely take longer than a few months and might require expanding the store or opening new locations.

Long-Term Business Goal Examples

An organization can use long-term business goals to unify their vision, motivate workers, and prioritize short-term goals. We’ve gathered some examples of long-term business goals to guide you in setting goals for your business. 

Here are three sample long-term business goals:

• Increase Total Sales: A common growth profitability goal is to increase sales. An up-and-coming software company might set a long-term goal of increasing their product sales by 75 percent over two years. 
• Increase Employee Retention: Companies with high employee retention enjoy many benefits, such as decreased hiring costs, better brand reputation, and a highly skilled workforce. A large corporation with an employee retention rate of 80 percent might set a long-term goal of increasing that retention rate to 90 percent within five years. 
• Develop a New Technology: Most companies in the IT sphere rely on innovation goals to stay competitive. A company might set a long-term goal of creating an entirely new AI technology within 10 years.

Challenges of Setting Business Goals 

Although setting business goals has few downsides, teams can run into problems. For example, setting business goals that are too ambitious, inflexible, or not in line with the company vision can end up being counterproductive. 

Here are some common challenges teams face when setting business goals: 

• Having a Narrow Focus: One of the greatest benefits of setting business goals is how doing so can focus your team. That said, this can also be a drawback, as such focus on a single goal can narrow the team’s perspective and make people less able to adapt to change or recognize and seize unexpected opportunities. 
• Being Overly Ambitious: It’s important to be ambitious, but some goals are simply too lofty. If a goal is impossible to hit, it can be demoralizing. 
• Not Being Ambitious Enough: The opposite problem is when companies are too modest with their goal-setting. Goals should be realistic but challenging. Teams that prioritize the former while ignoring the latter will have problems with motivation and momentum.
• Facing Unexpected Obstacles: If something happens that suddenly derails progress toward a goal, it can be a huge blow to a company. Learn about project risk management to better manage uncertainty in your projects. 
• Having Unclear Objectives: Goals that are vague or unquantifiable will not be as effective as clear, measurable goals. Use frameworks such as SMART goals or OKRs to make sure your goals are clear. 
• Losing Motivation: Teams can lose sight of their goals over time, especially with long-term goals. Be sure to review and assess progress toward goals regularly to keep your long-term vision front of mind.

Why You Need Business Goals

Every business needs to set clear goals in order to succeed. Business goals provide direction, encourage focus, improve morale, and spur growth. We’ve gathered some common benefits of goal-setting for your business. 

Here are some benefits you can expect from setting business goals:

• More Clarity: Business goals ensure that everyone is moving toward a determined end point. Companies with clear business goals have teams that agree on what is important and what everyone should be working toward. 
• Increased Focus: Business goals encourage focus, which improves performance and increases productivity. 
• Faster Growth: Business goals help companies expand and thrive. “Setting goals and objectives for your business will help you grow it more quickly,” says Bitton. “Your potential for growth increases as you consistently accomplish your goals and objectives.”
• Improved Morale: Everyone is happier when they are working toward a tangible goal. Companies with clear business goals have employees that are more motivated and fulfilled at work. Plus, measuring progress toward specific goals makes it easier to notice and acknowledge everyone’s successes. 
• More Accountability: Having tangible goals means that everyone can see whether or not their work is effective at making progress toward those goals.
• Better Decision-Making: Business goals help teams prioritize tasks and make tough decisions. “You gain perspective on your entire business, which makes it easier for you to make smart decisions,” says Bitton. “You are forming a clear vision for the direction you want your business to go, which facilitates the efficient distribution of resources, the development of strategies, and the prioritization of tasks.”

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How To Set Business Goals (+ Examples for Inspiration)

Updated: March 11, 2024

Published: October 24, 2023

You’re a business owner — the captain of your own ship. But how do you ensure you’re steering your company in the right direction? 

Without clear-cut goals and a plan to reach them, you risk setting your sails on the course of dangerous icebergs. 

The best way to steer clear of wreckage is to map out exactly where you want your business to go. This is what makes setting business goals so important. If you’re not already using them to guide your ship, then now’s a great time to start.

Table of contents:

• What are business goals?

Why business goals are important

How to set business goals, tips to achieve business goals, business goals examples, what are business goals .

Business goals are the desired outcomes that an organization aims to achieve within a specific time frame. These goals help define the purpose and direction of the company, guiding decision-making and resource allocation. They can be short-term or long-term objectives , aligned with the company’s mission and vision.

Operating a business using your gut and feelings will only get you so far. If you’re looking to build a sustainable company, then you need to set goals in advance and follow through with them. 

Here’s what goal setting can do to make your business a success:

• Give your business direction. Business goals align everyone toward a common purpose and ensure all efforts and resources are directed toward achieving specific outcomes.
• Keep everyone motivated to keep pushing forward. Goals provide employees with a sense of purpose and motivation. According to research from BiWorldwide, goal setting makes employees 14.2x more inspired at work and 3.6x more likely to be committed to the organization.
• Create benchmarks to work toward (and above). Goals provide a basis for measuring and evaluating the performance of the organization. They serve as benchmarks to assess progress, identify areas of improvement, and make informed decisions about resource allocation and strategy adjustments .
• Prioritize activities and allocate resources effectively. Goals help you identify the most important initiatives, ensuring that time, money, and effort are invested in activities that align with the overall objectives.
• Make continuous organizational improvements. Goals drive continuous improvement by setting targets for growth and progress. They encourage businesses to constantly evaluate their performance, identify areas for refinement, and implement strategies to enhance efficiency and effectiveness.

Nothing creates solidarity among teams and departments like shared goals. So be sure to get everyone involved to boost camaraderie. 

Setting business goals requires careful consideration and planning. By defining specific and measurable targets, you can track progress and make necessary adjustments along the way.

Here are the steps to effectively set business goals.

Step 1: Identify key areas to improve in your business

Start by assessing the current state of your organization. Identify areas that require improvement or growth. This could include increasing revenue, expanding your customer base, improving employee satisfaction, or enhancing product offerings.

Step 2: Choose specific and measurable goals 

Setting clear and specific goals is essential. Use the SMART goal framework to ensure your goals are Specific, Measurable, Achievable, Relevant, and Time-bound. For example, instead of setting a vague goal like “increase revenue,” set a specific goal like “increase revenue by 15% in the next quarter.”

Step 3: Prioritize which goals to tackle first

Not all goals are equally important or urgent. Evaluate the impact and feasibility of each goal and prioritize them accordingly. By ranking your goals, you can focus your efforts and resources on the most critical objectives.

Step 4: Break down your goals into smaller milestones

Breaking down each goal into smaller, manageable tasks makes them more attainable. Assign responsibilities and set deadlines for each step. This approach helps track progress and ensures accountability.

Step 5: Decide what your Key Performance Indicators (KPIs) will be

Key Performance Indicators (KPIs) are metrics used to measure progress toward your goals. Set realistic and relevant KPIs that align with your objectives. For example, if your goal is to increase customer acquisition, a relevant KPI could be the number of new customers acquired per month.

Now that you have set your business goals, it’s time to take action and work toward achieving them. Here are some tips to help you stay on track:

1. Write down your action plan 

Develop a detailed plan of action for each goal. Identify the necessary resources, strategies, and milestones to achieve them. A well-defined action plan provides a road map for success.

2. Foster a culture that’s goal-oriented

Encourage your employees to embrace and contribute to your goals. Foster a culture that values goal setting and achievement. Recognize and reward individuals or teams that make significant progress toward the goals.

3. Regularly track and evaluate progress

Monitor the progress toward each goal and make adjustments as needed. Use project management tools or software to track and visualize progress. Regularly review and evaluate your performance to ensure you’re on the right track.

4. Seek feedback and adapt

Gather feedback from employees, customers, and stakeholders. Their insights can provide valuable perspectives and help you refine your goals and strategies. Adapt your approach based on feedback to increase your chances of success.

5. Stay focused and motivated (even when you fail)

Staying motivated to achieve goals is difficult, especially when you come up short or fail. But don’t let this set you back. Continue pushing forward with your goals or readjust the direction as needed. Then do whatever you can to avoid distractions so you stay committed to your action plan.

Also, remember to celebrate small wins and milestones along the way to keep your team motivated and engaged.

To provide inspiration, here are some examples of common business goals:

1. Revenue growth

Revenue growth is a business goal that focuses on increasing the overall income generated by the company. Setting a specific target percentage increase in revenue can create a measurable goal to work toward.

Strategies for achieving revenue growth may include:

• Expanding the customer base through targeted marketing campaigns
• Improving customer retention and loyalty
• Upselling or cross-selling to existing customers
• Increasing the average order value by offering premium products or services

Example: A retail company sets a goal to increase its revenue by 10% in the next fiscal year. To achieve this, it implements several strategies, including launching a digital marketing campaign to attract new customers, offering personalized discounts and promotions to encourage repeat purchases, and introducing a premium product line to increase the average order value.

2. Customer acquisition

Customer acquisition focuses on expanding the customer base by attracting new customers to the business. Setting a specific goal for the number of new customers helps businesses track their progress and measure the effectiveness of their marketing efforts.

Strategies for customer acquisition may include:

• Running targeted advertising campaigns
• Implementing referral programs to incentivize existing customers to refer new ones
• Forming strategic partnerships with complementary businesses to reach a wider audience

Example: A software-as-a-service (SaaS) company aims to acquire 1k new customers in the next quarter. To achieve this, it launches a social media marketing campaign targeting its ideal customer profile, offers a referral program where existing customers receive a discount for referring new customers, and forms partnerships with industry influencers to promote its product.

3. Employee development

Employee development goals focus on enhancing the skills and knowledge of employees to improve their performance and contribute to the organization’s growth. By setting goals for employee training and skill development, businesses can create a culture of continuous learning and provide opportunities for career advancement.

Strategies for employee development may include:

• Offering training programs
• Providing mentorship opportunities
• Sponsoring professional certifications
• Creating a career development plan for each employee

Example: A technology company aims to have 80% of its employees complete at least one professional certification within the next year. To achieve this, it offers financial support and study materials for employees interested in obtaining certifications, provides dedicated study time during working hours, and celebrates employees’ achievements upon certification completion.

4. Product development

Product development goals focus on creating and improving products or services to meet customer needs and stay competitive in the market. Setting goals for product development can prioritize your efforts and so you can allocate resources effectively.

Strategies for product development may include:

• Conducting market research to identify customer preferences and trends
• Gathering customer feedback through surveys or focus groups
• Investing in research and development to create new products or enhance existing ones
• Collaborating with customers or industry experts to co-create innovative solutions

Example: An electronics company sets a goal to launch three new product lines within the next year. To achieve this, it conducts market research to identify emerging trends and customer demands, gathers feedback from its target audience through surveys and usability testing, allocates resources to research and development teams for product innovation, and collaborates with external design agencies to create visually appealing and user-friendly products.

5. Social responsibility

Social responsibility goals focus on making a positive impact on society or the environment. These goals go beyond financial success and emphasize the importance of ethical and sustainable business practices. Setting goals for social responsibility allows businesses to align their values with their actions and contribute to causes that resonate with their stakeholders.

Strategies for social responsibility may include: 

• Implementing sustainable practices to reduce environmental impact
• Donating a percentage of profits to charitable organizations
• Supporting local communities through volunteer programs
• Promoting diversity and inclusion within the organization

Example: A clothing retailer aims to reduce its carbon footprint by 20% in the next two years. To achieve this, it implements sustainable practices, such as using eco-friendly materials, optimizing packaging to minimize waste, and partnering with ethical manufacturers. It also donates a percentage of its profits to an environmental conservation organization.

Setting and achieving goals is what it takes to be successful in business. By following the steps outlined in this article and incorporating the tips provided, you can effectively set and work toward your goals. Remember to regularly evaluate progress, adapt as necessary, and celebrate milestones along the way.

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Setting Business Goals & Objectives: 4 Considerations

• 31 Oct 2023

Setting business goals and objectives is important to your company’s success. They create a roadmap to help you identify and manage risk , gain employee buy-in, boost team performance , and execute strategy . They’re also an excellent marker to measure your business’s performance.

Yet, meeting those goals can be difficult. According to an Economist study , 90 percent of senior executives from companies with annual revenues of one billion dollars or more admitted they failed to reach all their strategic goals because of poor implementation. In order to execute strategy, it’s important to first understand what’s attainable when developing organizational goals and objectives.

If you’re struggling to establish realistic benchmarks for your business, here’s an overview of what business goals and objectives are, how to set them, and what you should consider during the process.

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What Are Business Goals and Objectives?

Business objectives dictate how your company plans to achieve its goals and address the business’s strengths, weaknesses, and opportunities. While your business goals may shift, your objectives won’t until there’s an organizational change .

Business goals describe where your company wants to end up and define your business strategy’s expected achievements.

According to the Harvard Business School Online course Strategy Execution , there are different types of strategic goals . Some may even push you and your team out of your comfort zone, yet are important to implement.

For example, David Rodriguez, global chief human resources officer at Marriott, describes in Strategy Execution the importance of stretch goals and “pushing people to not accept today's level of success as a final destination but as a starting point for what might be possible in the future.”

It’s important to strike a balance between bold and unrealistic, however. To do this, you must understand how to responsibly set your business goals and objectives.

Related: A Manager’s Guide To Successful Strategy Implementation

How to Set Business Goals and Objectives

While setting your company’s business goals and objectives might seem like a simple task, it’s important to remember that these goals shouldn’t be based solely on what you hope to achieve. There should be a correlation between your company’s key performance indicators (KPIs)—quantifiable success measures—and your business strategy to justify why the goal should, and needs to, be achieved.

This is often illustrated through a strategy map —an illustration of the cause-and-effect relationships that underpin your strategy. This valuable tool can help you identify and align your business goals and objectives.

“A strategy map gives everyone in your business a road map to understand the relationship between goals and measures and how they build on each other to create value,” says HBS Professor Robert Simons in Strategy Execution .

While this roadmap can be incredibly helpful in creating the right business goals and objectives, a balanced scorecard —a tool to help you track and assess non-financial measures—ensures they’re achievable through your current business strategy.

“Ask yourself, if I picked up a scorecard and examined the measures on that scorecard, could I infer what the business's strategy was,” Simon says. “If you've designed measures well, the answer should be yes.”

According to Strategy Execution , these measures are necessary to ensure your performance goals are achieved. When used in tandem, a balanced scorecard and strategy map can also tell you whether your goals and objectives will create value for you and your customers.

“The balanced scorecard combines the traditional financial perspective with additional perspectives that focus on customers, internal business processes, and learning and development,” Simons says.

These four perspectives are key considerations when setting your business goals and objectives. Here’s an overview of what those perspectives are and how they can help you set the right goals for your business.

4 Things to Consider When Setting Business Goals and Objectives

1. financial measures.

It’s important to ensure your plans and processes lead to desired levels of economic value. Therefore, some of your business goals and objectives should be financial.

Some examples of financial performance goals include:

• Cutting costs
• Increasing revenue
• Improving cash flow management

“Businesses set financial goals by building profit plans—one of the primary diagnostic control systems managers use to execute strategy,” Simons says in Strategy Execution . “They’re budgets drawn up for business units that have both revenues and expenses, and summarize the anticipated revenue inflows and expense outflows for a specified accounting period.”

Profit plans are essential when setting your business goals and objectives because they provide a critical link between your business strategy and economic value creation.

According to Simons, it’s important to ask three questions when profit planning:

• Does my business strategy generate enough profit to cover costs and reinvest in the business?
• Does my business generate enough cash to remain solvent through the year?
• Does my business create sufficient financial returns for investors?

By mapping out monetary value, you can weigh the cost of different strategies and how likely it is you’ll meet your company and investors’ financial expectations.

2. Customer Satisfaction

To ensure your business goals and objectives aid in your company’s long-term success, you need to think critically about your customers’ satisfaction. This is especially important in a world where customer reviews and testimonials are crucial to your organization’s success.

“Everything that's important to the business, we have a KPI and we measure it,” says Tom Siebel, founder, chairman, and CEO of C3.ai, in Strategy Execution . “And what could be more important than customer satisfaction?”

Unlike your company’s reputation, measuring customer satisfaction has a far more personal touch in identifying what customers love and how to capitalize on it through future strategic initiatives .

“We do anonymous customer satisfaction surveys every quarter to see how we're measuring up to our customer expectations,” Siebel says.

While this is one example, your customer satisfaction measures should reflect your desired market position and focus on creating additional value for your audience.

Related: 3 Effective Methods for Assessing Customer Needs

3. Internal Business Processes

Internal business processes is another perspective that should factor into your goal setting. It refers to several aspects of your business that aren’t directly affected by outside forces. Since many goals and objectives are driven by factors such as business competition and market shifts, considering internal processes can create a balanced business strategy.

“Our goals are balanced to make sure we’re holistically managing the business from a financial performance, quality assurance, innovation, and human talent perspective,” says Tom Polen, CEO and president of Becton Dickinson, in Strategy Execution .

According to Strategy Execution , internal business operations are broken down into the following processes:

• Operations management
• Customer management

While improvements to internal processes aren’t driven by economic value, these types of goals can still reap a positive return on investment.

“We end up spending much more time on internal business process goals versus financial goals,” Polen says. “Because if we take care of them, the financial goals will follow at the end of the day.”

4. Learning and Growth Opportunities

Another consideration while setting business goals and objectives is learning and growth opportunities for your team. These are designed to increase employee satisfaction and productivity.

According to Strategy Execution , learning and growth opportunities touch on three types of capital:

• Human: Your employees and the skills and knowledge required for them to meet your company’s goals
• Information: The databases, networks, and IT systems needed to support your long-term growth
• Organization: Ensuring your company’s leadership and culture provide people with purpose and clear objectives

Employee development is a common focus for learning and growth goals. Through professional development opportunities , your team will build valuable business skills and feel empowered to take more risks and innovate.

To create a culture of innovation , it’s important to ensure there’s a safe space for your team to make mistakes—and even fail.

“We ask that people learn from their mistakes,” Rodriguez says in Strategy Execution . “It's really important to us that people feel it’s safe to try new things. And all we ask is people extract their learnings and apply it to the next situation.”

Achieve Your Business Goals

Business goals aren’t all about your organization’s possible successes. It’s also about your potential failures.

“When we set goals, we like to imagine a bright future with our business succeeding,” Simons says in Strategy Execution . “But to identify your critical performance variables, you need to engage in an uncomfortable exercise and consider what can cause your strategy to fail.”

Anticipating potential failures isn’t easy. Enrolling in an online course—like HBS Online’s Strategy Execution —can immerse you in real-world case studies of past strategy successes and failures to help you better understand where these companies went wrong and how to avoid it in your business.

Do you need help setting your business goals and objectives? Explore Strategy Execution —one of our online strategy courses —and download our free strategy e-book to gain the insights to create a successful strategy.

About the Author

How to make a business plan

Table of Contents

How to make a good business plan: step-by-step guide.

A business plan is a strategic roadmap used to navigate the challenging journey of entrepreneurship. It's the foundation upon which you build a successful business.

A well-crafted business plan can help you define your vision, clarify your goals, and identify potential problems before they arise.

But where do you start? How do you create a business plan that sets you up for success?

This article will explore the step-by-step process of creating a comprehensive business plan.

What is a business plan?

A business plan is a formal document that outlines a business's objectives, strategies, and operational procedures. It typically includes the following information about a company:

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

A business plan serves as a roadmap for a company's success and provides a blueprint for its growth and development. It helps entrepreneurs and business owners organize their ideas, evaluate the feasibility, and identify potential challenges and opportunities.

As well as serving as a guide for business owners, a business plan can attract investors and secure funding. It demonstrates the company's understanding of the market, its ability to generate revenue and profits, and its strategy for managing risks and achieving success.

Business plan vs. business model canvas

A business plan may seem similar to a business model canvas, but each document serves a different purpose.

A business model canvas is a high-level overview that helps entrepreneurs and business owners quickly test and iterate their ideas. It is often a one-page document that briefly outlines the following:

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

On the other hand, a Business Plan Template provides a more in-depth analysis of a company's strategy and operations. It is typically a lengthy document and requires significant time and effort to develop.

A business model shouldn’t replace a business plan, and vice versa. Business owners should lay the foundations and visually capture the most important information with a Business Model Canvas Template . Because this is a fast and efficient way to communicate a business idea, a business model canvas is a good starting point before developing a more comprehensive business plan.

A business plan can aim to secure funding from investors or lenders, while a business model canvas communicates a business idea to potential customers or partners.

Why is a business plan important?

A business plan is crucial for any entrepreneur or business owner wanting to increase their chances of success.

Here are some of the many benefits of having a thorough business plan.

Helps to define the business goals and objectives

A business plan encourages you to think critically about your goals and objectives. Doing so lets you clearly understand what you want to achieve and how you plan to get there.

A well-defined set of goals, objectives, and key results also provides a sense of direction and purpose, which helps keep business owners focused and motivated.

Guides decision-making

A business plan requires you to consider different scenarios and potential problems that may arise in your business. This awareness allows you to devise strategies to deal with these issues and avoid pitfalls.

With a clear plan, entrepreneurs can make informed decisions aligning with their overall business goals and objectives. This helps reduce the risk of making costly mistakes and ensures they make decisions with long-term success in mind.

Attracts investors and secures funding

Investors and lenders often require a business plan before considering investing in your business. A document that outlines the company's goals, objectives, and financial forecasts can help instill confidence in potential investors and lenders.

A well-written business plan demonstrates that you have thoroughly thought through your business idea and have a solid plan for success.

Identifies potential challenges and risks

A business plan requires entrepreneurs to consider potential challenges and risks that could impact their business. For example:

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

By identifying these potential challenges, entrepreneurs can develop strategies to mitigate risks and overcome challenges. This can reduce the likelihood of costly mistakes and ensure the business is well-positioned to take on any challenges.

Provides a basis for measuring success

A business plan serves as a framework for measuring success by providing clear goals and financial projections . Entrepreneurs can regularly refer to the original business plan as a benchmark to measure progress. By comparing the current business position to initial forecasts, business owners can answer questions such as:

Are we where we want to be at this point?

Did we achieve our goals?

If not, why not, and what do we need to do?

After assessing whether the business is meeting its objectives or falling short, business owners can adjust their strategies as needed.

How to make a business plan step by step

The steps below will guide you through the process of creating a business plan and what key components you need to include.

1. Create an executive summary

Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.

Keep your executive summary concise and clear with the Executive Summary Template . The simple design helps readers understand the crux of your business plan without reading the entire document.

2. Write your company description

Provide a detailed explanation of your company. Include information on what your company does, the mission statement, and your vision for the future.

Provide additional background information on the history of your company, the founders, and any notable achievements or milestones.

3. Conduct a market analysis

Conduct an in-depth analysis of your industry, competitors, and target market. This is best done with a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. Next, identify your target market's needs, demographics, and behaviors.

Use the Competitive Analysis Template to brainstorm answers to simple questions like:

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

These questions should give you valuable insights into the current market and where your business stands.

4. Describe your products and services

Provide detailed information about your products and services. This includes pricing information, product features, and any unique selling points.

Use the Product/Market Fit Template to explain how your products meet the needs of your target market. Describe what sets them apart from the competition.

5. Design a marketing and sales strategy

Outline how you plan to promote and sell your products. Your marketing strategy and sales strategy should include information about your:

Pricing strategy

Advertising and promotional tactics

Sales channels

The Go to Market Strategy Template is a great way to visually map how you plan to launch your product or service in a new or existing market.

6. Determine budget and financial projections

Document detailed information on your business’ finances. Describe the current financial position of the company and how you expect the finances to play out.

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

Define how your company is structured and who will be responsible for each aspect of the business. Use the Business Organizational Chart Template to visually map the company’s teams, roles, and hierarchy.

As well as the organization and management structure, discuss the legal structure of your business. Clarify whether your business is a corporation, partnership, sole proprietorship, or LLC.

8. Make an action plan

At this point in your business plan, you’ve described what you’re aiming for. But how are you going to get there? The Action Plan Template describes the following steps to move your business plan forward. Outline the next steps you plan to take to bring your business plan to fruition.

Types of business plans

Several types of business plans cater to different purposes and stages of a company's lifecycle. Here are some of the most common types of business plans.

Startup business plan

A startup business plan is typically an entrepreneur's first business plan. This document helps entrepreneurs articulate their business idea when starting a new business.

Not sure how to make a business plan for a startup? It’s pretty similar to a regular business plan, except the primary purpose of a startup business plan is to convince investors to provide funding for the business. A startup business plan also outlines the potential target market, product/service offering, marketing plan, and financial projections.

Strategic business plan

A strategic business plan is a long-term plan that outlines a company's overall strategy, objectives, and tactics. This type of strategic plan focuses on the big picture and helps business owners set goals and priorities and measure progress.

The primary purpose of a strategic business plan is to provide direction and guidance to the company's management team and stakeholders. The plan typically covers a period of three to five years.

Operational business plan

An operational business plan is a detailed document that outlines the day-to-day operations of a business. It focuses on the specific activities and processes required to run the business, such as:

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

The primary purpose of an operational business plan is to ensure that the business runs efficiently and effectively. It helps business owners manage their resources, track their performance, and identify areas for improvement.

Growth-business plan

A growth-business plan is a strategic plan that outlines how a company plans to expand its business. It helps business owners identify new market opportunities and increase revenue and profitability. The primary purpose of a growth-business plan is to provide a roadmap for the company's expansion and growth.

The 3 Horizons of Growth Template is a great tool to identify new areas of growth. This framework categorizes growth opportunities into three categories: Horizon 1 (core business), Horizon 2 (emerging business), and Horizon 3 (potential business).

One-page business plan

A one-page business plan is a condensed version of a full business plan that focuses on the most critical aspects of a business. It’s a great tool for entrepreneurs who want to quickly communicate their business idea to potential investors, partners, or employees.

A one-page business plan typically includes sections such as business concept, value proposition, revenue streams, and cost structure.

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

A template can help you organize your thoughts and effectively communicate your business ideas and strategies. Starting with a template can also save you time and effort when formatting your plan.

Miro’s extensive library of customizable templates includes all the necessary sections for a comprehensive business plan. With our templates, you can confidently present your business plans to stakeholders and investors.

Be practical

Avoid overestimating revenue projections or underestimating expenses. Your business plan should be grounded in practical realities like your budget, resources, and capabilities.

Be specific

Provide as much detail as possible in your business plan. A specific plan is easier to execute because it provides clear guidance on what needs to be done and how. Without specific details, your plan may be too broad or vague, making it difficult to know where to start or how to measure success.

Be thorough with your research

Conduct thorough research to fully understand the market, your competitors, and your target audience . By conducting thorough research, you can identify potential risks and challenges your business may face and develop strategies to mitigate them.

Get input from others

It can be easy to become overly focused on your vision and ideas, leading to tunnel vision and a lack of objectivity. By seeking input from others, you can identify potential opportunities you may have overlooked.

Review and revise regularly

A business plan is a living document. You should update it regularly to reflect market, industry, and business changes. Set aside time for regular reviews and revisions to ensure your plan remains relevant and effective.

Create a winning business plan to chart your path to success

Starting or growing a business can be challenging, but it doesn't have to be. Whether you're a seasoned entrepreneur or just starting, a well-written business plan can make or break your business’ success.

The purpose of a business plan is more than just to secure funding and attract investors. It also serves as a roadmap for achieving your business goals and realizing your vision. With the right mindset, tools, and strategies, you can develop a visually appealing, persuasive business plan.

Ready to make an effective business plan that works for you? Check out our library of ready-made strategy and planning templates and chart your path to success.

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• Setting business goals: The first step ...

Setting business goals: The first step to a successful business

Business goals are a predetermined target that a business or individual plans to achieve in a set period of time. This article discusses the importance of business goals and reasons why you should set them for your team.

These are just a few benefits the goal setting process provides. Whether you're looking at the big picture or looking for small stepping stones, we'll explain everything you need to know to set goals for your business.

What are business goals?

Business goals are a predetermined target that a business or individual plans to achieve in a set period of time. These goals are often split into short-term goals and long-term goals . Business goals can be general and high level, or they can focus on specific measurable actions. 

A good example of a general business goal is a mission statement. Missions statements are a general goal because they don't have one metric that defines their success. They’re more often used as a guiding North Star—something your team can strive for as opposed to hitting hard numbers.

Alternatively, you can set specific goals—measurable goals that are easy to track as your team progresses towards them. When someone talks about "setting goals" or the "goal setting process," they're talking about specific goals. A common goal setting process to use is the SMART goals process .

Short-term goals

Short-term goals are often bound by a set period of time, usually ranging from a few hours to a full year. Long-term goals can also be time-bound, but if they are, they’re typically set further into the future. 

Short-term goals are often used as building blocks towards larger goals. A common strategy in business is to set multiple short-term goals to make the long-term goals more achievable.

Examples of short-term business goals:

Increase net promoter score by 10 points this quarter.

Hire 12 new support representatives by the end of the year.

Increase employee satisfaction by 20%.

Long-term goals

Long-term goals are bigger visions—goals you want to achieve further into the future. A common long-term goal is a 10-year goal. Think about where you want your business to be 10 years from now. What business objectives do you want to have achieved by then? What new businesses do you want to break into, if any? 

Long-term goals are often used as vision or mission statements —these goals serve as a compass for your business to help you move in the right direction. Think of your goals as a map to get you where you want to go. Long-term goals may not tell you how to get there exactly, but they point you in the right direction. Short-term goals are like a GPS. They provide step-by-step directions on how to get where you want to go. 

Examples of long-term business goals:

Nike : To bring inspiration and innovation to every athlete in the world.

Patagonia : We're in business to save our home planet.

Google : To organize the world's information and make it universally accessible and useful.

Why are business goals important?

Setting business goals is a best practice for a reason—goals help drive businesses in the right direction. Here are a few more reasons why companies take the time to establish strong goals. 

Confidently define success

One of the easiest ways to know if your team is successful is by clearly outlining what success looks like. When you set your goals, take into consideration what you know your team is capable of, and push them slightly farther than expected.

There are a few common frameworks used to define goals. One of the most common ones used to create measurable and actionable goals is the Objectives and Key Results (OKRs) framework.

Connect work to goals

A good business strategy to get into the habit of doing is connecting your business goals to the work your team is already doing. When you connect daily work to short- and long-term goals, individual team members have a clear sense of what they need to do, when they need to complete it, and the strategies they're doing to achieve those goals. 

Not only are team members more confident in what they need to do, but it gives them a sense of pride and ownership over their work. Team members are confident in how the work they’re doing impacts your business and how they’ve contributed to that success.

Keep teams aligned

A key benefit of using business goals is to align teams towards a common goal. Establishing clear business objectives allows team leaders to define which tactics their individual teams should use to achieve these goals. 

For example, imagine your company's overall business goal is to increase profitability by 10%. This is an overarching goal, but there are many different ways your company can achieve this. By establishing smaller, more tailored goals, business leaders can define the specific strategy you plan to take to achieve this goal. Your sales team may increase their sales quota, and your marketing team may implement a new outreach strategy. These are two different tactics that can be implemented to ultimately reach the same goal.

Maintain accountability

Once you set business goals, you can then break them down to the individual level. Using a technique like this can help maintain accountability from the leadership level all the way down to individual team members. When individual team members are responsible for their individual goals, it's easy for managers to gauge how they're performing and when they might need more support. 

Inform decision-making

If your company regularly tracks its business goals, you can use past goals as a way to inform your decision making process. For example, if your team sets up a new marketing strategy to track your goals and progress, you can use that information to set your business strategy for the next year based on performance.

Tips for setting clear business goals

Now that you know the reasons why business goals are important, here are a few tips on how to establish them.

Use a framework to set goals

If you're on the path to setting your first business goal, it can be challenging to figure out where to start. You want to make sure that your goal is achievable, but not so easy to achieve that it's not a challenge.  Goal setting frameworks like SMART goals or OKRs are a good way to establish your first set of business goals.

Co-create with other business leaders

Your team doesn't work in a bubble. The work that your team does can affect other teams in your company and your business strategy as a whole. This is why co-creating with stakeholders is important. By working together, your team can utilize their unique knowledge and experience to set goals and create a sound business plan.

Start with the big picture

When you're establishing your goals, choosing numbers and tactics can feel overwhelming. To prevent that, start with the big picture first. Focus on answering the questions:

What do you want your company to stand for? 

Why was your company created? 

Where do you want to be in 10 years? What about 25 years? 

Once you’ve defined a big picture mission, break it down into smaller, more actionable goals. What steps can you take to get there? What new products can you introduce to help achieve that overall, big picture mission? 

With goal setting, there is no right or wrong answer. It's all about finding the strategies and methodologies that work best for your team.

Manage goals using software

There's no use in setting goals if you set them and forget them in a document somewhere, only to be opened again at the end of a quarter. Using software to regularly track goal progress is important, and what better way to do that than to use software that connects your goals to the work that needs to be done? 

Connecting the work you’re doing to goals is easy. Guru aligns their company OKRs to their projects with Asana. The Guru team uses Asana as a source of truth for clarity and accountability company-wide.

Start setting—and achieving—business goals today

All businesses start small, and setting goals is how they grow into successful companies. If you're interested in learning more about different goal strategies, how to measure them, or where to start with planning, visit the Asana goals resource page for more information.

Related resources

Unmanaged business goals don’t work. Here’s what does.

How Asana uses work management to effectively manage goals

Beat thrash for good: 4 organizational planning challenges and solutions

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Goals and Objectives for Business Plan with Examples

NOV.05, 2023

Every business needs a clear vision of what it wants to achieve and how it plans to get there. A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and actions to achieve them. A well-written business plan from business plan specialists can help a business attract investors, secure funding, and guide its growth.

Understanding Business Objectives

Business objectives are S pecific, M easurable, A chievable, R elevant, and T ime-bound (SMART) statements that describe what a business wants to accomplish in a given period. They are derived from the overall vision and mission of the business, and they support its strategic direction.

Business plan objectives can be categorized into different types, depending on their purpose and scope. Some common types of business objectives are:

• Financial objectives
• Operational objectives
• Marketing objectives
• Social objectives

For example, a sample of business goals and objectives for a business plan for a bakery could be:

• To increase its annual revenue by 20% in the next year.
• To reduce its production costs by 10% in the next six months.
• To launch a new product line of gluten-free cakes in the next quarter.
• To improve its customer satisfaction rating by 15% in the next month.

The Significance of Business Objectives

Business objectives are important for several reasons. They help to:

• Clarify and direct the company and stakeholders
• Align the company’s efforts and resources to a common goal
• Motivate and inspire employees to perform better
• Measure and evaluate the company’s progress and performance
• Communicate the company’s value and advantage to customers and the market

For example, by setting a revenue objective, a bakery can focus on increasing its sales and marketing efforts, monitor its sales data and customer feedback, motivate its staff to deliver quality products and service, communicate its unique selling points and benefits to its customers, and adjust its pricing and product mix according to market demand.

Advantages of Outlining Business Objectives

Outlining business objectives is a crucial step in creating a business plan. It serves as a roadmap for the company’s growth and development. Outlining business objectives has several advantages, such as:

• Clarifies the company’s vision, direction, scope, and boundaries
• Break down the company’s goals into smaller tasks and milestones
• Assigns roles and responsibilities and delegates tasks
• Establishes standards and criteria for success and performance
• Anticipates risks and challenges and devises contingency plans

For example, by outlining its business objective for increasing the average revenue per customer in its business plan, a bakery can:

• Attract investors with its viable business plan for investors
• Secure funding from banks or others with its realistic financial plan
• Partner with businesses or organizations that complement or enhance its products or services
• Choose the best marketing, pricing, product, staff, location, etc. for its target market and customers

Setting Goals and Objectives for a Business Plan

Setting goals and objectives for a business plan is not a one-time task. It requires careful planning, research, analysis, and evaluation. To set effective goals and objectives for a business plan, one should follow some best practices, such as:

OPTION 1: Use the SMART framework. A SMART goal or objective is clear, quantifiable, realistic, aligned with the company’s mission and vision, and has a deadline. SMART stands for:

• Specific – The goal or objective should be clear, concise, and well-defined.
• Measurable – The goal or objective should be quantifiable or verifiable.
• Achievable – The goal or objective should be realistic and attainable.
• Relevant – The goal or objective should be aligned with the company’s vision, mission, and values.
• Time-bound – The goal or objective should have a deadline or timeframe.

For example, using the SMART criteria, a bakery can refine its business objective for increasing the average revenue per customer as follows:

• Specific – Increase revenue with new products and services from $5 to $5.50.
• Measurable – Track customer revenue monthly with sales reports.
• Achievable – Research the market, develop new products and services, and train staff to upsell and cross-sell.
• Relevant – Improve customer satisfaction and loyalty, profitability and cash flow, and market competitiveness.
• Time-bound – Achieve this objective in six months, from January 1st to June 30th.

OPTION 2: Use the OKR framework. OKR stands for O bjectives and K ey R esults. An OKR is a goal-setting technique that links the company’s objectives with measurable outcomes. An objective is a qualitative statement of what the company wants to achieve. A key result is a quantitative metric that shows how the objective will be achieved.

OPTION 3: Use the SWOT analysis. SWOT stands for S trengths, W eaknesses, O pportunities, and T hreats. A SWOT analysis is a strategic tool that helps the company assess the internal and external factors that affect its goals and objectives.

• Strengths – Internal factors that give the company an advantage over others. 
• Weaknesses – Internal factors that limit the company’s performance or growth. 
• Opportunities – External factors that allow the company to improve or expand. 
• Threats – External factors that pose a risk or challenge to the company.

For example, using these frameworks, a bakery might set the following goals and objectives for its SBA business plan :

Objective – To launch a new product line of gluten-free cakes in the next quarter.

Key Results:

• Research gluten-free cake market demand and preferences by month-end.
• Create and test 10 gluten-free cake recipes by next month-end.
• Make and sell 100 gluten-free cakes weekly online or in-store by quarter-end.

SWOT Analysis:

• Expertise and experience in baking and cake decorating.
• Loyal and satisfied customer base.
• Strong online presence and reputation.

Weaknesses:

• Limited production capacity and equipment.
• High production costs and low-profit margins.
• Lack of knowledge and skills in gluten-free baking.

Opportunities:

• Growing demand and awareness for gluten-free products.
• Competitive advantage and differentiation in the market.
• Potential partnerships and collaborations with health-conscious customers and organizations.
• Increasing competition from other bakeries and gluten-free brands.
• Changing customer tastes and preferences.
• Regulatory and legal issues related to gluten-free labeling and certification.

Examples of Business Goals and Objectives

To illustrate how to write business goals and objectives for a business plan, let’s use a hypothetical example of a bakery business called Sweet Treats. Sweet Treats is a small bakery specializing in custom-made cakes, cupcakes, cookies, and other baked goods for various occasions.

Here are some examples of possible startup business goals and objectives for Sweet Treats:

Earning and Preserving Profitability

Profitability is the ability of a company to generate more revenue than expenses. It indicates the financial health and performance of the company. Profitability is essential for a business to sustain its operations, grow its market share, and reward its stakeholders.

Some possible objectives for earning and preserving profitability for Sweet Treats are:

• To increase the gross profit margin by 5% in the next quarter by reducing the cost of goods sold
• To achieve a net income of $100,000 in the current fiscal year by increasing sales and reducing overhead costs

Ensuring Consistent Cash Flow

Cash flow is the amount of money that flows in and out of a company. A company needs to have enough cash to cover its operating expenses, pay its debts, invest in its growth, and reward its shareholders.

Some possible objectives for ensuring consistent cash flow for Sweet Treats are:

• Increase monthly operating cash inflow by 15% by the end of the year by improving the efficiency and productivity of the business processes
• Increase the cash flow from investing activities by selling or disposing of non-performing or obsolete assets

Creating and Maintaining Efficiency

Efficiency is the ratio of output to input. It measures how well a company uses its resources to produce its products or services. Efficiency can help a business improve its quality, productivity, customer satisfaction, and profitability.

Some possible objectives for creating and maintaining efficiency for Sweet Treats are:

• To reduce the production time by 10% in the next month by implementing lean manufacturing techniques
• To increase the customer service response rate by 20% in the next week by using chatbots or automated systems

Winning and Keeping Clients

Clients are the people or organizations that buy or use the products or services of a company. They are the source of revenue and growth for a company. Therefore, winning and keeping clients is vital to generating steady revenue, increasing customer loyalty, and enhancing word-of-mouth marketing.

Some possible objectives for winning and keeping clients for Sweet Treats are:

• To acquire 100 new clients in the next quarter by launching a referral program or a promotional campaign
• To retain 90% of existing clients in the current year by offering loyalty rewards or satisfaction guarantees

Building a Recognizable Brand

A brand is the name, logo, design, or other features distinguishing a company from its competitors. It represents the identity, reputation, and value proposition of a company. Building a recognizable brand is crucial for attracting and retaining clients and creating a loyal fan base.

Some possible objectives for building a recognizable brand for Sweet Treats are:

• To increase brand awareness by 50% in the next six months by creating and distributing engaging content on social media platforms
• To improve brand image by 30% in the next year by participating in social causes or sponsoring events that align with the company’s values

Expanding and Nurturing an Audience with Marketing

An audience is a group of people interested in or following a company’s products or services. They can be potential or existing clients, fans, influencers, or partners. Expanding and nurturing an audience with marketing is essential for increasing a company’s visibility, reach, and engagement.

Some possible objectives for expanding and nurturing an audience with marketing for Sweet Treats are:

• To grow the email list by 1,000 subscribers in the next month by offering a free ebook or a webinar
• To nurture leads by sending them relevant and valuable information through email newsletters or blog posts

Strategizing for Expansion

Expansion is the process of increasing a company’s size, scope, or scale. It can involve entering new markets, launching new products or services, opening new locations, or forming new alliances. Strategizing for expansion is important for diversifying revenue streams, reaching new audiences, and gaining competitive advantages.

Some possible objectives for strategizing for expansion for Sweet Treats are:

• To launch a new product or service line by developing and testing prototypes
• To open a new branch or franchise by securing funding and hiring staff

Template for Business Objectives

A template for writing business objectives is a format or structure that can be used as a guide or reference for creating your objectives. A template for writing business objectives can help you to ensure that your objectives are SMART, clear, concise, and consistent.

To use this template, fill in the blanks with your information. Here is an example of how you can use this template:

Example of Business Objectives

Our business is a _____________ (type of business) that provides _____________ (products or services) to _____________ (target market). Our vision is to _____________ (vision statement) and our mission is to _____________ (mission statement).

Our long-term business goals and objectives for the next _____________ (time period) are:

S pecific: We want to _____________ (specific goal) by _____________ (specific action).

M easurable: We will measure our progress by _____________ (quantifiable indicator).

A chievable: We have _____________ (resources, capabilities, constraints) that will enable us to achieve this goal.

R elevant: This goal supports our vision and mission by _____________ (benefit or impact).

T ime-bound: We will complete this goal by _____________ (deadline).

Repeat this process for each goal and objective for your business plan.

How to Monitor Your Business Objectives?

After setting goals and objectives for your business plan, you should check them regularly to see if you are achieving them. Monitoring your business objectives can help you to:

• Track your progress and performance
• Identify and overcome any challenges
• Adjust your actions and strategies as needed

Some of the tools and methods that you can use to monitor your business objectives are:

• Dashboards – Show key data and metrics for your objectives with tools like Google Data Studio, Databox, or DashThis.
• Reports – Get detailed information and analysis for your objectives with tools like Google Analytics, Google Search Console, or SEMrush.
• Feedback – Learn from your customers and their needs and expectations with tools like SurveyMonkey, Typeform, or Google Forms.

Strategies for Realizing Business Objectives

To achieve your business objectives, you need more than setting and monitoring them. You need strategies and actions that support them. Strategies are the general methods to reach your objectives. Actions are the specific steps to implement your strategies.

Different objectives require different strategies and actions. Some common types are:

• Marketing strategies
• Operational strategies
• Financial strategies
• Human resource strategies
• Growth strategies

To implement effective strategies and actions, consider these factors:

• Alignment – They should match your vision, mission, values, goals, and objectives
• Feasibility – They should be possible with your capabilities, resources, and constraints
• Suitability – They should fit the context and needs of your business

How OGSCapital Can Help You Achieve Your Business Objectives?

We at OGSCapital can help you with your business plan and related documents. We have over 15 years of experience writing high-quality business plans for various industries and regions. We have a team of business plan experts who can assist you with market research, financial analysis, strategy formulation, and presentation design. We can customize your business plan to suit your needs and objectives, whether you need funding, launching, expanding, or entering a new market. We can also help you with pitch decks, executive summaries, feasibility studies, and grant proposals. Contact us today for a free quote and start working on your business plan.

Frequently Asked Questions

What are the goals and objectives in business.

Goals and objectives in a business plan are the desired outcomes that a company works toward. To describe company goals and objectives for a business plan, start with your mission statement and then identify your strategic and operational objectives. To write company objectives, you must brainstorm, organize, prioritize, assign, track, and review them using the SMART framework and KPIs.

What are the examples of goals and objectives in a business plan?

Examples of goals and objectives in a business plan are: Goal: To increase revenue by 10% each year for the next five years. Objective: To launch a new product line and create a marketing campaign to reach new customers.

What are the 4 main objectives of a business?

The 4 main objectives of a business are economic, social, human, and organic. Economic objectives deal with financial performance, social objectives deal with social responsibility, human objectives deal with employee welfare, and organic objectives deal with business growth and development.

What are goals and objectives examples?

Setting goals and objectives for a business plan describes what a business or a team wants to achieve and how they will do it. For example: Goal: To provide excellent customer service. Objective: To increase customer satisfaction scores by 20% by the end of the quarter. 

At OGSCapital, our business planning services offer expert guidance and support to create a realistic and actionable plan that aligns with your vision and mission. Get in touch to discuss further!

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, how often should a business plan be updated, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

A business plan is a document that details a company's goals and how it intends to achieve them. Business plans can be of benefit to both startups and well-established companies. For startups, a business plan can be essential for winning over potential lenders and investors. Established businesses can find one useful for staying on track and not losing sight of their goals. This article explains what an effective business plan needs to include and how to write one.

Key Takeaways

• A business plan is a document describing a company's business activities and how it plans to achieve its goals.
• Startup companies use business plans to get off the ground and attract outside investors.
• For established companies, a business plan can help keep the executive team focused on and working toward the company's short- and long-term objectives.
• There is no single format that a business plan must follow, but there are certain key elements that most companies will want to include.

Investopedia / Ryan Oakley

Any new business should have a business plan in place prior to beginning operations. In fact, banks and venture capital firms often want to see a business plan before they'll consider making a loan or providing capital to new businesses.

Even if a business isn't looking to raise additional money, a business plan can help it focus on its goals. A 2017 Harvard Business Review article reported that, "Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical nonplanning entrepreneurs."

Ideally, a business plan should be reviewed and updated periodically to reflect any goals that have been achieved or that may have changed. An established business that has decided to move in a new direction might create an entirely new business plan for itself.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. These include being able to think through ideas before investing too much money in them and highlighting any potential obstacles to success. A company might also share its business plan with trusted outsiders to get their objective feedback. In addition, a business plan can help keep a company's executive team on the same page about strategic action items and priorities.

Business plans, even among competitors in the same industry, are rarely identical. However, they often have some of the same basic elements, as we describe below.

While it's a good idea to provide as much detail as necessary, it's also important that a business plan be concise enough to hold a reader's attention to the end.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, it's best to fit the basic information into a 15- to 25-page document. Other crucial elements that take up a lot of space—such as applications for patents—can be referenced in the main document and attached as appendices.

These are some of the most common elements in many business plans:

• Executive summary: This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services: Here, the company should describe the products and services it offers or plans to introduce. That might include details on pricing, product lifespan, and unique benefits to the consumer. Other factors that could go into this section include production and manufacturing processes, any relevant patents the company may have, as well as proprietary technology . Information about research and development (R&D) can also be included here.
• Market analysis: A company needs to have a good handle on the current state of its industry and the existing competition. This section should explain where the company fits in, what types of customers it plans to target, and how easy or difficult it may be to take market share from incumbents.
• Marketing strategy: This section can describe how the company plans to attract and keep customers, including any anticipated advertising and marketing campaigns. It should also describe the distribution channel or channels it will use to get its products or services to consumers.
• Financial plans and projections: Established businesses can include financial statements, balance sheets, and other relevant financial information. New businesses can provide financial targets and estimates for the first few years. Your plan might also include any funding requests you're making.

The best business plans aren't generic ones created from easily accessed templates. A company should aim to entice readers with a plan that demonstrates its uniqueness and potential for success.

2 Types of Business Plans

Business plans can take many forms, but they are sometimes divided into two basic categories: traditional and lean startup. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These plans tend to be much longer than lean startup plans and contain considerably more detail. As a result they require more work on the part of the business, but they can also be more persuasive (and reassuring) to potential investors.
• Lean startup business plans : These use an abbreviated structure that highlights key elements. These business plans are short—as short as one page—and provide only the most basic detail. If a company wants to use this kind of plan, it should be prepared to provide more detail if an investor or a lender requests it.

Why Do Business Plans Fail?

A business plan is not a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections to begin with. Markets and the overall economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All of this calls for building some flexibility into your plan, so you can pivot to a new course if needed.

How frequently a business plan needs to be revised will depend on the nature of the business. A well-established business might want to review its plan once a year and make changes if necessary. A new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is an option when a company prefers to give a quick explanation of its business. For example, a brand-new company may feel that it doesn't have a lot of information to provide yet.

Sections can include: a value proposition ; the company's major activities and advantages; resources such as staff, intellectual property, and capital; a list of partnerships; customer segments; and revenue sources.

A business plan can be useful to companies of all kinds. But as a company grows and the world around it changes, so too should its business plan. So don't think of your business plan as carved in granite but as a living document designed to evolve with your business.

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

U.S. Small Business Administration. " Write Your Business Plan ."

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Plan Your Business Plan Before you put pen to paper, find out how to assess your business's goals and objectives.

You've decided to write a business plan, and you're ready to get started. Congratulations. You've just greatly increased the chances that your business venture will succeed. But before you start drafting your plan, you need to--you guessed it--plan your draft.

One of the most important reasons to plan your plan is that you may be held accountable for the projections and proposals it contains. That's especially true if you use your plan to raise money to finance your company. Let's say you forecast opening four new locations in the second year of your retail operation. An investor may have a beef if, due to circumstances you could have foreseen, you only open two. A business plan can take on a life of its own, so thinking a little about what you want to include in your plan is no more than common prudence.

Second, as you'll soon learn if you haven't already, business plans can be complicated documents. As you draft your plan, you'll be making lots of decisions on serious matters, such as what strategy you'll pursue, as well as less important ones, like what color paper to print it on. Thinking about these decisions in advance is an important way to minimize the time you spend planning your business and maximize the time you spend generating income.

To sum up, planning your plan will help control your degree of accountability and reduce time-wasting indecision. To plan your plan, you'll first need to decide what your goals and objectives in business are. As part of that, you'll assess the business you've chosen to start, or are already running, to see what the chances are that it will actually achieve those ends. Finally, you'll take a look at common elements of most plans to get an idea of which ones you want to include and how each will be treated.

Determine Your Objectives Close your eyes. Imagine that the date is five years from now. Where do you want to be? Will you be running a business that hasn't increased significantly in size? Will you command a rapidly growing empire? Will you have already cashed out and be relaxing on a beach somewhere, enjoying your hard-won gains?

Answering these questions is an important part of building a successful business plan. In fact, without knowing where you're going, it's not really possible to plan at all.

Now is a good time to free-associate a little bit--to let your mind roam, exploring every avenue that you'd like your business to go down. Try writing a personal essay on your business goals. It could take the form of a letter to yourself, written from five years in the future, describing all you have accomplished and how it came about.

As you read such a document, you may make a surprising discovery, such as that you don't really want to own a large, fast-growing enterprise but would be content with a stable small business. Even if you don't learn anything new, though, getting a firm handle on your goals and objectives is a big help in deciding how you'll plan your business.

Goals and Objectives Checklist If you're having trouble deciding what your goals and objectives are, here are some questions to ask yourself:

• How determined am I to see this succeed?
• Am I willing to invest my own money and work long hours for no pay, sacrificing personal time and lifestyle, maybe for years?
• What's going to happen to me if this venture doesn't work out?
• If it does succeed, how many employees will this company eventually have?
• What will be its annual revenues in a year? Five years?
• What will be its market share in that time frame?
• Will it be a niche marketer, or will it sell a broad spectrum of good and services?
• What are my plans for geographic expansion? Local? National? Global?
• Am I going to be a hands-on manager, or will I delegate a large proportion of tasks to others?
• If I delegate, what sorts of tasks will I share? Sales? Technical? Others?
• How comfortable am I taking direction from others? Could I work with partners or investors who demand input into the company's management?
• Is it going to remain independent and privately owned, or will it eventually be acquired or go public?

Your Financing Goals

It doesn't necessarily take a lot of money to make a lot of money, but it does take some. That's especially true if, as part of examining your goals and objectives, you envision very rapid growth.

Energetic, optimistic entrepreneurs often tend to believe that sales growth will take care of everything, that they'll be able to fund their own growth by generating profits. However, this is rarely the case, for one simple reason: You usually have to pay your own suppliers before your customers pay you. This cash flow conundrum is the reason so many fast-growing companies have to seek bank financing or equity sales to finance their growth. They are literally growing faster than they can afford.

Start by asking yourself what kinds of financing you're likely to need--and what you'd be willing to accept. It's easy when you're short of cash, or expect to be short of cash, to take the attitude that almost any source of funding is just fine. But each kind of financing has different characteristics that you should take into consideration when planning your plan. These characteristics take three primary forms:

• First, there's the amount of control you'll have to surrender. An equal partner may, quite naturally, demand approximately equal control. Venture capitalists often demand significant input into management decisions by, for instance, placing one or more people on your board of directors. Angel investors may be very involved or not involved at all, depending on their personal style. Bankers, at the other end of the scale, are likely to offer no advice whatsoever as long as you make payments of principal and interest on time and are not in violation of any other terms of your loan.
• You should also consider the amount of money you're likely to need. Any amount less than several million dollars is too small to be considered for a standard initial public offering of stock, for example. Venture capital investors are most likely to invest amounts of $250,000 to $3 million. On the other hand, only the richest angel investor will be able to provide more than a few hundred thousand dollars, if that.

Almost any source of funds, from a bank to a factor, has some guidelines about the size of financing it prefers. Anticipating the size of your needs now will guide you in preparing your plan.

• The third consideration is cost. This can be measured in terms of interest rates and shares of ownership as well as in time, paperwork and plain old hassle.

How Will You Use Your Plan

Believe it or not, part of planning your plan is planning what you'll do with it. No, we haven't gone crazy--at least not yet. A business plan can be used for several things, from monitoring your company's progress toward goals to enticing key employees to join your firm. Deciding how you intend to use yours is an important part of preparing to write it.

Do you intend to use your plan to help you raise money? In that case, you'll have to focus very carefully on the executive summary, the management, and marketing and financial aspects. You'll need to have a clearly focused vision of how your company is going to make money. If you're looking for a bank loan, you'll need to stress your ability to generate sufficient cash flow to service loans. Equity investors, especially venture capitalists, must be shown how they can cash out of your company and generate a rate of return they'll find acceptable.

Do you intend to use your plan to attract talented employees? Then you'll want to emphasize such things as stock options and other aspects of compensation as well as location, work environment, corporate culture and opportunities for growth and advancement.

Do you anticipate showing your plan to suppliers to demonstrate that you're a worthy customer? A solid business plan may convince a supplier of some precious commodity to favor you over your rivals. It may also help you arrange supplier credit. You may want to stress your blue-ribbon customer list and spotless record of repaying trade debts in this plan.

Assessing Your Company's Potential

For most of us, unfortunately, our desires about where we would like to go aren't as important as our businesses' ability to take us there. Put another way, if you choose the wrong business, you're going nowhere.

Luckily, one of the most valuable uses of a business plan is to help you decide whether the venture you have your heart set on is really likely to fulfill your dreams. Many, many business ideas never make it past the planning stage because their would-be founders, as part of a logical and coherent planning process, test their assumptions and find them wanting.

Test your idea against at least two variables. First, financial, to make sure this business makes economic sense. Second, lifestyle, because who wants a successful business that they hate?

Answer the following questions to help you outline your company's potential. There are no wrong answers. The objective is simply to help you decide how well your proposed venture is likely to match up with your goals and objectives.

• What initial investment will the business require?
• How much control are you willing to relinquish to investors?
• When will the business turn a profit?
• When can investors, including you, expect a return on their money?
• What are the projected profits of the business over time?
• Will you be able to devote yourself full time to the business, financially?
• What kind of salary or profit distribution can you expect to take home?
• What are the chances the business will fail?
• What will happen if it does?
• Where are you going to live?
• What kind of work are you going to be doing?
• How many hours will you be working?
• Will you be able to take vacations?
• What happens if you get sick?
• Will you earn enough to maintain your lifestyle?
• Does your family understand and agree with the sacrifices you envision?

Sources: The Small Business Encyclopedia , Business Plans Made Easy, Start Your Own Business and Entrepreneur magazine.

Continue on to the next section of our Business Plan How-To >> Elements of a Business Plan

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What is a business plan?

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

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

ZenBusiness

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

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

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

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

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

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

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

Your business’s registered name.

Address of your business location .

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

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

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

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

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

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

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

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

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

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

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

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

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

Licenses and permits.

Equipment leases.

Bank statements.

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

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

How much do you need?

with Fundera by NerdWallet

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

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

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

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

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

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

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Business Plan Goals and Examples for Success

Written by Dave Lavinsky

A well-crafted business plan serves as a roadmap for entrepreneurs and businesses to achieve their objectives. One crucial aspect of a business plan is outlining clear and measurable goals. Business plan goals are the specific targets and milestones that a company aims to achieve within a defined timeframe. They provide a direction and purpose for the business, guiding decision-making, resource allocation, and strategic planning. In this article, we will explore the importance of setting business plan goals and provide examples of common goals.

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Why are Business Plan Goals Important?

Business plan goals are essential for several reasons:

• Strategic Focus : Goals help businesses define their strategic direction and focus their efforts on what matters most. They align the company’s efforts and resources towards achieving specific objectives, ensuring that everyone is working towards a common purpose.
• Measurable Outcomes : Goals should be specific, measurable, achievable, relevant, and time-bound (SMART). By setting SMART goals, businesses can track progress, measure success, and identify areas for improvement.
• Motivation and Accountability : Goals provide motivation and drive for entrepreneurs and employees. They create a sense of purpose and urgency, encouraging individuals to work towards achieving the desired outcomes. Goals also establish accountability, as progress is monitored and reviewed regularly.
• Decision-Making : Goals serve as a reference point for decision-making. They help businesses prioritize initiatives, allocate resources, and evaluate opportunities based on their alignment with the established goals.

Examples of Business Plan Goals

Business plan goals can vary depending on the nature, size, and stage of the business. Here are some common examples of business plan goals:

Financial Goals:

• Achieve a specific revenue target within a defined timeframe.
• Increase profitability by a certain percentage or dollar amount.
• Reduce costs or increase efficiency in a particular area of the business.
• Secure funding or investment to support business growth.

Market Penetration Goals:

• Expand market share in a specific geographic region or target market.
• Increase brand awareness and recognition among the target audience.
• Launch new products or services in the market.
• Increase customer retention or loyalty.

Operational Goals:

• Improve production or service delivery processes to enhance quality or reduce lead times.
• Enhance supply chain management to optimize inventory levels or reduce costs.
• Implement new technologies or systems to streamline operations or improve customer experience.
• Achieve certifications or industry standards to improve credibility and competitiveness.

Human Resources Goals:

• Hire and retain top talent to support business growth.
• Provide training and development opportunities for employees to enhance their skills and performance.
• Improve employee engagement and satisfaction levels.
• Establish a diverse and inclusive workforce.

Social Responsibility Goals:

• Implement environmentally sustainable practices in the business operations.
• Contribute to the local community through philanthropic initiatives or social impact programs.
• Promote diversity, equity, and inclusion within the organization.
• Establish ethical and responsible business practices.

Business Plan Goals Conclusion

Business plan goals are critical for defining the direction and purpose of a business. They provide measurable outcomes, motivation, and accountability, guiding decision-making and resource allocation. Examples of business plan goals can include financial, market penetration, operational, human resources, and social responsibility objectives. When setting business plan goals, it’s essential to make them SMART – specific, measurable, achievable, relevant, and time-bound – to increase their effectiveness in driving business success. Regular monitoring and review of progress towards these goals can help businesses stay on track and adapt their strategies as needed to achieve their desired outcomes.

What Are Business Goals? Definitions, Examples, & How To Effectively Set Them

Running a business without clear goals is like heading out on a trip without a destination. At the end of the day, you’d have depleted your resources, lost motivation, and still not gotten to your destination.

It’s little wonder that setting business goals is one of the most critical elements of running — no matter the company’s size or location.

But what are business goals? Why are these goals so important? What are the types and examples of goals you can set? And how can you set business goals that work?

Read on to find the answers to these questions.

Definition Of Business Goals

A business goal is a broad and overarching target or outcome that a business wants to achieve in the short or long term.

Here are some excellent examples of business goals you can set:

• Maximize profits
• Increase revenue
• Launch new products
• Improve customer service
• Increase management efficiency
• Become a thought leader or industry expert
• Rank higher on the search engine results page
• Increase the company’s social media presence
• Create an employee reward or loyalty program

While often muddled, business goals and objectives don’t mean the same thing. Business objectives  are usually short-term, measurable actions to achieve a company’s overarching business goals. Business objectives are typically set up to achieve a business goal.

If your goal is to get to a destination, then the objectives (to achieve said goal) would include filling up your fuel tank, grabbing a map or loading the GPS, and driving within the speed limit.

So, for instance, if you have the goal of improving your website’s performance on the SERP, some of the objectives to achieve such a goal could include the following:

• Writing and publishing one new blog post or article per week
• Getting ten fresh backlinks from authoritative websites
• Optimizing or refreshing existing blog posts to update information, remove dead links, etc.

Importance Of Business Goals

Setting business goals gives your organization and team members targets to strive towards. Without goals, your business won’t have a clear sense of direction and could, quite frankly, inhibit your company from attaining the successes it otherwise would have.

Some other reasons why you need clearly-defined goals for your business are:

Measure Progress

Goals help you track and measure the areas in your business where you’re succeeding or making progress. You’ll also be able to identify the areas that need a bit more work.

For instance, if your goal over the last six months was to gain at least 30 new leads monthly, then you should have no less than 180 leads by now. If you have less than 180, it means there’s an issue, and you need to find out how to fix it.

Provide Clarity

Remember that setting a business goal is like having a destination in mind before embarking on a road trip. When you have business goals, what you want to achieve (or your final destination) is evident in your mind and the minds of your team members.

Set Targets To Work Towards

Having goals helps you set the targets you want to meet for your organization. You’ll be motivated to do more and set even bigger targets as you set and meet the current targets you’re working towards.

Inform Decision Making

Another reason why business goals are essential is that they help inform decision-making. When you have a goal, your decisions will be geared toward achieving said goal. That way, you don’t even bother taking specific actions since they don’t align with your business goals.

Keep Everyone Accountable

Original research from CoSchedule shows that marketers who set goals are 376% more likely to report success than those who don’t . Because these marketers set goals  (decide to do something), they follow through and take the necessary steps to achieve the said goal —making them more successful than those who don’t set goals.

Now that you know what business goals are and their importance let’s examine 6 broad types of business goals.

Social Media Business Goals

Social media business goals  are goals you set to ensure the time and money invested in social media aren’t wasted. With over 4.7 billion social media users today , it’s a no-brainer to set business goals that maximize how you can use social media platforms to win more business or grow your authority.

Some social media goals to set could be to increase website traffic from social, grow your followers count, and generate new leads from social media.

Financial Business Goals

Financial business goals are either short or long-term goals a company sets consistently to increase revenue generated or improve profit margins.

Examples of financial business goals you can set include reducing expenses, making investments, and increasing the prices of products and services.

Employee Business Goals

Employers or employees usually set employee business goals to align with the organization’s goals and objectives. Most times, these employee business goals are tied to performance.

Some goals you can set for your employees include learning new skills, doing things faster and better, and improving communication with team members and customers.

Customer Business Goals

Without customers, you’ll barely be in business. You must set business goals that reflect your customers’ importance.

Customer business goals increase customer conversions, retention, and loyalty. Examples of such goals could be to increase response time, improve customer satisfaction, and create a customer loyalty program.

Process Business Goals

A process business goal involves taking specific actions or processes to achieve a simple, short-term goal. The goals here are usually low-risk and within the control of the individual setting them.

Examples of process business goals could include completing a checklist before publishing a blog post and reaching out to 10 new people daily on LinkedIn.

Time-based Business Goals

Time-based business goals are goals set to be achieved within a specific period. These goals are either short-term (between days and a few months) or long-term ( between months and years).

An example of a short-term time-based business goal could be to improve customer service within 90 days, while a long-term goal could be to generate more revenue at the end of the year.

How To Set Business Goals

The technique you use in setting your business goals is just as—or even more—important than the goals themselves. If your goals aren’t set correctly, you’ll spend time, effort, and resources on unproductive endeavors.

So how can you set business goals the right way? One of the most effective techniques individuals and organizations worldwide use is the SMART goals formula.

SMART goals  stand for:

• Specific: Your goal must focus on one clearly defined metric.
• Measurable: You must measure your goal against that defined metric.
• Attainable: You need to be able to achieve the goal within a specific timeframe.
• Relevant: Your goal aligns with your company values and objectives.
• Timely: Specify when you can achieve these results.

Let’s consider a SMART business goal example:

“By the end of Q4, the sales department will convert 200 new leads into customers (a 20% boost from last quarter) to boost revenue.”

Specific: “By the end of Q4, the sales department will convert 200 new leads into customers (a 20% boost from last quarter).”

This specific goal makes clear what the sales team needs to achieve.

Measurable: “200 leads into customers.”

Here, the sales team knows the metric they’ll use to determine whether they achieved their goal or not.

Attainable:  “200 new leads into customers (a 20% boost from last quarter).”

This goal, with reasonable efforts, is attainable considering the sales team converted 160 leads into customers in the previous quarter.

Relevant: “To boost revenue.”

Increasing sales conversion is relevant because it directly ties to how much revenue the organization can generate.

Timely: “By the end of Q4.”

December or the end of Q4 is a clearly defined deadline for this goal to be accomplished. Having this date in mind helps the team avoid procrastination and other forms of time-wasting.

12 Common Examples Of Business Goals

Here are examples of 12 goals you can set today in your business.

1. Increase Profits

It’s not simply enough to generate a ton of revenue, especially when you have small profit margins. That’s why organizations often set the goal of increasing their profit margins. They usually do this by lowering expenses or increasing the prices of their products and services.

2. Expand Market Share

Introducing your products and services is a great goal if you want to attract more prospects or customers. This goal indirectly also helps businesses increase their brand awareness.

3. Drive More Sales

Driving more sales is perhaps one of the most common business goals ever. Everybody wants to make more sales, and how you achieve this specific goal often affects the other goals.

4. Secure Funding

This is a common goal for startups or businesses that need a considerably large sum of money from investors to run their operations more smoothly.

5. Develop Stronger Relationships With Stakeholders

A positive and strong relationship with stakeholders is vital to the realization of any project. You can achieve this goal by having the communication channel between you and your stakeholders open at all times and involving the stakeholders in decision-making.

6. Grow Brand Awareness

You cannot light a lamp, place it under a basket, and expect it to illuminate a dark room. Similarly, you cannot hide your products and services and expect your target audience to find you.

That’s why it’s essential to grow brand awareness. The more people are aware of your business, the higher the chances your potential customers will find you.

7. Increase Website Traffic

Search Engine Optimization (SEO)  is one of the most effective and cost-friendly ways businesses today generate leads. By increasing your website traffic, you attract more leads, improve your website’s authority on search engines, and build trust with your audience.

8. Reach New Audiences Or Demographics

Reaching new audiences, demographics, or markets helps you improve your brand’s presence and makes you stand out from the competition.

9. Improve Customer Experience

Your customers are your business’s lifeblood. As such, it’s not surprising that many companies aim to improve their customer’s experience with their brand. With improved customer experience comes higher customer retention rates , lower acquisition costs, and, sometimes, brand evangelists.

10. Enter New Markets Or Territories

Entering new markets allows businesses to reach even more people and increase profitability. Before entering new markets, however, you must first conduct thorough market research .

11. Diversify Lead Sources

It’s not practical for businesses to rely on a single lead source. Why? The business will likely suffer when leads from that source dry up. That’s why it’s vital to set the goal of diversifying your lead sources. So, when one source begins to dry up, you can always turn to the other sources.

12. Improve Employee Retention

Your employees are a crucial part of your business, so paying attention to their needs and satisfaction is essential. One goal you can set for your business is to have incentives or programs that increase your employee’s productivity and makes them want to continue working with your company.

What Are Business Goals Examples?

Some common business goals examples include:

• Increase profits
• Diversify lead sources
• Grow brand awareness
• Expand to new markets
• Increase website traffic
• Improve employee retention
• Drive more sales or generate more revenue
• Execute marketing strategies efficiently

What Are The 5 Goals Of A Business?

Use the SMART goal-setting formula to develop your five business goals. This means any goal you set should have all these five elements.

Your goals must be Specific, Measurable, Attainable, Relevant, and Timely.

What Are The Types Of Business Goals?

The different types of categories of business goals are financial business goals, employee business goals, and customer business goals, among others.

How to Set Goals and Objectives in Your Business Plan

Writing out a business plan is a vital step in starting a new company. It helps you create a roadmap of the future of your company and it's the first place investors look to see if you're for real. However, if your company goals aren't laid out clearly or they're unrealistic, investors won't get on board with your vision.

To guide your company toward success, you need to know what success entails. You'll have a much greater chance of making it if you have a direction to move toward. Goal setting gives your company a target to shoot for in the future.

Big goals don't happen all at once, however. You have to take them step by step and you need to know the objectives you'll have to complete on the way. In this article, we'll show you how to create manageable goals for your business and design a series of actionable objectives leading up to them.

What Are Goals and Objectives for Your Business?

Goals are the big targets in your business planning, while objectives are the actions or landmarks that make up the end goal. Clear goals serve to inspire and rally your team to perform but they're not immediately actionable, specific, or measurable. For example, let's say your business sells computers and your goal this year is to increase your gross revenue. How much gross revenue do you want to bring in? You need an objective amount to aim for.

Let's say you decide to shoot for $300,000 in gross revenue. That means your monthly objective is to make $25,000 in gross revenue ($300,000/12). Your direct cost to make each computer is $500 and you sell each computer for $1,500. That means you need to sell 25 computers a month.

Now, you have a measurable monthly objective, but it's not actionable. You need to give your team specific objectives that will lead them toward achieving the goal. How will they sell an average of 25 computers every month?

Here's a list of some actionable objectives your marketing team could complete to help you reach your sales goal. You should assign objectives directly to an individual or department within your business. Of course, if you're the only member of your business, you'll be doing everything yourself.

• Create two blog posts every week using search engine optimization (SEO) to increase brand awareness.
• Create one product video every month and feature it on social media sites like Facebook, Instagram, and Twitter.
• Create an email list for consumers who fill out a form on your website. Send out a weekly email with exclusive news and promotions about the product.
• Use key performance indicators (KPIs) for the company website to identify the top exit page (where the most visitors leave). Redesign the page.

Decide on Goals for Your Business

How do you decide what your goals should be for your company? Each business's goals will be unique depending on its particular business model. A great place to start the decision-making process is your mission statement. Let's use the same computer company in the following example.

Your mission statement is "to create affordable, easy-to-use computers and offer knowledgeable, friendly, and fast technical support and customer service." There are several keywords in the statement that you can use to develop goals. If you use "fast technical support," your goal might be to increase the speed at which your team responds to customer inquiries.

You can also use other methods to decide your company goals. You might hold a brainstorming session with your team to create your goals or you can set goals about how you'll outperform or reach a different market segment than your competitors.

Here are a few types of goals you might create for your business.

• Operational goals: To be more efficient in your work processes and business strategy
• Profit goals: To increase revenue, reduce costs, or increase market share
• Staff development goals: To train your team, increase their knowledge, or improve their customer satisfaction scores
• Goals for handling problems: To be proactive in dealing with possible market, manufacturer, staff, or product issues and things like natural disasters
• Product goals: To create and release a new product or improve a current one

Evaluate Your Business Goals and Objectives

One of the quickest ways to turn investors off is to include outlandish goals in your business plan. Before they put money into your company, they'll want to know that your goal-setting process is sensible. Both your short-term goals and long-term goals need to be realistic and attainable.

You may believe that your company is capable of achieving incredible results, but investors are practical. For example, no one will believe that your computer shop that currently makes $100,000 in gross revenue will be more profitable than Microsoft in five years.

To prove that your goals are realistic, you'll have to show your work. Create a believable forecast of your future business revenue by analyzing things like your business costs, profit margins, market share, and expected growth.

Using SMART to Analyze Your Business Goals

One way to evaluate your business goals for effectiveness is to use SMART goals . Each letter of the acronym represents a quality that your business goals should have. Here's a breakdown you can follow to make sure you have smart goals:

• Specific: Your objectives should be clear, specific actions. It should also be clear who's responsible for them. For example, your marketing team needs to create an email list.
• Measurable: You should be able to easily gauge your success. For example, you need to sell 25 computers a month to reach your goal. If you sell 23, you may need to adjust your method.
• Attainable: Goals need to be realistic. If you currently sell 15 computers a month, it's very unlikely that you'll immediately start selling 1,000 a month.
• Relevant: Your goals need to be in line with your higher-level goals. Creating a blog and optimizing it to appear high on a search engine results page (SERP) will increase brand awareness and provide a bigger audience of possible new customers.
• Time-bound: Create deadlines for your goals or they'll never get done. For example, your sales team must redesign the landing page for your Facebook Ads by Friday, Nov. 3.

Using OKRs to Measure Business Objectives

Another system you can use for managing goals and objectives is the objective and key results (OKR) method. In the OKR system, the O (objective) is representative of a larger goal, while the KR (key results) represent the smaller objectives you use to measure your progress. Here's an OKR model for your computer sales goal.

• O: Increase profitability for the computer company.
• KR1: Make $300,000 in gross profit for the year.
• KR2: Sell 25 computers every month.

Skynova Can Help You Manage All Your Accounting Goals

Generally, investors are more interested in where your company is going than where it currently is. If they're going to put money into it, they need to see that you have the initiative to grow your business and give them a big return on their investment. Use your business plan to give them a clear understanding of your goals and objectives and you'll have a greater chance of getting their backing.

No matter what type of business you run, you likely want to spend your time growing it, not doing administration. Skynova's software products can help you manage your accounting tasks quickly and easily. Take a look at how simple our business templates and accounting software can make your business processes.

Notice to the Reader

The content within this article is designed to provide a basic explanation of goal- and objective-setting for a small business. It isn't tailored to any specific type of business and may not fit your particular company. Before making any big business decisions that could affect your bottom line or presenting your company objectives to investors, you should seek the advice of a certified professional.

Writing Your Very First Business Plan? Here’s What You Need To Know

Pitch deck? Check.

Business cards? Ready to go.

Lucky underwear? Washed and folded.

Business plan? Uh oh.

So you have an amazing business idea , and you’re ready to pitch it to investors or potential partners. But if you’ve never written a business plan before, it can be downright intimidating to put pen to paper (or fingers to keyboard) and try to condense your entire professional dream into one document.

But here’s the good news: writing a business plan doesn’t have to be a stumbling block on your path to business ownership. Instead, it can be a powerful tool that clarifies your business vision, guides your steps along your business journey, and helps secure the funding and partnerships you need to flourish.

And this article will help you by simplifying the process of business plan writing into smaller, more manageable pieces as well as highlighting all the essential parts of the plan that will bring your business idea to life.

Our aim here is to empower you with the foundational knowledge you need to draft a comprehensive plan that leads to a successful business. From articulating your business idea to conducting market research, defining your business objectives, making financial projections, and more — by the end of this guide, you’ll not only understand what goes into a business plan but also why it’s fundamental for your business’s success.

So read on, and let’s get started. Here’s everything you need to know to write your very first business plan.

What Is A Business Plan?

What is a business plan used for, how to write a business plan: step-by-step, downloadable business plan template.

A business plan is a comprehensive document that outlines your business objectives and details the strategies you’ll use to achieve your goals. It acts as a roadmap for your business, highlighting your plans for product development, marketing , operations, and finance.

It guides your business from the startup phase through establishment and growth, providing direction and helping you to navigate the complexities of running a business.

Types Of Business Plans

Understanding the common types of business plans can help you choose the right one for your business’s needs. Generally, there are two main categories of business plans:

• Traditional business plan: These are the most common and detailed type of business plan, often favored by banks and investors. A traditional business plan is comprehensive, covering every aspect of the business in depth. This includes executive summaries, company descriptions, market analysis, organization and management structures, sales strategies, funding requests, and financial projections. It’s suited for businesses looking for significant funding or those with a complex business model that calls for a thorough explanation.
• Lean startup business plan: As opposed to the traditional format, lean startup business plans are streamlined and focus on the core elements of your business. They might include key partnerships, activities, resources, value propositions, customer relationships, channels, customer segments, cost structures, and revenue streams. This format is ideal for businesses that want to launch quickly and iterate on their business model. It’s a living document, meant to be updated and adjusted as you learn more about your customers and your market .

In addition to these, business plans can be prepared to cater to a variety of different scenarios and objectives. These include:

• Feasibility plan: Before committing significant resources, a feasibility business plan helps determine if your business idea is viable. It focuses on analyzing the market, competition, and financial feasibility of the project, helping you make an informed decision about proceeding with the business idea.
• Internal business plan: Used primarily for internal purposes, this type of plan focuses on specific goals or projects within the company. It might detail plans for a new product launch, a restructuring of the organization, or any other internal project, without the need for financial projections if external funding is not part of the goal.
• Strategic business plan: This plan outlines the company’s long-term vision and objectives, along with your strategies to achieve them. It serves as a roadmap for the business’s strategic direction, outlining the company’s future goals and how to reach them.
• Business acquisition plan: If you’re planning to buy an existing business, a business acquisition plan will guide you through the process. It includes an analysis of the business’s current condition, how you plan to finance the acquisition, and how you will integrate it into your existing operations.
• Repositioning plan: Designed for businesses looking to change their market position or business model, this plan focuses on strategies for rebranding, targeting new markets, or altering products and services to meet different customer needs.
• Expansion or growth business plan: For businesses aiming to expand operations, whether by opening new locations, entering new markets, or increasing production capacity, this plan details a strategy for growth. It covers market research, financial projections, and operational plans to help ensure a successful expansion.

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Why Business Plans Are Important

A business plan is more than a document — it’s a reflection of your ambition, vision, and the blueprint to achieve your business dreams. Whether you’re a first-time entrepreneur or an experienced business owner planning to explore a new venture, understanding the fundamentals of a business plan is the first step toward success.

It’s easy to think of a business plan as an old-school formality that isn’t needed anymore now that we’re in the age of fast-moving, agile startups.

However, a business plan isn’t just documentation. Instead, it serves multiple necessary purposes: from crystallizing your business idea to helping secure financing and guiding your strategic direction.

Let’s take a closer look at some of the ways entrepreneurs still use business plans, even for modern startups and tech companies.

1. Communicating Your Business Idea

A business plan is often your business’s first introduction to investors, partners, and stakeholders. It translates your vision into words and numbers, making it easier for others to understand and believe in your idea.

This document articulates the problem your business intends to solve, the solution it offers, and why it’s uniquely positioned to succeed. It serves as a first impression and a pitch, presenting your business concept in a structured and compelling way to capture the interest of potential backers or collaborators.

2. Getting Financing For Your Business

One of the most well-known uses of a business plan is to secure financing.

Whether you’re seeking equity investment from venture capitalists, funding from investors, a business loan from a bank, or even support from friends and family, a business plan is a crucial part of that process.

Why? Because it provides potential backers with detailed financial projections, market analyses, and business strategies they want to see before they pitch in. It also demonstrates your business’s potential for growth and profitability, so investors can see how getting involved with you will benefit them.

A thorough and realistic business plan reassures investors and lenders of your business’s viability and your competence as an entrepreneur, which makes it an indispensable tool for fundraising.

3. Documenting Your Business’s Strategy And Goals

A business plan is also an essential tool for internal use. It documents your strategic plan, operational milestones, and the timeline for achieving them. Having a roadmap like this helps guide your team’s efforts, align them with your business’s broader goals, and measure progress as you move forward. It also helps you identify potential challenges and opportunities, so you can proactively manage and respond to market changes.

4. Facilitating Partnerships And Collaborations

A business plan can help secure strategic partnerships and collaborations. It showcases your business model, target market, and competitive advantages, attracting prospective partners who can offer complementary skills, resources, or market access.

5. Guiding Expansion And Growth

For businesses looking to expand, a business plan can outline the strategy for entering new markets or launching new products. It assesses the feasibility of expansion efforts, detailing the required resources, potential hurdles, and projected outcomes.

Now that you know why a business plan is so important, it’s time to learn what goes into writing one.

Drafting your first business plan can seem like a daunting task. With so much information to gather and decisions to make, knowing where to start is often the hardest part.

However, by breaking the process down into manageable steps, you can create a comprehensive and effective business plan that helps your business succeed.

Here are the steps you need to follow.

Step 1: Executive Summary

Every strong business plan starts with a strong executive summary. The executive summary is the opening act of your business plan. It should give a concise overview of the most important aspects of your business.

Despite being placed at the beginning of your business plan, it’s often best to write this section last. This strategy allows you to distill the essence of what follows into a compelling and informative summary once you have a complete understanding of your business plan.

The purpose of the executive summary is to capture your readers’ attention, whether they are potential investors, partners, or key employees, and motivate them to read the rest of your business plan. It should highlight your business’s mission statement, foundational goals, primary products or services, and provide a brief overview of your market analysis and financial projections.

For startups seeking funding, the executive summary should also include your funding requirements and what it will be used for.

• Business concept: Start with a clear statement of your business idea, focusing on the problem it solves or the opportunity it creates.
• Products or services: Briefly describe what you’re offering. Explain how your products or services address the problem or opportunity you’ve identified.
• Target market: Describe who your potential customers are, the market size, and any market segments you’ve identified. Show that you understand your audience and competitive landscape and there’s a demand for what you’re offering.
• Competitive advantage: Outline what sets your business apart from the competition. This could be technology, expertise, partnerships, or unique business models.
• Financial highlights: Give a brief snapshot of key financial projections, including sales, profits, and cash flow, if applicable. For startups, mention the funding you’re seeking and its purpose.
• Your team: Introduce the core team members and their roles, especially management or leadership team members. Highlight their expertise and how it aligns with the business goals.
• Your mission statement: Finish with your business’s mission statement, which can help readers understand your core values.

Writing Tips For Your Executive Summary

• Be concise: The executive summary should be no more than a page or two long. It’s an overview, not a detailed account.
• Focus on what matters most: Choose the points that are most compelling and relevant to your audience. What would matter most to an investor or a potential partner?
• Be clear and compelling: Use clear, straightforward language. Avoid jargon and overly technical terms that might obscure your message.
• Try to capture readers’ interest: Your executive summary should make readers want to learn more about your business. Leave them intrigued and looking forward to the details in the following sections.

All in all, the executive summary sets the tone for the rest of your business plan. It’s your first opportunity to make a strong impression, so make sure that it clearly conveys the essence of your business, its goals, and its strategy for success.

Here’s an example of an executive summary for a bowling alley.

Step 2: Company Overview

Following the executive summary, the company overview section is like your business plan’s foundation. It provides readers with detailed information about who you are, what you do, and the market needs you aim to fulfill.

This section goes deeper into the details of your business’s identity and history, and the path you’ve charted for its future. It’s an opportunity to share the story of your business, including its inception, evolution, and vision for the future.

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The company overview is designed to give readers a clear understanding of your business’s nature, structure, and purpose. It outlines your business model, the specific niche you intend to occupy within the market, and the factors that you believe will contribute to your success. For stakeholders, this section is crucial for understanding the context in which your business operates, including its legal structure, location, history, and the objectives it seeks to achieve.

• Business name and location: Start with the basics — your business’s official name and its physical or operating locations. If you’re digital or online-based , describe how and where you conduct your business digitally.
• History and background: Give a brief history of your business. How, when, and why was it founded? What milestones have you achieved so far? This can include the evolution of your product or service, market expansion, or any pivotal shifts you’ve made in your strategy so far.
• Legal structure: Describe your business structure (e.g., sole proprietorship, partnership, corporation, limited liability company). This affects many aspects of your business, from taxation to your level of personal liability.
• Industry and market: Detail the industry you operate in and your target market. Highlight the current state of the industry, any trends readers should know about, and the segment of the market you aim to serve.
• Products or services: While you’ll dive deeper into this in later sections, provide a brief overview of your main offerings and how they meet the needs of your market.
• Team and management structure: Give a deeper overview of your team members and describe your business’s management team structure. Highlight the experience and expertise that each member brings to the table.

Writing Tips For Your Company Overview

• Be descriptive but concise: While this section is informational, keep it engaging. Avoid overly technical language or industry jargon that might confuse readers.
• Showcase your passion for your business: Let your enthusiasm and commitment shine through. Your company overview is not just about the facts but also about painting a picture of your business’s potential and values.
• Highlight your Unique Selling Proposition (USP): Clearly articulate what makes your business unique. Why should customers choose you over the competition? This could be your business model, approach to customer service, product innovation, or any other differentiators.

The company overview sets the stage for the rest of your business plan by providing a clear snapshot of your business at a glance. It’s your chance to introduce readers to the heart and soul of your business, setting the context for the detailed plans and analyses that come next.

Here’s the company summary of that same bowling alley business plan:

Step 3: Business Goals

After setting the stage with your company overview, the next step is to clearly articulate your business goals. This section is critical as it outlines what you aim to achieve in both, the short and long term. It transforms your vision and mission into actionable objectives, giving readers a clear direction for your business and a benchmark against which to measure your progress.

The purpose of the business goals section is to specify your business’s targets and aspirations. These goals should be aligned with your company’s mission, vision, and core values, serving as stepping stones to realizing your broader ambitions. This section communicates to stakeholders what you intend to accomplish, offering a clear framework for decision-making and strategic planning.

• Short-term goals: These are the objectives you aim to achieve in the near future, typically within the next year. Short-term goals could include launching a new product, entering a new market, increasing your customer base by a certain percentage, or achieving a specific sales target. They should be specific, measurable, achievable, relevant, and time-bound ( SMART ).
• Long-term goals: These goals reflect your vision for where you want your business to be in the next three to five years or beyond. Long-term goals might involve expanding your business nationally or internationally, diversifying your product line, becoming a market leader, or hitting certain financial milestones. Like short-term goals, these should also be SMART but allow for greater flexibility and vision.
• Strategies for achieving your goals: For each goal, outline the strategies or actions you plan to take to achieve them. This could include marketing initiatives, product development plans, partnerships, or operational improvements.
• Milestones to track your progress: Identify key milestones that will serve as indicators of progress toward your goals. These are critical achievements or points in time on your journey to realizing your objectives.
• Resources you need for each goal: Specify the resources (financial, human, technological, etc.) you will need to achieve your goals. This helps in planning for the acquisition or development of these resources.
• Challenges and solutions: Acknowledge any potential obstacles that might hinder the achievement of your goals and outline strategies to overcome them. This shows foresight and preparedness.

Writing Tips For Your Business Goals

• Be specific and realistic: Your goals should be detailed and achievable. Unrealistic goals can demotivate your team and disappoint stakeholders.
• Quantify your goals wherever possible: Attach numbers to your goals (e.g., revenue targets, market share, customer numbers). This makes your objectives clear and measurable.
• Be aligned with your business’s values: Make sure your goals are consistent with your company’s core values and mission. Coherence demonstrates integrity and purpose.
• Be flexible: While it’s important to have clear goals, you must also acknowledge the need for adaptability. Markets and business environments can change, and your goals may need to adjust accordingly.

By clearly defining what you aim to achieve, you provide a roadmap for your team and a compelling case for investors, showing them not just where your business is today, but where it will be tomorrow.

Step 4: Products And Services

The next step is to dive into the heart of what your business offers: your products and services. This section is where you detail what you’re selling, the benefits it offers to your customers, and how it stands out from what’s already available in the market. It’s not just a catalog of your offerings but a persuasive argument for why your products or services fulfill a need or solve a problem more effectively than your competitors.

The primary purpose of the products and services section is to explain the value proposition of your offerings. You need to convincingly articulate how your products or services meet a need or address a pain point in the market. This section should make it clear why your business exists and how it intends to deliver on its promises to customers. It’s also an opportunity to showcase the innovation, quality, and uniqueness of your offerings, highlighting how they contribute to your business’s overall goals.

• Detailed descriptions of your offerings: Provide comprehensive descriptions of your products or services, including features, advantages, and specifications. Be clear about how they work and what makes them unique.
• Benefits: Focus on the benefits your products or services offer to customers. How do they improve your customers’ lives or solve their problems? Be specific about the value they provide.
• Your market positioning: Explain where your offerings fit in the current market landscape. Who are your competitors, and how do your products or services differ from theirs? This should include pricing strategy, quality, and any unique features or technologies your business offers.
• Your development pipeline: If your products or services are still in development, outline your progress and future plans. Include timelines, milestones, and any challenges you anticipate.
• Supply and manufacturing: For physical products, describe how they are produced, your supply chain, and any dependencies or potential risks associated with manufacturing. For services, explain the process of delivery and how you ensure quality and consistency.
• Patents and copyrights: Mention any intellectual property protections you have in place, such as patents, trademarks, or copyrights.
• Future offerings: Briefly touch on any future products or services you plan to introduce. This shows investors and readers that you’re thinking ahead and planning for growth and innovation.

Writing Tips For Your Products And Services

• Use customer-centric language: Write from the perspective of the customer and use language that resonates with them, focusing on how your offerings make their lives better or easier.
• Include testimonials or use cases: If they’re available, these provide real-world evidence of your products’ or services’ effectiveness and appeal.
• Be clear and concise: While it’s important to provide detailed information, avoid overwhelming readers with technical jargon or unnecessarily complex descriptions.
• Use visuals: Whenever possible, include images, diagrams, or links to videos that demonstrate your products or services in action. Visual aids can make your offerings more tangible and understandable.

This section helps make the case to investors, partners, and customers about the value and potential of your business’s offerings. By clearly explaining the benefits and competitive advantages of your products and services, you make the argument for why your business is viable and likely to succeed.

Step 5: Market Analysis

The market analysis section of your business plan is where you demonstrate your in-depth knowledge of the industry, your target market, and your competitors. This section provides the factual foundation to support your business strategy, showing that there is a demand for your products or services and detailing how you plan to capture and grow your market share. It’s a critical component that investors scrutinize closely, as it showcases your ability to understand and navigate the market landscape.

The purpose of the market analysis is to prove to your readers, whether they’re potential investors, partners, or even team members, that you’ve done your homework. It’s about showing that your business isn’t just a great idea in theory but is viable and competitive in the real world. This section should answer key questions about the size of your target market, trends and growth potential, customer needs and behaviors, and competitive forces.

• Industry description: Start with a broad overview of your industry, including its size, growth rate, and trends. Highlight factors affecting the industry, such as technological advancements, regulatory issues, and economic factors.
• Your target market segment: Narrow your focus to your specific target market. Define your ideal customers based on customer segmentation, demographic, geographic, psychographic, and behavioral factors. Quantify the size of this segment and discuss its growth potential.
• Market needs and preferences: Delve into what drives your target customers. What are their needs, preferences, and pain points? How does your product or service meet these needs better than the alternatives?
• Market trends: Identify and explain the key trends affecting your potential market. How are customer needs changing? What technological or social trends could impact your business?
• Competitive analysis: Provide a detailed analysis of your competitors. Who are they, and what are their strengths and weaknesses? Consider using a framework like a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to compare your business with key competitors.
• Market share and position: Discuss your strategy for capturing and growing your market share. How will you position your business against competitors? What unique selling proposition (USP) will you leverage to stand out?
• Regulatory or legal factors to consider: Mention any regulatory or legal factors affecting your industry and how you plan to comply. This is especially important for closely regulated industries like healthcare, finance, and food services.

Writing Tips For Your Market Analysis

• Use reliable data: Support your analysis with up-to-date, reliable data from trusted sources. Charts, graphs, and tables can help illustrate your points more effectively.
• Be realistic: While it’s important to be optimistic, your analysis also needs to acknowledge potential challenges and how you plan to address them.
• Know your audience: Tailor your market analysis to your readers. For example, if you’re seeking investment, focus on aspects that highlight market opportunities and your competitive advantage.
• Stay current: Markets evolve, so update your business plan periodically so your market analysis reflects the most current data and trends.

A thorough market analysis not only proves the viability of your business idea but also demonstrates your strategic thinking and planning capabilities.

Step 6: Sales And Marketing

After presenting a thorough market analysis, the next step in your business plan is to outline your sales and marketing strategy . This section explains how you intend to attract and retain customers, the channels you’ll use to sell your products or services, and how you’ll position yourself in the competitive landscape. It’s where you translate your understanding of the market into actionable strategies that will drive revenue and growth for your business.

The sales and marketing section demonstrates your approach to entering and growing within the market. It should convey that you have a deep understanding of your target customers, how to reach them effectively, and how to persuade them to choose your offerings over the competition’s. This part of the plan will be essential in the eyes of investors and stakeholders, because it shows how you plan to generate revenue and, ultimately, profit that will give them a return on their investment.

• Your marketing strategy: Detail your strategy for reaching your target market, including branding, messaging, and the marketing channels you plan to use (e.g., social media, email marketing, SEO, content marketing). Explain how your marketing efforts will align with the needs and behaviors of your target audience.
• Your sales strategy: Describe your sales process, from lead generation to closing the sale. Include information on sales channels ( online , brick-and-mortar, direct sales, wholesalers), pricing strategy, sales forecasts, and any sales teams or partnerships you plan to leverage.
• Positioning: Explain how you’ll position your business and offerings within the competitive landscape. What is your unique value proposition (UVP), and how will it appeal to your target market? How does your pricing strategy reflect your positioning?
• Promotional plans: Describe some of the promotional activities and campaigns you’ll use to attract customers. This could include advertising, special offers, sponsorships, or events. Provide a timeline for these activities and how they fit into your overall marketing and sales funnel.
• Customer retention strategies: Detail how you plan to retain customers and encourage repeat business. This could involve loyalty programs, customer service policies, or quality guarantees. Discuss how you’ll gather and use customer feedback to improve your offerings and customer experience.
• Metrics and KPIs: Finally, identify key performance indicators (KPIs) and metrics you’ll use to evaluate the success of your sales and marketing efforts. This could include website traffic, conversion rates, customer acquisition costs, retention rates, and sales targets.

Writing Tips For Your Sales And Marketing Plan

• Focus on differentiation: Clearly state what sets apart your offerings from the competition, and how this will be communicated and marketed to your target audience.
• Be specific and actionable: Provide specific details about your strategies and tactics, including channels, tools, and technologies you’ll use. Avoid vague statements.
• Use data to back up your decisions: Reference market analysis data to justify your chosen strategies and demonstrate a data-driven approach to sales and marketing.
• Include your timeline and budget: Where possible, include timelines for implementing your marketing and sales strategies, as well as budgets for promotional activities. This shows planning and realism in your approach.

The sales and marketing section should convincingly show how you will capture and grow your customer base, driving the revenue needed to support your business goals. It bridges the gap between understanding your market and actively engaging with it, highlighting the strategies that will make your business a success.

Step 7: Logistics and Operations

After detailing your sales and marketing strategy, the next step is to outline the logistics and operations aspects of your business. This section is where you demonstrate how your business will function on a day-to-day basis, including how it will deliver its products or services efficiently and effectively.

The logistics and operations section serves to reassure investors and stakeholders of your business’s ability to operate smoothly. It shows that you have a clear plan for managing the resources and processes that are critical to your business’s success. This part of your business plan is about turning your ideas and strategies into concrete actions and measurable outcomes.

• Logistics and supply chain management: Describe how your business will manage the procurement of raw materials, inventory, and supply chain operations. Detail any partnerships with suppliers or distributors.
• Production or service delivery: Explain the processes involved in building your product or delivering your service . Include information on manufacturing facilities, equipment needs, labor requirements, and quality control measures.
• Business locations and facilities: Describe the location of your business and the facilities required for operation. Explain why the chosen location is ideal for your business, considering factors like customer accessibility, cost, and infrastructure.
• Technology and equipment: Outline the technology and equipment your business will use. Describe how these tools will enhance your productivity, efficiency, and competitive advantage.
• Operations plan: Provide a day-to-day plan for your business operations, including roles and responsibilities of team members, workflow processes, and how you’ll handle order fulfillment and customer service.

Writing Tips For Your Logistics, Operations, And Finances Plan

• Be detailed and realistic: Give specific details to paint a clear picture of your business operations. Use realistic assumptions backed by your market analysis and sales strategies.
• Use visuals: Graphs, charts, and tables can make your business data easier to understand at a glance.
• Highlight risk management: Discuss any potential risks to your business operations and how you plan to mitigate them. This shows you’re prepared for challenges.

This section of your business plan is where you demonstrate your understanding of the operational details and complexities of running a business. It provides a clear roadmap for how you intend to transform your vision into a successful and sustainable business.

Step 8: Financial Projections

The financial projections section of your business plan is where you translate everything you’ve outlined into numbers. It provides a quantitative analysis of your business’s potential for profitability and growth.

In other words, this section clearly shows investors, lenders, and other stakeholders that your business is financially viable and can offer them a solid return on their investment. It’s where you make your case with numbers, showing the expected financial performance of your business over the next three to five years.

Financial projections prove the economic sustainability of your business model. They offer a forecast of your business’s revenue, expenses, and profitability, and provide a clear picture of your financial health and growth potential. This section can help reassure investors and financial institutions that your business is a sound investment with a strong chance of success. It’s also a valuable internal tool for setting financial goals and measuring performance against those targets.

• Sales forecast: Estimate the revenue your business will generate over a specific period, usually three to five years. Break down the forecast by product or service lines if applicable.
• Expense budget: Detail the costs associated with running your business, including both fixed and variable expenses. This should cover everything from rent and salaries to marketing and production costs.
• Cash flow statement: Provide a monthly or quarterly cash flow projection for the first year and annually thereafter. This will show how cash is expected to move in and out of your business, highlighting periods of cash surplus or shortfall.
• Income statements (profit and loss statements): Summarize your revenue, costs, and expenses to show your net profit or loss over time. This shows your business’s profitability and financial health.
• Balance sheet: A balance sheet offers a snapshot of your business’s financial position at a specific point in time, detailing assets, liabilities, and equity.
• Break-even analysis: Calculate the point at which your business will be able to cover its expenses and start generating a profit. This informs investors about the viability and risk level if they choose to back your business.

Writing Tips For Your Financial Projection

• Be conservative: We say it’s better to underpromise and overdeliver. Use conservative estimates that you can confidently achieve or exceed.
• Back up your projections: Base your financial projections on solid data and reasonable assumptions. Explain how you arrived at all of your numbers, referencing market research, historical data, or industry benchmarks.
• Highlight key metrics: Focus on key financial metrics that are most important for your business, such as gross margin, operating margin, and cash flow.
• Include scenarios: Consider presenting best-case, worst-case, and most-likely scenarios. This demonstrates thorough planning and shows that you’re prepared for different possible outcomes.

The financial projections section shows your understanding of your business’s financial dynamics and your ability to plan for its future. It’s not just about impressing investors — it’s also a must-have guide for your business’s financial strategy and management.

Step 9: Funding Request (Optional)

For many new businesses, securing external funding is an exciting step toward achieving their goals. This section of your business plan is where you detail your funding requirements.

Whether you’re seeking equity investment, a loan, or another form of financial support, the funding request section lays out exactly how much capital you need, how you plan to use it, and your preferred terms. This section is optional because not every business will seek external funding at the outset or as part of its growth strategy.

The purpose of the funding request section is to provide potential investors or lenders with a clear and concise overview of your financial needs. It’s about articulating why you need the funds, how they will be used to grow your business, and how this investment or loan fits into your broader financial strategy. This section should align with your financial projections and operations plan, showing a direct link between the funding request and your business’s growth potential.

• How much funding you need: Specify the total amount of funding you are requesting. Be precise, and make sure this number is supported by your financial projections and the way you plan to use the funds.
• Use of funds: Break down how the requested funds will be used. Categories might include product development, marketing, expanding operations, hiring key staff, or purchasing equipment. Be as detailed as possible to show investors how their money will be spent to drive growth.
• Type of funding: Specify the type of funding you’re seeking (e.g., equity investment, debt financing, grants). If you’re open to different types of funding, explain the conditions under which you would consider each.
• Terms: If you have specific terms in mind (for loans or equity investments), outline them here. For equity investments, specify the percentage of ownership you’re offering in exchange for the investment.
• Future funding: If you anticipate needing more funding in future rounds, mention this. Provide a brief overview of what those future needs might look like and how additional funds will help escalate your growth.
• Exit strategy: Especially for equity investors, outline your exit strategy. This could include acquisition, public offering, or buying out investors. It shows you’re thinking about the return on their investment.

Writing Tips For Your Funding Request

• Be direct: This is not the section for ambiguity. State your needs clearly and back them up with solid data from your financial projections.
• Align funding requests with your business plan: Your funding request should be consistent with your business plan’s other sections, especially your financial projections and use of funds.
• Focus on ROI: Investors and lenders are interested in the return on their investment. Highlight how funding your business will lead to a profitable outcome for them.
• Be flexible: While it’s important to specify your needs and preferences, also show that you’re open to discussions about the funding arrangement. Flexibility can be key to securing investment.

The funding request section is a direct appeal to potential investors and lenders to support your business’s growth. It should be persuasive, well-reasoned, and backed by the detailed planning you’ve put into the rest of your business plan. This section is your opportunity to make a compelling case for why investing in your business is a wise and profitable decision.

By now, you should have a solid understanding of what goes into creating a comprehensive and effective business plan that can guide your business to success and attract the investment and support you need. Our downloadable business plan template makes this process even easier!

This template is designed to help you structure your business plan in a way that is clear, concise, and compelling. It includes all the sections we’ve discussed, from the executive summary to the funding request, with helpful prompts and tips to guide your writing. Whether you’re a first-time entrepreneur or a small business owner looking to expand, this template serves as a starting point to customize and develop your unique business plan.

How To Use This Template

• Customize it: While the template provides a general structure, it’s important to customize the content to reflect your specific business idea, market, and strategy. Make it your own by adding details relevant to your business and industry.
• Take your time: Writing a business plan isn’t a race. Use the template as a tool to organize your thoughts and research. It’s okay to take your time to ensure that each section is thoughtfully considered and articulated.
• Seek feedback: Before finalizing your business plan, seek feedback from mentors, peers, or professionals in your industry. Use their insights to refine and improve your plan.
• Update your business plan as needed: Your business plan should be a living document that evolves as your business grows and as market conditions change. Revisit and update your plan regularly to ensure it remains aligned with your business’s path.

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550+ Business Plan Examples to Launch Your Business

Need help writing your business plan? Explore over 550 industry-specific business plan examples for inspiration.

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Example business plan format

Before you start exploring our library of business plan examples, it's worth taking the time to understand the traditional business plan format . You'll find that the plans in this library and most investor-approved business plans will include the following sections:

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally only one to two pages. You should also plan to write this section last after you've written your full business plan.

Your executive summary should include a summary of the problem you are solving, a description of your product or service, an overview of your target market, a brief description of your team, a summary of your financials, and your funding requirements (if you are raising money).

Products & services

The products & services chapter of your business plan is where the real meat of your plan lives. It includes information about the problem that you're solving, your solution, and any traction that proves that it truly meets the need you identified.

This is your chance to explain why you're in business and that people care about what you offer. It needs to go beyond a simple product or service description and get to the heart of why your business works and benefits your customers.

Market analysis

Conducting a market analysis ensures that you fully understand the market that you're entering and who you'll be selling to. This section is where you will showcase all of the information about your potential customers. You'll cover your target market as well as information about the growth of your market and your industry. Focus on outlining why the market you're entering is viable and creating a realistic persona for your ideal customer base.

Competition

Part of defining your opportunity is determining what your competitive advantage may be. To do this effectively you need to get to know your competitors just as well as your target customers. Every business will have competition, if you don't then you're either in a very young industry or there's a good reason no one is pursuing this specific venture.

To succeed, you want to be sure you know who your competitors are, how they operate, necessary financial benchmarks, and how you're business will be positioned. Start by identifying who your competitors are or will be during your market research. Then leverage competitive analysis tools like the competitive matrix and positioning map to solidify where your business stands in relation to the competition.

Marketing & sales

The marketing and sales plan section of your business plan details how you plan to reach your target market segments. You'll address how you plan on selling to those target markets, what your pricing plan is, and what types of activities and partnerships you need to make your business a success.

The operations section covers the day-to-day workflows for your business to deliver your product or service. What's included here fully depends on the type of business. Typically you can expect to add details on your business location, sourcing and fulfillment, use of technology, and any partnerships or agreements that are in place.

Milestones & metrics

The milestones section is where you lay out strategic milestones to reach your business goals.

A good milestone clearly lays out the parameters of the task at hand and sets expectations for its execution. You'll want to include a description of the task, a proposed due date, who is responsible, and eventually a budget that's attached. You don't need extensive project planning in this section, just key milestones that you want to hit and when you plan to hit them.

You should also discuss key metrics, which are the numbers you will track to determine your success. Some common data points worth tracking include conversion rates, customer acquisition costs, profit, etc.

Company & team

Use this section to describe your current team and who you need to hire. If you intend to pursue funding, you'll need to highlight the relevant experience of your team members. Basically, this is where you prove that this is the right team to successfully start and grow the business. You will also need to provide a quick overview of your legal structure and history if you're already up and running.

Financial projections

Your financial plan should include a sales and revenue forecast, profit and loss statement, cash flow statement, and a balance sheet. You may not have established financials of any kind at this stage. Not to worry, rather than getting all of the details ironed out, focus on making projections and strategic forecasts for your business. You can always update your financial statements as you begin operations and start bringing in actual accounting data.

Now, if you intend to pitch to investors or submit a loan application, you'll also need a "use of funds" report in this section. This outlines how you intend to leverage any funding for your business and how much you're looking to acquire. Like the rest of your financials, this can always be updated later on.

The appendix isn't a required element of your business plan. However, it is a useful place to add any charts, tables, definitions, legal notes, or other critical information that supports your plan. These are often lengthier or out-of-place information that simply didn't work naturally into the structure of your plan. You'll notice that in these business plan examples, the appendix mainly includes extended financial statements.

Types of business plans explained

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. To get the most out of your plan, it's best to find a format that suits your needs. Here are a few common business plan types worth considering.

Traditional business plan

The tried-and-true traditional business plan is a formal document meant to be used for external purposes. Typically this is the type of plan you'll need when applying for funding or pitching to investors. It can also be used when training or hiring employees, working with vendors, or in any other situation where the full details of your business must be understood by another individual.

Business model canvas

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

The structure ditches a linear format in favor of a cell-based template. It encourages you to build connections between every element of your business. It's faster to write out and update, and much easier for you, your team, and anyone else to visualize your business operations.

One-page business plan

The true middle ground between the business model canvas and a traditional business plan is the one-page business plan . This format is a simplified version of the traditional plan that focuses on the core aspects of your business.

By starting with a one-page plan , you give yourself a minimal document to build from. You'll typically stick with bullet points and single sentences making it much easier to elaborate or expand sections into a longer-form business plan.

Growth planning

Growth planning is more than a specific type of business plan. It's a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, forecast, review, and refine based on your performance.

It holds all of the benefits of the single-page plan, including the potential to complete it in as little as 27 minutes . However, it's even easier to convert into a more detailed plan thanks to how heavily it's tied to your financials. The overall goal of growth planning isn't to just produce documents that you use once and shelve. Instead, the growth planning process helps you build a healthier company that thrives in times of growth and remain stable through times of crisis.

It's faster, keeps your plan concise, and ensures that your plan is always up-to-date.

Download a free sample business plan template

Ready to start writing your own plan but aren't sure where to start? Download our free business plan template that's been updated for 2024.

This simple, modern, investor-approved business plan template is designed to make planning easy. It's a proven format that has helped over 1 million businesses write business plans for bank loans, funding pitches, business expansion, and even business sales. It includes additional instructions for how to write each section and is formatted to be SBA-lender approved. All you need to do is fill in the blanks.

How to use an example business plan to help you write your own

How do you know what elements need to be included in your business plan, especially if you've never written one before? Looking at examples can help you visualize what a full, traditional plan looks like, so you know what you're aiming for before you get started. Here's how to get the most out of a sample business plan.

Choose a business plan example from a similar type of company

You don't need to find an example business plan that's an exact fit for your business. Your business location, target market, and even your particular product or service may not match up exactly with the plans in our gallery. But, you don't need an exact match for it to be helpful. Instead, look for a plan that's related to the type of business you're starting.

For example, if you want to start a vegetarian restaurant, a plan for a steakhouse can be a great match. While the specifics of your actual startup will differ, the elements you'd want to include in your restaurant's business plan are likely to be very similar.

Use a business plan example as a guide

Every startup and small business is unique, so you'll want to avoid copying an example business plan word for word. It just won't be as helpful, since each business is unique. You want your plan to be a useful tool for starting a business —and getting funding if you need it.

One of the key benefits of writing a business plan is simply going through the process. When you sit down to write, you'll naturally think through important pieces, like your startup costs, your target market , and any market analysis or research you'll need to do to be successful.

You'll also look at where you stand among your competition (and everyone has competition), and lay out your goals and the milestones you'll need to meet. Looking at an example business plan's financials section can be helpful because you can see what should be included, but take them with a grain of salt. Don't assume that financial projections for a sample company will fit your own small business.

If you're looking for more resources to help you get started, our business planning guide is a good place to start. You can also download our free business plan template .

Think of business planning as a process, instead of a document

Think about business planning as something you do often , rather than a document you create once and never look at again. If you take the time to write a plan that really fits your own company, it will be a better, more useful tool to grow your business. It should also make it easier to share your vision and strategy so everyone on your team is on the same page.

Adjust your plan regularly to use it as a business management tool

Keep in mind that businesses that use their plan as a management tool to help run their business grow 30 percent faster than those businesses that don't. For that to be true for your company, you'll think of a part of your business planning process as tracking your actual results against your financial forecast on a regular basis.

If things are going well, your plan will help you think about how you can re-invest in your business. If you find that you're not meeting goals, you might need to adjust your budgets or your sales forecast. Either way, tracking your progress compared to your plan can help you adjust quickly when you identify challenges and opportunities—it's one of the most powerful things you can do to grow your business.

Prepare to pitch your business

If you're planning to pitch your business to investors or seek out any funding, you'll need a pitch deck to accompany your business plan. A pitch deck is designed to inform people about your business. You want your pitch deck to be short and easy to follow, so it's best to keep your presentation under 20 slides.

Your pitch deck and pitch presentation are likely some of the first things that an investor will see to learn more about your company. So, you need to be informative and pique their interest. Luckily, just like you can leverage an example business plan template to write your plan, we also have a gallery of over 50 pitch decks for you to reference.

With this gallery, you have the option to view specific industry pitches or get inspired by real-world pitch deck examples.

Ready to get started?

Now that you know how to use an example business plan to help you write a plan for your business, it's time to find the right one.

Use the search bar below to get started and find the right match for your business idea.

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Business Plan: What It Is + How to Write One

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

What is a business plan? 

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

How to write a business plan 

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

Executive summary

Business description 

Products and services 

Competitor analysis 

Marketing plan and sales strategies 

Brand strategy

Financial planning

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

1. Executive summary 

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

2. Business description 

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

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

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

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

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

3. Competitor analysis 

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

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

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

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

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

4. Products and services

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

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

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

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

Your price points and how these compare to competitors

5. Marketing plan and sales strategies 

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

Who are your ideal customers?   

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

What are their daily lives like? 

What problems and challenges do they experience? 

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

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

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

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

6. Brand strategy 

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

What are the values that define your brand?

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

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

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

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

7. Financial planning  

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

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

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

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

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

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

Quantify how much capital you have on hand.

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

Business plan key takeaways and best practices

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

Keep these best practices in mind:

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

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

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

Start your business with Coursera 

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

Article sources

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

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This content has been made available for informational purposes only. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals.

The Ultimate Guide To S.M.A.R.T. Goals

Updated: May 4, 2022, 1:35pm

Without concrete goals, you are essentially shooting in the dark trying to improve. S.M.A.R.T. goals are useful because they contain five aspects that help you focus and reevaluate goals as needed. This framework can be helpful for any team trying to practice effective project management . The five aspects of S.M.A.R.T. goals are that they are specific, measurable, achievable, relevant and time-bound. We explore what S.M.A.R.T. goals are and how they can help your team.

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S.M.A.R.T. Goals Defined

A S.M.A.R.T. goal is defined by its five key aspects or elements. Without all aspects, you might be goal setting but not effectively creating a plan for success. Let’s look at the five elements of S.M.A.R.T. goals.

Specific goals have a desired outcome that is clearly understood. This might be a sales number or a product rollout goal. No matter what it is, the goal should be clearly articulated so that everyone is on the same page with the objective. Define what will be accomplished and the actions to be taken to accomplish the goal.

These are the numbers used with the goal. You need to have a quantifiable objective so that you can track progress. Define what data will be used to measure the goal and set a method for collection.

Goals need to be realistic to maintain the enthusiasm to try to achieve them. Setting lofty goals is good, but you may want to break them down into smaller, bite-sized chunks. If the goal is not doable, you may need to first ramp up resources to give yourself a shot at success. Ramping up resources would likely be its own S.M.A.R.T. goal.

Goals should be aligned with the mission of the company. Don’t set goals just as an exercise for something to do. One way to determine if the goal is relevant is to define the key benefit to the organization.

Goals should have a deadline. A goal without a deadline doesn’t do much. How can you identify success or failure? This is why S.M.A.R.T. goals set a final date. This doesn’t mean that all the work is done, but it means that you can evaluate the success of the endeavor and set new goals.

Benefits of S.M.A.R.T. Goals

There are a lot of benefits to setting S.M.A.R.T. goals, which is why you should consider adding them to your business toolbox. First, a S.M.A.R.T. goal helps to give you an objective. In doing this, you can identify strengths and weaknesses. Second, a S.M.A.R.T. goal provides motivation to succeed. When you know where the goal line is, you’ll want to work to meet or beat it. Third, a good S.M.A.R.T. goal, while attainable, will also be challenging and force you out of your comfort zone. Ultimately, the S.M.A.R.T. goal is a useful tool to remain focused in attaining a goal.

Drawbacks of S.M.A.R.T. Goals

As with anything, there is a negative side to S.M.A.R.T. goals that you need to consider. By focusing on the S.MA.R.T. goal, you may overlook other areas of the business. There may be other tasks that command attention but the focus on the goal could overshadow them and leave other things undone. In addition to that, the S.M.A.R.T. goal can put a lot of pressure on people to succeed. You don’t want to set goals that people can’t achieve . It’s important to manage expectations and keep goals attainable to avoid burnout and morale issues.

Examples of S.M.A.R.T. Goals

Professional Goal: “I’m going to increase sales”

• Specific: “I am going to learn about social media marketing and invest in a social media management platform to start growing an online audience of potential customers.”
• Measurable: “The goal is to increase sales by 30% within the next quarter.”
• Achievable: “I can afford a subscription to Zoho Social, and I have a moderately successful business that can handle a large increase in customer demand.”
• Relevant: “I want to grow my sales volume so that I can buy a new vehicle for my business.”
• Time-bound: “I will subscribe to Zoho Social tomorrow and go through all of their instructional material to learn how the platform works. I will build a social media strategy and deploy it in two weeks.”

Personal Goal: “I’m going to get in shape.”

• Specific: “I am going to get at least 30 minutes of exercise three days a week and cut my caloric intake by 25%.”
• Measurable: “My goal is to lose 15 pounds within the next three months.”
• Achievable: “I already have a rowing machine and can afford to buy fresh, nutritious food for myself and my family.”
• Relevant: “I want to live a healthier lifestyle so that I feel better physically and mentally in my daily life”
• Time-bound: “I will go to the grocery store tomorrow after work and buy healthy food for the week. I will use my rowing machine for 30 minutes before cooking dinner. I will use the rower three times per week.”

How To Follow Through on Your Goals

What’s the use of having a goal if you aren’t going to follow through with it? Once you have the goals, there are a few things that you can do to ensure you stay on track and achieve them.

Write Goals Down

Take the time to write down your goals and post them somewhere that you can see them. For team goals, place them somewhere everyone can see them. If it’s just for yourself, post a note next to your computer screen with the goals. Writing goals down brings them to life and makes them real. It’s also a good reminder of what you are working on.

Share Goals With Relevant People

Sharing goals sets the tone of accountability. Share goals with your team, your supervisor or a mentor. A shared goal is a goal that comes with a commitment to work hard to achieve the goal. Make sure that you share goals with a supportive person who will encourage you to press on when things get hard.

Regularly Evaluate Progress

Check in and see how you’re doing toward your goal. If the goal is a monthly goal, you may want to have daily or weekly check-ins to see what progress has been made. This helps you redirect energy and change course if something you are doing isn’t working and you aren’t making progress. It’s better to see this sooner than later while you can still adapt with enough time to succeed.

Celebrate Wins

When you succeed, celebrate. But don’t think that you need to wait until the entire goal is achieved before you give yourself a pat on the back. If you find yourself making excellent progress during a check-in, celebrate that too. The little successes help you maintain the energy to work toward the bigger goal.

Frequently Asked Questions (FAQs)

What is project management.

Project management uses processes, skills, tools and knowledge to complete a planned project and achieve its goals. It differs from general management because of the limited scope of a project, concrete deadlines and specific deliverables.

What does S.M.A.R.T. goal stand for?

Specific. Measurable. Achievable. Relevant. Time-Bound.

The acronym helps you remember the key aspects of a goal so that you have the best plan for success.

How do I write a goal plan?

Write a goal plan by starting with the specific goal to be measured. Establish a time frame or deadline in which you want to achieve the goal. Review what you write down to make sure it is both attainable and relevant to your overall objectives.

Why are S.M.A.R.T. goals used in performance reviews?

S.M.A.R.T. goals are a great way for managers and team members to get on the same page with expectations. Great managers work with team members to establish goals that fulfill the overall objective, but that the employee feels good about succeeding with.

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Kimberlee Leonard has 22 years of experience as a freelance writer. Her work has been featured on US News and World Report, Business.com and Fit Small Business. She brings practical experience as a business owner and insurance agent to her role as a small business writer.

With over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.

Beyond 2025: Setting Credible Sustainability Goals for Long-Term Impact

Photo by Jennifer Sanerkin on iStock

April 16, 2024

Beth Richmond

Director, Transformation, BSR

Beth helps companies create a more just and sustainable world through cutting-edge sustainability management . Beth leads BSR’s strategy practice, helping companies understand performance, identify priorities, and design effective sustainability solutions that increase resilience and deliver value for business and society.

Beth is also an active member of BSR’s  Sustainable Futures Lab and regularly advises companies on  climate change . Beth has led engagements in all of BSR’s major industry groups, touching all of BSR’s focus areas.

Prior to joining BSR, Beth served as the director of sustainability for a packaging manufacturer, where she was responsible for corporate-wide sustainability strategy and implementation. Beth also worked as a consultant to the US Environmental Protection Agency, where she developed benefit-cost analyses of proposed federal regulation and supported industry partnership development.

Beth holds a MEM from the Yale School of the Environment and a BA in Economics from Colby College.

Jacob leads BSR’s Sustainable Futures Lab , a new practice using strategic foresight techniques to help businesses engage with emerging issues that are reshaping the global landscape.

Before joining BSR, Jacob was the lead futurist in the New York office of Forum for the Future, where he used scenario planning and other futures techniques to develop sustainability strategy and drive innovation for leading businesses, foundations, and multistakeholder groups. Prior to that he worked at Adaptive Edge, a boutique strategic foresight consultancy, on collaborative scenario planning. Jacob began his career doing human rights research and advocacy at Human Rights First and the Center for Economic and Social Rights. He speaks English and French.

Jacob holds an M.B.A. in Sustainability from Presidio Graduate School and a B.A. in History from the University of Chicago. 

Margot Brent

Manager, Transformation, BSR

Margot supports companies in sustainability management  and the use of strategic foresight as part of BSR’s  Sustainable Futures Lab . She also works with BSR members within the consumer sectors  practice.

Margot also advises companies on  climate change and women’s empowerment . Her experience spans sustainability management, climate risk and resilience, gender equality, communications, employee engagement, innovation management, and learning and development.  

Prior to joining BSR, she was an innovation manager within the fashion and retail sourcing industry, enabling supply chain innovation and sustainability through design thinking and rapid prototyping approaches. Margot previously worked on climate change adaptation projects using nature-based solutions to enhance the resilience of vulnerable communities. She has worked on women’s empowerment programs both professionally and as a volunteer strategic advisor for The Women’s Foundation. 

She holds a B.A. in Politics, Philosophy, and Economics and a B.Phil in Sustainable Development, both from the University of Stellenbosch. 

• The world has experienced profound changes since many companies established their sustainability commitments for 2025 and 2030; the COVID-19 pandemic, wars in Ukraine and Gaza, and increased volatility due to inflation and high-interest rates have significantly reshaped operating environments.
• Intensifying climate impact, explosive growth in AI, the evolving regulatory landscape and increasingly polarized stakeholder demands are all influencing how companies consider and communicate their sustainability goals and targets.
• In considering what comes next, companies should leverage a robust process that pairs strategic foresight and visionary thinking with concrete near-term targets and strong operational planning.
• Clarity of purpose and robust stakeholder engagement are more important than ever in developing goals that will stand the test of time.

Sustainability goals are naturally rooted in long-term ambition. It is not uncommon for companies to set goals 5-10 years in advance or, in the case of climate goals, even longer. Given this long time horizon, they are often pegged to major global frameworks, such as the Sustainable Development Goals or net zero goals for 2030, 2040 and 2050. 

BSR research on members indicated that roughly 35 percent of time-bound goals expire in 2025, and another 40 percent are pegged to 2030. As 2025 goals reach their expiration date and we evaluate progress toward those 2030 commitments, it’s time for many companies to reflect on what they’ve learned and start thinking about what’s next. It’s clear that much has changed since the last time companies undertook this exercise. As we lay out in more detail below, the 2020s have been disruptive, and goals set before 2020 need updating to reflect a new reality and fresh vision.   

The key question is: How can companies seize this moment to develop a set of goals that are ambitious, credible, and flexible enough to be fit for the future?

What are the key trends and disruptions impacting goals? 

Many of the goals set to expire were developed in or before 2020. A great deal has changed since then, as the world experienced the COVID-19 pandemic, wars in Ukraine and Gaza, all amidst a macroeconomic context of inflation and high interest rates. And we should prepare for still more turbulence and change to come. As we look ahead, we need to consider four key trends that will further reshape the operating context for business in the next few years.

Intensifying climate impacts bring new levels of disruption.

We have seen to operations and value chains, threatening people, infrastructure, and the availability of raw materials. In the World Economic Forum's 2024 Global Risks Report , extreme weather topped the list of risks that leaders believe could present a material crisis on a global scale. With progress on emissions reductions still insufficient to meet the challenge of keeping global warming within a 1.5°C limit, stakeholders—including regulators—are strengthening their calls to action. As companies revisit their climate goals, our guidance is to plan the energy transition in line with science, gear up adaptation and nature efforts, and to put justice and equity at the center of our efforts. 

Explosive growth in AI capabilities is poised to change how we work.

It may significantly accelerate progress in scientific research and resource efficiency, and it may also pose risks to privacy, human rights, and livelihoods. As companies review and refresh goals, it will be important to closely monitor and understand these different possibilities, as well as the nascent efforts to regulate this technology. 

Growing geopolitical tensions and regional conflicts are disrupting supply chains.

Trade policy and regulations, human rights, and the energy transition are increasingly refracted through a geopolitical lens. Meanwhile, concerns are rising about the potential for new conflicts. As we enter a season of global elections, leadership changes could result in additional geopolitical volatility. Strategic foresight techniques like scenario planning can help companies chart more resilient pathways towards achieving supply chain, sourcing-related goals, and energy transition goals.

The fast-changing regulatory environment is a critical consideration.

While new requirements like mandatory disclosure and due diligence may sometimes feel like an onerous compliance exercise, new laws and regulation like the EU’s Corporate Sustainability Reporting and Corporate Sustainability Due Diligence Directives are a game-changer for sustainable business . The transition from voluntary to mandatory action is raising the floor for corporate performance and disclosure on a range of sustainability topics, and as such can be a strong foundation for goal-setting efforts.

Of course, all these challenges are interconnected. As our understanding of these complex issues deepens and cross-cutting regulatory requirements proliferate, the connection between traditionally siloed sustainability topics is likely to become more prominent and pressing. These interdependencies and reinforcements will need to be reflected in goals that are cross-cutting and holistic. Responsibility for implementation will need to move beyond the historical E, S and G divide.   

With all of this in play, how can companies best navigate? 

At BSR, we continue to believe that there are several elements that, when taken together, result in ambitious but credible goals: clear priorities, strong understanding of context, and focus on long-term impact.

Focus carefully . Companies need to undertake sustainability due diligence to understand where impacts lie across the full value chain, how the business is connected to the impacts, how they’re governed and managed, and what more they can do to address harms. A double materiality assessment can further help to identify and rigorously prioritize potential business risks and opportunities over the short-, medium-, and long-term. While all impacts, risks, and opportunities should be monitored and managed, when it comes to goal setting, the aim of these efforts should be to surface a handful of focus areas where the company can truly have the most significant impact.

It is also important to consider how actions on selected focus areas will align with a company’s mission and values. Achieving ambitious, long-term goals requires the management of a complex array of thorny challenges. When companies face headwinds like the “ESG backlash” in the US and economic uncertainty, goals that feel misaligned with the core business will start to feel arbitrary and non-essential. Selecting focus areas with goals that clearly connect to mission and values will help ensure commitments remain relevant over time. 

Build an inclusive process . Companies are most likely to achieve goals with strong buy-in from stakeholders, which can either be secured or severely undermined in the goal development process. A smart stakeholder engagement strategy enables diversity of thought, opportunities for co-creation, a clear-eyed view of potential operational challenges, and insights into stakeholder perceptions. It is important that companies consult both internal and external stakeholders, and where possible, engage directly with affected stakeholders.

There are a range of ways to do this in practice . As a starting point, companies can review documentation of prior engagements. They can conduct dedicated interviews, focus groups, and surveys to collect input or feedback on draft goals. They can also integrate discussions into ongoing stakeholder engagement efforts like established stakeholder advisory councils. The right solution will look different for each organization based on its existing relationships, governance structures, and logistical considerations, but the inclusion of diverse stakeholder viewpoints should always be an important priority. 

Leverage futures thinking . Goals reflect our assumptions and aspirations about the future. If you have not explicitly considered how the world is changing, then you risk creating goals that are well-suited for today but will be seriously outdated a couple of years from now. 

Although it's impossible to fully predict the future, strategic foresight offers us structured ways to think about the future and can help inform goals that are more robust, resilient, and ambitious.

Trends analysis can be used to anticipate how the world is likely to change and to identify the likely headwinds and tailwinds for a company's sustainability efforts. Integrating a perspective on relevant trends such as those mentioned above should be considered a fundamental ingredient for a robust sustainability strategy and goals.

In conditions of high uncertainty, such as those surrounding political shifts, scenario analysis offers a tool to increase resilience by stress-testing strategies and goals against multiple different versions of the future. 

Finally, futures techniques like Three Horizons can serve to articulate ambitious visions and goals that support the deep transformation that is needed. 

Whether you are refreshing your goals or overhauling your overall vision and strategy, creating credible and ambitious goals requires a robust process that is both future-orientated and grounded in operational realities. We look forward to supporting businesses to do this as we look beyond 2025. Please feel free to connect with our Futures Lab and Sustainability Management teams to learn more. 

• Business Transformation
• Emerging Issues
• Sustainability Management
• Sustainability Reporting

Let’s talk about how BSR can help you to transform your business and achieve your sustainability goals .

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Majority of us couples do not have an estate plan, study finds.

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American investors in committed relationships overwhelmingly say they trust their partners and share the same retirement goals, but most have not put an estate plan in place, new data suggests.

Ameriprise Financial’s “Couples, Money & Retirement” report released Wednesday found 95% of couples agree they are honest and transparent with one another when it comes to their finances, and 91% said they share the same financial values.

But many have not reached a consensus on a number of emotionally-charged decisions about money.

The survey, which polled more than 1,500 American couples with $100,000 or more in investable assets , focused primarily on those between the ages of 45-70 who have retired within the last decade or plan to do so in the next 10 years.

While it found that 93% of couples share similar goals for retirement and agree on when to retire, 24% of respondents said they have not come to an agreement on how much money they will need to save or how much they should spend on children and grandchildren, both today and as part of their estates.

In fact, more than half (52%) of couples surveyed said they have not yet set up an estate plan.

Marcy Keckler, senior vice president of financial advice strategy at Ameriprise Financial and a certified financial planner, offers the following advice for couples who still need to set up an estate plan:

1. Don’t be intimidated by the concept of estate planning

“Estate planning is for everyone, no matter their wealth or complexity of their financial situation,” Keckler told FOX Business.

“At some point, all of us will need an estate plan.”

She explained that, at its core, estate planning is about making decisions about what you want to happen after you die or in the event you’re incapacitated and can’t make health-related or financial decisions on your own, even temporarily.

2. Engage professionals

“A qualified financial adviser and estate planning attorney can help you initiate important, yet often emotional conversations and ensure you have decisions documented to cover a variety of potential scenarios that may arise,’ Keckler said.

“Guidance from professionals can ensure your wishes for the legacy you want to leave your heirs and other loved ones are carried out.”

Keckler recommends selecting professionals willing to collaborate, noting that one of the biggest mistakes couples can make is creating a will that specifies beneficiaries and then forgetting to update their accounts to actually identify the correct beneficiary. 

She added that financial advisers and attorneys can work together to help ensure you’ve taken all the steps necessary to have your plan executed according to your wishes.

3. Once you complete your estate plan, be proud of yourself

“ Estate planning is an important part of protecting your family and financial legacy,” Keckler said.

“It’s a big accomplishment that should be celebrated once it’s completed.”

She recommends ensuring you know where the original documents and any physical or digital copies are, so you can refer to them in the event they become needed. 

“If you have a doctor or hospital of choice, send them a copy, so they can keep it on file,” Keckler suggested.

“This can save valuable time and stress you or a loved one would otherwise spend trying to find them in an emergency.”

4. Revisit your estate plan at least every five years, and more frequently if a big life event happens

“Estate plans need to be updated as your life evolves to ensure they reflect your wishes,” Keckler added.

“Moments in life such as the birth of a child or grandchild, major shifts in income, a divorce, acquisition of new property and a child reaching the age of 18 are a few examples of when your estate plan may need to be revisited.”

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