small business plan checklist

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

Noah Parsons

24 min. read

Updated May 7, 2024

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

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

• The basics of business planning

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

You understand that planning helps you: 

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

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

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

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

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

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

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

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

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

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

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• What to include in your business plan

Executive summary

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

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

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

Your executive summary should include:

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

Dig Deeper: How to write an effective executive summary

Products and services description

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

This is usually called a problem and solution statement .

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

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

Market analysis

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

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

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

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

Related: Target market examples

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

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

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

Dig Deeper: Learn how to write a market analysis

Competitive analysis

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

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

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

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

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

Marketing and sales plan

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

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

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

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

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

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

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

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

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

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

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

Business operations

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

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

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

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

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

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

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

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

Key milestones and metrics

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

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

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

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

Possible milestones might be:

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

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

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

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

Dig Deeper: How to use milestones in your business plan

Organization and management team

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

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

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

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

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

• Sole proprietor
• Partnership

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

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

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

Financial plan

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

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

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

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

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

Dig Deeper: How to create financial forecasts and budgets

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

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

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

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

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

Your cover page should be simple and include:

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

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

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

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

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

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

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

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

• Writing tips and strategies

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

Determine why you are writing a business plan

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

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

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

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

Keep things concise

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

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

Have someone review your business plan

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

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

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

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

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

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

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

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

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

Common pitfalls and how to avoid them

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

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

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

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

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

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

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

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

Use your business plan to manage your business

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

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

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

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

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

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

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

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

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

Learn More: How to run a regular plan review

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How to write a business plan FAQ

What is a business plan?

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

What are the benefits of a business plan?

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

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

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

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

What are the 5 most common business plan mistakes?

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

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

What questions should be answered in a business plan?

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

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

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

How long should a business plan be?

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

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

What are the different types of business plans?

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

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

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

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

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

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

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

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

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

Table of Contents

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

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Business startup checklist: How to launch a startup step by step

Checklist for starting a business

1. Write a business plan

Parts of a business plan.

Depending on the complexity of your business idea, a business plan can be as short as a page or as big as a thick, data-packed document. No matter how simple or complex, every business plan should have at least a few key parts:

An executive summary , or a top-level outline of everything in the business plan.

A market analysis that evaluates where your business stands in relation to competitors, target customers, and industry trends.

A description of your products or services.

Financial projections like pricing and sales strategy, profit goals, and investor details.

An operational overview laying out the logistical "how"s of your business, including logistics, distribution, and production plans.

Business planning software

If you have any basic business experience or know-how, you can probably get through writing a business plan on your own, but if you're feeling totally lost or if you just want something to help move you through the steps more efficiently, business plan writing software might be the way to go. 

2. Estimate your startup costs

Calculating your startup costs will help you appeal to investors and estimate when your new business will start to become profitable. 

Types of startup costs

To begin, you'll need to calculate your exact startup costs. These may include:

One-time startup costs: state business registration fees, lease deposits, etc.

Labor costs: your salary plus worker salaries

Overhead costs: monthly office rent, utilities, taxes, computer equipment, production costs 

Start saving

Just like homeowners need an emergency fund for when the roof starts leaking, you also need an emergency fund for your new business. How much you need depends on the size of your operation and whether you're keeping your current job or going all-in on your new endeavor. It takes most startups at least a few months (and usually more) to become profitable, so if your startup is going to be your main source of income, you'll need at least a few months of operating expenses plus your own living expenses stashed away.

Find funding

3. register your business.

Even if your company is fairly small, there may be specific requirements in your state or county that aren't covered here. No matter what, make sure you do your own research with local and state governments or consult with a lawyer to determine the legal requirements that apply to you.

Pick a business structure

Business structures boil down to four main types: sole proprietorships, partnerships, limited liability companies, and corporations. For legal and tax purposes, decide which type you'll operate under—though you can always switch to a different business type as your company grows.

Sole proprietorships: This is the simplest type of business to start and run. It means that you are the company, and all assets and debts of the company are yours too. This also means you'll be personally liable for all business obligations like lawsuits or unpaid debts, so this is the riskiest business structure. 

Partnerships: T hese are like sole proprietorships, except there's more than one owner. Co-owners typically structure their business relationship with partnership operating agreements. Partners split the company's legal and financial obligations and also share in the profits.

Limited Liability Companies and Partnerships (LLCs and LLPs): When you form an LLC or LLP, you work as a "member" of the company, along with any company partners. If the company goes into debt or gets sued, your personal assets are protected. Compared to corporations, there's less paperwork and smaller startup costs.

Corporations: When you incorporate, you create a separate legal entity that owns all of the assets and liabilities for the company. Corporations are usually more attractive to outside investors—you can "go public" with an initial public offering (IPO) and raise money through selling stock in the company. 

Choose a business name

If you plan to register a trademark on your business's name, keep in mind what can't be trademarked:

Any person's name who hasn't given expressed permission

Swears or other offensive content

Government flags and insignia

Your name also needs to meet the U.S. Trademark Office's requirements for "distinctiveness," which just means your trademark needs to be unique enough to avoid confusion between yourself and other similarly named businesses.

Register your company

All businesses except sole proprietors with no employees must register with the IRS and obtain an Employer Identification Number (EIN). This is your company's federal tax identification, which you'll use when paying taxes, opening a bank account, applying for business licenses, and hiring employees. 

4. Open accounts and obtain permits

With your business plan in hand, it's time to lay the operational and financial groundwork to get your company off the ground. 

Open a company bank account

Get licenses and permits, find out if you need a sales tax permit.

If you sell physical products and you operate in a state that collects sales taxes, you likely need to register for a Sales Tax Permit. Most states administer these permits for free or for a nominal fee.

5. Set up a financial accounting system

Money can get complicated very quickly, so you want to have an automated system for financial accounting, budgeting, and documentation before you start making any sales. 

Basic bookkeeping 101

Income statements

Balance sheets

Cash flow statements

Bills and invoices

Quarterly financial statements

Tax returns

Understand your tax liability

If you have employees, you'll also need to keep in mind that employee taxes are paid to the government by the employer. If you've ever looked at your own pay stubs, you'll know that each includes a record of what taxes were taken out of your paycheck. Those taxes aren't taken by the government directly—they're taken out by the employer, who is then responsible for sending employees' taxes to the IRS.

6. Buy business insurance

As soon as you hire employees, open a physical location, or begin to scale your business, you'll need liability insurance of some sort. General liability insurance covers you in case someone is injured on your property or as a result of your company's activities.

Additional policies that are common for new businesses include:

Professional liability: Covers you in case an error or omission on your part costs your clients money.

Workers' compensation: Covers medical expenses and lost wages for employees who are injured while working. 

Business interruption insurance: Helps replace lost revenue if your business is forced to close temporarily due to a natural disaster or other event.

Property insurance: Covers your physical property, from company equipment to office or warehouse space.

7. Create a management system

For a single-person business, a management system can be as simple as a set of to-do lists for keeping track of budgets and schedules. Larger businesses will need to formalize processes for managing workflows, finances, schedules, team organization, and more.

Management setup

When getting your management system up and running, focus on the essentials. At a minimum, you'll need a structure for managing:

Calendars and scheduling

Customer communications

Budgets, invoices, and other financial documents

Industry-specific KPIs

Purchasing and order fulfillment

Invest in branding and marketing

The fun part, of course, comes at the very end of all the operational logistics. Take some time to think through your marketing strategy before launching your business. At a minimum, you'll need to start with a website, a logo, and social media accounts.

Establishing a brand identity

Consistency is far more important than trying for fancy, versatile, or expensive branding. A company with a simple, casual tone and one or two brand colors and basic designs will do far better than a company that tries out a different tone with each social post.

List of things needed to start a business

Related reading:

This article was originally published in October 2016 by Melanie Pinola and has also had contributions from Amanda Pell. The most recent update was in May 2023.

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Amanda Pell

Amanda is a writer and content strategist who built her career writing on campaigns for brands like Nature Valley, Disney, and the NFL. When she's not knee-deep in research, you'll likely find her hiking with her dog or with her nose in a good book.

• Small business
• Entrepreneurship

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Business Plan Checklist

Whether it’s for a bank, investors, validation, and/or a roadmap, your company needs a written business plan to convert your ideas into an organized, professional document. 

The business plan format will change depending on why you’re writing it and who you’re writing it for. If you’re seeking validation, it’s best to start with a simple one-page pitch. On the other hand, if you’re pursuing funding, you’ll need a professional, formal business plan. 

Download our Ultimate Business Plan Template here >

  Regardless of the intentions behind your business plan, having a checklist of what needs to be included is helpful to make sure you’re effectively getting your ideas and strategies down on paper. 

As a baseline, your business plan should include these 10 sections:

Executive Summary

• Company Overview

Industry Analysis

• Customer Analysis

Competitive Analysis

Marketing plan, operations plan, management team, financial plan, the essential business plan checklist.

Here, I will explain the different elements you need to include in each section. Use this resource as a business plan questions checklist and mark them off as you go.

Your executive summary should explain the problem you are solving and how you intend to solve it. When reviewing your business plan, address the following:

• The function of your business
• Competitors
• Target customers
• Key financial highlights
• Key members of your team
• Business goals

Essentially, you want to ensure that your executive summary introduces your business in a detailed yet concise form, explaining the key parts of your business and the market.   

Company Overview 

Here, you will give a brief summary of your company as a whole and how it functions. Be certain to include:

• Company history
• Founding members
• Milestones you have achieved
• The legal structure of your business

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Your industry analysis will provide a summary of your market research. After doing your research, include answers to the following questions in your business plan:

• How big is the market?
• Where is the market currently: growing or declining? 
• Who are some of the key competitors? 
• What is influencing the industry? 

Customer Analysis 

In your customer analysis, you will explain the audience you are targeting and expect to serve. Be sure to focus on your target customers and the customer needs. It should explain the:

• Demographic profile of your target market
• Customer segments within that market

Your competitive analysis will address your competition in the market. It should have three subsections as follows:

• Direct Competitors: other businesses in your market (example: if you own an ice cream shop, other ice cream shops are direct competitors)
• Indirect Competitors: other businesses that may not specifically be in your business’s market, but provide similar results to that of your company (example: if you own an ice cream shop, grocery stores that sell ice cream are indirect competitors)

For each competitor, identify both their strengths and weaknesses. Be sure to address the following:

• What features do they offer?
• What is their pricing? 
• Who are their customers?
• What are they good at? 
• What are their weaknesses?

Describe your competitive advantages or what your business will do better. Here, provide answers to the following questions:

• Will you offer more or better features?
• Will you ensure better results for your users?
• Will you offer better pricing?
• Will your customer service be more efficient?

Be sure that your competitive analysis describes just how your business will succeed and stand out in its competitive market.   

Your plan should include the following marketing plan sections:

• Product : detail the specific features of your business’s product
• Price : identify your business pricing and if there will be different pricing levels (e.g., free, premium) and what exactly those levels will be
• Place : name where your business will be located
• Promotions : how you will attract customers to your business (social media advertising, pay-per-click advertising, magazine advertising, public relations, etc.)

Here, you will describe how your company will effectively meet the goals you identified in the earlier sections of your business plan. Your operations plan should have two sections:

• Every day short-term processes: all necessary daily operations completed simply for the function of your business (providing customer service, writing code, fixing bugs, etc.)
• Long-term goals: milestones you hope to achieve (reaching $X in sales, having Y amount of employees, etc.)

It is essential to have a strong management team for the function and success of your business. Be sure to include the following:

• Management team: highlight your key players’ backgrounds and describe their skills and talents
• Management team gaps: any experience that you think your business will need in order to succeed 
• Board members 

Your financial plan will document your 5-year financial projections , broken down in monthly or quarterly projections for the first year, and then annually thereafter. Your focus here is to show how much money you need, how much income you will earn, and when you will be profitable. 

Your financial plan should include:

• Profit & Loss statement 
• Cash flow statement
• Balance sheet
• Sales forecast
• Personnel plan
• Break-even analysis

To provide evidence to your numbers, include supporting documentation in your financial plan. 

Your appendix will provide any and all other documentation or information that you believe supports your business plan. If necessary, your appendix can include: 

• Resumes of key management, blurbs on other management members
• Job descriptions/titles
• Copies of forms
• Copies of licenses
• Personal and business tax returns (if applying for a loan)
• Marketing materials 

To ensure that your business plan effectively portrays the mission and potential success of your business, go through this checklist and make sure you have included each concept mentioned. A fill in the blank business plan also includes each of these key sections and can help you quickly and easily complete your business plan.  

Business Plan Checklist FAQs

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We’ve completed the hard work for you! You can download this Business Plan Checklist PDF for quick reference as you complete your business plan.

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Home > Business > Business Startup

How To Write a Business Plan

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Starting a business is a wild ride, and a solid business plan can be the key to keeping you on track. A business plan is essentially a roadmap for your business — outlining your goals, strategies, market analysis and financial projections. Not only will it guide your decision-making, a business plan can help you secure funding with a loan or from investors .

Writing a business plan can seem like a huge task, but taking it one step at a time can break the plan down into manageable milestones. Here is our step-by-step guide on how to write a business plan.

Table of contents

• Write your executive summary
• Do your market research homework
• Set your business goals and objectives
• Plan your business strategy
• Describe your product or service
• Crunch the numbers
• Finalize your business plan

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Step 1: Write your executive summary

Though this will be the first page of your business plan , we recommend you actually write the executive summary last. That’s because an executive summary highlights what’s to come in the business plan but in a more condensed fashion.

An executive summary gives stakeholders who are reading your business plan the key points quickly without having to comb through pages and pages. Be sure to cover each successive point in a concise manner, and include as much data as necessary to support your claims.

You’ll cover other things too, but answer these basic questions in your executive summary:

• Idea: What’s your business concept? What problem does your business solve? What are your business goals?
• Product: What’s your product/service and how is it different?
• Market: Who’s your audience? How will you reach customers?
• Finance: How much will your idea cost? And if you’re seeking funding, how much money do you need? How much do you expect to earn? If you’ve already started, where is your revenue at now?

Step 2: Do your market research homework

The next step in writing a business plan is to conduct market research . This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to gather this information. Your method may be formal or more casual, just make sure that you’re getting good data back.

This research will help you to understand the needs of your target market and the potential demand for your product or service—essential aspects of starting and growing a successful business.

Step 3: Set your business goals and objectives

Once you’ve completed your market research, you can begin to define your business goals and objectives. What is the problem you want to solve? What’s your vision for the future? Where do you want to be in a year from now?

Use this step to decide what you want to achieve with your business, both in the short and long term. Try to set SMART goals—specific, measurable, achievable, relevant, and time-bound benchmarks—that will help you to stay focused and motivated as you build your business.

Step 4: Plan your business strategy

Your business strategy is how you plan to reach your goals and objectives. This includes details on positioning your product or service, marketing and sales strategies, operational plans, and the organizational structure of your small business.

Make sure to include key roles and responsibilities for each team member if you’re in a business entity with multiple people.

Step 5: Describe your product or service

In this section, get into the nitty-gritty of your product or service. Go into depth regarding the features, benefits, target market, and any patents or proprietary tech you have. Make sure to paint a clear picture of what sets your product apart from the competition—and don’t forget to highlight any customer benefits.

Step 6: Crunch the numbers

Financial analysis is an essential part of your business plan. If you’re already in business that includes your profit and loss statement , cash flow statement and balance sheet .

These financial projections will give investors and lenders an understanding of the financial health of your business and the potential return on investment.

You may want to work with a financial professional to ensure your financial projections are realistic and accurate.

Step 7: Finalize your business plan

Once you’ve completed everything, it's time to finalize your business plan. This involves reviewing and editing your plan to ensure that it is clear, concise, and easy to understand.

You should also have someone else review your plan to get a fresh perspective and identify any areas that may need improvement. You could even work with a free SCORE mentor on your business plan or use a SCORE business plan template for more detailed guidance.

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The takeaway

Writing a business plan is an essential process for any forward-thinking entrepreneur or business owner. A business plan requires a lot of up-front research, planning, and attention to detail, but it’s worthwhile. Creating a comprehensive business plan can help you achieve your business goals and secure the funding you need.

Related content

• 5 Best Business Plan Software and Tools in 2023 for Your Small Business
• How to Get a Business License: What You Need to Know
• What Is a Cash Flow Statement?

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BUSINESS STRATEGIES

Your ultimate business startup checklist

• Amanda Bellucco Chatham
• Aug 31, 2023
• 10 min read

You have a great idea for a new business venture. You’ve felt the bolt of inspiration, the rush of energy and you’re eager to make it work. But before you get wrapped up in those new business butterflies, you’ll need to do some careful planning to ensure you actually succeed. That’s where a business planning checklist can help.

As you go from concept to company, you’ll need to answer some key questions: How much startup money will you need? Who will handle the books? How can you create a beautiful and functional website for your new brand?

If you’re ready to find the answers, read on. Use this business startup checklist as your personal to-do list. Check off all of these boxes and you’ll be well on your way to kicking off a booming business.

Ready to launch? Build your business website today with Wix.

Flesh out your business idea

Estimate your startup costs

Write your business plan

Find funding

Choose a location

Pick a business structure

Select a business name

Create a website

Register your business with your state

Get your EIN number

Apply for licenses and permits

Create an operational plan

Get help with accounting

Hire employees

Obtain business insurance

Spread the word

01. Flesh out your business idea

The first step toward launching your company is coming up with an idea. Often, the most successful businesses are driven by a personal passion. If you're obsessed with home improvement projects, then you might start a construction or handyman business. If you spend 90% of your free time working out, then you might choose to open your own gym.

Once you have your idea, you need to make sure it’s business-worthy. Find out by diving into market research. Investigate the potential market size in your niche. Research your likely competitors, and reach out to would-be customers to learn why they gravitate towards particular products or services.

If you’re creating a brand-new product, develop a prototype that you can test. Then, use all of this information to determine your unique selling proposition (that is, the thing that makes your business stand out).

02. Estimate your startup costs

To get your company off of the ground, you’ll need at least a little bit of startup capital. The cost to start a business will vary based on the type of company you’re opening. An online business, for example, will likely cost less than a company that requires a storefront on Main Street.

When calculating your startup costs, consider your expenses for equipment, property rental (including the initial deposit), production, inventory and marketing. Add in the cost of any licenses, fees or permits you’ll need to acquire. Be sure to set aside a contingency fund for future expenses. It takes most businesses two-to-three years to turn a profit , so your savings will help you cover operational costs in the interim.

03. Write your business plan

Writing a business plan is arguably the most important to-do item on your business startup checklist. It will serve as the blueprint for your company’s formation, with details about your goals, strategies and financial projections. You’ll share your business plan with investors, banks and potential partners in order to earn their trust, so it must be compelling and impactful.

You can create a one-page plan that gives a quick snapshot of your business. Or, you can create a multi-page plan that dives into the details. No matter which format you choose, your business plan should include all the basics of how to start a business , including these items:

Executive summary: Provide a brief overview of everything in your plan, including a summary of your business and its goals.

Company description: Include your name, mission statement and goals more in detail.

Products or services: Create a list of your offerings, proof of concept and pricing.

Market analysis: Provide an overview of your potential market size, target audience and your competitors.

Marketing and operations plan: Explain how you’ll reach your customers and grow your brand.

Management and organization: Describe your company’s structure or include an organization chart.

Financial projections: Outline your startup costs, sales forecasts and needed funding.

Appendices: If you have anything further to add, provide materials in this section.

Not sure where to begin? Use this business plan template as your guide. Your plan will be a living and breathing document, so you’ll want to review and update it regularly pre- and post-launch.

04. Find funding

If you’ve followed all the steps up to this point, then you should know how much money you need to start your business. Now, it’s time to find those funds. If you already have enough money in your personal savings to get started—or if you have multiple income streams—you may not need additional startup money.

No need to worry if you don’t have the cash on hand. There are plenty of ways to generate funding these days. You can explore loans and grants from organizations like the Small Business Administration , or you can secure a business loan from a local bank. Angel investors and venture capital offer two other potential funding sources, especially for startups or businesses looking to give up equity in exchange for an investment. So, too, does crowdfunding, an approach that leverages platforms like Kickstarter or Indiegogo to collect money from individuals who want to support your new business.

05. Choose a location

Every business needs a place to call home. Even if you’re thinking about how to start an online business , your company will eventually need a mailing address. Choosing the right location for your business is an important step, because it impacts your taxes, revenue and legal requirements.

Understand the rules in the jurisdiction where your business will reside. If you’re starting a business that needs a physical presence, look carefully at the location of potential office and retail sites. Consider: How accessible is it for you and your employees? How close is it to your product suppliers? Is there potential for a lot of foot traffic?

If you plan to lease commercial space, hiring a commercial real estate agent is a wise move. But if you don’t have your heart set on a specific location yet, then check out this list of the best states to start a business .

More resources for starting a business in your state

How to start a business in Michigan

How to start a business in Connecticut

How to start a business in South Carolina

How to start a business in Tennessee

How to start a business in Minnesota

How to start a business in New York

How to start a business in Pennsylvania

How to start a business in Virginia

How to start a business in Indiana

How to start a business in Washington state

06. Pick a business structure

Your business structure will determine how much you’ll pay in taxes and your personal liability. Most business owners will choose one of four structures:

Sole proprietorship : You own the business yourself, and you assume all of its legal responsibilities. You report profits and losses on your personal tax return, and you are liable for any debts or legal issues.

Partnership : Two or more people share responsibility for the business. They also share in the legal and financial obligations, and they split the profits. Each partner reports profits and losses on their individual tax returns.

Corporation : Your business is a legal entity separate from its owners. Corporations pay corporate income tax on profits, and individual shareholders are usually not held liable for the company’s debts and legal obligations.

Limited liability corporation (LLC) : In an LLC, the business owners operate as “members'' of the company. As the name implies, LLCs offer the limited liability protection of a corporation. In this structure, members can choose whether to be taxed as a corporation or as a “pass-through entity” to the owners’ individual tax returns.

07. Select a business name

At this stage of your small business startup checklist, it’s time to start brainstorming what you want your business to be called. Choose a name that best reflects your company’s mission, vision and values. The best company names are both memorable and unique.

A smart approach is to come up with a list of a dozen or so potential names. Then, start doing some research. First, check the U.S. Patent and Trademark Office database to make sure that your chosen name isn’t already trademarked by another company. You should also check with the Office of the Secretary of State for the state in which your business is located to see if another business has claimed your name.

Finally, conduct some thorough online searches to ensure that you can use your company name across your web and social media platforms. You can do a domain name search to see if the domain name you want to use for your website is available.

Need some instant inspiration? Try Wix’s free business name generator .

08. Create a website

As you move closer to your launch date, you’ll turn your focus towards marketing. If you have an online business, your website will serve as the public face of your company. If you have a brick-and-mortar business, your website will be your top online marketing channel, spreading the word about your company and enticing customers to visit your physical location.

Today, website building platforms make it easier than ever to create a beautiful website. When you build your website with Wix , you’ll have access to more than 800 professionally designed templates that reflect all types of businesses. Wix’s advanced customization options allow you to modify any template to your liking, with easy-to-use drag-and-drop editing capabilities along with AI-assisted tools.

With Wix, you also get free and secure web hosting, a custom domain name and email name ideas that you can turn into your business email address. What’s more, your website dashboard can truly become the one-stop-shop for all your business management needs, including payment solutions , appointment booking , advertising , email marketing , search engine optimization (SEO) , hundreds of third-party app integrations and more.

Need more help with marketing and design? Check out Wix’s free business tools .

09. Register your business with your state

Let’s make this official. Registering your business with your state offers many benefits, including personal liability protection, legal and trademark protection, and tax benefits.

Additionally, it allows you to hire employees and gives you more access to lending and funding options. If you’re establishing a business in the U.S., your location and business structure determine the steps you’ll need to take in order to register your business.

10. Get your EIN number

You must also register your business with the Internal Revenue Service (IRS). The IRS will provide you with an employer identification number , or EIN, which is essentially a Social Security number (SSN) for your business.

An EIN allows your business to be recognized by the government when it comes to paying taxes on the state and federal levels. Furthermore, you’ll need a tax ID number to hire staff, open a business bank account and apply for any necessary business licenses or permits.

There is one exception here: a sole proprietorship with no employees does not have to register with the IRS.

11. Apply for licenses and permits

Identifying the type of licenses or permits you’ll need to start your business will require a little bit of legwork. That’s because the rules vary by industry, state and even municipality.

Only a few businesses (such as investment advising, drug manufacturing and ground transport) require federal licenses. However, many types of companies will need state licenses, especially those that provide specific services to customers (such as accountants, real estate agents or hair stylists).

If you’re starting an eCommerce business, you will also need a sales tax permit if your state collects sales tax. According to Sabrina Papini, marketing director of eCommerce and marketplaces at Avalara , failing to do this is a common compliance mistake made by business owners. "Neglecting to register for sales tax in states where your business has a tax obligation can lead to penalties, fines and audits," Papini says. "Businesses must identify their nexus, which is a connection between their operations and the taxing authority, and register accordingly."

On a local level, most cities or counties require that you have a business license. This can even be true for at-home businesses. Your best bet is to check with state and local officials to make sure that you have all the official licenses and permits you need.

12. Create an operational plan

There are many types of business plans , and one of the most important for startups is an operational plan. This will determine how you and your employees will conduct your day-to-day business.

Your operational plan should include details on how your company will process orders, pay bills, pay taxes, maintain permits and manage internal workflows. Look for places where automation can help you get more efficient, such as task management, customer service and scheduling. Finally, start investigating the type of software you might need, including items like point-of-sale systems or customer relationship management (CRM) databases.

13. Get help with accounting

Speaking of software, one of the biggest needs for almost all small businesses is some sort of automated system for financial accounting, tax management and budgeting. If you’re already a financial whiz, you may be able to handle this on your own. But for the vast majority of businesses, investing in accounting software is a serious value-add.

Look for solutions that can help you manage and create balance sheets, profit and loss statements, and cash flow statements. Because businesses are required to keep financial documents on file for three years, you should seek a solution with documentation storage capabilities.

If you don’t use accounting software, then be sure to work with a licensed business accountant who can help you balance the books, keep records and stay compliant.

14. Hire employees

If you’re planning to build a team to help you run your company, then hiring employees is a must-do item on your business startup checklist.

First, determine how many team members you’ll need and write out their roles and responsibilities. Next, establish pay rates and benefits. Depending on the size of your company and the needs of your business, you may not necessarily need full-time staff to start. Part-time employees or even freelance workers are an option you can consider.

Finally, draft a job posting that covers the core responsibilities, required skills and benefits of the position. You can then advertise your open positions on career websites, local job boards, freelance platforms or social media.

15. Obtain business insurance

You’ll do tons of hard work to get your company up and running. So, you’ll want to protect your investment by obtaining the right type of insurance. Some common options include:

Workers’ compensation: Workers’ comp covers medical expenses and lost wages for staff members injured on the job. This is mandatory in most states if you have employees.

General liability insurance: This provides coverage for third-party bodily injury, property damage and/or legal expenses resulting from an accident due to your products or services (or on your business premises).

Professional liability insurance: This type of insurance covers any errors and omissions that may cause physical or financial harm to a client or customer.

Business interruption insurance: This insurance plan will replace lost revenue in the event your business can’t operate due to a natural disaster or another covered loss.

16. Spread the word

Once your business is up and running, you can start expanding your marketing reach. First, create social media channels and link them back to your website. Choose the social media platforms where your customers and clients are most likely to frequent. Then, invite people you know to follow your feeds and start building your audience.

Your social presence will allow you to promote your brand and deliver customer service in real time. With Wix, you can connect your WhatsApp , Instagram and Facebook accounts directly to your inbox so you never miss a message.

Depending on your business type, your marketing may also include online advertising, traditional advertising and public relations. Additionally, keep an eye out for regional and local events and conferences where you can connect with potential customers, clients and even investors.

Related Posts

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A Complete Business Plan Checklist - Key Points to include in your Business Plan and Track Progress

Creating an effective business plan requires addressing specific strategic and tactical questions with a high level of detail.

After you complete writing your business plan, how will you make sure that your business plan is complete and you did not miss any important details?

The best and easy way is to check your business plan with a standard business plan checklist.

Business plan checklist is the list of most important sections of the business plan that you should include into your business plan in the same order.

This checklist will guide you through the step-by-step process of writing an effective and successful business plan for your startup.

Business Plan Checklist

Please check the sections that you have included in your business plan from below list and track your  business plan progress .

Explore our 400+ sample business plans prepared for a wide variety of industries to help you start writing and planning your business plan.

Business plan checklist will also help you to write your business plan table of contents and outline of your business plan.

This business plan checklist is a general guideline for any standard business plan. But you should also keep in mind the purpose of your business plan and include specific details accordingly.

For Example, if you are writing a business plan for a loan from a particular bank, you should learn about their mandatory or specific criteria and must include that details into your business plan.

This business plan checklist prepared here will help you to think through your business and document it in a way that investors and other readers fully understand about your business.

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The Importance of Market Research

Creating a business plan, legal requirements, exploring funding options, crafting a marketing strategy, managing and growing your business, how do i start a small business for beginners, how do i create a business plan, what are six ways to grow and scale a business, the bottom line.

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• Equity Financing: What It Is, How It Works, Pros and Cons
• Best Startup Business Loans
• Sole Proprietorship: What It Is, Pros & Cons, and Differences From an LLC
• Partnership: Definition, How It Works, Taxation, and Types
• What is an LLC? Limited Liability Company Structure and Benefits Defined
• Corporation: What It Is and How to Form One
• Starting a Small Business: Your Complete How-to Guide CURRENT ARTICLE
• Starting an Online Business: A Step-by-Step Guide
• How to Start Your Own Bookkeeping Business: Essential Tips
• How to Start a Successful Dropshipping Business: A Comprehensive Guide

The U.S. is home to 33.2 million small businesses, which drive over 43% of GDP.   If you are looking to start a business, there are key factors to consider—from market research and creating a business plan to scaling your business. These factors are critical to your journey and can make a big difference no matter what stage of the process you are in.

Entrepreneurs who take concrete action can differentiate themselves from competitors, innovate, and grow. For successful entrepreneurs, the execution of the business is often what means the most. 

Key Takeaways

• Starting a small business involves extensive market research of your target audience, competitors, and gaining a deep understanding of the industry.
• It is important to build a comprehensive business plan that includes the product or service description, your target customers, financial projections, and all other key details.
• Understanding the legal requirements of starting your business involves knowledge of business registration, permits, licensing, and other regulatory requirements.
• There are various types of funding channels for starting a business, including financing it yourself, securing external funding from your network, and applying for government and corporate grants and loans. 

Being clear about your business goals involves doing your research. Successful entrepreneurs often do extensive research on their field. This includes understanding their prospective customers, the technical aspects of the industry, and the challenges other businesses are facing. 

Understanding how other players operate in an industry is important. Attending conferences, joining associations, and building a network of people involved in the field can help you learn how decisions are made. Often, comprehensive market research takes six months to a year. 

Understanding Your Target Audience

Knowing your target market is critical for many reasons. These are the customers who are most likely to purchase your product, recommend it to friends, and become repeat buyers. Apart from driving your bottom line, having a strong understanding of your target audience will allow you to tailor your offering more effectively, reach your customers more efficiently, and manage customer expectations.

Compiling demographic data on age, family, wealth, and other factors can give you a clearer understanding of market demand for your product and your potential market size.

It’s important to ask, “Why would someone buy this and part with their discretionary income?” or “Will someone love this enough to tell someone about it?” At the heart of these questions is understanding whether your business solves a key problem, as well as whether it delivers the “more” that connects to your audiences’ human emotions.

Assessing Market Trends and Opportunities

To find an advantage in a given market, look at key market trends in customer behavior and the business landscape. Explore the state of business conditions and consumer spending, along with the economic environment and how interest rates may affect financing and business growth.

Several resources are available to dive into market trends across industries, such as Statistics of U.S. Businesses and the U.S. Census Business Builder . To analyze the competitive landscape, and in turn, identify key opportunities, Porter's 5 Forces is a classic model to help businesses build their competitive strategy.

A business plan is a road map for achieving your business goals. It outlines the capital that you need, the personnel to make it happen, and the description of your product and prospective customers.

There are a number of models for creating a business plan. The Small Business Administration (SBA) , for instance, provides a format that includes the following nine sections:

• Executive summary: This should be a description of your company and its potential for success. The executive summary can cover your mission statement, employees, location, and growth plan.
• Company description: This is where you detail what your business offers, its competitive advantages, and your strengths as a business.
• Market analysis: Lay out how your company is positioned to perform well in your industry. Describe market trends and themes and your knowledge of successful competitors.
• Organization and management: Who is running your company, and how is your business structured? Include an organizational chart of your management team. Discuss if your business will be incorporated as a business C or S corporation, a limited partnership, a limited liability company, or a sole proprietorship. 
• Service or product line: Here is where you describe how your business will solve a problem and why this will benefit customers. Describe how your product lifecycle would unfold.
• Marketing and sales: Detail your marketing strategy and how this will reach your customers and drive return on investment. 
• Funding request: If you're looking for financing, lay out the capital you’re requesting under a five-year horizon and where, in detail, it will be allocated, such as salaries, materials, or equipment. 
• Financial projections: This section shows the five-year financial outlook for your company and ties these to your request for capital.

Having a coherent business plan is important for businesses looking to raise cash and crystallize their business goals.

Setting Goals and Strategies

Another key aspect of a business plan is setting realistic goals and having a strategy to make these a reality. Having a clear direction will help you stay on track within specified deadlines. In many ways, it allows companies to create a strategic plan that defines measurable actions and is coupled with an honest assessment of the business, taking into account its resources and competitive environment. Strategy is a top-down look at your business to achieve these targets.

Financial Projections and Budgeting

Often, entrepreneurs underestimate the amount of funding needed to start a business. Outlining financial projections shows how money will be generated, where it will come from, and whether it can sustain growth. 

This provides the basis for budgeting the costs to run a business and get it off the ground. Budgeting covers the expenses and income generated from the business, which include salaries and marketing expenses and projected revenue from sales.

Another important aspect of starting a business are the legal requirements that enable you to operate under the law. The legal structure of a business will impact your taxes, your liability, and how you operate.

Businesses may consider the following structures in which to operate:

• Corporation
• Limited Liability Company (LLC)
• Partnership
• Sole Proprietorship

Each has different legal consequences, from regulatory burdens to tax advantages to liability being shifted to the business instead of the business owner.

Registering Your Business

Now that you have your business structure outlined, the next step is registering your business . Your location is the second key factor in how you’ll register your business. In many cases, small businesses can register their business name with local and state government authorities. 

If your business is being conducted under your legal name, registration is not required. However, such a business structure may not benefit from liability protection, along with certain legal and tax advantages. Often, registering your businesses costs $300 or less.

Before filing, a business structured as a corporation, LLC, or partnership requires a registered agent in its state. These agents handle the legal documents and official papers on your behalf.

Businesses that are looking to trademark their product, brand, or business, can file with the United States Patent and Trademark Office.

Understanding Permits and Licenses

If your business conducts certain activities that are regulated by a federal agency, you’re required to get a permit or license. A list of regulated activities can be found on the SBA website, and includes activities such as agriculture, alcoholic beverages, and transportation.

There are many different ways to fund a business. One of the key mistakes entrepreneurs make is not having enough capital to get their business running . The good news is that there are several channels to help make this happen, given the vital role entrepreneurs play in creating jobs and boosting productivity in the wider economy.

Self-Funding vs. External Funding

Bootstrapping, the term commonly used to describe self-funding your business, is where companies tap into their own cash or network of family and friends for investment. While the advantage of self-funding is having greater control, the downside is that it often involves more personal risk.

External funding involves funding from bank loans, crowdfunding, or venture capital , among other sources. These may provide additional buffers and enable you to capture growth opportunities. The drawback is less freedom and more stringent requirements for paying back these funds.

Grant and Loan Opportunities

Today, there are thousands of grants designed especially for small businesses from the government, corporations, and other organizations. The U.S. Chamber of Commerce provides a weekly update of grants and loans available to small businesses. 

For instance, Business Warrior offers loans between $5,000 and $50,000 to small business owners. As another example, Go. Be. Elevate Fund offers $4,000 to grant recipients who are women and/or people of color business owners to help them grow their businesses.

When it comes to marketing, there is a classic quote from Milan Kundera: “Business has only two functions—marketing and innovation." In order to reach customers, a business needs a marketing strategy that attracts and retains customers and expands its customer base.

To gain an edge, small businesses can utilize social media, email marketing, and other digital channels to connect and engage with customers.

Branding Your Business

Building a successful brand goes hand in hand with building a great experience for the customer. This involves meeting the expectations of your customer. What is your brand offering? Is it convenience, luxury, or rapid access to a product? Consider how your brand meets a customer's immediate need or the type of emotional response it elicits. Customer interaction, and in turn loyalty to your brand, is influenced, for example, by how your brand may align with their values, how it shifts their perception, or if it resolves customer frustration.

Digital Marketing and Social Media

We live in a digital-first world, and utilizing social media channels can help your business reach a wider audience and connect and engage in real time. Given that a strong brand is at the heart of successful companies, it often goes without saying that cultivating a digital presence is a necessity in order to reach your customers. 

According to HubSpot’s 2023 report, The State of Consumer Trends, 41% of the 600-plus consumers surveyed discovered new products on social media and 17% bought a product there in the past three months.

Managing a business has its challenges. Finding the right personnel to run operations, manage the day-to-day, and reach your business objectives takes time. Sometimes, businesses may look to hire experts in their field who can bring in specialized knowledge to help their business grow, such as data analysts, marketing specialists, or others with niche knowledge relevant to their field.

Hiring and Training Staff

Finding the right employees involves preparing job descriptions, posting on relevant job boards such as LinkedIn, and effectively screening applicants. Careful screening may involve a supplemental test, reviewing a candidate's portfolio, and asking situational and behavioral questions in the interview. These tools will help you evaluate applicants and improve the odds that you'll find the people you are looking for.

Once you have hired a new employee, training is the next essential step. On average, it takes about 62 hours to train new employees. Effectively training employees often leads to higher retention. While on-the-job training is useful, consider having an onboarding plan in place to make the transition clear while outlining expectations for the job.

Scaling Your Business

Growing your business also requires strategy. According to Gino Chirio, executive vice president at the consultancy group Maddock Douglas, there are six ways that companies can grow their business to drive real growth and expansion:

• New processes: Boost margins by cutting costs.
• New experiences: Connect with customers in powerful ways to help increase retention.
• New features: Provide advancements to your existing product or service.
• New customers: Expand into new markets, or find markets where your product addresses a different need.
• New offerings: Offer a new product.
• New models: Utilize new business models, such as subscription-based services, fee-for-service, or advertising-based models.

With these six ways to grow a business, it is important to consider the risk, investment, and time involved. Improving your margins through new processes is often the most straightforward way to grow. Offering new features is also effective since it is tailored to your existing market with products you have already delivered.

By contrast, offering new products may involve higher risk since these have not been tested in the market. However, they may offer higher reward, especially if you have a first-mover advantage and release your product in the market before the competition.

A good place to start building a business is to understand the following core steps that are involved in an entrepreneur's journey : market research, creating a business plan, knowing the legal requirements, researching funding options, developing a marketing strategy, and business management.

A business plan is made up of a number of primary components that help outline your business goals and company operations in a clear, coherent way. It includes an executive summary, company description, market analysis, organization and management description, service or product line description, marketing and sales plan, funding requests (optional), and financial projections.

Business growth can fall into the following six categories, with each having varying degrees of risk and investment: new processes, new experiences, new features, new customers, new offerings, and new models.

Knowing how to start a small business involves the key steps of market research, setting up a business plan, understanding the legal requirements, exploring funding options, crafting a marketing strategy, and managing your business. 

For aspiring small business owners, these steps can help you successfully deliver your product or service to the market, and ultimately grow. While it can take a considerable amount of work, the payoffs are manifold: independence of work, personal fulfillment, financial reward, and following your passion.

U.S. Chamber of Commerce. " The State of Small Business Now ."

U.S. Small Business Administration. " Market Research and Competitive Analysis ."

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

U.S. Small Business Administration. " Choose a Business Structure ."

U.S. Small Business Administration. " Register Your Business ."

U.S. Small Business Administration. " Apply for Licenses and Permits ."

U.S. Small Business Administration. " Fund Your Business ."

U.S. Chamber of Commerce. " 52 Grants, Loans and Programs to Benefit Your Small Business ."

Ogilvy. " Behind Every Brand Is a Great Experience, and Vice Versa—Why Today's Customer Expects Synergy ."

HubSpot. " The State of Consumer Trends in 2023 ."

Training Magazine. " 2022 Training Industry Report ."

Harvard Business Review. " The Six Ways to Grow a Company ."

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Free Business Startup Checklists

By Joe Weller | May 26, 2022

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We’ve collected the top free business startup checklist templates to ensure you account for every detail when launching your next venture. Use these checklists to track each phase of your startup so you don’t overlook any aspect. 

Included on this page, you’ll find a free business startup checklist template , a construction project startup checklist template , and a restaurant startup checklist template .

Business Startup Checklist Template

Download Business Startup Checklist Template Microsoft Excel | Adobe PDF | Smartsheet

When you have a clear checklist for your startup, you help ensure your venture is successful. This template comes pre-filled with sample sections for research, business relationships, finance, development, and other startup tasks, but you can customize the checklist to reflect the needs of your startup. Download this checklist template to help track all of the important steps in your pre-launch startup plan.

Visit our complete collection of free startup plan, budget, and cost checklists to account for all finance-related aspects of your startup.

Construction Project Startup Checklist Template

Download Construction Project Startup Checklist Template Microsoft Excel | Smartsheet

A construction startup checklist can help ensure that your project moves smoothly through every business phase. Use this customizable checklist to track progress and monitor every detail of your construction project startup. Enter required project elements and assign responsible parties for each task along the way. 

Download additional free startup business plan checklists , and find example plans to use as a reference.

Restaurant Startup Checklist Template

Download Restaurant Startup Checklist Template Microsoft Excel | Adobe PDF

Improve your restaurant startup launch with this comprehensive checklist, which prompts you to track design, finance, operations, administration, marketing, and personnel needs. Add categories to meet your specific needs, assign team members to tasks, add target completion dates, and track task status with this template. 

To learn more about budgeting for your startup, download free business startup budget templates .

Launch Your Startup with Smartsheet for Small Businesses

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With Smartsheet, you can align your team on strategic initiatives, improve collaboration efforts, and automate repetitive processes, giving you the ability to make better business decisions and boost effectiveness as you scale. 

When you wear a lot of hats, you need a tool that empowers you to get more done in less time. Smartsheet helps you achieve that. Try free for 30 days, today .

Connect your people, processes, and tools with one simple, easy-to-use platform.

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Start » strategy, ready, set, startup checklist: 25 steps to starting a new business.

Before you start your new business, here are 25 tasks to check off on your startup to-do list.

Starting a new business can be daunting. Breaking it down into smaller steps can make the process feel more manageable and help you build momentum until your first sale. If you have a great idea, but you’re not sure where how to get it off the ground, start with this checklist.

1. Perform market research

Whether you have an idea already, or you’re ready to build something from scratch, the first step is to do some research. Investigate how much demand there is for your product or service, as well as the existing competition. The information you learn can help you narrow down your business concept.

Market research encompasses both primary and secondary sources. In practice, it entails conducting focus groups, surveys, and interviews with potential customers (primary research) and reading government statistics and market reports (secondary research).

2. Test your concept

Before you dive in, test your business idea to make sure it’s based on a valid market need. Perform a competitive analysis to make sure your product or service doesn’t already exist. You may want to create a prototype or conduct beta testing to get user feedback on the product or service you plan to launch.

3. Work on your pricing model

There are a few ways to price your product or service, such as a subscription model, flat-rate pricing, or premium pricing. Your pricing model should help you find the right balance of value and revenue as well as fine-tune your price per item.

4. Build a business plan

A business plan is necessary for when you apply for funding. It also helps guide your operations. The goal of your business plan, according to the U.S. Small Business Administration (SBA), is to:

• Help find financing.
• Show you’ve vetted the market.
• Fully detail your execution strategy.

A business plan generally consists of a combination of market analyses, financial projections, and details about your business operations. This plan should be iterative and revisited as your business grows to reflect your expansion and future goals.

5. Work on your sales pitch

Hone in on what makes your business different from everyone else’s. When you’re just starting out, you must craft an elevator pitch that articulates what sets you apart and why investors and customers should care. A great sales pitch will explain what you do or sell to whom and why in two to three sentences.

6. Find funding

There are many sources of funding for new businesses. Some business financing options include:

• Short-term loans .
• SBA loans .
• Crowdfunding .
• Angel investments .
• Venture capital .
• Working capital loans .

Many entrepreneurs also bootstrap their ventures using their personal finances or by asking their friends and family for initial capital. Use your business plan to decide what option is right for you.

7. Decide on a business structure

The way you structure your business entity has tax and liability implications. No matter which business structure you choose — a sole proprietorship, limited liability company, or a nonprofit — if it’s more complicated than a sole proprietorship, you will need a lawyer to help set it up correctly. Consult an expert from the start to avoid any tax complications.

8. Get the right licenses and permits

Some businesses, like restaurants and cafes, need specific licenses to operate. Depending on where you operate and your industry, you may need several permits and licenses. Check this list from the SBA to find out what, if any, you need to procure.

9. Open a business bank account

Even when you start a sole proprietorship, it’s critical to keep your business and personal finances separate. Open a separate bank account for your new entity to keep your cash flow organized and trackable when it comes time to do your taxes.

[Read more: 5 Easy-to-Start Business Ideas ]

10. Organize your accounting

Anticipate tax time and set up your accounting system to make April much less stressful. Organize your expenses and income into three categories: business income, inventory costs, and other expenses (like payroll, rent, and other overhead). Find and hire an outside accountant , or buy an accounting tool to help you stay organized as you grow your business.

Advertise your grand opening on your social media channels and in local media outlets, like your town newspaper.

11. Develop your supply chain

Does your business idea revolve around a new product? If so, you’ll need to find a way to get it made that’s scalable. You may be able to make items yourself in the beginning, but as your business grows, that won’t be sustainable.

"Getting referrals from fellow business owners via social media and forums can be a great starting point and a way to get feedback on suppliers you've been evaluating," said Liz Bertorelli, owner of online lifestyle brand Shop Passionfruit , in Martha Stewart .

Or use a directory like ThomasNet , Maker's Row , MFG , Kompass , Alibaba , or Oberlo to find available manufacturers.

12. File a copyright or patent

Once you have a solid plan for your product or service, protect your intellectual property with a copyright or trademark. You can file to protect the rights to your company’s name, logo, content, creative ideas, or original creations in addition to a product design or service offering.

13. Decide where to sell

There are many companies that launch online before moving into a physical retail space. Warby Parker, Glossier, Casper, and Everlane are all companies that were founded as online-first retailers. Launching online can be a good way to keep costs down, but there are some serious benefits to having a brick-and-mortar location .

14. Develop a brand

Create a strong brand identity, including a memorable name, logo, and branding materials. Your brand identity communicates to consumers your business’s mission, values, and personality. It helps your company stand out from competitors and attract customers. You may want to work with a designer who can translate your brand identity into visual cues.

15. Design product packaging

Once you have your brand identity, it’s time to create the packaging , shipping materials, and any in-store physical assets that you will need to bring that identity to life. Even service businesses should consider using branded invoices or adding a logo to vehicles to help encourage brand recognition.

16. Negotiate a lease

Should you decide to open a storefront, you will need to find real estate property. That usually means negotiating a business lease . Make sure you know how much space you need, carefully vet the neighborhood, and read the contract thoroughly before signing.

17. Get the right insurance policies

The insurance policies you need will depend on the size of your company (i.e., how many employees you hire) in addition to your assets and liabilities. Here are a few policies you might need:

• Workers' compensation .
• Professional liability insurance .
• Product liability insurance .
• Business vehicle insurance .
• Small business health insurance .
• General liability insurance .
• Property insurance .

18. Set up a website

Your website is crucial to help customers learn more about your brand. Build a business website that tells your story to build excitement before your grand opening and help people learn about your product or service. Even entrepreneurs who don’t intend to sell online need a website with their store hours, location, and phone number, at a minimum.

19. Register your business

New businesses may need to register with their state government, the federal government, or they may not need to register at all. Generally speaking, if you want to file for trademark protection, or if you need a federal tax ID, you need to register with the federal government .

20. Get the right tools

When you’re just getting started, you don’t need a lot of fancy technology to start selling. But you do need some basics, like a point-of-sale system , wireless internet , and telephone service. You may also need office equipment, like desks and chairs, or software to enable remote work.

21. Prepare for order fulfillment

Retailers and some restaurants need to consider how they will get the product to the customer . If you offer online ordering, what logistics partner will you work with to ensure the item is delivered? Do you offer curbside pickup? For retailers, this means determining what shipping partner has the best rates and reliability — such as DHL, UPS, Fedex, or USPS. For restaurants, this could mean working with a third party like Uber Eats or Caviar.

22. Set up your social media channels

Social media is how many customers discover new brands. Create Facebook , Instagram , and Twitter profiles for your business. These platforms are where you can share news about your upcoming grand opening, launch your products, and generate buzz.

23. Hire an employee

If you have the budget, it’s time to bring an employee on board. Find someone you can trust to delegate part of the day-to-day operations so you can continue to focus on the big picture. This might be a manager, a partner, or your first hourly worker who can oversee the store.

24. Advertise your grand opening

Ready to meet your first customers? Make sure they know you’re about to open for business. Advertise your grand opening on your social media channels and in local media outlets, like your town newspaper. You might run an opening day discount or promotion to improve foot traffic or work with an influencer who can quickly spread the word about your brand.

25. Open your doors for business

Congratulations, you’re ready to go. Good luck selling! CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

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CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here .

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• Business Plan Checklist

Introduction to Business Plan Checklist:

Small Business Economics  found that  entrepreneurs that take the time to turn their idea into a structured plan are 152 percent more likely to start their business.

Are you bursting with ideas and eager to get the ball rolling on your business venture?

If so, you have come to the right place. 

This business plan checklist will help you transform all of those brilliant ideas into a coherent, organized, and professional business plan. 

Having a business plan will add legitimacy to your idea and will guide you in taking the appropriate steps to enable your business to blossom. 

Writing a business plan shouldn’t be complicated and we are here to help with the whole process.

Before you get stuck in, here is a little bit about us:

Process Street is super-powered checklists. It’s the easiest way to manage your recurring tasks , procedures, and workflows.

Create a checklist template and run individual checklists for each member of your team. You can check tasks off as you work through them, set deadlines, add approvals , assign tasks , and track each team member's progress .

You can also connect to thousands of Apps through Zapier and automate your workflows even more.

Let's get started. 

Complete the following tasks in a step-by-step fashion and you will see how quick (and easy) it is to write a professional business plan. 

Enter your basic information

Update this plan on a Q uarterly Basis. If you are running this checklist as a result of a drastic change within your business then run the checklist as though you are creating a new business plan from scratch. 

Having an up-to-date business plan is CRITICAL for the smooth running of any business. 

We recommend running through this checklist every few months and updating it whenever a change of plan occurs. 

Even if you haven't made any changes it is important to consistently check-in with your mission, values, and goals.  

The following tasks help to keep a record of who is editing the plan and how often. 

One-Page-Pitch:

A One-Page-Pitch is the simplest business plan you can write. 

Think of it as a one-page executive summary of your business. 

It is a great way to sort through all of your thoughts and get them down on paper before you begin writing a standard plan (this comes later in this business plan checklist). 

If you already have a One-Page-Pitch then upload it in the following task.

If not then no worries, just follow the checklist below.

Prepare one-page-pitch

Select the appropriate option from the dropdown below. 

If you have not yet created a OPP then create a document on your computer or on Google Docs. Then follow the subtasks below when creating the OPP.

• 1 Describe your business in one sentence
• 2 Describe the problem your potential customers have
• 3 Describe your solution to the problem
• 4 Explain who your target market/ ideal customer is
• 5 Describe your competitive advantage
• 6 Describe how you will sell to your customers
• 7 Describe what marketing activities you will use to attract customers
• 8 Detail your business model, what are your revenue streams
• 9 List your startup costs
• 10 List your primary goals and milestones that you want to accomplish over the next few months
• 11 Outline whether you wish to run the business alone or with a team/ freelancers
• 12 List any partners and resources you need to help you launch.

Whether you have just created a OPP or you already had one, upload it to this checklist for safe keeping.

Link OR Upload One-Page-Pitch below:

Standard Business Plan:

Why create a Standard Business Plan alongside a One-Page-Pitch?

Whilst a One-Page-Pitch is GREAT for getting your ideas on paper it lacks the components that make a business plan actionable. 

The Standard Business Plan delves deeper into the ways you plan on making your business happen. Most importantly, this plan is what investors and banks will expect to see. 

Are you ready to legitimize and set the infrastructure for your business? 

Remember to follow the tasks in a linear  fashion. 

Let's build your business. 

Define the opportunity

Use the opportunity section of your business plan to demonstrate what sets your product or solution apart from the crowd .

Explain the problem that you’re solving, your solution, who you plan to sell to, and how your product or service fits into the existing competitive landscape.

This section will also give you the opportunity to identify future plans and the vision for your business. 

Determine your mission

Bear all of your previous answers in mind and write a brief mission statement.

Consider the problem you are solving; the customer's needs; your solution to the problem; and how you will benefit. 

Identify future plans

A  vision statement determines the current and future objectives and plans of your business.

A business's vision guides your business in making decisions that should align with its values and goals.  A good vision statement  is short, simple, specific to your business, and leaves nothing open to interpretation. 

Use this section to validate your ideas and identify your future plans.

Prepare your vision statement

Now, briefly summarize your idea, future plans, and what you wish to accomplish with a vision statement. 

Write the Market Analysis:

A target market is a set of individuals sharing similar needs or characteristics that you and your business intend to serve. 

Because markets are constantly changing we have created sub-tasks within this section that allow you to quickly update the marketing analysis of your business plan. 

If this is your first time completing this checklist select:  first run-through from the dropdown menu below. 

If you have already completed this checklist but your business has witnessed big changes then run the checklist from scratch: as though it were the first time. 

Alternatively, select  check-in from the dropdown menu for any recent changes. This selection will save time and will not require you to go through the entire list of tasks within this section. 

Identify customers

Pinpoint who your customers are.

The first step in ascertaining your place within your target market is forming a relationship with your future customers.

Like any relationship, the more you know about someone the more likely you are to know what they want and how they want it. 

Get personal , picture your future customer in detail:

How old are they? What sex do they identify themselves as? What are their tastes? What are their spending habits? 

There are lots more questions you can ask to REALLY get to know your target market.

Remember, the more questions you ask, the closer you get to identify your customer's wants and needs. 

Do some research, then tick each of the boxes once you have the data: 

• 1 Do you know how old your customers are?
• 2 Do you know what sex they identify as?
• 3 Do you know their tastes?
• 4 Do you know their spending habits?

Highlight competitors

Establish your place within the industry. 

Before you embark on your venture you need to know what industry your business falls into; who your competitors are; and where you and slot into the mix. 

Unsure of your industry or your place within it?

A thorough Google search should provide plenty of information for your market analysis. There are websites for business analysis, financial statistics, demographics, trade associations, and just about everything you'll need to complete this checklist and your business plan. 

This section of your business plan requires regular updating. All industries are fluent, ever-changing, and growing. Good business management involves consistent industry analysis. To stay on top of the game you need to know who the key players are. 

Consider what buying factors make a difference in the success or failure of your competitors:

Is it price? Product features? Service? Support? Website? Branding? Online presence? Delivery dates?

Establish keys to success

Consider all the data you have gathered in relation to your customers and your competitors. 

Given the data, what do you think are the vital components in ensuring your business's success? Ideally, you will have between four and six keys to success (KTS).  

Struggling to narrow down your ideas? Here are a couple of examples:

• Excellent product and service that will build and maintain customer loyalty.

• A commitment to continuous improvement and total quality services.

Calculate TAM SAM SOM

TAM – Your total addressable market refers to the overall demand for the products or services your company provides.

SAM – Your serviceable available market refers to the segment of your TAM which you can reach.

SOM – Your serviceable obtainable market is kind of like your actual goal. This is how much of the market in your location you can realistically reach.

For more information on this topic check out this Process Street blog post: What is TAM SAM SOM? How to Calculate and Use It in Your Business.

Use the form fields below to record TAM SAM SOM data.

Risk Assessment:

“A major lesson in risk management is that a 'receding sea' is not a lucky offer of an extra piece of free beach, but the warning sign of an upcoming tsunami.” ―  Jos Berkemeijer

Business risk can be understood as the factors and events that can impact a company's operational and financial performance.

From tsunamis to employees quitting; to pandemics and system failure. Risks can occur at any time and at varying degrees of disastrousness. 

In fact, a lack of risk management strategies causes over 50% of startups to fail within their first four years.

However, all is not lost. 

A thorough risk assessment of the environment surrounding your business is vital in mitigating risks. 

By considering possible risks you develop short and long-term plans that promote the steadfastness of your business. 

Consider any external risks

There are three main components of risk assessment:

• Identifying the specific risks that your business faces.
• Determining the potential impact of each type of risk identified. This is done by comparing the likelihood of occurrence vs. the extent of consequences faced.
• Evaluating how your current resources and expertise can deal with the most significant risks you face 

External factors

Economic Risk: Remember the financial crisis of 2007/8? That is the type of thing you consider when assessing economic risks, along with all changes in the market.

Natural Risk: Think of the tsunami example, this is a natural risk. Natural risk factors include natural disasters that affect normal business operations.

Political Risk: The 2010 crisis in Venezuela shows how political decisions take by governmental leaders can influence your business. Think taxes; currency valuation; trade tariffs or barriers; investment; wage levels; labor laws; environmental regulations and development priorities, can affect your business conditions and profitability.

For guidance on managing risk click here

Consider any internal risks

Internal risks.

Internal risks happen from within your organization.

Human-factor Risk:  All things relating to you or your staff and your ability to work.

Human-factor risks include:

Union strikes

Dishonest employees

Ineffective management or leadership

Failure within the production and supply streams

Failure to pay by clients/customers

Technological risk:  unforeseen changes in the manufacturing, delivery, or distribution of a company's product or service.

Technological risks include:

Failure of systems

Lack of skilled IT staff

Software and server problems

Dated technology and systems

Physical risk: is simply the loss or damage of assets  belonging to a company. 

Market and risk check-in

Consider any changes or developments  within your target market or risk enviroment.

Be sure to consider the following questions. 

• 1 Who are my potential customers?
• 2 What are their buying and shopping habits?
• 3 How many of them are there?
• 4 How much will they pay?
• 5 Who is my competition?
• 6 What have their challenges and successes been?
• 7 What are the internal and external risks?

Accessing the Target Market:

Complete the marketing strategy.

A quick note on the difference between marketing strategy and marketing plan: The marketing strategy informs the marketing plan, which is a document that details the specific types of marketing activities your business conducts.

Get out there. 

You've established who your target market is and who your key competitors are. The next move is to establish how you plan to reach your customers.

What is a marketing strategy? Y our business's game plan  for reaching your target market. 

A marketing strategy contains:

Value proposition: how your product or service solves/improves problems, what benefits customers can expect, and why customers should buy from you over your competitors.

Key brand messaging:  refers to conveying the value proposition and the language used in your content. It’s what makes buyers relate to your brand. 

• Nike : Just do it.
• Subway : Eat fresh.
• Levis : Quality never goes out of style.

Once you have determined your marketing strategy , complete the form fields below.

Data on target customer demographics:  we touched on this when researching the target market. Demographics are subsets of a target market that share particular attributes.

Understand the marketing plan

A marketing plan is operational and outlines a detailed advertising strategy. It details how your business plans to reach customers.

The plan includes details on promotional campaigns you plan to run and how you plan to monitor the effectiveness of these initiatives.

Whilst the following tasks cover the most important steps for a marketing plan there is a lot more you can do to increase your outreach. If you wish to delve deeper into the realm of marketing and planning then click here .

Components of a marketing plan:

• Market research to support pricing decisions and new market entries.
• Platform selection for connecting with customers and promoting your product or service.
• Tailored messaging that targets the demographics within your market.
• Metrics that measure the results of marketing efforts and their reporting timelines.

Plan how to communicate with customers

"The aim of marketing is to know and understand the customer so well the product or service fits them and sells itself." - Peter Drucker, These 10 Peter Drucker Quotes May Change Your World.

Be creative in determining how to communicate with your customers. Think online, digital, radio, trade magazines, blogs, newsletters.

If you are looking for inspiration then have a read through this blog : 

Or this one .. . 

This is also interesting

Definitely check this out.  

*that'll do* 

Once you feel suitably inspired, fill out the tasks below.

• 1 Instagram
• 4 Telephone

Consider tailored messaging

Consider your value proposition and take the same tone that you did when deciding your brand messaging. 

Ever had something tailor-made? Remember the effort that went into customizing that item to be your perfect fit. 

This is what you want to do for each and everyone one of your customers, make them feel as though  you are the perfect fit for them. 

A tailored message is customized for each and every customer. They are great for creating a personal connection with customers and generating new business. 

Identify milestones

Milestones make your business plan specific, and concrete.

Milestones are dates, deadlines, tasks, and budgets.

Examples of milestones:

• When you launch the product/service.
• Open the new store.
• Hire a new person (or expand in general).
• Change locations online or offline.
• Start a new marketing campaign.

Milestones list and categorize what’s supposed to happen—and when it’s supposed to happen.

They include launch dates, review dates, prototype availabilities, advertising, social media, website development, and programs to generate leads and traffic.

The milestones set the plan tactics into practical, concrete terms with real budgets, deadlines, and management responsibilities. They are the building blocks of strategy and tactics. They are essential to  your ongoing plan-vs-actual management and analysis,  which is what turns your planning into management.

As you need tactics to execute strategy, so too you need milestones to execute tactics. Normally you’ll look for a close match between tactics and milestones.

You develop your milestones by thinking through strategy, tactics, and actions you need to take. 

Once you have determined your milestones, use the form fields below to record them. 

Identify metrics

Metrics are performance measurements that you track as part of your regular planning process. 

They are numbers that you gather to analyze and compare. 

The most obvious metrics are in financial reports: sales, cost of sales, expenses, and so on.

Understanding and managing financial reports and numbers closely helps to build accountability in your business.

Identify Product Details:

Input data concerning your product or service.

Hopefully, by this stage in your business plan, you know what your product or service is. In which case the following steps should be self-explanatory. 

Use this section to outline the details of your product.

Write sourcing strategy

When considering where you are going to source your products it is  really important  that you consider three things:

• Delivery time
• Quality control

Another thing to consider is  sustainability.

Climate conscious brands are becoming increasingly popular. Being a sustainable brand means that you can positively influence the environment whilst growing your business at the same time! 

Determine pricing strategy

Pricing strategy  refers to the method you use to  price  your products or services.

A good approach to take is to base the price of your product on production, labor, and advertising expenses and then add on a certain percentage so that you can make a profit.

Use the form field below to input your pricing strategy.

Indicate location and facilities

Consider where your business is based:

• Will your business have an online presence?
• Will you require the use of any extra facilities?
• How do you plan to distribute your product?

Establish Your Financials:

Assess your financial needs. 

What do you need to get your business off the ground? 

The following tasks feature checklists that guide you in getting your finances planned, documented, and organized. 

Remember to upload the final document to this checklist so that everything is stored securely in one place. 

Establish funding requirements

Use the form fields below to determine your business's financial needs.

Complete projected balance sheet

If you already have a projected balance sheet then upload it below and move on to the next task.

If not then follow this checklist to create your Balance Sheet Statement and upload the final document:

Determine your cash flow planning process

If you already have a cash flow then upload it below and move on to the next task.

If not then follow this checklist on The Financial Planning Process and upload/link the final document:

Legalize your business

The legal requirements for launching a business vary depending on your location, the size of the business, the number of employees you have, and so on. 

Research the specific requirements for your business and considering the following: 

• 1 Appropriate licenses and permits
• 2 Sales tax permit
• 3 Business License
• 4 Accounting and record-keeping system
• 5 Insurance

Write the Executive Summary:

Remember the One-Page-Pitch you wrote, this is a re-draft of that. 

Take everything that you have inputted thus far into account when writing your executive summary. 

Talk about the problem you are solving, what your solution is (your product or service usually), the market, the competition, and some key financial highlights. 

Prepare executive summary

Use this task to guide you in preparing your executive summary.

Utilize the subtasks below to ensure you include all of the required information. 

• 1 A summary of my business.
• 2 A summary of my products/services.
• 3 Your mission statement.
• 4 Your vision statement.
• 5 Summary of your organizational structure.
• 6 Summary of your target market and ideal customer.
• 7 Evaluation of the external and internal risks.
• 8 Summary of the future of my business and my industry.
• 9 Summary of my financial data and projections.
• 10 Summary of legalities.

Upload your executive summary in the appropriate form field below. 

Your Standard Business Plan:

Create a standard business lan.

Create a document either in Google Docs or on your computer.

Input the following headings into the document to organize your business plan:

Opportunity

Market analysis, risk assessment, marketing strategy and plan, product details, executive summary.

The following steps will gather all the data from this checklist. Copy and paste the data from each of the sections into your document.

Then upload or link the document. 

Basic Information

{{form.Your_name}}

{{form.Role_within_the_business}}

{{form.Today's_date}}

{{form.Problem_to_be_solved}}

{{form.Unmet_customer_needs}}

{{form.Customer_benefits_of_solving_problem}}

{{form.Proposed_solution_to_the_problem}}

{{form.Business_benefits_of_solving_the_problem}}

{{form.Mission_statement}}

{{form.Validate_idea_2}}

{{form.Identify_future_plans_2}}

{{form.Four_things_to_accomplish}}

{{form.Vision_statement}}

{{form.Potential_customers_2}}

{{form.Customers_buying_habits}}

{{form.Amount_of_customers_in_your_target_market}}

{{form.Amount_customers_are_willing_to_pay}}

{{form.Your_industry}}

{{form.Current_size_of_your_industry_2}}

{{form.Competitors_within_your_industry_2}}

{{form.Identify_lead_competitors_2}}

{{form.Competitors_challenges/successes}}

{{form.Buying_factors_within_your_industry}}

{{form.Calculate_TAM}}

{{form.Calculate_SAM}}

{{form.Calculate_SOM}}

{{form.Identify_KTS}}

{{form.Internal_risks}}

{{form.Impact_of_internal_risks}}

{{form.How_internal_risks_will_be_managed}}

{{form.External_risks}}

{{form.Impact_of_external_risks}}

{{form.How_external_risks_will_be_managed}}

{{form.Recent_changes_or_developments_within_your_industry}}

{{form.Value_proposition}}

{{form.Ideas_for_branding_message}}

{{form.Customer_demographics}}

{{form.Summarize_data_to_include_in_plan}}

{{form.Select_which_social_media_platforms_you_will_use}}

{{form.Social_media_strategies_you_intend_to_use}}

{{form.Select_direct_communication_methods}}

{{form.Use_of_alternative_communication_methods}}

{{form.Plans_for_promotional_campaigns}}

{{form.Establish_product_offerings}}

{{form.Messaging_you_will_use}}

{{form.Product_or_service}}

{{form.Competitive_advantage_of_product}}

{{form.Sourcing_strategy}}

{{form.Pricing_structure}}

{{form.Location}}

{{form.Facilities}}

{{form.Plans_for_distribution}}

{{form.Will_your_business_require_extra_funding?}}

{{form.Source_of_funds}}

{{form.Use_of_funds}}

{{form.Financial_strategy_for_the_future}}

{{form.Legal_requirements_and_measures_to_be_taken}}

{{form.Copy_and_paste_executive_summary}}

Use the form field below to upload your first d

Send business plan for review

Utilize the email widget to send the document for review. Getting someone to review your business plan is a key step in creating a professional and error free document. 

Upload final sstandard business plan

Congratulations!

You have completed the checklist and created your business plan.

Once you have finished editing the document be sure to upload/link it here so that it is stored in a safe place. 

• Bplans Blog - How to Write a Business Plan: Use This Checklist to Keep Yourself on Task 
• Sba.gov - How to Write A Business Plan
• Bplans Blog - Industry Analysis: Know Your Industry Before You Start Your Business 

Lori Hubbard - Why Is Identifying the Target Market so Important to a Company?

• Bplans Blog - How to Write a Market Analysis 
• Effectuation.org - The Multiple Effects of Business Planning on New Venture Performance
• Larry Myler - 7 Ways To Make Your Business Stand Out In A Crowd Of Competitors 
• AppSuccess - Bussiness Plan PDF
• Minutehack - Why Your Startup Should Use A Risk Assessment 
• Investopedia - How Companies Can Reduce Internal and External Business Risk 
• Process Street - Marketing Process Toolkit: 10 Checklists to Crush Your Competition | Process Street | Checklist, Workflow , and SOP Software
• Neil Patel - 20 Uncommon Marketing Strategies That'll Kickstart Your Startup 

Related Checklists:

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• Neil Patel’s: Website Funnel Analysis Checklist
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• BANT Sales Qualification Call Process
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• Free Small Business Software 
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Take control of your workflows today.

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It's All You Boo

Copy This Small Business Plan Checklist for Your New Startup

April 13, 2022 18 Comments

Want to make a small business plan checklist? Looking for the essential parts of a business plan?

Despite what sensationalized headlines want you to believe, only one in five businesses fail during the first two years of opening. While these numbers sure are a bit more refreshing than the urban legend of 50% failure rate, not everything is hunky-dory for startups . 

For a start, only one out of four businesses will make it to 15 years or more! What’s more concerning is that several businesses fail to take off due to preventable reasons – the primary one being the lack of a concrete business plan .

If you have an amazing small business idea , you cannot skip over than essential business planning stage. Whether that means doing market research, creating a cash flow statement, or identifying your target market, you have to create some sort of business plan outline.

In this post, we will take a look at how a solid and realistic business plan can be your business’s lifeboat, even as you navigate the choppy waters of entrepreneurship. When you’ve been in business for years to come, you’ll be happy you did!

What is a Business Plan? And Why Does It Matter?

If your business were a living entity, your business plan would be its very life force.

In other words, a business plan is a formal document describing a business and everything that contributes to its success . As such, it includes organizational goals and objectives, products or services, revenue and financing, operations model, leadership and staffing, and roadmaps for achieving results.

This business plan acts as the north star for your startup and lends direction to its progress. Hence, it should come as no surprise that startups that had a business plan grew 30% faster than those without a plan.

Further, a well-defined business plan rakes in the following benefits:

• The process of writing down the business plan offers clarity of thought and ideas while determining the scope of your business, how it will operate, and the resources necessary for getting started.
• Committing your ideas to paper also allows you to analyze them objectively . After running through them, you can weed out the ones that are not feasible and focus your energy only on the ones that seem practical.
• While writing the business plan, you will have to research the market, your ideal customers, and your competitors – such insights will allow you to make smarter and more decisive decisions .
• A clear understanding of your business and its offerings empowers you to form strategic partnerships that foster mutual growth.
• The business plan lays the foundation for the company culture, which will instill confidence in new recruits as they become a part of your workforce.

Want a TL;DR version? You need a business plan to succeed! Use this post as your business plan template.

A Step-by-Step Guide: How to Write a Business Plan?

Writing a business plan can be intimidating – we get that. However, it is the absolute first step to starting a business . And so, the sooner you get it out of the way, the easier it is to graduate to the more thrilling aspects like checking out Northwest registered agent reviews or joining startup forums!

If you still find yourself staring down at a blank sheet while writing a business plan, here are a few steps to guide your business plan sections:

Step #1: Define the Vision, Mission, and Values

If you are serious about your startup, you would already have a solid understanding of what your startup aims to do and how it plans on doing it.

Dig in a little deeper, and you will understand why you do it as well. And at the core of all this soul-searching lies the mission statement of your startup .

It defines the primary purpose why your startup exists. On the other hand, all your goals and aspirations are encapsulated in the vision statement. And your values dictate the medium of achieving these goals.

Congrats on discovering the three main pillars that will drive your business startup!

Step #2: Identify SMART Goals

Sure, knowing the origin story of your startup is crucial. However, you should not lose sight of your destination. As such, you will also have to note down the business goals and milestones that represent the growth of your startup. 

Naturally, you may strive to be a unicorn, have a large client base, and have an impressive turnover – who doesn’t? But if you chase these objectives at random, you will fail to drive results.

And so, these goals have to be SMART – Specific, Measurable, Achievable, Relevant, and Time-Bound. Such an approach will make your goals realistic and tangible.

This step is especially critical if your new business is part of your exit strategy from your day job. You have to plan business goals and objectives if you ever want to successfully become your own boss .

Step #3: Invest Time in Research

What you have done so far is nothing far from introspection. However, a business does not operate in a vacuum; it is also a product of its surroundings and conditions. And so, you will have to direct a significant chunk of your research outward to understand external stimuli that can influence your startup .

You can deploy various tools and methodologies like industry research, surveys, questionnaires, benchmark analysis, etc., to understand more about the prevailing market conditions, who you are selling to, and who is offering similar products or services.

Step #4: Get Writing!

Once you have done all your homework, it is only a matter of putting all your thoughts, observations, and ideas to paper and forming a business plan!

Continue reading for a breakdown of all the essential business plan sections.

Step #5: Keep Editing

One of the greatest advantages of a business plan is that you can go into the elaborate details of how to run your startup. However, it’s important to remember that the goal isn’t to create a perfect business plan, but rather a realistic one.

One of the greatest pitfalls of a business plan is that you can go into the excruciating details of how to run your startup. Don’t spend too much time working to make it perfect, instead aim for making it workable.

To avoid falling prey to the latter, edit your business plan to keep it succinct and easy to read. The average length of any business plan is 15 to 20 pages. Also, maintain consistency in the tonality, voice, and style while drafting your business plan.

The Anatomy of a Small Business Plan for Startups

Now that you understand the process of creating a business plan checklist, it is time to round up everything that goes into it. This includes:

A. Executive Summary

An executive summary offers a high-level view of the business and caters to the requirements of those short on time. Think of it as the distilled version of everything contained in the business plan.

Typically, an executive summary is a page long and contains key points like:

• What does your startup do?
• What does it aim to do?
• What does it sell?
• What makes your offerings unique or different?
• Who are your target customers?
• How will you reach your target audience?
• How much revenue do you generate?
• What is the foreseeable revenue potential?
• What is your pricing for the product/service?
• Who is a part of the startup?

While the executive summary is the first section of your small business plan checklist, reserve writing it to the end. 

B. Industry Analysis

Industry analysis is a key section of your business plan. After all, it is the market that will determine the success of your business. 

Entering the right market at the right time allows startups to consolidate their presence and register an impressive growth trajectory. Doing quite the opposite may result in your startup tanking, no matter how unique and innovative your offerings may be.

The quickest way to adjudge whether your startup is a great market fit is by performing SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. Such a visual representation can validate and justify your market-linked business decision and help in formulating future-proof strategies.

C. Customer Analysis

It is no secret that targeted marketing is the key to accelerated business growth- especially in the case of startups. However, before appealing to a niche audience, you need to understand who they are in the first place! 

And here’s where customer analysis enters the scene.

This portion of the business plan paints a vivid picture of an ideal customer – someone who offers maximum customer lifetime value (CLV). The simplest way to segment such customers is through demographic factors like their age, sex, location, level of education, behavior patterns, etc. You may even create multiple buyer personas if your product/services cater to a larger clientele.

D. Competitive Analysis

As the old saying goes, keep your friends close and your enemies closer. Including competitive analysis in your business plan allows you to acknowledge competition while also comparing and contrasting the similarities and differences, respectively. 

List down your competitors’ weaknesses and devise ways to overcome them while building your own strategies. At the same time, you can use this opportunity to highlight what sets your business apart and why customers should purchase from you.

E. Products and Services

This segment of the business plan should go into the details of the products and/or services that you offer. 

It may be tempting to ramble on about the features and specifications of your offerings that make them pop out. However, it will result in a loss of interest. A better approach to talking about the products and services is by presenting them as solution-centric. Talk about how your products or services can address customer pain points and improve their life. 

F. Marketing and Sales Plan

This portion of your business plan should talk about how you plan on marketing and selling your product and services. As such, it must answer the following questions:

• What are you selling, and what makes it unique from similar offerings?
• Where will you be selling the products/services?
• What would be the cost and pricing model of your product or service? How did you reach this valuation?
• How will you reach out and engage with your target audience?
• What is your social media strategy ?

G. Logistics and Operations Plan

The logistics and operations plan will contain all the workflows involved to translate concepts into reality. It indicates that you have a solid understanding of how your business functions internally and how it interacts with external supply chain players, such as vendors, suppliers, etc. This section must also include contingency plans that will come into effect if any workflow or processes fail.

H. Financial Plan

Even if you are sitting on the brightest and most innovative idea and putting in more than the requisite amount of time, effort, and money, everything boils down to the financial health of the startup . After all, customers want to transact with businesses that offer long-term value. Similarly, investors would be more interested in financially-sound businesses. And to build this trust, a financial plan would typically include the income statement, the balance sheet, and the cash-flow statement.

I. Management Team

Having a strong management team can be an indicator of success, so why not share these details in your business plan? Include the names and profiles of the core management team and talk about what they bring to the table.

J. Exhibits and Appendix

The appendix is simply a collection of auxiliary documents that did not make it to the main business plan. Such documents support any claims made in the business plan.

The Ultimate Business Plan Checklist

To summarize, your small business plan checklist will contain the following:

• Executive Summary
• Company Overview
• Industry Analysis
• Customer Analysis
• Competitive Analysis
• Products and Services
• Marketing Plan
• Logistics and Operations Plan
• Financial Plan
• Management Team

Ready to Start Up Your Startup Journey?

A reliable small business plan checklist is a powerful tool for clarifying business strategies, managing resources, performing viability testing, and identifying potential roadblocks.

Get Your Strategic Planning Workbook 

Ready to start that business plan? Get the Free Strategic Planning Workbook , and create a step-by-step plan for a successful business.

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Plus, it can help clinch external funding when it comes to it.

So whether you plan on creating a one-page pitch or something along the lines of lean business plans, do it either way to reap long-term results!

It’s great that you have a business idea for beginners , or a small business started already, but you also need a business plan. Get started!

What’s in your small business plan checklist?

More About Guest Contributor 

Matt Horwitz is the founder of LLC University , a website that teaches people how to form LLCs. Matt is the leading authority in LLC education and is featured in CNBC, Yahoo Finance, Entrepreneur Magazine, and US Chamber of Commerce. Matt holds a Bachelor’s Degree in business from Drexel University with a concentration in business law. LLC University®, established in 2010, was the first company to create free LLC courses in all 50 states.

Last Updated on August 8, 2023

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Nadalie Bardo is here to help you slay your goals, so you can pursue your boss life with confidence + action. As the Founder of It's All You Boo, a personal development blog, she curates the very best content to keep you motivated and inspired to slay your goals in life and business. Her first book, Conquer Procrastination, is now available wherever books are sold, including Amazon and Barnes & Noble. Nadalie is also the creator of the Slay Your Goals Planner, the only planner dedicated to helping you actually achieve your goals.

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Business Plan Checklist

• By Jake R Brady on Dec 22, 2011

• Gather your basic financial statements
• Provide documentation Financial statements are ;formal records of your business' financial activities. There are four basic statements:
• Income statement: Your bottom line subtracting costs from revenue to come up with net profit
• Balance sheet: A financial snapshot that shows what you own, what you owe, and what your company is worth
• Cash flow statement: A cash monitor that follows the flow of cash in and out of your company
• Budget: Your financial forecast that indicates where you plan to make and spend money
• Determine your audience
• Identify customers and the competition This is a critical part of a successful business plan. ;Incorporate research on both groups.
• Ask these questions of customers: Who is buying, what do they buy, and why ;do they buy?
• Ask these questions of competitors: How big are they, which customers are they after, and what is their strategy?
• Incorporate these elements
• Executive summary
• Company overview
• Business environment
• Company description
• Company strategy
• Financial review
• Action plan
• Consider these topics
• Plans: Company mission, vision, goals, and objectives that all work together
• Organization: A structure for your company that makes sense
• Procedures: Efficient and effective ways of doing things
• Leadership: An ability to influence and encourage others around you
• Skills: The talents and expertise your people need to succeed
• Culture: Beliefs and attitudes that lead to doing the right thing
• Consider the other factors on this list of business-planning essentials:
• Get everyone involved in setting goals and objectives
• Learn all you can about your customers
• Understand who your competitors are
• Identify your strengths and weaknesses relative to opportunities and threats
• Determine which capabilities you absolutely need to succeed
• List all the things you do that add customer value
• Make sure that you do your financial homework
• Imagine several different versions of your company's future
• Avoid business failure
• Do your research, and prepare If you're not prepared, your business will likely fail.
• Establish a long-term company vision Be sure to establish and follow clear goals and objectives to meet the vision.
• Prepare for change Stay flexible and you will succeed.
• Focus on the customers And whatever you do, don't underestimate the competition.
• Be a strong leader Communicate well, and often.
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A well-developed business plan is critical for any start-up business. To develop a thorough business plan, research your customers and competition; avoid mistakes that lead to business failure; and know how to implement a business plan and make it work. Your business plan should include a basic financial statement, all major pieces of a business plan, and information from your business-planning checklist.

• Keep your focus on these three things:
• Cut costs to the bone
• Offer something unique
• Focus on one customer group

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How to Start a Small Business in 10 Steps

Learn how to start a small business from scratch with expert guidance. Get essential tips and steps for launching your dream journey successfully.

Brett Grossfeld

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Do you have a killer idea that you think would be perfect for launching a small business? If you believe what you see on TikTok, becoming an entrepreneur is just about as easy as posting a 30-second video. But in the real world, launching a small business can be a bit more challenging.

Starting a small business may seem daunting, but if you ask those same business owners if it’s worth the risk — few would trade the opportunity to shape their own destiny.

But where to start? Thankfully, you don’t need to have everything figured out before going out on your own. Successful small business owners are constantly learning from their mistakes — and improving their ideas and dreams along the way.

If you’re ready to take the leap and become a small business owner, keep reading.

Here’s what you’ll learn:

What is a small business, how much does it cost to start a small business, how to start a small business in 10 steps, what do you need to start a small business, start small — but think big.

Small businesses are generally defined by the U.S. Small Business Administration (SBA) as independent operations having fewer than 200 employees. And the majority of small businesses in the United States have fewer than five employees, according to the U.S. Census Bureau . 

But the number — or lack — of employees doesn’t necessarily define a “small business.” A business’s size can also be determined by the number of sales, the range of individual business locations, and other factors.

Along with size requirements, the SBA considers a company to be small if it’s:

• Independently owned and operated
• Not dominant in its field
• Physically located and operated in the U.S. (or a U.S. territory)

If your company meets the SBA’s definition of a small business, many government programs offer resources and local assistance for you to turn your dreams into reality.

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If you’re skilled in a certain trade — say, bookkeeping — you can launch a business with almost no money . But if your idea needs to be fleshed out and developed by researchers, scientists, and engineers, your startup costs can run into the hundreds of thousands of dollars and beyond. But most startup costs fall somewhere in the middle. 

Factors that influence cost

A sole proprietor working from home is going to have very different startup costs than a Silicon Valley startup flush with venture capital funds. But it doesn’t matter if you have $1,000 or $1 million to launch your small business — you’ll need to have a budget.

Are you moving the clutter out of your garage to make room for a desk? Or are you going to hire an architect to remodel a warehouse space in a trendy neighborhood? Obviously, both businesses are going to have wildly different expenses.

Think about your budget and what you can afford to get started. And it’s good to assume that unexpected expenses will pop up along the way — especially in your first year of business.

What kinds of costs to expect

The SBA has a worksheet that will help you calculate typical expenses for a small business, including one-time expenses such as:

• Rent : This includes security deposit, first month’s rent and utilities. If you’re working from home, you can deduct a percentage of your rent or mortgage on your taxes .
• Improvement costs: Anything that you might spend on your physical place of business to make it suitable for work.
• Inventory : If you’re selling a product, you’ll need goods to keep up with customer demand.
• Employees : This includes payroll, payroll taxes, and health insurance.
• Professional services: Accountants, lawyers, and consultants will all need to be paid
• Supplies : Think office supplies, such as paper and pencils, and operating supplies, like computers and printers.
• Marketing: Business cards, stationery, flyers, and advertising all fall under this category.
• Miscellaneous : This includes licenses, permits, legal fees, signage, technology, and accounting software. Everything else — liability insurance, repairs, maintenance, and dues.

The most difficult part of starting a small business is committing to your vision. It’s easier if you break down the process into small, achievable goals. Here are 10 steps that will get you on your way:

1. Do your research

If you don’t do basic market research before you launch your business, you may be down for the count before you even get started. Ask neighbors, friends, and even your barista if they would be interested in your product or service — and ask how much they’d be willing to pay for it. 

Conduct competitor research, local and global searches, and even offer surveys to consumers to see what the need versus want ratio is. 

2. Write a business plan

A business plan is your roadmap; it helps guide you as you start and grow your company. If you need capital to get started, most investors will want to review a business plan before they commit to any financing. 

To organize your ideas, download and fill out a business plan template . A well-written business plan provides clarity, confirms the math, and helps you establish goals so your business has the best chance of success.

3. Choose a business name

Finding the perfect brand name is a vital step in launching a new business. But hiring a professional naming company doesn’t come cheap — it can cost as much as $100,000 , according to Fast Company. 

If that’s outside your budget, there are countless AI-powered business name generators available online, and Fiverr has entrepreneurs who will help brainstorm business names for three figures or less.

4. Decide on your location

Take a look at the taxes, zoning laws, and regulations in your location. You may find that operating your business in a different location could offer financial advantages. Review the fees, costs, and tax benefits of each state to see which location makes the most sense for your business . A strategic move may put you ahead of the game before you even open the doors.

5. Get your finances in order

Startup costs discourage many would-be entrepreneurs, but the reality is that many successful businesses got started with little more than a vision, discipline, and hard work. However, if you really need cash for that newly opened business bank account, here are four ways of getting that money:

• Self-funding: If you have the means, you may use your own earnings to kickstart your business or see out financial counsel to work it into your budget.
• Outside investors: For a stake in your company, relatives or venture capitalists may be willing to invest in your business.
• Small business loans: If you want to keep full ownership of your business, a small business loan may be the way to go.
• Crowdfunding: If you’re feeling creative and confident, try sites such as Kickstarter or GoFundMe to generate capital.

6. Take care of the legal stuff

Register your business in the state where it was formed — and make sure that you’re set up to pay state income and unemployment tax. Review whether your local municipality requires filing for a license or permit to operate your business. 

To satisfy Uncle Sam, apply for an EIN from the IRS . Confirm that no one else is using your business name by contacting your state filing office or online database. Some business structures require using a doing business as (DBA) name, and you may be required to open a business bank account.

7. Develop a marketing plan

Once you have a terrific name for your company locked down, you’ll want to create an online presence for your business. Be consistent on your social media channels , ideally creating accounts on the channels — meeting them online where they are. 

Develop a website that’s intuitive and filled with all the information your customers need. Your marketing may also include advertising campaigns and public relations.

8. Set up your CRM software

To enhance your marketing efforts and grow your small business, try customer relationship management ( CRM) for Small Business . This will be your solution for storing and managing prospect and customer information such as contact information, accounts, leads, and sales opportunities — all in one single source of truth. 

With Salesforce’s Starter Suite , you can start in minutes and easily manage your marketing, sales, and customer service as your business scales.

9. Launch your product or service

Congratulations: You’ve done all the hard work and you’re ready to introduce your product to the world. Make sure to announce your launch on social media — and consider throwing a media-friendly bash to celebrate.

10. Keep your customers happy

When you use CRM software, you can keep track and personalize support for all your customers. And happy customers are good for business — 80% of them say the experience a company provides is just as important as its products or services .

The United States has more than 33 million small businesses, according to the U.S. Chamber of Commerce , and that number represents 99.9% of all U.S. businesses. And most of those small businesses started the same way — with an entrepreneur and an idea. But it takes more than just a dream to launch a small business.

So, where to start?

It’s time to take some notes. First, start outlining your business plan. If you’re stuck, ask yourself these four questions when developing your plan :

• Goals : What do you need to accomplish to achieve your vision?
• Methods : What are the steps you need to follow to get you there?
• Measurements : How will you determine when each objective has been met?
• Obstacles : What could throw you off course along the way?

Once you’ve written a business plan and are feeling confident, you’re ready to establish:

A name for your business

A great business name should succinctly identify your company and its audience. Brainstorm and get feedback from friends, family, and potential customers. And before you fall in love with your new company name, make sure that an established business in your industry isn’t already using that name.

A location for your business

Choosing where to conduct business is one of the most important decisions you can make for your small business. While staying close to home may be your first instinct, a change of venue may prove to be financially advantageous.

A business structure

For tax purposes and protection of personal assets, you need to choose a business structure that offers the right balance of legal protections and benefits. Common business structures include sole proprietorship, partnership, limited liability company (LLC), corporation, and cooperative.

A legal presence

If you want personal liability protection, legal protection, and tax benefits for your company, you’ll need to register your business with state and local governments.

Federal and state tax ID numbers

Your Employer Identification Number (EIN) works like a personal Social Security number, but for your business. You need an EIN to pay state and federal taxes for your company.

Licenses and permits

Whether your business needs to apply — and pay for — licenses and permits depends on your business activities, location, and government rules. Review regulations from city, state, and federal agencies.

A business bank account

Opening up a bank account exclusively for business use will help keep your personal finances separate, making life easier at tax time. There are several banks that will allow you to open a business checking account with a zero balance, but traditionally banks will require an opening deposit of anywhere from $1,000 to $25,000.

Start-up funds

Even if you open a business checking account with a zero balance, you’re going to want to have some funds to cover basic operating expenses. The SBA offers guidance on obtaining funding for your small business, including loans, grants, and investors.

Starting a new business may feel like a gamble, but business insurance will help you cover your bet. The right insurance policy will help protect you against accidents, natural disasters, and lawsuits.

You should also consider:

Customer relationship management

A CRM platform keeps your customer data organized and provides the foundation to build connected customer experiences (that can be made even better through artificial intelligence). Starting with a suite of sales, service, marketing, and commerce tools is easy.

Invoice and billing software

While it is possible to keep track of your financial records on a traditional paper ledger, modern invoice and billing software makes the process much, much easier.

A graphic designer

A well-designed logo can make or break a business. The Nike “swoosh” was created by a graphic design student — and the $35 Nike initially spent paid for itself many times over.

Many small businesses exist with just a presence on social media, but having a professionally designed website adds legitimacy to your business.

Marketing experts

Like graphic design, marketing expenses are costs that many small business owners initially want to avoid. But strategically investing in a marketing campaign can be a boon for a small business that wants to make noise in a crowded marketplace.

A Human Resources department

Once your business grows to a certain size, it’s time to create a human resources (HR) department — or, at least, to hire an HR professional. This professional can focus on things such as labor law compliance, employee recruitment, employee engagement and development, and compensation and benefits management while you manage your business.

An assistant

For most small businesses starting out, hiring an assistant to perform administrative and clerical duties is something of a luxury. If your budget is tight, consider a virtual assistant .

What are some popular small business ideas?

If you have a unique idea for a small business, great. But some of the best small business ideas build on your strengths and experience. What do you love to do? What lights you up when you are helping the community? Do you have a pull to do something more?

What are the odds that my small business will succeed?

Starting a small business is no guarantee of success. Approximately 80% of small businesses survive their first year, according to the Bureau of Labor Statistics. The survival rate decreases to 50% after five years and 30% after 10 years.

What are some Fortune 500 companies that started small?

Not all big companies started with millions of dollars in venture capital. Some of America’s biggest brand names had far more modest beginnings . Apple famously got started in a Silicon Valley garage, while Mattel was building dollhouse furniture from picture frame scraps in its early days.

What are the most business-friendly states?

Before setting up shop in New York or California, consider launching your small business in North Dakota, Indiana, Arkansas, South Dakota, or North Carolina. These states offer the best conditions to start a business , according to Forbes Advisor.

What can I deduct for my small business at tax time?

(Almost) everyone knows that you can deduct entertainment and travel expenses as a small business owner. But you can also deduct software subscriptions, office furniture, and interest on small business loans, according to NerdWallet .

Taking the leap to start your own small business is just the first step on your entrepreneurial path. But you’re in good company. Nearly half of all U.S. employees are employed by a small business — and more than 80% of those small businesses are solo ventures , according to Forbes Advisor. There’s no better time than the present to start turning your dreams into reality.

Want to grow your new small business? Sign up for a Salesforce free trial .

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Brett Grossfeld is a Product Marketing Manager supporting Salesforce's CRM, data, and AI tools. He's written for multiple websites across various industries and interests, including tech, wellness, and modern customer experiences.

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Home Get Business Support Start a Business

From entrepreneurs to small businesses, our team of Small Business Advisors connect clients with information they need from state and local resources.

If you have big dreams, you've come to the right place..

Working in partnership with the North Carolina Department of Commerce, Small Business Advisors offers free one-on-one consultations to anyone starting a new business in North Carolina.

Our team can answer your questions and help you navigate topics like regulatory requirements, licensing stipulations, small business training and more. The guidance provided by Small Business Advisors is not intended to replace formal legal or accounting advice.

Business Planning Checklist

Step 1: create a business plan.

Turn your idea into a written, viable plan of action to help you obtain loans and be successful.

Step 2: Decide on a Business Structure

Be sure to carefully consider the management, structural, and tax implications of your decision.

Step 3: Get License Requirements

The state of NC doesn’t issue a single business license, but you may be subject to other requirements.

Step 4: Gather Tax Information

Taxation for small businesses depends on the size and structure of your business.  

Step 5: Identify Source of Financing

Discover financial resources available for small business owners in N orth Carolina .  

Step 6: Learn Employer Responsibilities

Learn how to register as an employer, for unemployment insurance , and for worker’s compensation insurance.  

Small Business Resources

Business Forms

The forms needed to start or register your business in North Carolina are available here.

Sales & Marketing Resources

The ability to sell or promote your products and services is critical to your success. By expanding your markets, diversifying your products and tapping into...

Financing Resources

Finding sources of capital for your business start-up can be confusing and difficult. Here you'll find basic information on the various resources available for individuals...

Federal Programs

Programs offered by the government to help you get your business start and grow your small business.

Contact EDPNC Small Business Advisors

How can we help you, how do i start a business in north carolina.

The EDPNC Small Business Advisors are the go-to resource for starting a business in North Carolina. Using the Business Planning Checklist, you can start a business easily.

Have questions or need help getting started? Connect with one of our Small Business Advisors for a customized consultation, detailed state license information and contacts for the city, county and federal governments appropriate to your business needs. The team in available Monday through Friday between 8:30 am to 4:00 pm at 800.228.8443

Contact Small Business Advisors

How do i acquire a business license or permit.

North Carolina no longer has a state-issued generic business license that will ensure compliance with all requirements. Some businesses may be subject to several state requirements while others may not be subject to any. There are nearly 950 regulatory, state-issued and occupational licenses and permits, 319 occupational licenses, 498 business licenses, and 80 business/occupational licenses. In addition, a local license may be required for your business.

Have questions or need help getting started? Connect with one of our small business advisors for a customized consultation, detailed state license information and contacts for the city, county and federal governments appropriate to your business needs. The team in available Monday through Friday between 8:30 am to 4:00 pm at 800.228.8443

What else should I consider before starting a business in North Carolina?

Here is what you should consider when starting your business:  

• Consult with an accountant for bookkeeping and tax purposes.  
• Consider obtaining insurance.   
• Review contracts with legal counsel.  
• Review applicable regulations (OSHA, EPA, Labor, etc.).  
• Register trademarks or patents.  
• Develop policy and employee handbook.  
• Join trade associations and chambers of commerce.  

Have questions or need help getting started? Connect with one of our small business advisors for a customized consultation, detailed state license information and contacts for the city, county and federal governments appropriate to your business needs. The team is  available Monday – Friday between 8:30 am to 4:00 pm at 800.228.8443.  

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