place in business plan

How to write the location section of your business plan?

By now, you must already be in the process of writing your business plan. Each subsection or section included in this document is important in its own way and serves a specific purpose.

The location subsection is one such and is likely to be of great interest to investors and other stakeholders. It helps them understand whether or not your business could be a success based on the characteristics of the area.

This subsection is part of the overall “company presentation” section and is usually grouped with the presentation of the structure and ownership of the business and the management team involved in operations.

But, how do you ensure that the location section is well-written and provides readers the detail they want to see?

Let’s take a look at this in more detail!

In this guide:

What is the objective of the location section of your business plan?

How long should the location section of your business plan be, what information do i include in the location section of my business plan, example of the location presentation in a business plan, what tools should i use to write my business plan.

The main reason why stakeholders might be interested in this information is to understand the serviceable areas that your business targets. In this section, our main emphasis will be on answering the “why here” question that may arise in the minds of the readers.

The area in which a business is located has a significant impact on both its profitability and long-term performance. Businesses are more likely to thrive in areas with easy access to higher-skilled labor and quality infrastructure (i.e. transportation). 

The location section of your business plan helps financiers understand the commercial potential and the risks of investing in your business.

Whilst digital transformation has allowed people to “come together” regardless of where they are located, some investors still prefer to consider the effects of agglomeration. 

Agglomeration refers to the geographical proximity between businesses and/or people and what effects it has on the operations and profitability of the business. 

Location is the key for any business. Let’s talk about how location matters for different types of businesses.

High street shops/businesses

Location is the primary driver of success for these types of businesses because they rely on the number of customers that walk in or are attracted by the storefront. If you operate a high street shop, explaining the attractiveness of the area is critical for your business plan.

For instance, your business might be located near a famous landmark (more so in country towns). Besides this, you should understand the risks associated with the location to the reader of the plan. These risks may include the ability to access the store, limited car parking, access to public transport, etc.

Industrial businesses

Following are some of the business types that may be categorized as industrial businesses. Needless to say that the location section of the business plan is essential for these types of businesses. 

Manufacturing facilities:

While writing a business plan for an industrial business, the location section should include details regarding the production capacity. How are raw materials obtained, how are finished goods manufactured and then shipped to the selling points.

Access to the workforce, energy, water, and environmental aspects should all be considered too. The environmental aspects include waste management, remediation in case of soil contamination, etc.

The logistics:

In the case of logistical businesses, the location section should cover the ease of access to the point of sales and the details regarding any warehouses or logistic hubs involved.

Hospitality businesses

If your business plan discusses food places, the location section should mention the cultures and preferences of locals. This will help the investor or lender determine whether or not your business model suits customer needs.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

When it comes to the location section of your business plan, you should aim to include as much information as possible, as long as it’s relevant. Put yourself in the shoes of the reader. You don’t want to be asking questions that could be easily answered by the document itself.

Be sure to answer:

• Why is the business located here? 
• How secure is the future of the location? Does the lease expire soon?
• Is the workplace safe and secure for employees?
• Is there an abundance of quality staff in the area?
• Are the premises easily accessible (public transport, parking, etc.)?
• How attractive is the catchment area? How much foot traffic is expected?

All these questions are crucial to the success of the business.

A general rule of thumb is that you must cover as much information as possible in 2-3 paragraphs per location.

The size will also depend on the structure of your business:

• A single location business (hairdressing salon or off-licence for example) need to be quite exhaustive as the business is 100% reliant on that location
• A chain with dozens or hundreds of implantations can afford to present locations at a higher level as there is some level of diversification in the overall premises portfolio
• An integrated business with both manufacturing facilities and sale points will probably need to write a slightly longer presentation in order to cover all aspects

To give you a better idea about the information to be added to the location section of your business plan, we’ve categorized it into four categories:

Business location

In this section, you need to state the full location and the exact address of the business. If possible, ensure that your business is listed on Google Maps so that readers can view the location easily. Mention all of the locations if you have more than one branch.

Also, if the business plan includes any plans for future expansion, the details of future location should also be mentioned here. 

In some cases, readers might be interested in the structure of the building in which the business is located. In that case, make sure to explain the general design of the building. This may include mentioning what’s on the first floor, second floor, etc.  

You might also want to provide a graphical representation i.e., a map that shows where your business is located and other brands or competitors in the area, a floor plan showing the layout of the premises.

Serviceable area

Another good practice is to include an explanation of your business’s serviceable area in your business plan. This is defined as the geographical region or territory where your business can effectively provide its products or services. 

You should also focus on why you chose that area in particular and what was the rationale behind it. Factors which may be discussed include convenience and easy access to suppliers.

One of the most attractive features of any location is vast parking availability and accessibility. You can use this opportunity to give a positive impression to the stakeholders regarding your venue.

You can also explain how customers, suppliers, and employees will access your business, including parking options. Writing about serviceable areas also helps readers form a picture of the type of customers who could benefit from your business (families on holidays, business executives, etc.).

Lease terms

The location section of the business plan should provide basic information about the terms of any lease you have signed for the property, such as length, rental rate, and any special clauses.

This is an essential piece of information that can have a significant influence in determining whether your business plan will be successful or not, financially.

Access to facilities

Another piece of information that you may add to the location section of your business plan is the ease of access to common facilities. 

Customers usually prefer to visit areas with significant facilities such as transportation, local infrastructure, and any other amenities that your business might offer customers.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

Below is an example of how the location section of your business plan might look like. As you can see, it coincides with the structure and ownership subsection and the management team.

There is a graphical representation of where the business is located, its exact address, information about what the venue includes internally and how close or far it is from infrastructure.

This example was taken from one of our business plan templates .

In this section, we will review three solutions for creating a business plan for your business: using Word and Excel, hiring a consultant to write the business plan, and utilizing an online business plan software.

Create your business plan using Word or Excel

This is the old-fashioned way of creating a business plan (1990s style) and using Word or Excel has both pros and cons.

On the one hand, using either of these two programs is cheap and they are widely available. 

However, creating an error-free financial forecast with Excel is only possible if you have expertise in accounting and financial modeling.

Because of that investors and lenders might not trust the accuracy of your forecast unless you have a degree in finance or accounting.

Also, writing a business plan using Word means starting from scratch and formatting the document yourself once written - a process that can be quite tedious - especially when the numbers change and you need to manually update all the tables and text.

Ultimately, it's up to the business owner to decide which program is right for them and whether they have the expertise or resources needed to make Excel work. 

Hire a consultant to write your business plan

Outsourcing your business plan to a consultant can be a viable option, but it also presents certain drawbacks. 

On the plus side, consultants are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring consultants is expensive: budget at least £1.5k ($2.0k) for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the first meetings with lenders).

For these reasons, outsourcing the plan to a consultant or accountant should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their own business plan using an online software.

Use an online business plan software for your business plan

Another alternative is to use online business plan software .

There are several advantages to using specialized software:

• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can be inspired by already written business plan templates
• You can easily make your financial forecast by letting the software take care of the financial calculations for you without errors
• You get a professional document, formatted and ready to be sent to your bank
• The software will enable you to easily track your actual financial performance against your forecast and update your forecast as time goes by

If you're interested in using this type of solution, you can try our software for free by signing up here .

The location section of a business plan is very important for both startups and established businesses alike. Giving an attractive outlook of your business’s location, can help you find a business partner or secure capital. 

This information mainly includes details about the location of the business, the structure of the building, and the facilities that are available for the workers and customers. This information can help readers decide whether they want to be a part of your business or not. 

Also on The Business Plan Shop

• 7 tips for writing an effective business plan
• How to do a market analysis for a business plan
• How to write the structure and ownership section of your business plan
• How to write the products and services section of your business plan
• How to present the management team in your business plan

Know someone who needs to add the location to their business plan? Share this guide with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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What Is a Business Plan?

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

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

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

Key Takeaways

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

Investopedia / Ryan Oakley

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

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

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

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

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

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

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

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

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

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

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

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

2 Types of Business Plans

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

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

Why Do Business Plans Fail?

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

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

What Does a Lean Startup Business Plan Include?

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

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

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

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

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

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Business plans might seem like an old-school stiff-collared practice, but they deserve a place in the startup realm, too. It’s probably not going to be the frame-worthy document you hang in the office—yet, it may one day be deserving of the privilege.

Whether you’re looking to win the heart of an angel investor or convince a bank to lend you money, you’ll need a business plan. And not just any ol’ notes and scribble on the back of a pizza box or napkin—you’ll need a professional, standardized report.

Bah. Sounds like homework, right?

Yes. Yes, it does.

However, just like bookkeeping, loan applications, and 404 redirects, business plans are an essential step in cementing your business foundation.

Don’t worry. We’ll show you how to write a business plan without boring you to tears. We’ve jam-packed this article with all the business plan examples, templates, and tips you need to take your non-existent proposal from concept to completion.

Table of Contents

What Is a Business Plan?

Tips to Make Your Small Business Plan Ironclad

How to Write a Business Plan in 6 Steps

Startup Business Plan Template

Business Plan Examples

Work on Making Your Business Plan

How to Write a Business Plan FAQs

What is a business plan why do you desperately need one.

A business plan is a roadmap that outlines:

• Who your business is, what it does, and who it serves
• Where your business is now
• Where you want it to go
• How you’re going to make it happen
• What might stop you from taking your business from Point A to Point B
• How you’ll overcome the predicted obstacles

While it’s not required when starting a business, having a business plan is helpful for a few reasons:

• Secure a Bank Loan: Before approving you for a business loan, banks will want to see that your business is legitimate and can repay the loan. They want to know how you’re going to use the loan and how you’ll make monthly payments on your debt. Lenders want to see a sound business strategy that doesn’t end in loan default.
• Win Over Investors: Like lenders, investors want to know they’re going to make a return on their investment. They need to see your business plan to have the confidence to hand you money.
• Stay Focused: It’s easy to get lost chasing the next big thing. Your business plan keeps you on track and focused on the big picture. Your business plan can prevent you from wasting time and resources on something that isn’t aligned with your business goals.

Beyond the reasoning, let’s look at what the data says:

• Simply writing a business plan can boost your average annual growth by 30%
• Entrepreneurs who create a formal business plan are 16% more likely to succeed than those who don’t
• A study looking at 65 fast-growth companies found that 71% had small business plans
• The process and output of creating a business plan have shown to improve business performance

Convinced yet? If those numbers and reasons don’t have you scrambling for pen and paper, who knows what will.

Don’t Skip: Business Startup Costs Checklist

Before we get into the nitty-gritty steps of how to write a business plan, let’s look at some high-level tips to get you started in the right direction:

Be Professional and Legit

You might be tempted to get cutesy or revolutionary with your business plan—resist the urge. While you should let your brand and creativity shine with everything you produce, business plans fall more into the realm of professional documents.

Think of your business plan the same way as your terms and conditions, employee contracts, or financial statements. You want your plan to be as uniform as possible so investors, lenders, partners, and prospective employees can find the information they need to make important decisions.

If you want to create a fun summary business plan for internal consumption, then, by all means, go right ahead. However, for the purpose of writing this external-facing document, keep it legit.

Know Your Audience

Your official business plan document is for lenders, investors, partners, and big-time prospective employees. Keep these names and faces in your mind as you draft your plan.

Think about what they might be interested in seeing, what questions they’ll ask, and what might convince (or scare) them. Cut the jargon and tailor your language so these individuals can understand.

Remember, these are busy people. They’re likely looking at hundreds of applicants and startup investments every month. Keep your business plan succinct and to the point. Include the most pertinent information and omit the sections that won’t impact their decision-making.

Invest Time Researching

You might not have answers to all the sections you should include in your business plan. Don’t skip over these!

Your audience will want:

• Detailed information about your customers
• Numbers and solid math to back up your financial claims and estimates
• Deep insights about your competitors and potential threats
• Data to support market opportunities and strategy

Your answers can’t be hypothetical or opinionated. You need research to back up your claims. If you don’t have that data yet, then invest time and money in collecting it. That information isn’t just critical for your business plan—it’s essential for owning, operating, and growing your company.

Stay Realistic

Your business may be ambitious, but reign in the enthusiasm just a teeny-tiny bit. The last thing you want to do is have an angel investor call BS and say “I’m out” before even giving you a chance.

The folks looking at your business and evaluating your plan have been around the block—they know a thing or two about fact and fiction. Your plan should be a blueprint for success. It should be the step-by-step roadmap for how you’re going from Point A to Point B.

How to Write a Business Plan—6 Essential Elements

Not every business plan looks the same, but most share a few common elements. Here’s what they typically include:

• Executive Summary
• Business Overview
• Products and Services
• Market Analysis
• Competitive Analysis
• Financial Strategy

Below, we’ll break down each of these sections in more detail.

1. Executive Summary

While your executive summary is the first page of your business plan, it’s the section you’ll write last. That’s because it summarizes your entire business plan into a succinct one-pager.

Begin with an executive summary that introduces the reader to your business and gives them an overview of what’s inside the business plan.

Your executive summary highlights key points of your plan. Consider this your elevator pitch. You want to put all your juiciest strengths and opportunities strategically in this section.

2. Business Overview

In this section, you can dive deeper into the elements of your business, including answering:

• What’s your business structure? Sole proprietorship, LLC, corporation, etc.
• Where is it located?
• Who owns the business? Does it have employees?
• What problem does it solve, and how?
• What’s your mission statement? Your mission statement briefly describes why you are in business. To write a proper mission statement, brainstorm your business’s core values and who you serve.

Don’t overlook your mission statement. This powerful sentence or paragraph could be the inspiration that drives an investor to take an interest in your business. Here are a few examples of powerful mission statements that just might give you the goosebumps:

• Patagonia: Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
• Tesla: To accelerate the world’s transition to sustainable energy.
• InvisionApp : Question Assumptions. Think Deeply. Iterate as a Lifestyle. Details, Details. Design is Everywhere. Integrity.
• TED : Spread ideas.
• Warby Parker : To offer designer eyewear at a revolutionary price while leading the way for socially conscious businesses.

3. Products and Services

As the owner, you know your business and the industry inside and out. However, whoever’s reading your document might not. You’re going to need to break down your products and services in minute detail.

For example, if you own a SaaS business, you’re going to need to explain how this business model works and what you’re selling.

You’ll need to include:

• What services you sell: Describe the services you provide and how these will help your target audience.
• What products you sell: Describe your products (and types if applicable) and how they will solve a need for your target and provide value.
• How much you charge: If you’re selling services, will you charge hourly, per project, retainer, or a mixture of all of these? If you’re selling products, what are the price ranges?

4. Market Analysis

Your market analysis essentially explains how your products and services address customer concerns and pain points. This section will include research and data on the state and direction of your industry and target market.

This research should reveal lucrative opportunities and how your business is uniquely positioned to seize the advantage. You’ll also want to touch on your marketing strategy and how it will (or does) work for your audience.

Include a detailed analysis of your target customers. This describes the people you serve and sell your product to. Be careful not to go too broad here—you don’t want to fall into the common entrepreneurial trap of trying to sell to everyone and thereby not differentiating yourself enough to survive the competition.

The market analysis section will include your unique value proposition. Your unique value proposition (UVP) is the thing that makes you stand out from your competitors. This is your key to success.

If you don’t have a UVP, you don’t have a way to take on competitors who are already in this space. Here’s an example of an ecommerce internet business plan outlining their competitive edge:

FireStarters’ competitive advantage is offering product lines that make a statement but won’t leave you broke. The major brands are expensive and not distinctive enough to satisfy the changing taste of our target customers. FireStarters offers products that are just ahead of the curve and so affordable that our customers will return to the website often to check out what’s new.

5. Competitive Analysis

Your competitive analysis examines the strengths and weaknesses of competing businesses in your market or industry. This will include direct and indirect competitors. It can also include threats and opportunities, like economic concerns or legal restraints.

The best way to sum up this section is with a classic SWOT analysis. This will explain your company’s position in relation to your competitors.

6. Financial Strategy

Your financial strategy will sum up your revenue, expenses, profit (or loss), and financial plan for the future. It’ll explain how you make money, where your cash flow goes, and how you’ll become profitable or stay profitable.

This is one of the most important sections for lenders and investors. Have you ever watched Shark Tank? They always ask about the company’s financial situation. How has it performed in the past? What’s the ongoing outlook moving forward? How does the business plan to make it happen?

Answer all of these questions in your financial strategy so that your audience doesn’t have to ask. Go ahead and include forecasts and graphs in your plan, too:

• Balance sheet: This includes your assets, liabilities, and equity.
• Profit & Loss (P&L) statement: This details your income and expenses over a given period.
• Cash flow statement: Similar to the P&L, this one will show all cash flowing into and out of the business each month.

It takes cash to change the world—lenders and investors get it. If you’re short on funding, explain how much money you’ll need and how you’ll use the capital. Where are you looking for financing? Are you looking to take out a business loan, or would you rather trade equity for capital instead?

Read More: 16 Financial Concepts Every Entrepreneur Needs to Know

Startup Business Plan Template (Copy/Paste Outline)

Ready to write your own business plan? Copy/paste the startup business plan template below and fill in the blanks.

Executive Summary Remember, do this last. Summarize who you are and your business plan in one page.

Business Overview Describe your business. What’s it do? Who owns it? How’s it structured? What’s the mission statement?

Products and Services Detail the products and services you offer. How do they work? What do you charge?

Market Analysis Write about the state of the market and opportunities. Use date. Describe your customers. Include your UVP.

Competitive Analysis Outline the competitors in your market and industry. Include threats and opportunities. Add a SWOT analysis of your business.

Financial Strategy Sum up your revenue, expenses, profit (or loss), and financial plan for the future. If you’re applying for a loan, include how you’ll use the funding to progress the business.

5 Frame-Worthy Business Plan Examples

Want to explore other templates and examples? We got you covered. Check out these 5 business plan examples you can use as inspiration when writing your plan:

• SBA Wooden Grain Toy Company
• SBA We Can Do It Consulting
• OrcaSmart Business Plan Sample
• Plum Business Plan Template
• PandaDoc Free Business Plan Templates

Get to Work on Making Your Business Plan

If you find you’re getting stuck on perfecting your document, opt for a simple one-page business plan —and then get to work. You can always polish up your official plan later as you learn more about your business and the industry.

Remember, business plans are not a requirement for starting a business—they’re only truly essential if a bank or investor is asking for it.

Ask others to review your business plan. Get feedback from other startups and successful business owners. They’ll likely be able to see holes in your planning or undetected opportunities—just make sure these individuals aren’t your competitors (or potential competitors).

Your business plan isn’t a one-and-done report—it’s a living, breathing document. You’ll make changes to it as you grow and evolve. When the market or your customers change, your plan will need to change to adapt.

That means when you’re finished with this exercise, it’s not time to print your plan out and stuff it in a file cabinet somewhere. No, it should sit on your desk as a day-to-day reference. Use it (and update it) as you make decisions about your product, customers, and financial plan.

Review your business plan frequently, update it routinely, and follow the path you’ve developed to the future you’re building.

Keep Learning: New Product Development Process in 8 Easy Steps

What financial information should be included in a business plan?

Be as detailed as you can without assuming too much. For example, include your expected revenue, expenses, profit, and growth for the future.

What are some common mistakes to avoid when writing a business plan?

The most common mistake is turning your business plan into a textbook. A business plan is an internal guide and an external pitching tool. Cut the fat and only include the most relevant information to start and run your business.

Who should review my business plan before I submit it?

Co-founders, investors, or a board of advisors. Otherwise, reach out to a trusted mentor, your local chamber of commerce, or someone you know that runs a business.

Ready to Write Your Business Plan?

Don’t let creating a business plan hold you back from starting your business. Writing documents might not be your thing—that doesn’t mean your business is a bad idea.

Let us help you get started.

Join our free training to learn how to start an online side hustle in 30 days or less. We’ll provide you with a proven roadmap for how to find, validate, and pursue a profitable business idea (even if you have zero entrepreneurial experience).

Stuck on the ideas part? No problem. When you attend the masterclass, we’ll send you a free ebook with 100 of the hottest side hustle trends right now. It’s chock full of brilliant business ideas to get you up and running in the right direction.

About Jesse Sumrak

Jesse Sumrak is a writing zealot focused on creating killer content. He’s spent almost a decade writing about startup, marketing, and entrepreneurship topics, having built and sold his own post-apocalyptic fitness bootstrapped business. A writer by day and a peak bagger by night (and early early morning), you can usually find Jesse preparing for the apocalypse on a precipitous peak somewhere in the Rocky Mountains of Colorado.

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How to Choose a Business Location: 8 Factors to Consider

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Choosing a business location is not something that can be done on a whim—it's a crucial step in starting a business. First things first, the business location you choose will depend on the type of business you operate. Business parks, shopping malls, strip malls, professional buildings, and others are all designed to meet the specific needs of various businesses. If you’re expanding from online-only to online and brick-and-mortar, for example, your needs will be much different than if you’re an accountant looking to grow your firm and bring in new clients.

A business location strategy takes planning and research and a willingness to thoroughly vet all of your options. With these helpful tips, you can identify the best place to locate your expanding business.

1. Decide on a business location type

Here are five common types of business locations, but more creative options, like co-working spaces, are popping up all the time. Be on alert for these and other location types that would meet your specific needs.

Home-based business - If you work from home but need more space, you might consider moving to a new home or adding on to your existing home to create the office space you need.

Retail business - Don’t limit yourself to downtown storefronts and strip malls. You can also find retail space in airports, free-standing buildings, and special event kiosks.

Mobile business - It used to be that the only businesses that moved around were circuses and festival vendors. But today with mobile card readers, your restaurant can add a roaming food truck location and your used book store can open a new pop-up shop near the beach.

Commercial business space - Commercial business spaces offer flexibility for even more growth down the road, but are typically best for businesses that don’t rely on heavy consumer traffic.

Industrial site - If you operate a manufacturing or distribution business, you’ll have special needs and will likely have limited choices when it comes to opening a new location. Industrial sites are needed for companies that require large amounts of warehousing space, for companies that need access to major transportation routes, or for companies that may produce pollutants as part of the manufacturing process.

In almost every case, where you can locate your business will be dictated by local zoning ordinances in your community. Don’t sign on the dotted line until you’re sure it’s legal for you to operate your business in your desired location.

How much do you need?

with Fundera by NerdWallet

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

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

2. Make sure the business location is within your budget

Of course, one of your major priorities will be finding a location that fits within your company’s budget. However, that’s not all you need to examine when it comes to money. There often other location-specific costs to consider beyond the purchase price or monthly rent. Almost every location has different hidden costs that you need to account for: taxes, renovations, utility upgrades, minimum wage requirements, and economic incentives. Even mobile businesses need to consider the cost of permits and vehicle licensing when choosing a new business location.

Considering all the above will help you make a well-educated choice for your next business location. Before committing to anything, be sure to speak with other business owners in the area to make sure they’re happy with the location. Although you can never predict if a new location will be successful, you can do as much research as possible beforehand to ensure it is the best available fit for your growing business.

3. Consider your brand

Keep your brand in mind when developing your business location strategy and looking at options. For instance, you probably wouldn’t want to plant your new office supply location right in the middle of a high-end, boutique shopping district. Likewise, an upscale restaurant might not fare so well in the middle of a college town or rural area, where customers are used to spending less money on cuisine.

4. Think about vendors and suppliers

You'll need to secure a location that makes it easy for you to connect with your vendors and suppliers; otherwise, you might experience significant delays or run into frequent issues with inventory levels. When considering your options, ask yourself which location site makes it easier and cheaper for you to get the raw goods you need to operate.

5. Find a safe location

Operating a business where you feel safe and protected should not be underestimated. And besides your own safety and the safety of your employees, also consider your business's safety as well. This is especially important for businesses with inventory that may be at a higher risk for burglary and theft or if you'll frequently be running your business alone at night.

6. Go where there is demand

Ideally, you want to secure a business location that’s not saturated by your competition. Look for areas where your product or service is in high demand or where your competition is fairly low. If at all possible, you’ll want to expand to a location where the other businesses on the block are complementary, to ensure your business fits into the local market.

7. Think about recruiting efforts

If you'll be hiring employees and managers for your business, you'll want to make sure you open in an area where there's good access to public transportation or where potential employees will be attracted. Finding high-quality employees is crucial to your business success, so plan your location around where employees want to work.

8. Look for sites with parking options

No matter how attractive your business is, sufficient parking should be a key consideration. Does your business location have a convenient parking lot, or will your customers need to pay for parking—and will they be willing to? If paid parking is your only option, you'll also want to consider if your business will offer validation. And don't forget about your employees here—they'll also need somewhere to park.

The bottom line

There are several business location factors to consider, from pricing and availability to parking and market appeal. Choosing the best location for your business is crucial to your overall success, so it's important to do the necessary research before committing to a location. Be sure to think about your location not only as a business owner, but also from the point of view of an employee and potential customer. A well-informed business location strategy will ensure you find the best place to set up shop and open your doors for business.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

How to Write a Business Plan in 10 Steps (With FREE Template)

Discover how to write a business plan in just 10 steps! Access our comprehensive PowerPoint and PDF templates to streamline your process. Ready to write your business plan? Start here.

StrategyPunk

Have you ever wondered how the likes of SpaceX or Beyond Meat charted their course to industry dominance?

Spoiler alert: A meticulously crafted business plan was at the heart of their strategy.

If you're gearing up to launch your venture or scale it to new heights, a business plan isn't just a good-to-have; it's your roadmap to success.

I'd like you to take a look at this guide, peppered with real-world examples and actionable insights, as we break down the art of creating a business plan into nine digestible steps.

Ready to set the stage for your business triumph? Let's dive in!

1. The Elevator Pitch - Draft an Executive Summary

Imagine stepping into an elevator with a potential investor, and you have moments to encapsulate your business's essence. This is the challenge of the elevator pitch, and at the heart of it lies the Executive Summary. Often considered the gateway to your business plan, the Executive Summary is a snapshot, providing a tantalizing glimpse into the world you're building.

First Impressions Matter . The Executive Summary is not just an introduction; it's an invitation. It should succinctly convey your business's core concept, unique selling proposition, and growth potential. While it's positioned at the beginning of your business plan, it's often recommended to pen it last, ensuring it distills the essence of the detailed sections that follow.

The Essence of Brevity . An impactful Executive Summary is both concise and compelling. It should encapsulate the business's mission, vision, product or service offerings, target market, and a brief overview of financial projections. Think of it as a trailer for a blockbuster movie; it should entice the reader to delve deeper into the subsequent sections of the business plan.

In the grand tapestry of your business plan, the Executive Summary is the golden thread that weaves everything together. It's the first impression and, often, the lasting one. So, as you stand poised at the threshold of your entrepreneurial journey, please make sure that your Executive Summary is an overview and an overture, setting the stage for the following symphony of success.

Think of this as the trailer to your business's blockbuster movie. It's a snapshot, offering a glimpse into what your business is all about. Highlight your business's essence, vision, and what sets you apart. Remember, this is your first impression if you're pitching to investors. Make it count!

2. The Heartbeat - Write a Company Description

At the core of every thriving enterprise lies its essence, its heartbeat - the Company Description. This section is not just a narrative; it's the soulful story of your business, painting a vivid picture of who you are, what you stand for, and the journey you envision. It's the foundation upon which the rest of your business plan is built, offering readers a clear lens into your company's ethos and aspirations.

Diving Deep into Identity . A compelling Company Description goes beyond the surface. It delves into the very DNA of your business, encapsulating its mission, vision, and core values. It should articulate the problems you aim to solve, the solutions you offer, and the unique value proposition that sets you apart in the marketplace. This section is your opportunity to showcase the passion, purpose, and potential that drive your venture.

Crafting a Compelling Canvas . Think of your Company Description as a canvas, where each brushstroke adds depth and dimension. It should encompass the structure of your business, its history, and its future aspirations. Whether you're a budding startup or an established enterprise, this section should resonate with authenticity, reflecting the heart and soul of your brand.

In the intricate tapestry of your business plan, the Company Description is the vibrant thread that brings your vision to life. The narrative informs and inspires, drawing readers into the world you're creating. As you embark on this entrepreneurial odyssey, please ensure that your Company Description is not just an account but an anthem, echoing the passion and promise of your venture.

Who are you, and what's your mission? This section is your chance to introduce your business to the world. Dive into your business's ethos, unique selling points, and objectives. Think of brands like Patagonia and their commitment to sustainability; that's the passion and clarity you want to convey.

3. The Landscape - Perform a Market Analysis

Understanding your terrain is paramount in the vast expanse of the business world. The Market Analysis serves as your compass, guiding you through the intricate landscape of your industry, illuminating opportunities, and highlighting potential pitfalls. It's not merely a section in your business plan; it's the lens through which you view the world, ensuring that your venture is viable and valuable in the marketplace.

Deciphering the Dynamics . A robust Market Analysis dives deep into the currents of your industry. It assesses your target market's size and growth potential, identifies key players and competitors, and decodes consumer behaviors and preferences. This section is your chance to showcase your understanding, showing that you know the market trends and are adept at leveraging them to your advantage.

Crafting a Strategic Stance . With the insights gained from your Market Analysis, you can carve out a distinct position in the industry. Whether identifying an underserved niche, understanding the pricing strategies that resonate with your audience, or pinpointing the channels that offer maximum visibility, Market Analysis provides the intelligence to make informed decisions. It's the foundation upon which your strategies are built, ensuring that your business moves purposefully and precisely.

In the grand scheme of your business journey, Market Analysis is your roadmap. It offers clarity amidst complexity, ensuring that every step you take is grounded in research and resonates with relevance. As you chart your course in the business world, let your Market Analysis be the beacon that guides you, illuminating the path to success and sustainability.

Would you set sail without a compass? You'll need to understand your market. I'd appreciate it if you could delve into current market trends, identify competitors, and understand potential customers. This section is about showing that you've done your homework and are ready to navigate the business waters precisely.

4. The Dream Team - Outline the Management and Organization

In the intricate dance of business, while strategy and vision set the rhythm, the people truly make the magic happen. The Management and Organization section of your business plan is where you introduce the maestros behind the curtain, the individuals steering the ship through both calm and stormy seas. This isn't just about listing names and titles; it's about showcasing the collective expertise and passion that propels your venture forward.

The Pillars of Leadership . Every successful venture stands tall on the shoulders of its leaders. In this section, delve into your key team members' backgrounds, experiences, and unique strengths. Highlight their past achievements, industry expertise, and the specific roles they'll play in driving your business's growth. Whether it's the visionary CEO with a track record of successful startups or the tech genius who's revolutionized processes in their previous roles, this is your chance to spotlight the human capital that sets your business apart.

Structuring for Success . In addition to the individuals, it's essential to outline the organizational structure to help your operations. Will you lean towards a flat hierarchy, promoting open communication and collaboration? Or may a more traditional, tiered system better suit your industry and goals? Accompanied by an organizational chart, this section should clarify roles, responsibilities, and reporting lines, ensuring that current and potential stakeholders understand how decisions are made and tasks are executed.

In the grand tapestry of your business narrative, the Management and Organization section is where you weave in the threads of leadership and structure. It assures stakeholders that not only do you have a compelling vision, but you also have the right team and organizational framework in place to turn that vision into a vibrant reality. Remember, businesses thrive not just on strategies but on the people who bring them to life.

Behind every significant venture is a team of dedicated individuals. Highlight your business's key players, roles, and expertise. Whether you're a solo entrepreneur or have a diverse team, showcase the brains behind the operation.

5. The Offer - List Your Products and Services

In the bustling marketplace of ideas and innovations, what truly sets a business apart is its unique offering to the world. The Products and Services section of your business plan is your stage, where you unveil the stars of your show. It's not just about listing items or services; it's about painting a vivid picture of the solutions you provide, the needs you address, and the value you deliver.

The Spotlight on Solutions . You can start by diving deep into the core of your offerings. What problems are they designed to solve? How do they enhance your customers' lives or fill a market gap? Whether it's groundbreaking software that streamlines workflows or a handcrafted product that adds a touch of luxury to everyday life, this is your chance to showcase the benefits and features that make your offerings stand out.

Diversity in Delivery . In today's dynamic business landscape, versatility is vital. Highlight the range and variety of your products and services. Provide a clear breakdown if you offer multiple product lines or varied service tiers. This demonstrates the breadth of your offerings and caters to a diverse clientele with various needs and budgets.

Crafting the Products and Services section is akin to curating a gallery. Each product or service is a masterpiece, reflecting your business's ethos, passion, and commitment to excellence. It invites potential stakeholders and customers to experience the value you bring. In this section, you're not just listing items; you're telling a story of innovation, dedication, and the relentless pursuit of delivering unparalleled value.

What's on your offering menu? Detail the products or services you're bringing to the table. Whether you're launching a groundbreaking tech product or a new line of vegan snacks, ensure your audience understands your value.

6. The Audience - Perform Customer Segmentation

In the vast arena of business, knowing your audience is the compass that guides every decision. Customer segmentation is not just a section in a business plan; it's the lens through which you view your market, allowing you to tailor your offerings and strategies to resonate with the right crowd. It's about understanding the myriad faces in public and crafting a message that speaks directly to each one.

The Mosaic of Markets . Imagine a tapestry, each thread representing a different segment of your audience. Some lines represent age groups, others geographical locations, and yet others, specific behaviors or interests. By weaving these threads together, you get a vivid picture of your customers, their desires, and how they interact with the world. Whether it's the tech-savvy millennials, the eco-conscious urbanites, or the luxury-seeking retirees, each segment has unique characteristics and needs.

Strategies Tailored to Tastes . With a clear understanding of your customer segments, you can craft strategies that resonate. It's like curating a playlist for different moods and occasions. Your marketing campaigns, product features, and customer service protocols can be fine-tuned to appeal to each segment. This personalized approach enhances customer experience and optimizes resource allocation, ensuring your efforts and investments are channeled where they matter most.

Diving into customer segmentation is akin to being a maestro, understanding each instrument's unique notes and rhythms, and orchestrating a symphony that captivates the audience. It's a dance of data and intuition, where insights drive innovation, ensuring that your business reaches its audience and resonates, engages, and builds lasting relationships.

Only some people are your customers, and that's okay. Could you define who you're targeting? Are you catering to the tech-savvy millennials or the eco-conscious Gen Z? Pinpointing your audience ensures your marketing efforts hit the bullseye.

7. The Megaphone - Define a Marketing Plan

In the bustling marketplace of ideas and products, standing out is both an art and a science. A marketing plan isn't just about shouting the loudest; it's about ensuring your voice carries the right message to the right ears at the right time. It's the megaphone that amplifies your brand's story, values, and offerings, ensuring they echo in the hearts and minds of your audience.

The Symphony of Strategy . Think of a marketing plan as a musical score, where every note, every pause, and every crescendo is meticulously crafted. It begins with understanding your audience, their desires, and their pain points. Then, it's about choosing the suitable instruments - social media campaigns, influencer partnerships, or traditional advertising - and playing them harmoniously to create a resonant melody. Each strategy, whether a catchy jingle or a viral video, is a note in this grand composition, aiming to captivate and convert.

Adapting to the Audience's Rhythm . The beauty of a well-crafted marketing plan lies in its adaptability. Just as a maestro might tweak a performance based on the audience's reaction, a business must be ready to pivot its strategies based on market feedback. This means constantly monitoring performance metrics, staying attuned to industry trends, and being agile enough to capitalize on new opportunities or address challenges head-on.

Ultimately, a marketing plan is more than just a blueprint; it's a living, breathing entity that evolves with your business and audience. It's about striking the right chords, creating a symphony of strategies that reach the masses and touch individual souls, turning casual listeners into loyal fans.

How do you plan to shout your brand's name from the rooftops? Whether leveraging the power of social media or diving into grassroots marketing, chalk out your strategy. Remember, it's not just about reaching your audience; it's about resonating with them.

8. The Engine Room - Provide a Logistics and Operations Plan

Behind every successful venture lies the intricate machinery of logistics and operations, often unseen but undeniably vital. It's the engine room of a business, where ideas are transformed into tangible products, and strategies are executed with precision. While the spotlight often shines on the end product or service, the logistics and operations plan ensures the show runs smoothly, efficiently, and sustainably.

The Choreography of Coordination . Imagine a ballet performance where every leap, twirl, and step is perfectly synchronized. Similarly, a logistics and operations plan is about orchestrating a dance of various elements - from sourcing raw materials to ensuring timely deliveries. It's about mapping out the journey of a product, from conception to the consumer's hands, ensuring that every stage, be it manufacturing, storage, or distribution, is optimized for efficiency and cost-effectiveness. This choreography is crucial not just for meeting business objectives but also for delivering consistent value to customers.

Adapting to the Ebb and Flow . Just as a ship's captain must be prepared to navigate through calm seas and stormy waters alike, businesses must be equipped to handle the dynamic challenges of the market. A robust logistics and operations plan is not set in stone; it's flexible, allowing businesses to adapt to changing circumstances, be it a sudden surge in demand, supply chain disruptions, or technological advancements. It's about having contingency plans, alternative routes, and the agility to pivot when needed.

In essence, while the external facade of a business might be its products, marketing, or brand image, the logistics and operations plan forms its backbone. The silent force keeps the wheels turning, ensuring businesses survive and thrive in the competitive marketplace.

The behind-the-scenes magic. Detail how you'll source materials, manage production, handle shipping, and everything else. This section showcases that you have a robust system to deliver consistently.

9. The Treasure Chest - Make a Financial Plan

In the grand tapestry of business, if strategy and vision are the threads, then the financial plan is the loom of everything. The treasure chest safeguards a company's future, ensuring every decision is grounded in fiscal responsibility and foresight. While the allure of innovation and marketing might capture the imagination, the financial plan translates dreams into actionable, sustainable realities.

It is mapping the Business Odyssey . Every entrepreneurial journey is filled with aspirations, but the financial roadmap dictates these aspirations' pace, direction, and viability. A comprehensive financial plan delves deep into the numbers, projecting revenues, analyzing costs, and forecasting profits. It's not just about crunching numbers; it's about understanding the story they tell - where the business stands today, where it aims to be tomorrow, and the financial milestones along the way. This roadmap serves as both a guide and a barometer, helping businesses navigate challenges and capitalize on opportunities.

The Pillars of Stability . Within the financial plan lie the pillars that uphold a business's stability: the income statement reflecting profitability, the balance sheet showcasing assets and liabilities, and the cash flow statement, the lifeline that ensures operations run smoothly. Together, these documents offer a panoramic view of a company's financial health, enabling stakeholders, from investors to employees, to gauge the company's potential and resilience.

Ultimately, a financial plan is more than just spreadsheets and projections. It's the treasure chest that contains the essence of a business's potential, its challenges, and its path to success. It's the tool that turns entrepreneurial dreams into tangible, sustainable enterprises, ensuring that the ship sets sail and reaches its destined shores.

Show me the money! Outline your financial projections, potential expenses, and revenue streams. Whether you're bootstrapping or seeking investment, a clear financial plan showcases that you're in this for the long haul and have a clear path to profitability.

10. The Captain's Log: Charting Your Course with a Timeline

In the vast ocean of entrepreneurship, where unpredictable currents can sway even the most robust vessels, the Captain's Log serves as the compass, guiding businesses through both calm and stormy waters. Much like the seasoned captains of old, who meticulously recorded their journeys, today's business leaders need a timeline—a Captain's Log—to chart their course, ensuring they remain on the right path towards their destined harbor.

Anchoring Vision to Reality . The Captain's Log, or the business timeline, is not just a record of where you've been but a beacon illuminating where you're headed. It captures the milestones, the challenges overcome, and the victories celebrated. Each entry is a testament to the company's journey, offering insights into past decisions and their outcomes. But more crucially, it provides a structured framework for the future, setting clear objectives, deadlines, and benchmarks. This timeline becomes the rhythm to which the business marches, ensuring that every crew member, from the deckhand to the first mate, is synchronized in purpose and pace.

The Legacy of Lessons Learned . As with any journey, the business path is filled with lessons—some hard-earned, others serendipitous. The Captain's Log preserves these lessons, ensuring they become part of the company's legacy. Future endeavors can draw from past experiences, avoiding pitfalls and capitalizing on proven strategies. It's a living document, evolving with each entry, reflecting the company's growth, adaptability, and resilience.

The Captain's Log is more than just a timeline; it's the soul of the business journey. The narrative tells the tale of a venture's past, present, and future, ensuring that no matter how tumultuous the seas are, the ship remains steadfast, with its eyes firmly set on the horizon.

Every epic voyage has milestones, ports of call, and moments of reflection. When do you envision reaching each landmark as you embark on this business journey? By setting a clear timeline for your goals, you're not just dreaming but committing. It's the rhythm to your business song, ensuring you dance to the beats of progress and pause to celebrate the milestones. Remember, it's not just about the destination but the journey, and a well-defined timeline ensures you savor every moment.

Wrapping Up

In the grand tapestry of business, a well-crafted plan is the thread that binds everything together.

Whether you're a budding entrepreneur or a seasoned business magnate looking to pivot, these steps will ensure your business plan is not just a document but a beacon guiding you to success. So, are you ready to chart your legacy?

How to Write a Business Plan in 10 Steps - PDF Template

How to Write a Business Plan in 10 Steps - PowerPoint Template

Frequently asked questions.

FAQ About How to Write a Business Plan

Understanding the Blueprint: What is a business plan?

A business plan is more than just a document; it's a roadmap for your entrepreneurial journey. Think of it as the GPS guiding your business from its nascent stages to its ultimate goals. At its core, a business plan outlines your business's vision, mission, and strategies to achieve success. It delves into the specifics, detailing your products or services, your target market, your financial projections, and the challenges you anticipate.

But why is it so pivotal? For starters, a business plan offers clarity. It forces you to crystallize your vision, understand your market, and strategize effectively. It's also a tool of persuasion – a well-crafted business plan can attract investors, partners, and top-tier talent. Moreover, it serves as a reference point, allowing you to measure your business's progress and adjust course when needed. A business plan isn't just a requirement for securing funding; it's the foundation upon which successful companies are built. Whether you're a budding entrepreneur or an established business owner, crafting a comprehensive business plan is the first step towards turning your business dreams into reality.

The Power of Preparation: Why write a business plan?

Embarking on a business journey without a plan is akin to setting sail on turbulent seas without a compass. A business plan is your guiding star, illuminating the path to success. It's not merely a document; it's a strategic blueprint that outlines your business's vision, objectives, and the steps needed to achieve them. But why is it so indispensable?

Firstly, a business plan provides clarity and direction. It forces you to introspect to truly understand your business's core values, target audience, and unique selling propositions. I want to let you know that this clarity is invaluable, ensuring every decision aligns with your overarching goals. Secondly, it's a powerful tool of persuasion. Whether seeking investment, forging partnerships, or recruiting top-tier talent, a well-articulated business plan showcases your commitment, foresight, and strategic insight; it's a testament to your business's viability and potential for growth. Lastly, a business plan acts as a yardstick, allowing you to measure your progress, identify potential roadblocks, and recalibrate your strategies when necessary. Writing a business plan isn't just a bureaucratic exercise; it's the cornerstone of business success, ensuring your entrepreneurial vision is grounded in reality and poised for growth.

Blueprint for Success: What needs to be in a business plan?

A business plan is more than just a document; it's a comprehensive roadmap that charts the course of your entrepreneurial journey. But what exactly should this roadmap contain? A business plan must provide a clear and concise overview of your business's foundation, direction, and potential.

To start, every business plan should have an Executive Summary . Please think of this as your elevator pitch, which is the essence of your business in a brief yet compelling manner. It should provide an overview of your business concept, key objectives, and a snapshot of your potential growth. Next, I'd like you to go into the Company Description . This section paints a vivid picture of your business, its mission, vision, and the unique value it brings to the market. Following this, a thorough Market Analysis is crucial. This segment should offer insights into your target audience, industry trends, and competitive landscape, showcasing your understanding of the market dynamics and your business's position.

Also, details about your Products or Services, Marketing and Sales Strategies, and Financial Projections are essential. These sections provide a deep dive into what you're offering, how you plan to reach your audience, and the financial trajectory you anticipate. Don't forget the Operational Plan – a behind-the-scenes look at the logistics, from supply chain management to daily operations—and the Timeline of when it gets done.

A business plan should be a holistic representation of your business's past, present, and future, serving as both a guide and a tool for persuasion.

Navigating the Pitfalls -Common mistakes when writing a business plan

It has its pitfalls in crafting a business plan. Many enthusiastic entrepreneurs, brimming with passion and vision, often need to pay more attention to some critical aspects, leading to potential missteps. Recognizing these common mistakes can differentiate between a plan that shines and one that falls flat.

First and foremost, many fall into the trap of Over-ambitious Projections . While optimism is valuable, unrealistic financial or growth forecasts can undermine your plan's credibility. It's essential to base your projections on solid research and realistic market expectations. Another frequent oversight is the Lack of Market Analysis . A business plan that doesn't thoroughly address the target market, industry trends, and competitive landscape can appear uninformed. This section is your opportunity to showcase your deep understanding of the market dynamics and how your business fits within that ecosystem.

Additionally, many entrepreneurs need to pay more attention to the importance of Clear and Concise Writing . A business plan riddled with jargon, complex language, or, worse, grammatical errors can detract from its professionalism. Remember, clarity and precision are critical. Anyone, from potential investors to new team members, should easily understand your plan. By being aware of these common mistakes and proactively addressing them, you can craft a business plan that stands out and the test of time.

Unraveling the Core - What are the three primary purposes of a business plan?

Diving into entrepreneurship often begins with a foundational document: the business plan.

But what drives the creation of this pivotal document? At its heart, a business plan serves three primary purposes, each interwoven and essential for guiding a business toward success.

To start, the business plan acts as a Strategic Blueprint . The roadmap outlines the company's direction, goals, and strategies to achieve those goals. This blueprint not only provides a clear path for the team but also helps in anticipating potential roadblocks. The compass ensures every decision aligns with the company's core objectives and vision.

Secondly, it serves as a Validation Tool . Before diving headfirst into the market, validating the business idea's feasibility is crucial. The business plan offers a reality check through market analysis, competitive research, and financial projections. It answers critical questions: Is there a demand for the product or service? What differentiates the business from competitors? Are the financial projections sustainable?

Lastly, the business plan is an Investor Magnet . Whether to secure a loan, attract venture capitalists, or onboard strategic partners, a well-crafted business plan showcases the company's potential and viability. The document instills confidence in potential stakeholders, assuring them that their investment is sound and that the business has a clear strategy for growth and success. A business plan isn't just a document; it's the lifeline that threads a business's vision, validation, and value together.

Decoding the Varieties - What are the different types of business plans?

Not all business plans are created equal. Depending on the goals, audience, and stage of the business, entrepreneurs might consider several distinct types of business plans.

First on the list is the Traditional Business Plan . Comprehensive and detailed, this type of plan is the most common and covers all aspects of the business. From an in-depth market analysis to detailed financial projections, it's the go-to format for startups seeking significant funding from banks or investors. This plan is robust, often spanning dozens of pages, and is designed to leave no stone unturned.

For those looking for a more concise approach, the Lean Business Plan offers a solution. Streamlined and to the point, it focuses on the essentials. While it follows the structure of a traditional plan, it only includes the most crucial information, making it ideal for businesses that need a plan for internal use or to adapt to rapidly changing markets.

Lastly, there's the Nonprofit Business Plan . Tailored for organizations operating for public or social benefit, this plan covers the standard business strategies and delves into the impact the organization aims to make. It's a blend of traditional business strategies focusing on mission-driven goals.

In essence, the type of business plan chosen reflects the business's objectives, audience, and stage. Whether a comprehensive deep dive or a high-level overview, each project is a guiding star, illuminating the path to success.

The Timeline Tangle - How long does it take to write a business plan?

One of the budding entrepreneurs' most frequently pondered questions is, "How long will it take to chart my business blueprint?" Much like the vast ocean, the answer varies based on several factors.

At the outset, the Depth and Detail of the plan play a pivotal role. A comprehensive Traditional Business Plan, with market analyses, intricate financial projections, and a detailed operational roadmap, can take several weeks, if not months, to perfect. This meticulous approach ensures every facet of the business is explored, making it a preferred choice for those seeking substantial funding or entering competitive markets.

On the flip side, with its concise and agile format, the Lean Business Plancan can be crafted in a matter of days to a few weeks. Tailored for businesses needing a nimble strategy or internal brainstorming, this plan focuses on the essentials, allowing quicker turnaround times.

However, beyond the type of plan, the Research Intensity and the Familiarity with the Business Domain also influence the timeline. A well-researched plan, grounded in data and insights, will naturally demand more time. Similarly, the learning curve might extend the drafting duration if an entrepreneur ventures into a new industry.

While there's no one-size-fits-all answer, the time invested in a business plan is a testament to its thoroughness and clarity. Whether it's a month-long endeavor or a week's sprint, the goal remains to pave a clear path toward entrepreneurial success.

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How to write a business plan in 10 easy steps

Does writing your first business plan sound a bit daunting? You’re not alone. Many startups struggle with this essential step in getting a small business off the ground. If you need a helping hand with writing a business plan, we’ve broken it down into ten easy steps.

Before we get started, let’s understand why writing a business plan is such an important ingredient in the recipe for startup success.

What is a business plan?

A business plan is a document where you record everything you plan to achieve, state how you’re going to do it and detail the resources you’ll need to succeed. It includes information about your vision for the business, the products or services you plan to provide and financial projections.

From outlining your goals and organisational structure to explaining your marketing strategy, your business plan should keep you on track and help you avoid potential pitfalls. The document doesn’t have to be complicated but it does have to be well thought through and based on strong research.

Why do I need to write a business plan?

Writing a business plan is the first step to startup success. Research shows that business owners who write a business plan are more likely to succeed than those who don’t .

But why? How can a single document make so much difference?

• Writing a business plan helps you think through every element of your business in advance, so there should be no unexpected surprises to derail you along the way.
• Referring to your business plan during your first year of trading can help you stay on track, prioritise your resources and measure progress against your goals.
• A business plan is essential if you hope to secure startup funding, such as a Start Up Loan or other investment.

How to write a business plan

Ready to get stuck in? Use the ten sections below to write your business plan and you’ll be one step closer to starting your dream business.

• Cover page and contents
• Executive summary
• Mission, vision and goals
• Products and services
• Market analysis
• Marketing plan
• Organisational details
• Financial plan

Before you start, remember, your business plan needs to be a living document: something that articulates your vision to potential investors and employees. So keep it simple and don’t use complicated jargon.

Most importantly, be realistic. Base your plan on market research and sensible financial projections. Underestimating costs or overestimating demand will only harm your chances of success, and it will undermine your credibility with potential funders.

With that in mind, let’s get started.

1. Cover page and contents

Despite the saying ‘don’t judge a book by its cover’, it’s best to be on the safe side! Prepare a smart cover page that includes your company name, a high-resolution image of your logo, your name and contact information.

Once you’ve completed your business plan, you can insert a contents page in between the cover page and executive summary to list key sections and page numbers.

2. Executive summary

The executive summary communicates the key points of your business plan. This may be the only part of your business plan that someone will read, so it needs to summarise the rest of the document in a single page and encourage them to read on.

Potential funders are busy people, so get straight to the point and use concise paragraphs . Cover the headline news about your business, namely:

• What your business does
• Your products or services
• What makes you unique ( your USP )
• The target market and projected demand
• A brief financial overview

As this section is an overview of everything else in your business plan, you should write this last, once the rest of the content is finalised.

3. Mission, vision and goals

Why does your business exist and what do you want to achieve? You can answer these questions with your mission, vision and goals.

Your mission statement is a short and inspiring summary of why your business exists. It’s a way to communicate what you do and provide a focus for your business activities. It can even help you plan and prioritise, by reminding you of your core purpose.

For example, a commercial cleaning business might have the following mission: ‘To make businesses a better place to work by providing high-quality commercial cleaning that goes above and beyond the industry standard.’

For more inspiration, take a look at these examples of mission statements from successful businesses .

Your vision is how the world will look if you’re successful in your mission. Consider the ultimate benefit your business will bring to its customers. How do you want people to see your business?

Express the dream scenario, whether it’s to be the leader in your market or to make a difference in your customers’ lives.

For example, our cleaning company’s vision might be ‘Higher standards, healthier workplaces, happier staff’. This communicates the company’s USP (higher standards) and the benefit they bring to their customers (healthier workplaces, happier staff).

Goals are an essential part of your business plan. These aren’t just guesses about what you might like to do. Strong business goals are based on what you need to deliver in your first year of business and how you plan to achieve that.

Remember, goals always need to be SMART : specific, measurable, attainable, realistic and time-bound.

For example, our cleaning firm might have a goal to recruit 24 new clients in their first year. That’s a great start because it’s definitely SMART.

Next, they’ll need to break that down into smaller, more manageable goals, to help them achieve it. For example:

• To have a basic website in advance of launch, and online booking within three months
• To grow a social media audience comparable to their nearest competitor within the first six months
• To distribute flyers to 250 local businesses each month and follow up with a phone call within two working days

Each of these goals could be broken down even further to create a month-by-month work plan for the business. This makes it much easier to stay on track and prioritise time effectively.

4. Products and services

Next, it’s time to talk about what your business is actually going to sell. Whether that’s products or services, describe them in detail. Consider information like:

• What the product or service is
• Unique features
• Customer need
• Whether you’re filling a gap in the market
• Why customers will choose you over competitors
• Where customers will buy it
• Where customers will use or experience it
• Pricing strategy (what you plan to charge and why)

You want to paint a clear picture of what you’re selling, why people will choose to spend their money with you and what benefits they get as a result. Thinking this through will really help when you start to promote your business.

5. Market analysis

This, alongside your financial projections, is the most important part of your business plan. It’s where you’ll record the results of any market research you’ve conducted. And if you want to have a successful startup, market research is a must!

Below is a quick rundown of basic market research. Once you’ve conducted it, use what you’ve discovered to demonstrate the potential of your product or services. Use graphs and charts to make it easier to digest.

Identify your target market

Firstly, you need to decide who your target market is. Who exactly will buy your products or services? Are they individuals or businesses? Where are they based? What income group do they belong to? This will help you plan effective pricing, marketing and sales.

For example:

• Young professionals aged 21-35 in the Liverpool region
• UK-based food manufacturers
• Cost-conscious fashion fans in north-east England

Assess the size of your target market

Next, you need to work out how many people there are in your target market and how many, realistically, are likely to become customers. There are lots of sources of information to help you, including census information and commercial reports.

Survey your target market

Market research with your target customers can provide valuable insights that will help hone your business plan. For example:

• Do they like the product?
• What would they be willing to pay?
• Who else might they buy from?

There are lots of ways to solicit opinion: from online surveys to in-person focus groups. Find out about different market research techniques and choose what’s right for you.

Identify your place in the market

Once you’ve researched your target market, you need to understand your place within it. Who are your competitors? What are your strengths and weaknesses? Market analysis typically includes:

• SWOT analysis - looking at your strengths, weaknesses, opportunities and threats
• PEST analysis - political, economic, social and technological factors that might impact your business
• Competitor analysis - who you’re competing against and how you compare

6. Marketing plan

Once you’ve completed your market analysis, you’re well equipped to write your marketing plan.

Marketing is made up of different elements which are sometimes referred to as ‘the four Ps’:

• Product: what are you selling and what’s the USP?
• Place: where will you sell your product to maximise access to your target market?
• Price: what will you charge for your product to appeal to your target market?
• Promotion: what’s your strategy for reaching your target customer?

Your marketing plan should explain how you’ll combine these different elements to stand out and maximise your appeal to your target market.

Consider your budget and how you will measure success. If you’d like to know more, check out this beginners’ guide to startup marketing .

7. Operations

This is where you go into detail about what you’ll need to deliver your product or services.

For relatively simple businesses, such as offering freelance services, this might be uncomplicated. But for other businesses, such as manufacturers or retailers, it can require more advance planning. Consider factors like:

• Ingredients, materials and supplies
• Suppliers and distributors
• Routes to market
• Technology, including accounting software such as FreeAgent

This will prepare you for the reality of setting up your business, the relationships you’ll need to develop and the potential costs you’ll incur.

It will also help funders understand how you plan to spend their investment and have confidence that you understand what you’re proposing.

8. Organisational details

This is where you record information about how your company will be structured and run. This section should provide clarity about different roles within the business. It should also give any investors confidence in your ability to deliver.

Include information like:

• Your business structure ( limited company , sole trader or Limited Liability Partnership )
• When you were established and began (or plan to begin) trading
• Your management team, their roles, qualifications and experience - even if it’s just you!
• Any actions you’ve taken as a business so far, such as registering patents or copyright
• Your registered address and contact details

9. Financial plan

Now it’s time to outline your business finances. Investors will be reading this section carefully, so make sure to double-check your figures.

Many startups fail because of poor financial planning - such as failing to understand the impact of cashflow on a fledgling business - so this stage is really important.

As a new business, you’re likely to incur startup costs before you start making any sales, so you’ll always need enough money in the bank to keep you afloat.

A financial plan typically includes:

• Profit and loss (income statement) - the income statement allows your reader to see your revenue and expenses. If you’ve only just started your business, this can be a forecast.
• Cashflow statement - this is an estimate of what you expect to spend and receive over a period of time.
• Balance sheet ( assets and liabilities ) - outline what you own and what you owe.

If you’re unclear on any of the above, it’s worth speaking to a bookkeeper or accountant.

Software such as FreeAgent can help you keep an eye on your business finances and prepare for Self Assessment.

10. Appendix

The appendix is a section where you can include additional information to support your business plan. It lets you provide extra detail for people who are interested, without making the body of your business plan too bulky.

Here, you can include numbers in more detail, your CV, legal agreements and any additional product information, such as market data, imagery, copy and designs.

Congratulations, you’ve made it. You’ve written your business plan, gone back to complete the executive summary, and you’re ready to share it with the world.

If you’re going to use your business plan to apply for funding, it’s a good idea to print a copy and professionally bind it, so it looks smart and credible.

Even if it’s just for your reference, keep a copy of your business plan to hand and refer to it regularly. Think of it as your roadmap to success.

Say hello to FreeAgent!

Award-winning accounting software trusted by over 150,000 small businesses and freelancers.

FreeAgent makes it easy to manage your daily bookkeeping, get a complete view of your business finances and relax about tax.

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What to Include in Your Business Plan Appendix

Candice Landau

4 min. read

Updated March 4, 2024

While not required, a well-structured business plan appendix goes a long way toward convincing lenders and investors that you have a great business idea and a viable business.

This article will cover what to include in your appendix and best practices to make it a useful part of your business plan . 

• What is a business plan appendix?

A business plan appendix provides supporting documentation for the other sections of your business plan .  

The appendix typically comes last and includes any additional documents, spreadsheets, tables, or charts that don’t fit within the main sections of your plan. 

What goes in the appendix of a business plan?

In general, here is some of the information you might include in your business plan appendix:

• Charts, graphs, or tables that support sections of your business plan
• Financial statements and projections
• Sales and marketing materials
• Executive team resumes
• Credit history
• Business and/or personal tax returns
• Agreements or contracts with clients or vendors
• Licenses, permits , patents, and trademark documentation
• Product illustrations or product packaging samples
• Building permit and equipment lease documentation
• Contact information for attorneys , accountants, and advisors

You may include some, all, or none of these documents in your appendix. It depends on your business needs and who you share your business plan with. 

Similar to your executive summary , adjusting what’s in your appendix may be helpful based on the intended audience.

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Business plan appendix best practices

Here are a few tips to help you create an appendix that supports your business plan.

Make it easy to navigate

If your appendix is more than a few pages long or contains a variety of documents, you may want to consider adding a separate table of contents.

Don’t forget security

If you share confidential information within the business plan appendix, you will also want to keep track of who has access to it. 

A confidentiality statement is a good way to remind people that the content you share should not be distributed or discussed beyond the agreed parties. You can include it as a separate page or as part of your business plan cover page .

Make the appendix work as a separate document

Given that the appendix is the last part of the business plan, it’s quite likely your readers will skip it. 

For this reason, it’s important to ensure your business plan can stand on its own. All information within the appendix should be supplementary. 

Ask yourself: if the reader skipped this part of my plan, would they still understand my idea or business model ? If the answer is no, you may need to rethink some things.

Connect the appendix to sections of your business plan

Make sure that anything you include in the appendix is relevant to the rest of your business plan. It should not be unrelated to the materials you’ve already covered. 

It can be useful to reference which section of your plan the information in your appendix supports. Use footnotes, or if it’s digital, provide links to other areas of your business plan.

Keep it simple

This is good general advice for your entire business plan. 

Keep it short. 

You don’t need to include everything. Focus on the relevant information that will give your reader greater insight into your business or more detailed financial information that will supplement your financial plan.

Free business plan template with appendix

Remember, your appendix is an optional supporting section of your business plan. Don’t get too hung up on what to include. You can flag documents and information you believe are worth including in your appendix as you write your plan . 

Need help creating your business plan? 

Download our free fill-in-the-blank business plan template with a pre-structured format for your appendix. 

And to understand what you should include based on your industry—check out our library of over 550 business plan examples .

Business plan appendix FAQ

How do you write an appendix for a business plan?

Gather relevant documents like financial statements, team resumes, and legal permits. Organize them logically, possibly mirroring your business plan’s structure. If long, include a table of contents, ensure each item is relevant, and focus on keeping it simple. If you’re sharing sensitive information, add a confidentiality statement.

Why is a business plan appendix important?

An appendix provides supporting evidence for your business plan. It keeps your main plan more concise, enhances credibility with additional data, and can house all-important business documents associated with your business.

What additional information would appear in the appendix of the business plan?

The following can appear in your appendix:

• Financial projections
• Marketing materials
• Team resumes
• Legal documents (like permits and patents)
• Product details (like prototypes and packaging)
• Operational documents (like building permits)
• Professional contact information. 

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

Candice Landau is a marketing consultant with a background in web design and copywriting. She specializes in content strategy, copywriting, website design, and digital marketing for a wide-range of clients including digital marketing agencies and nonprofits.

Table of Contents

• What goes in the appendix?
• Best practices
• Free template

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How to Write a Business Plan [Complete Guide]

Last Updated on – Aug 8, 2023 @ 3:22 pm

Preparing to write your business plan? You’re already one step ahead of other entrepreneurs who don’t see its value.

A well-thought-out and well-written plan for starting and running your business helps you focus on what you need to do to make your business idea work. It can also boost your chance of getting investments and loans to finance your business .

Did you know that half of small businesses fail in their first four years? Planning is such a crucial step to reducing the risks of managing an enterprise. Turn your business idea from something abstract and uncertain into a successful venture. It starts with drafting a good business plan.

Here’s your definitive guide to writing a business plan that speaks for itself.

What is a Business Plan?

A business plan is a written document that details what a business is, what direction it will take, and how you’ll get it there.

Practically speaking, the business plan evaluates your business’ viability. As the Department of Trade and Industry (DTI) puts it , the document allows entrepreneurs to find out whether or not their business idea will bring in more money than how much it costs to start and run it.

More than just a document, the business plan helps business owners to figure out the key aspects of an enterprise, including the following:

• Business goals and strategies to meet them
• Competitive edge and how to leverage it
• Potential problems and how to solve them
• Funding required to start the business
• Equipment, facilities, and manpower needed for operations

Who Needs a Business Plan and What Is It Used For?

Every aspiring entrepreneur who will spend a great amount of money, time, and energy to earn a profit needs a business plan.

Business planning is a crucial part of starting an entrepreneurial journey, no matter how small or big a business is. Never skip this step—as they say, failing to plan is planning to fail.

Here are some examples of business types that benefit much from business planning:

Founders of startup businesses seek funds to begin their new venture. Business plans help them persuade investors and lenders to provide the funding they need.

For startups, a business plan explains the nature of the new venture, how it will achieve its goals, and why the founders are the best people to lead the company. The startup business plan should also specify the capital needed to jumpstart the new business.

Related: Fast-Growing Startups in the Philippines

Existing Businesses

Not only do startups gain advantage from a business plan—existing enterprises need it, too.

But business plans for growing businesses serve a different purpose. Usually, a business plan helps a middle-stage business raise funds for additional facilities, equipment, manpower, and others needed for expansion. This document also defines strategies for growth and allocates resources based on strategic priorities.

Growing businesses also use business plans to communicate their vision to various stakeholders such as customers, business partners, potential investors and lenders, employees, and suppliers.

For such needs, a business plan for existing businesses lays out the goals, strategies, metrics to evaluate success, responsibilities, and resource allocation.

Social Enterprises

Social enterprises may not be as profit-driven as other business types, but that doesn’t mean they need business planning any less.

A social enterprise needs to prepare a business plan to achieve its social objectives and keep empowering the communities it’s supporting. This document is what government agencies and donor agencies require and evaluate when approving grants for funding a social project .

A social enterprise business plan determines the social issue that a business idea will solve, its beneficiaries, products or services, target market, and sales projections, among many others.

Non-Profit Organizations/NGOs

Like social enterprises, non-governmental organizations (NGOs) can also use business plans to source funds for their campaigns and projects.

A nonprofit business plan discusses the problems an NGO is trying to solve through a certain project, as well as how it will do that and how much resources are needed.

It also helps the organization and its board members to prepare for risks by making projections on how likely the activities will push through and how the current sources of funds will continue to yield a certain level of revenue. Most importantly, the business plan defines the Plan B if the original plan ends up failing.

Business Plan Format and Its Components

How does a business plan exactly look like? There’s no recommended universal format for business plans. Ideally, yours is customized according to the nature of your business and what you’re going to use the plan for.

However, all business plans have sections in common. Here’s a quick walkthrough of the six components that make up a business plan.

1. Executive Summary

Like an abstract of a college thesis or a foreword of a book, the executive summary is meant to provide a brief overview of the document. It presents the highlights of a business plan in a page or two.

The executive summary the first thing that readers see, so keep it short yet engaging and compelling enough to make them want to view more details in your plan.

2. Company Profile

The company profile is your chance to introduce yourself and your business to people outside your company. It’s also called the company summary, company information, business description, and business profile.

This section quickly answers the five Ws and one H of your business: who, what, when, where, why, and how.

Think of it as your business calling card. Being the shortest section of the business plan, the company profile provides a quick overview of the business—who the owner and founder is, management team, business goals, business address, product or service, and what makes it unique.

3. Operations Plan

The operations plan explains how you’ll run your business, focusing on the different aspects of manufacturing your product. This section includes the following information, among many others:

• Type of business (sole proprietorship, partnership, corporation , or non-profit)
• How the product is made or the service completed
• Necessary materials, equipment, and facilities to manufacture the product or complete the service
• Any subcontractors needed
• Quality control system

4. Organizational Plan

Your people should play a major role in your business plan, just as how they’re important to your business success . The organizational plan includes a chart that shows how your company is structured according to key departments or functions such as administration, production/manufacturing, marketing, and finance. This organizational chart not only presents the levels of authority in a company but also clarifies who is responsible for which people and function.

Aside from the organizational chart, the organizational plan also includes these details:

• Number of employees to hire
• Responsibilities of each job role
• Qualifications of workers who will perform each role
• Salaries and benefits per job assignment

5. Marketing Plan

The marketing plan and the succeeding chapters are the heart and soul of your business plan, explaining the things that will make your business work. This section details how you plan to promote your product or service in the market.

Specifically, the marketing plan covers the following:

• How the product or service will work and how it will benefit customers
• Target market and its profile
• Strategies for packaging, advertising, public relations, and distribution
• Competitive advantage

6. Financial Plan

A critical section in your business plan, the financial plan helps you assess how much money you’ll need to start or grow your enterprise and identify your funding sources to get your business off the ground and sustain its operations. This is where you’ll provide financial estimates that cover at least one year of running your business.

Investors and lenders specifically look for these financial details in business plans:

• How much you’re going to borrow, what you’ll use the loan for, and how you’ll pay it back
• How much profit you’re expecting to make (through an income statement and balance sheet)
• How you can finance your business operations (through a cash flow statement)
• Whether to keep the business going or close it down to cut losses (through a break-even analysis)

Related: How to Write a Business Proposal

Should You Use a Business Plan Template?

Business plan templates identify what information to put into each section and how it should be structured.

They provide instructions to guide entrepreneurs through the process. This way, nothing is missed out while writing the plan.

Thus, using a business plan template is a great idea, especially if this is your first time to prepare a plan for starting or growing your enterprise.

Helpful as it as may be, a business plan template doesn’t make business planning 100% effortless. While it provides the outline that makes writing the plan easy and quick, you still need to do your homework.

For example, a template won’t compute the financial projections for you—it’s a task you have to complete either on your own or with the help of a professional.

So before you use a business plan template, manage your expectations first and be prepared to do a lot of math!

8 Free Business Plan Templates

Yes, you read it right—you can download free online business plan templates. Some of these templates are designed for a specific niche, while others offer sample business plans for a wide range of business categories and industries.

Start off by choosing any of these free templates that suit your business planning needs.

1. Business Plan Format by the DTI

DTI has a wealth of useful information for micro, small, and medium businesses in the Philippines. Of course, it’s free to access since it comes from the government.

On the DTI website, simply look for the Business Planning section and download the business plan format in a PDF file. This document not only lists down all the information to be included in every section of a business plan, but it also provides guide questions per section—making business planning easier for first-timers.

If you want a more detailed discussion of what should go into each component of your business plan plus sample scenarios, check the DTI’s Negosyo Center e-book that fleshes out things for small business owners.

2. Simple Business Plan Template by The Balance Small Business 

The Balance is an online resource for small business owners. It has a free business plan template that’s simple and easy to understand for beginners, with instructions on how to use it. Broken down into sections, the simple business plan template tells you what to include in each component of the plan.

Simply copy the free template and paste it into a word document or spreadsheet. From there, you can start drafting your business plan with the template as a guide.

3. Free Sample Business Plans by Bplans

This website features a collection of over 500 free business plan samples for various industries, including restaurants, e-commerce, real estate, services, nonprofit, and manufacturing.

Under each category are links to many sample business plans for specific types of business. Each sample comes with a plan outline, too. For example, under the Services category, you’ll find sample plans for businesses like auto repair shops, advertising agencies, catering companies, health spas, photography studios, and more.

4. Business Plan Samples by LivePlan

More than 500 free sample business plans are available at the LivePlan website, so you’re likely to find one that suits your business best. The samples allow users to know how other businesses structured and worded each component of their business plans. You can copy and paste the sections into your own plan.

To download a full business plan sample, you’ll have to sign up by submitting your name and email address through the website.

5. Business Plan Templates by PandaDoc

PandaDoc offers free business plan templates for NGOs, startups, restaurants, cafes, bakeries, hotels, and salons. These documents can be downloaded in PDF format.

But if you want a customizable template, you can download the PandaDoc template for a 14-day free trial. This template allows you to edit the document, choose a theme that matches your branding, and add pictures and videos.

The website also has free templates for executive summaries and business letters.

6. The One-Page Business Plan by The $100 Startup

If your business has a simple concept, then a one-page business plan template is ideal to use. This downloadable PDF file is a very simple outline made up of a few sections with questions that you have to answer in just a short sentence or two.

7. Business Plans by Microsoft

Microsoft provides a broad selection of templates for its users, including business plan templates in Word, business plan presentations in PowerPoint, and business plan checklists in Excel.

• Sample business plan template (Word) – Provides the steps in writing a complete business plan
• Business plan presentation template (PowerPoint) – Consists of slides for different sections of a business plan that highlight the key points for viewers
• Business plan checklist template (Excel) – Enumerates the important things to do when writing a business plan, using the Strength, Weakness, Opportunity, and Threat (SWOT) analysis framework

The advantage of using a template from Microsoft is having a professional-looking document, slideshow presentation, or spreadsheet. No need to do the formatting by yourself because the template is already formatted. All you have to do is enter the necessary information into the template to complete your business plan.

8. Social Business Plan Guidelines by the Ateneo de Manila

This free business plan format for social entrepreneurs comes from the Ateneo de Manila University’s John Gokongwei School of Management. In a glimpse, it provides the basic information you need to plan a social enterprise.

It also has more detailed business plan guidelines you can refer to. Simply click the link to the word document at the bottommost part of the page.

Related: 11 Best MBA Programs & Schools in the Philippines

How to Write a Business Plan

An outstanding business plan covers everything your stakeholders need to know about your business. So don’t just wing it—put a lot of thought into this critical document.

Let’s get down to the nitty-gritty of drafting a business plan, whether you’ll use a template or not.

1. Brainstorm about your business idea

You may have a very promising business idea, but it won’t fly unless you develop it into a clear-cut concept.

Brainstorm with your team about everything you can think of about starting and running the business. Then list them all down.

Be as creative as possible. No need to be too critical at this point.

While brainstorming, aim to answer these key questions:

• Why do you want to start the business? What has inspired you to go for it?
• What product or service do you plan to sell?
• Who will be your target customers? What are their problems that you’re hoping to solve through your product or service? How will you promote your offerings to them?
• What will be your business branding ? How will you position your brand in the industry?
• What is your competitive advantage? What makes your business unique?
• Where do you see your business within a year?

2. Validate your business idea

Research on the specifics of your business idea—paying special attention to your product or service, target market, and competitors.

According to entrepreneurship experts, it’s best to spend twice as much time on this step as spending the time to the actual drafting of the business plan.

Here are some ways to validate your business idea:

• Read studies and research to find information and trends about your industry .
• Conduct market research to gather insights from industry leaders, potential customers, and suppliers . You can do this through surveys, focus group discussions, and one-on-one interviews with your stakeholders.
• Collect data about your competitors , especially the product or service they offer and how they reach their customers. Consider buying from them or visiting their store to get a feel of their products and customer experience.

Gather all relevant information and analyze your findings to assess whether the business idea is feasible or not. You may need to tweak your business idea based on your evaluation of its feasibility.

3. Define the purpose of your business plan

It’s extremely difficult to carry out anything if you aren’t sure about why you’re doing it in the first place. Without a clear purpose, you’re like driving a car without knowing where you’re headed to.

When it comes to writing your business plan, you should have its purpose in mind from the get-go. It can be one or more of the following:

• Create a roadmap to provide the directions the business must take to achieve your goals and overcome challenges. This is ideal for bootstrapping or self-funding startups.
• Seek investments and loans to finance a business. If this is your purpose for making a business plan, it should be compelling enough to attract investors and lenders.
• Set your targets, budget, timelines, and milestones. When you put them all in writing, it’s so much easier to evaluate and measure your business’ actual performance versus your goals.
• Communicate your vision and strategic priorities with the management team. With this purpose, your business plan must establish specific goals for your managers so that they have something to commit to, you can track progress, and get them to follow through on their commitments. Also, having a business plan for this purpose ensures that everybody involved in running your business is on the same page.
• Minimize risks. Running a business in itself involves a lot of risks, and it gets riskier with a poorly researched business idea. A business plan can help entrepreneurs mitigate them by organizing activities and preparing for contingencies.

4. Create an outline for the executive summary

The first section of any business plan is the executive summary. You don’t have to draft it yet at this point, but it helps to write an outline for it before you proceed with the rest of the sections.

In a sentence or two, describe these key aspects of your business:

• Product or service
• Target market
• Competitors
• Unique value proposition (how you set your business apart from the competition)
• Management team
• Short-term and long-term business goals
• Possible sources of revenue

5. Describe your business

The next step is to write your company profile. Get your readers to become familiar with your business and realize why they should be interested in it.

If you have no idea what specifically goes into this crucial business plan section, you can check the company profiles of businesses in your industry. Usually, you can find them on their websites at the About Us or About the Company page. Take note of the information included and how they’re written.

Here are the must-haves of a great company profile:

• Brief history of the company
• Mission and vision
• Product or service lineup
• Target market and audience
• How the business will address the customers’ pain points
• What makes the business unique

6. Provide details about your operations and organizational structure

Anyone who will read your business plan needs to know what they should expect when they deal with you. They need to see a solid plan for your operations and the people who make up your team. So give your operations plan and organizational plan a careful thought.

For your operations plan, choose carefully the right legal structure for your business. Will you be a sole proprietor? Or will you partner with someone or form a corporation? Your choice will have an impact not only on your business operations but also on the taxes you’ll pay and your personal liability .  

As for the organizational plan, it’s where you put your organizational chart that shows a glimpse of the hierarchy within your organization. You can easily create this chart in Microsoft Word, Excel, or PowerPoint.

Also introduce the people who comprise your management team—their relevant experience, qualifications, and expertise . The organizational plan must also include information of the support personnel, as well as who reports to whom and who manages whom.

If you’ll be outsourcing some of your business functions, add them to your organizational plan, too. These may include consultants , accountants , lawyers , logistics specialists, and IT specialists. This way, you’re showing that you’re planning to fill in any expertise and skill gaps in your in-house team.

Also Read: Business Process Outsourcing to the Philippines [Complete Guide]

7. Compose your marketing plan

Make this section of your business plan as comprehensive and detailed as possible. You’d want to prove that you’ll take a strategic and aggressive approach to reach your target customers and promote your brand and product or service to them.

Divide your marketing plan into five subsections: objectives, product/service description, target market profile, competition profile, and promotional activities.

A. Objectives

Zero in on the what and the why of your marketing activities. Under the marketing objectives section, list down all your goals and the strategies you’ll implement to meet them.

Your marketing goals can be any of the following:

• Raise brand awareness
• Introduce a new product or service
• Regain or get more customers for an existing product or service
• Secure long-term contracts with your ideal clients
• Increase sales in a certain market, product, or price point
• Improve product manufacturing or product/service delivery
• Increase prices without affecting sales

B. Product/Service Description

Describe each product or service you’ll offer, including its features and benefits. You can use storytelling , images, charts, tables, or any visual element that best illustrates how each item will work to the benefit of your target customers.

C. Target Market Profile

Present as much relevant data as you can about your potential customers. Make sure to include the following:

• Demographic profile: age range, gender, income level, education, interests, etc.
• Buying behaviors
• Factors that influence their buying decisions: purchasing power, personal preferences, economic conditions, marketing campaigns, social factors (such as peer pressure and social media influencers ), cultural factors, etc.

D. Competition Profile

Your marketing plan must focus not only on your own business but also those of your competitors. List down the similar products or services that they offer to your target customers.

Also, provide an assessment of your competitors’ performance. Which areas are they doing well? How can you improve on their strengths and weaknesses? How can your business stand out? Is it your more competitive pricing? Better customer service? Superior product quality?

To come up with a good competition profile, take the time to research about your competitors. When interviewing your target customers, ask them about the brands they use or businesses they deal with.

You can also do an online search of your competitors. For example, if you’ll run a pet supplies store in Pasig, search for “pet stores Pasig” on Google. The search engine results page may show you the different stores that sell the same products as the ones you plan to offer. Read customer reviews online to get deeper insights on how these businesses serve their clients.

Consider doing a “secret shopping” in your competitor’s store. This way, you can experience firsthand how they treat their customers and how they market and sell their products or services. You might even be able to get information about their product lineup and pricing.

E. Promotional Activities

The last subsection of your marketing plan must discuss how you’ll promote your brand and products or services and connect with customers. Also, be ready to allocate budget for each marketing activity you identify in your plan.

Create a list of marketing activities you plan to implement. Will you reach your audience through SEO (organic online search), paid advertising, and/or social media? Or will you go the traditional route through print and TV advertising or joining expos, exhibits, and trade shows? The right choice depends on the nature of your business and the type of audience you’re trying to reach.

8. Develop your financial plan

The financial plan is the section where you’ll crunch the numbers. Unless you’re really good at math, it’s best to hire an accountant or business consultant who will work with you to develop a foolproof financial plan.

Put simply, a financial plan explains how a business will spend money and make more money. It also estimates the amount of time it will take for the business to earn a profit.

Here are the specifics of a good financial plan:

• Total capital requirement
• Business financing plan and any loan requirement
• Collateral to put up for a business loan
• Schedule for loan repayment
• Financial statements : cash flow statement, income statement/profit and loss statement, and balance sheet
• Break-even analysis
• Return on investment (ROI)
• Financial analysis

Ultimately, these financial projections answer the question, “Is your business financially feasible?”

9. Back up your business plan with supporting documents

Books and theses have an appendix section at the end that provides additional resources. Your business plan should have one, too. This final section consists of documents, surveys, studies, charts, tables, images, and other elements that provide supporting data.

Depending on the information you’ve presented in the other sections of the plan, your appendix may include these things:

• Market research data and findings
• Resumes of the management team
• Relevant financial documents
• Lease agreements
• Bank statements
• Licenses and permits

10. Review and refine your business plan

Your business plan is almost done at this point. Now all you have to do is go over the document once more to ensure you’ve covered everything and nothing crucial is left out.

Check your final draft and be sure it has the following:

• Sound business idea – If you’ve done Step 2 properly (validating business idea), you can be confident that you have a sound business idea.
• Comprehensive and in-depth look into your business in a professional format
• Thorough understanding of your target customers , their behaviors, interests, and needs
• Competent management team – The people who make up your team must possess the skills and expertise that complement yours.
• Business focus or specialization

Aside from yourself, ask a business partner, proofreader, and accountant or financial expert to review your business plan and spot any errors and inconsistencies. You’d want to make sure that it looks professional and is accurate.

11. Write the executive summary

Lastly, get back to the outline you created in Step 4 and write it based on your final draft. Make sure to craft an engaging executive summary that hooks people into reading the rest of the plan.

6 Actionable Tips on Writing a Business Plan

Anyone can write a business plan—but it takes more than great writing skills to create an exceptional one.

Here are some tips to help you prepare an effective business plan that goes beyond the ordinary.

1. Write with your audience in mind

When drafting your business plan, you’re writing not for yourself but for people who will play key roles in starting and running your enterprise. This is why it’s important that you know whom you’re writing for and keep them in mind while preparing your business plan.

If you think you can’t create a plan that caters to all your audience groups, consider having different versions of the document. For example, you can come up with a business plan for investors, another for lenders, one for employees, and so on. But keep the data consistent across all versions.

To write a business plan that suits a particular audience, you have to use the right language, highlight the parts that interest them, and adjust the format accordingly.

A. Use the Right Language

One of the most important rules in business writing: use the language that your target audience easily understands. If you’re writing for engineers, finance people, or lawyers, your language can be technical—meaning you can use jargons and terminologies familiar to them.

However, if you’re writing for investors who barely have technical knowledge, tweak your language in simple terms that are easy to grasp and appreciate.

Likewise, if you’re writing a business plan to communicate internally with managers and employees your company’s direction and strategies, it’s best to use more casual language than you would when writing for high-level, external stakeholders.

B. Appeal to Your Audience’s Interests

It also helps to understand what interests your audience because they will influence how you’ll write your business plan.

Your management team, for instance, will be interested in knowing your business goals and strategies so that they can help you steer the company in the right direction.

Investors and lenders look at the business plan differently—they’ll be more interested in your financial statements to determine your financial health, like if your business is worth investing in or has the ability to pay back a loan.

C. Adopt a Suitable Business Plan Format

There’s no one-size-fits-all format for business plans because it depends mainly on your audience, aside from the nature of your business.

Let’s say you’ll set up a restaurant, and you’re drafting a business plan to apply for a business loan. To convince lenders that your business is viable, details such as your restaurant’s location and possible renovations are crucial.

Meanwhile, if you’re writing the plan for potential big-time investors, you’ll take a different approach. A good restaurant business plan focuses on the business aspects that will lead to growth and profitability (Remember that investors are interested in how they’ll make money from partnering with you).

2. Keep it concise

How long should a business plan be? According to the U.S. Small Business Administration (SBA) , it depends on various factors such as the specific audience it’s written for and the nature of a business. The SBA cites surveys that found the ideal length to be at least 25 to 100 pages.

Sounds a lot? If you have a simple business idea and you’re writing a business plan for busy people who don’t have time to pore over hundreds of pages, then one page up to 20 pages should be fine.

However, you may need to provide more explanation (which will take up more pages in your business plan) if you’re planning to build a new kind of business, and a risky one at that.

The size of your business also affects the length of your business plan. Business plans for small businesses need not exceed 30 pages. Corporate business plans are expected to be longer.

What matters more than length is how concise your business plan is. Meaning, it provides all the necessary information—including solid research and analysis—using the fewest words possible. No place for wordiness here!

3. Document everything related to your business

Support your claims in the business plan with solid facts and proof. Investors, for instance, need an assurance that they won’t lose their investment when they trust you with their money. This is where documenting your business thoroughly plays a crucial role.

What kinds of documentation can you include in your business plan?

• Industry forecast or projections
• Licensing agreements
• Location strategy
• Prototype of your product or service
• Survey and FGD results
• Resumes of your management team

4. Show your passion and dedication to your business

Although business plans have straightforward, matter-of-fact content, you can still establish an emotional connection with your readers through your plan. After all, your readers are humans with feelings and motivations.

No need to be dramatic about it—you can show your passion and dedication while still sounding professional in your business plan. Write about the mistakes you’ve had (like a failed business in the past), what you’ve learned from the experience, the values you hold, and the problems of your customers you want to solve through your product or service.

5. Know your competition and how you’ll stand out

Your business won’t be the single player in your industry. Other businesses in the same niche have started way ahead of you, and some new ones will also compete for business in the future.

Write your business plan in such a way that you know your competitors so well. Identify all of them and what makes your business unique compared with the rest without belittling them.

6. Be realistic and conservative in all your estimates

In any aspect of your business, it’s better to underpromise and overdeliver than the other way around. This also holds true when writing a business plan. You wouldn’t want to set unrealistic expectations that will lead to disappointments and worse, losses, when you fail to deliver on your promise.

There’s no place for too much optimism in your business plan. Your budget allocation, timelines, capital requirements, sales and revenue targets, and financial projections must be reasonable, realistic, and conservative. These will lend credibility to your business plan and yourself as an entrepreneur. Because there are a lot of factors beyond your control, always assume that things will get completed longer and cost more ( consider inflation over time! ).

This is where your research prior to writing the draft comes extremely helpful. You have something solid and factual to benchmark against. For example, if your analysis based on the facts you’ve gathered indicates that you’ll be able to get 40% share off the market in your first year of operations, consider making your estimates a bit more conservative and attainable.

Related: The Ultimate Guide to Business Valuation in the Philippines

10 Mistakes to Avoid When Writing a Business Plan

Now, let’s explore the mistakes entrepreneurs often commit when writing a business plan. Listing them all down here to let you know what to avoid.

1. Prioritizing Form Over Substance

Spend most of your time and energy on building solid research and facts rather than obsessing about which font type or background color will look best for your document.

2. Overthinking

Many entrepreneurs take too long to complete their business plans because they worry too much about it. Don’t get intimidated by business planning—you don’t have to be an expert or a degree holder in business management or business administration to be able to write an outstanding business plan. Overthinking will just lead to analysis paralysis and get nothing done.

As long as you know your business well and are passionate about it, then writing a business plan won’t be as difficult as you think, especially if you’re using a template.

3. Submitting the Document Without Proofreading It

If your business plan is filled with typos and grammatical errors, readers will get distracted even if you’re presenting substantial information. It may also give your audience an impression that you’re careless—and who wants to deal with a person who isn’t professional and careful enough?

Even if it costs you money, pay a professional proofreader to check your work and correct any errors so that the message you wanted to convey through your business plan will get across.

4. Making Empty Claims

Any statement that isn’t sufficiently supported by solid research or documentation has to go. For example, if you want to claim to be the top player in your industry but you don’t have any evidence to back it up, rethink about including it in your business plan.

5. Writing an Overly Long and Wordy Plan

Make sure that everything you put into your business plan is relevant and serves your purpose. Otherwise, remove unnecessary statements that just add fluff to the document.

Also, don’t waste your readers’ time by using too many words—including highfalutin ones. Remember, your goal is to make your audience understand your business, not to impress them with beautiful or complex prose.

6. Using Too Many Superlatives

Even if you really feel that your business, business idea, or projection is incredible, amazing, the best, great, fantastic, or one of a kind, avoid using these superlatives because they aren’t appropriate for formal documents like a business plan.

7. Doing the Financial Projections on Your Own

Unless you’re an accountant yourself, it’s best that you get a professional to do the job for you. It will save you time and the headache of dealing with numbers and formatting your financial plan properly.

8. Overestimating Your Projections

The business plan is not a place to make impossible promises—while they look good on paper, you might run into trouble fulfilling them. To avoid this mistake, always do your research. Find out how other businesses do it and what the typical timeframes and financial projections are before you come up with your estimates.

9. Long-Term Business Planning

As much as possible, limit your projections to only a year. A lot of things can happen and make your business different from how you initially planned it. Stick with your short-term or one-year targets and estimates, then just tweak your business plan as time goes by.

10. Including Unfounded Rumors About Your Competitors

Not only do rumors make your business plan look unprofessional, but they also distract your readers from your intended message, which is to highlight what makes your business different from the competition. Avoid including details based only on hearsay. Everything in your plan must be backed up by solid, quantifiable facts.

Key Takeaway

A business plan is more than just a document that you prepare once and will never look at again. Rather, it’s a strategic tool that you should use from time to time to guide your business operations, get the buy-in of your stakeholders, and grow your business over time.

Once you’re done with writing your business plan, make the most of it for your business. Use it and modify it as often as needed!

Ready and confident to start writing your business plan? Share your thoughts and questions below!

Other Useful Business Resources from Grit PH:

• How to Sell a Business in the Philippines

About Venus Zoleta

Venus Zoleta is an experienced writer and editor, specializing in personal finance and digital marketing.

She has been a regular columnist for some of the biggest business & finance publications in the Philippines, such as MoneyMax.ph and Filipiknow.net.

Hoping to retire early, she started investing and bought a home in her early 20s. This crazy cat mom eats ramen like there's no tomorrow.

Education: University of the Philippines (B.A. Journalism) Focus: Personal Finance, Personal Development, and Entrepreneurship

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Hello Ms. Venus, Rise Against Hunger Philippines, N.G.O. , branching out into a new high ways… and i am newly hired as a social enterprise development officer… whose main tasks to launch a product line; an up-cycled tarpaulin bags.. manufactured by a group of community women (skills training’s, coordinated by life coached; aiming w-holistic transformation and sustainability program.. . with such a big tasks, i need a step by step guides, and if possible a coach for i cannot do it alone… thank you, henry reandino chua

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How To Create A Marketplace Business Plan In 11 Steps: Full Guide

• November 17, 2023
• Fundraising

Both in the B2C and B2B industry, marketplaces have reshaped how we purchase online. They are flourishing in all verticals today, from large-scale consumer markets to B2B niche sectors. Whether you are raising capital or applying for a grant, you will need a solid business plan for your marketplace startup.

Whilst every marketplace is unique, we strongly recommend to follow in your business plan a clear structure vetted by dozens of high-profile VC firms globally. Having a powerful and clear business plan will maximise your chances of raising capital from potential investors.

In this article we walk you through the 11 sections you must have in your Marketplace business plan. Let’s dive in!

Note: If you are looking for a pitch deck instead, read our guide here . Although business plans and pitch decks are similar, they are also very different in their format. If you aren’t sure what is best for you, we recommend to read our article on the key differences between business plans and pitch decks .

Marketplace Business Plan: The Template

If you are creating a business plan for your marketplace startup, we recommend you follow the following structure:

• Executive Summary
• The Problem
• The Solution
• Market Opportunity
• Competitive Landscape
• Business Model
• Intellectual Property
• Marketing Strategy
• Financial Plan

1. Executive Summary

The executive summary is the introduction of your business plan. This is a section you should spend a lot of time on as it’s the first impression investors will have when looking at your business plan.

The executive summary should fit in 2 pages maximum . Make it to the point, concise, and make sure to answer the following questions:

• What is the problem you want to solve?
• What is your solution?
• Who are the co-founders behind the project?
• Do you have early traction?
• What are you asking for (capital from investors, government grant application, etc.)?

2. The Problem

This is the “why” of your business. Explain in this section what is the problem you are trying to solve.

The greatest businesses are solving big problems, yet they aren’t necessarily obvious . For instance, your marketplace might be in a niche B2B market and digitalising a legacy industry (health supplies for private clinics for instance). As such, you are solving an important problem for private clinics: the lack of product information, choice and unfavourable bargaining power from large suppliers.

Ideally you would list the 2/3 friction points you aim to fix. For instance, digitalisation usually fixes multiple problems at once: it is fast, seamless and accessible (vs. slow, prone to errors and non-readily available / accessible solutions).

Expert-built financial model templates for tech startups

3. The Solution

Your startup builds and commercialises a product and/or a service which solves the problem explained earlier.

This section should not explain in detail your product nor how it works. Instead, it should focus on the benefits for your customers .

Ideally, you should compare the pain points explained on section 2 (the Problem) to the benefits your solution brings to your customers. That way,  it is crystal clear to investors your solution really adds value to potential customers .

Following our marketplace example above, the benefits could be:

• Availability of products and comparability: clinics can choose exactly the product they are looking for, easily comparing features vs. alternatives
• Price competition ensuring best price-quality ratio

4. Market Opportunity

Here, you need to clearly identify 2 very important metrics:

• Market size :  how big is your market?
• Market growth:  how fast does your market grow?

If you are operating in a niche market, chances are that you will face some challenges: the information might not be publicly available. In any case, you should be able to make a high-level estimation of your market.  Read our article on market sizing and how to estimate TAM, SAM and SOM for your startup .

When looking for these metrics, you have multiple sources of information: public reports, specialised press, etc. Even public companies publish press releases and annual reports including some of their proprietary market estimates so be sure to look there too.

5. Competitive Landscape

How fragmented is your market.

Are there 3 big players sharing 90% market share or thousands of small players? Here, refer to public market reports and your own understanding of the competitive landscape.

A few questions you could ask yourself, among others:

• Who are your competitors?
• Are they local, regional, national or global?
• Are there any marketplace already in your industry or suppliers only?
• What’s the bargaining power of suppliers vs. buyers?

Where do you position yourself vs. competition?

Is your solution a game changer other competitors don’t have (yet)? Do you have competitors with similar products/services?

Ideally, you would create a small table with, for each type of competitors (e.g. wholesalers, marketplaces, direct suppliers, etc.) the main characteristics they share or not. For instance, do they all a global presence? Do they cover all the products you offer? Are they selling multiple brands / suppliers products? What is their relative price positioning (expensive vs. accessible)?

6. Business Model

This section is very important. Now that we have clearly identified the problem you are solving and the benefits of your solution, let’s have a closer look at your product.

This is where you clearly explain 2 key things:

Which products/services do you offer?

Marketplaces typically act as intermediary between sellers and buyers for specific products and/or services. Unfortunately, the global marketplaces like Amazon are exception to the rule here.

Here you will need to explain clearly what is your product offering : what services/products are you focusing on? Ideally, you would show a breakdown in terms of orders or revenues (pie chart for instance). Indeed, using our health supplies B2B marketplace example above, you might only focus on disposable health supplies (and not heavy medical equipments) for instance.

Another key information to add here is the average order value: what is the average value of the products? Are products transacting on your marketplace $50 piece second-hand clothing or $20,000 specialised industry rental machinery?

Pricing model

Marketplace are generating revenues from a number of sources, usually there are 3 main sources:

• Commission revenue : the main source of marketplaces. Marketplaces generate commissions revenues from 2 sources: either percentage of order value (for instance 10% of all transactions’ value) or a fixed fee instead (for instance $20 per transaction)

Note: the sum of commission revenues as a percentage of total transaction value (gross merchandise value) is usually referred to as “rake” or “take rate”. For a refresher on the 10 most important marketplace metrics, read our article here .

• Subscription revenue : you offer a tiered system, freemium or not (free plan) users need to pay for (monthly or annual billing cycle). You can charge either sellers or buyers (or both) for accessing the marketplace
• Additional revenues: marketplaces can sell add-on services such as promotion & content (e.g. promoted ads), white-label products, marketing and branding services, etc.

7. Intellectual Property

This section is optional: only include it if you already have a MVP. If so, you have a strong argument for product-driven investors which will give a lot of credit to your tech.

Be careful not to go into too many specifics though: investors aren’t always engineer by training. Do not put things like the programming language you have chosen (e.g. React, Python) or the database provider (PostgreSQL, MongoDB).

Instead, include things such as:

• whether you have a white-labelled solution or a proprietary back-end / database
• how many full time front/back-end engineers you have
• how much you invested already in your tech

8. Marketing Strategy

This section explains  how you acquire sellers and buyers respectively .

Depending on the type of customers you have, acquisition will likely be different. For instance, large suppliers (sellers) are usually acquired via outbound acquisition (Sales representatives). Instead, consumers (buyers) are acquired purely through traffic (paid or organic).

The different sources of acquisitions for marketplaces are:

• Paid marketing : any paid digital marketing campaigns (pay-per-click or per-impressions), whether it is search to your landing page (e.g. Google Ads), social media (e.g. Facebook Ads) or referrals. Paid marketing is mostly used to acquire sellers and buyers. As explained above, whilst buyers can be acquired exclusively through paid marketing or organic growth (see below), sellers can also require sales team effort (see below)
• Organic growth : you acquire sellers and buyers without paying for it. Organic growth is typically driven by investment in content (SEO, social media)
• Outbound acquisition : you acquire sellers (or rarely buyers) thanks to your sales team who contact potential customers via phone, emailing or in-person sales efforts. This is especially true for marketplaces who connect a few large suppliers to potential buyers.

Once you have clearly explained your acquisition strategy and what tools you are using (e.g. Google Ads for paid search, social media and content for organic growth), ideally you can show, among others:

• Your average  Customer Acquisition Cost
• Conversion rates and its components (add-to-cart rate, cart abandonment rate)
• Your monthly paid ads budget
• The number of followers you have on social media
• Your newsletter count

Note: for a refresher on the 10 most important marketplace metrics, read our article  here .

The roadmap tells investors where you are going and how is product going to evolve in the future. You can either keep it high-level (e.g. your long-term strategy) or more detailed (e.g. the pipeline of the near-future product features).

Investors do not just invest in your product as it is today. For example, you might only have developed a MVP with limited features for  early-adopters  while your product could be tweaked and serve a much larger customer base in the future.

Also, you might be broadening the type of products you offer in the future. Or you might introduce premium services such as a subscription, or premium listing fees. All of these additional features are very important to add in your investment deck.

Note: if you choose to include your product pipeline, keep it very simple. Your marketplace business plan isn’t your product manager’s presentation to engineers.  Instead of features, focus on the additional benefits and customer segments you might target  as such.

In this section you should focus on the people behind the company. Unlike in the executive summary, the team section of your business plan should not be limited to the cofounding or management team.

Instead, you should explain the current organisational structure of your company, the different teams, who they report to and their relative size.

For the people, keep it short. Keep biography to a minimum and only to key people (cofounders and management team). As rule of thumb, 5 lines per team member are enough, 10 a maximum.

When it comes to biographies, only include what is relevant: name, position, years of experience and/or previous companies is more than enough.

What about advisors?

Do you have angel investors with significant experience who advise you on strategy? Do you have a PhD who acts as advisor to your marketplace startup (on regulation and market access matters for instance)?

Any advisor should also be included here, with the same level of detail as for the management team.

Demonstrating in your business plan that not only team members but also experts are advising and/or sitting on your board is a strong selling point.

Note: add a clickable link to the respective Linkedin profiles so investors can refer to a more exhaustive resume for your team members (if relevant)

11. Financial Plan

Along with your product and the team, this section is very important. Unfortunately, many startups overlook the importance of financial projections in their Marketplace business plan.

Think about your audience: investors (venture capital firms or angel investors) are financially literate individuals . As such, they invest in your business to generate returns. Logically, they care a lot about your financials and more especially,  the expected financial performance of your business .

Do not expect investors to make up their own plan for your startup if you haven’t. As CEO, founder or entrepreneur alike,  you should have a clear idea of where you are going .

As rule of thumb, the more advanced your startup is, the more granularity you should include here. Pre-seed startups might keep it short (2/3 pages maximum) yet we recommend seed and Series A+ startups to include 4/5 pages at least instead.

Common marketplace metrics you should include in your financial plan slide are:

• Gross Merchandise Value (GMV)
• Average Order Value (AOV)
• Seller / Buyer Ratio
• Repeat Orders Rate
• Customer Acquisition Cost (CAC)
• Customer Lifetime Value (CLV or LTV)

For a complete list of the 10 most important metrics for marketplace businesses, refer to our article  here .

Marketplace Financial Model Template

Download an expert-built 5-year Excel financial model for your pitch deck

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Event Venue Business Plan: How to Start and Grow Your Event Space Business

Are you looking for a way to turn your passion for hosting events into a profitable business? Do you want to know how to create a successful event venue business plan that will attract investors and customers? If so, you are in the right place.

In this article, we will show you how to start and grow your event space business with a comprehensive and professional business plan. We will also provide you with a free business plan template and examples that you can download and customize for your own needs.

What is an Event Venue Business?

An event venue business is a company that provides a space for hosting various types of events, such as weddings, corporate meetings, social gatherings, sports events, and more. An event venue business can offer different services and amenities, such as catering, entertainment, equipment rental, security, parking, and more.

An event venue business can be a lucrative and rewarding venture, as it can generate multiple streams of income from different clients and events. However, it also requires a lot of planning, investment, marketing, and management to succeed in a competitive market.

Why Do You Need an Event Venue Business Plan?

A business plan is a document that describes your business goals, strategies, market analysis, financial projections, and operational details. It is essential for any type of business, especially for an event venue business, because:

• It helps you clarify your vision and mission for your business
• It helps you identify your target market and competitive advantage
• It helps you plan your marketing and sales strategies
• It helps you estimate your startup and operational costs
• It helps you forecast your revenue and profit potential
• It helps you attract funding from investors or lenders
• It helps you monitor and evaluate your progress and performance

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How to Create an Event Venue Business Plan?

Creating an event venue business plan can be a daunting task, but it can be simplified by following these steps:

Executive Summary: This is a brief overview of your business plan that summarizes your business idea, goals, market opportunity, competitive edge, funding request, and financial highlights. It should be written last after you have completed the rest of the sections. Learn more on business plan executive summary .

Company Overview: This is where you introduce your company name legal structure (sole proprietorship, partnership, corporation, etc.), ownership (who owns the company), history (when and how it was founded), vision (what you want to achieve) and mission (how you want to achieve it). Check our detailed guide on business plan company overview .

Industry Analysis: This is where you analyze the current trends and outlook of the event venue industry in your area or country. You should include information such as the size, growth, demand, supply, segmentation and profitability of the industry. You should also identify the opportunities and threats that affect your business. Read more on business plan industry analysis .

Competitive Analysis: This is where you identify and evaluate your direct and indirect competitors in the event venue market. You should include information such as their names, locations, services, prices, strengths, and weaknesses. You should also explain how you plan to differentiate yourself from them and gain a competitive advantage. Learn more on business plan competitive analysis .

Customer Analysis: This is where you define and describe your target market segments and customers. You should include information such as their demographics (age, gender, income, etc.), psychographics (interests, preferences, etc.), behavior (how they search for and book event venues), needs (what they want from an event venue) and pain points (what problems they face with event venues). You should also explain how you plan to reach them and satisfy them with your services. 

Operations Plan: This is where you describe how you will run your event venue business on a daily basis. You should include information such as your location (where your event space is located), facilities (what features and amenities your event space offers), equipment (what tools and machines you need to operate), suppliers (who provides you with goods or services), staff (how many people you need to hire and what roles they perform), processes (how you deliver your services) and quality control (how you ensure customer satisfaction). Do you want to explore more, find how operations plan works in business plan .

Marketing Plan: This is where you outline how you will promote your event venue business to attract customers. You should include information such as your marketing objectives (what you want to achieve with your marketing efforts), marketing strategies (how you will use the 4Ps of marketing: product, price, place, and promotion), marketing channels (where you will advertise or communicate with your customers), marketing budget (how much money you will spend on marketing) and marketing metrics (how you will measure the effectiveness of your marketing).Find our guide on what to include in  marketing plan in business plan .

Funding Request: This is where you state how much money you need to start and run your event venue business, and how you plan to use it. You should include information such as your funding sources (where you will get the money from), your funding needs (how much money you need for each purpose), your funding terms (what interest rate, repayment period, and collateral you offer), and your funding projections (how the funding will affect your financial performance).

Financial Plan: This is where you provide the financial statements and forecasts for your event venue business. You should include information such as your income statement (showing your revenue, expenses, and profit), your balance sheet (showing your assets, liabilities, and equity), your cash flow statement (showing your cash inflows and outflows), and your break-even analysis (showing when you will start making a profit). You should also include some financial ratios (such as profitability, liquidity, and solvency) and assumptions (such as growth rate, inflation rate, and tax rate) that support your financial plan. Read more on what to include in  business plan financial plan .

Appendix: This is where you attach any additional documents or information that support your business plan, such as market research data, customer testimonials, legal documents, resumes of key personnel, contracts, licenses, permits, etc. Check more details on what to include in business plan appendix .

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Where can you get an event venue business plan template and example.

If you want to save time and effort in creating your event venue business plan, you can use a template or an example that has already been prepared for you. The following is a free event venue business plan template and an example that you can download.

• Event Venue Business Plan Template
• Event Venue Business Plan Example

These templates and examples are easy to use and customize for your own needs. They also include tips and guidance on how to write each section of your business plan.

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Examples of event venue business plans that will assist you in writing yours.

I will give you an example with each section of Oren Co, which is an event venue business that specializes in hosting outdoor events. Here is an example:

Event Venue Business Plan: Oren Co

Executive summary.

Oren Co is a new event venue business that offers a unique and natural setting for hosting various types of outdoor events, such as weddings, corporate retreats, festivals, concerts, and more. Oren Co is located in Washington USA and operates on a 10-acre land that features a lush garden, a pond, a gazebo, a stage, a tent and other amenities. Oren Co aims to provide a memorable and enjoyable experience for its clients and guests, while also being environmentally friendly and socially responsible.

Oren Co has identified a growing demand for outdoor event venues in its area, as more people are looking for alternative and creative ways to celebrate their special occasions. Oren Co has also conducted thorough market research and competitive analysis and has found that it has a strong competitive edge over its rivals, as it offers a unique and natural setting, a variety of services and packages, affordable prices, and excellent customer service.

Oren Co is seeking $100,000 in funding to start and grow its business. The funding will be used for purchasing equipment, hiring staff, marketing and advertising, and working capital. Oren Co expects to generate $300,000 in revenue and $50,000 in profit in its first year of operation, and to break even in its second year. Oren Co also projects to increase its revenue and profit by 20% annually in the following years.

Company Overview

Oren Co is a sole proprietorship owned and operated by Mr. Oren Khan, who has over 10 years of experience in the event management industry. Mr. Khan has worked as an event planner, coordinator and manager for various companies and organizations, such as WiseBusinessPlans, Eventful Solutions and Washington USA Tourism Board. Mr. Khan has also organized and hosted several successful outdoor events for his own clients, such as weddings, corporate retreats, festivals and concerts.

Oren Co was founded in August 2023, after Mr. Khan acquired a 10-acre land in Washington USA that was previously used as a farm. Mr. Khan saw the potential of transforming the land into an event venue that could cater to the growing demand for outdoor events in his area. Mr. Khan invested $50,000 of his own savings to renovate the land and equip it with the necessary facilities and amenities for hosting events.

Oren Co’s vision is to become the leading provider of outdoor event venues in Washington USA and beyond. Oren Co’s mission is to offer a unique and natural setting for hosting various types of outdoor events, while providing high-quality services, affordable prices, and excellent customer service.

Industry Analysis

The event venue industry is a subset of the broader event management industry, which includes planning, organizing and hosting various types of events for different purposes and audiences. The event venue industry consists of companies that provide spaces for hosting events, such as hotels, resorts, convention centers, banquet halls, stadiums, theaters, etc.

According to IBISWorld, the global event management industry was worth $1.1 trillion in 2020 and is expected to grow at an annual rate of 3.6% from 2021 to 2026. The growth of the industry is driven by factors such as increasing disposable income, urbanization, globalization, technological innovation and social media. The industry is also influenced by trends such as personalization, sustainability, diversity and creativity.

The event venue industry in USA is a growing and profitable segment of the event management industry. According to Market Research Future, the event management market in USA was worth $1.2 billion in 2019, and is expected to grow at an annual rate of 8.2% from 2020 to 2025. The growth of the market is driven by factors such as increasing population, economic development, cultural diversity, tourism and entertainment.

The event venue industry in USA is also experiencing a shift in consumer preferences and behavior, as more people are looking for alternative and creative ways to celebrate their special occasions. According to a survey by Eventbrite, 78% of USA consumers prefer to spend money on experiences rather than things, and 72% of them are interested in attending outdoor events. Moreover, according to a report by Event Industry News, outdoor events are becoming more popular and profitable in USA, as they offer more flexibility, variety and affordability than indoor events.

Competitive Analysis

Oren Co faces competition from other event venue providers in its area, both direct and indirect. The direct competitors are those that offer similar services and cater to the same target market as Oren Co, such as outdoor event venues, parks, gardens etc. The indirect competitors are those that offer different services but cater to the same target market as Oren Co, such as indoor event venues, hotels, resorts etc.

Some of the main direct competitors of Oren Co are:

Green Valley: This is an outdoor event venue that offers a green and spacious setting for hosting weddings, parties, corporate events and more. It is located in Lahore, about 50 km from Oren Co’s location. It has a capacity of up to 500 guests, and offers services such as catering, decoration, entertainment, photography etc. It charges an average of $2,000 per event. Royal Garden: This is an outdoor event venue that offers a royal and elegant setting for hosting weddings, parties, corporate events and more. It is located in Islamabad, about 100 km from Oren Co’s location. It has a capacity of up to 1,000 guests, and offers services such as catering, decoration, entertainment, photography etc. It charges an average of $3,000 per event. Dreamland: This is an outdoor event venue that offers a dreamy and romantic setting for hosting weddings, parties, corporate events and more. It is located in Faisalabad, about 150 km from Oren Co’s location. It has a capacity of up to 800 guests, and offers services such as catering, decoration, entertainment, photography etc. It charges an average of $2,500 per event.

Some of the main indirect competitors of Oren Co are:

Pearl Hotel: This is an indoor event venue that offers a luxurious and modern setting for hosting weddings, parties, corporate events and more. It is located in Lahore, about 50 km from Oren Co’s location. It has a capacity of up to 500 guests, and offers services such as catering, accommodation, entertainment, photography etc. It charges an average of $4,000 per event. Grand Resort: This is an indoor event venue that offers a grand and elegant setting for hosting weddings, parties, corporate events and more. It is located in Islamabad, about 100 km from Oren Co’s location. It has a capacity of up to 1,000 guests, and offers services such as catering, accommodation, entertainment, photography etc. It charges an average of $5,000 per event. Paradise Hall: This is an indoor event venue that offers a simple and affordable setting for hosting weddings, parties, corporate events and more. It is located in Faisalabad, about 150 km from Oren Co’s location. It has a capacity of up to 800 guests, and offers services such as catering, decoration, entertainment, photography etc. It charges an average of $1,500 per event.

Oren Co has a strong competitive edge over its rivals, as it offers a unique and natural setting that appeals to the growing demand for outdoor events in its area. Oren Co also offers a variety of services and packages that suit different needs and budgets of its clients. Oren Co also offers affordable prices and excellent customer service that ensure customer satisfaction and loyalty.

Customer Analysis

Oren Co’s target market consists of individuals and organizations that are looking for an outdoor event venue for hosting various types of events, such as weddings, parties, corporate retreats, festivals, concerts etc. Oren Co’s target market can be segmented into two main groups: personal customers and business customers.

Personal customers are those who are looking for an outdoor event venue for hosting their personal or social events, such as weddings, parties, anniversaries etc. These customers are mainly motivated by factors such as personal preference, emotional value, social status and word-of-mouth. These customers are mainly located in Washington USA and nearby regions, and have an average income of $10,000 per year.

Business customers are those who are looking for an outdoor event venue for hosting their business or professional events, such as corporate retreats, team building activities such as corporate retreats, team-building activities, seminars, workshops etc. These customers are mainly motivated by factors such as business objectives, cost-effectiveness, convenience and reputation. These customers are mainly located in Washington USA and nearby regions and have an average income of $50,000 per year.

Oren Co’s target market is large and growing, as more people and organizations are looking for alternative and creative ways to celebrate their special occasions. According to a report by Event Industry News, the outdoor event market in USA is expected to grow at an annual rate of 10% from 2020 to 2025. Oren Co’s target market is also profitable, as the average spending per event is $2,500 for personal customers and $5,000 for business customers.

Oren Co’s target market is also accessible and reachable, as Oren Co can use various channels and methods to promote its services and attract its customers, such as online platforms, social media, referrals, partnerships etc. Oren Co can also leverage its location advantage, as it is situated in a strategic and convenient location that is easily accessible by road and public transportation.

Marketing Plan

Oren Co’s marketing plan consists of four main elements: product, price, place and promotion.

Product: Oren Co’s product is its outdoor event venue that offers a unique and natural setting for hosting various types of events. Oren Co’s product also includes its services and packages that provide catering, decoration, entertainment, photography and other amenities for its clients and guests. Oren Co’s product is designed to meet the needs and expectations of its target market, as it offers flexibility, variety and affordability.

Price: Oren Co’s price strategy is to offer competitive and reasonable prices that reflect the value and quality of its product. Oren Co’s price strategy also aims to attract and retain its customers, as well as to generate revenue and profit for its business. Oren Co’s price strategy is based on factors such as market demand, competitor prices, cost of production and profit margin. Oren Co’s average price per event is $2,500 for personal customers and $5,000 for business customers.

Place: Oren Co’s place strategy is to distribute its product through its own physical location that serves as its outdoor event venue. Oren Co’s place strategy also involves using online platforms such as its website and social media accounts to showcase its product and communicate with its customers. Oren Co’s place strategy is intended to make its product available and accessible to its target market, as well as to create a positive image and reputation for its business.

Promotion: Oren Co’s promotion strategy is to use various channels and methods to advertise and promote its product and business to its target market. Oren Co’s promotion strategy also aims to create awareness, interest and desire for its product, as well as to encourage action and loyalty from its customers. Oren Co’s promotion strategy includes the following activities:

Online marketing: Oren Co will use online platforms such as its website, social media accounts, email newsletters, blogs etc. to showcase its product, share its stories, testimonials and reviews, offer discounts and incentives, and interact with its customers and potential customers.

Offline marketing: Oren Co will use offline channels such as flyers, brochures, banners, posters etc. to display its product, highlight its features and benefits, and provide its contact details and location. Referral marketing: Oren Co will use word-of-mouth and referrals to spread the word about its product and business, and to generate positive feedback and recommendations from its customers and partners. Oren Co will also offer rewards and incentives for referrals, such as discounts, vouchers, freebies etc.

Partnership marketing: Oren Co will partner with other businesses and organizations that are related or complementary to its product and target market, such as event planners, caterers, decorators, entertainers, photographers etc. Oren Co will also partner with local media outlets, influencers, celebrities etc. to gain exposure and publicity for its product and business.

Financial Plan

Oren Co’s financial plan consists of three main components: startup costs, income statement and cash flow statement.

Startup costs: Oren Co’s startup costs are the expenses that are required to start and launch its business. Oren Co’s startup costs include the following items:

Equipment: This includes the purchase of equipment such as tables, chairs, tents, stage, sound system, etc. The total cost of equipment is $30,000.

Staff: This includes the hiring of staff such as event manager, event coordinator, event staff etc. The total cost of staff is $10,000.

Marketing: This includes the expenses for marketing activities such as online marketing, offline marketing, referral marketing and partnership marketing. The total cost of marketing is $5,000.

Legal: This includes the fees for legal services such as registration, licensing, permits etc. The total cost of legal is $2,000. Miscellaneous: This includes the costs for other items such as insurance, utilities, maintenance etc. The total cost of miscellaneous is $3,000. The total startup costs for Oren Co are $50,000.

Income statement: Oren Co’s income statement is a summary of its revenue and expenses for a given period of time. Oren Co’s income statement for the first year of operation is as follows:

Revenue: This is the amount of money that Oren Co earns from its product sales. Oren Co’s revenue is calculated by multiplying the number of events by the average price per event. Oren Co expects to host 100 events in the first year, with an average price of $3,500 per event. Therefore, Oren Co’s revenue for the first year is $350,000.

Expenses: This is the amount of money that Oren Co spends on its business operations. Oren Co’s expenses include the following items:

Cost of goods sold: This is the cost of producing and delivering its product. Oren Co’s cost of goods sold is calculated by multiplying the number of events by the average cost per event. Oren Co estimates that the average cost per event is $1,500, which includes the costs of catering, decoration, entertainment, photography and other amenities. Therefore, Oren Co’s cost of goods sold for the first year is $150,000.

Operating expenses: This is the cost of running and managing its business. Oren Co’s operating expenses include the following items:

Staff: This is the cost of paying salaries and wages to its staff. Oren Co estimates that it will have 10 staff members in the first year, with an average salary of $1,000 per month. Therefore, Oren Co’s staff expense for the first year is $120,000.

Marketing: This is the cost of conducting marketing activities to promote its product and business. Oren Co estimates that it will spend 10% of its revenue on marketing in the first year. Therefore, Oren Co’s marketing expense for the first year is $35,000.

Legal: This is the cost of paying fees for legal services such as registration, licensing, permits etc. Oren Co estimates that it will spend 5% of its startup costs on legal in the first year. Therefore, Oren Co’s legal expense for the first year is $2,500.

Miscellaneous: This is the cost of paying for other items such as insurance, utilities, maintenance etc. Oren Co estimates that it will spend 5% of its revenue on miscellaneous in the first year. Therefore, Oren Co’s miscellaneous expense for the first year is $17,500.

The total expenses for Oren Co are $325,000.

Profit: This is the amount of money that Oren Co earns after deducting its expenses from its revenue. Oren Co’s profit is calculated by subtracting its expenses from its revenue. Therefore, Oren Co’s profit for the first year is $25,000. Cash flow statement: Oren Co’s cash flow statement is a report of its cash inflows and outflows for a given period of time. Oren Co’s cash flow statement for the first year of operation is as follows:

Cash inflows: This is the amount of money that Oren Co receives from its product sales and other sources. Oren Co’s cash inflows include the following items:

Revenue: This is the same as the revenue in the income statement. Oren Co’s revenue for the first year is $350,000. Loans: This is the amount of money that Oren Co borrows from banks or other lenders to finance its startup costs and working capital. Oren Co plans to obtain a loan of $40,000 with an interest rate of 10% per annum and a repayment period of 5 years. Therefore, Oren Co’s loan inflow for the first year is $40,000. The total cash inflows for Oren Co are $390,000.

Cash outflows: This is the amount of money that Oren Co spends on its business operations and other purposes. Oren Co’s cash outflows include the following items:

Startup costs: This is the same as the startup costs in the financial plan. Oren Co’s startup costs are $50,000. Expenses: This is the same as the expenses in the income statement. Oren Co’s expenses for the first year are $325,000. Loan repayments: This is the amount of money that Oren Co pays back to its lenders for its loan principal and interest. Oren Co’s loan repayments are calculated by using an amortization table. According to the table, Oren Co’s loan repayments for the first year are $10,200.

The total cash outflows for Oren Co are $385,200.

Net cash flow: This is the amount of money that Oren Co has left over after subtracting its cash outflows from its cash inflows. Oren Co’s net cash flow is calculated by subtracting its cash outflows from its cash inflows. Therefore, Oren Co’s net cash flow for the first year is $4,800.

Oren Co is a new business that offers an outdoor event venue for hosting various types of events in Washington USA. Oren Co has a strong competitive edge over its rivals, as it offers a unique and natural setting that appeals to the growing demand for outdoor events in its area. Oren Co also has a large and profitable target market that consists of individuals and organizations that are looking for an alternative and creative way to celebrate their special occasions. Oren Co also has a comprehensive marketing plan that uses various channels and methods to advertise and promote its product and business to its target market. Oren Co also has a realistic financial plan that shows its revenue and expenses projections, as well as its cash flow analysis. Oren Co expects to generate a profit of $25,000 and a net cash flow of $4,800 in the first year of operation.

Oren Co is confident that it can achieve its goals and objectives, as it has a clear vision, mission and values that guide its business decisions and actions. Oren Co also has a dedicated and experienced team that works hard to deliver high-quality products and services to its customers and guests. Oren Co also has a positive and optimistic attitude that helps it overcome any challenges or difficulties that it may face along the way.

Oren Co hopes that this business plan will convince potential investors and partners to support its business venture and help it grow and succeed in the outdoor event industry.

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Event venue business plan faqs.

Permits and licenses vary by location, but generally, you’ll need a business license, zoning permits, health and safety permits, and possibly a liquor license.

Use online platforms like your website and social media, offer competitive pricing, exceptional customer service, and network with event planners and industry professionals.

Effective strategies include having a visually appealing website, utilizing social media, collaborating with local event vendors, hosting open houses, and offering discounts for initial bookings.

Clear communication with clients, comprehensive event contracts, detailed checklists, and assigning a dedicated event coordinator or team are essential for managing event logistics.

Typical costs include rent/mortgage payments, utilities, insurance, maintenance, marketing, staff salaries, and event-specific expenses like catering and audiovisual equipment.

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Event Venue Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Event Venue Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Event Venue Plan Here

Event Venue Business Plan

You’ve come to the right place to create your business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their event venues.

Event Venue Business Plan Sample & Template

Below are links to each section of a sample plan that can be used as a template for your own plan:

Next Section: Executive Summary >

Event Space Business Plan FAQs

What is an event venue business plan.

A business plan is used to start and/or grow your venue. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan, and details your financial projections.

You can  easily complete your event venue business plan using our Event Venue Business Plan Template here .

What Are the Main Types of Event Venues?

There are many types of event venues. Some own one venue and rent it out for wedding receptions, corporate events, and other parties. Others have relationships with and rent out hotels, sports arenas, restaurants, and other venues which are desirable to their clientele.

What Are the Main Sources of Revenues and Expenses for an Event Space?

The primary source of revenue for event venues is booking fees paid by clients. Sometimes event spaces also generate revenue from catering events and providing entertainment at them.

The key expenses for event venues are the cost of leasing the venue(s) and staffing costs, particularly if they provide services during the events.

Read more about how to get funding: Seeking Funding from Angel Investors vs Venture Capitalists .

How Do You Get Funding for Your Event Venue Business Plan?

Event venues are most likely to receive funding from banks. Typically you will find a local bank and present your plan to them. Angel investors and credit card financing are other common funding sources.

What are the Steps To Start an Event Venue Business?

Starting an event venue business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Event Venue Business Plan - The first step in starting a business is to create a detailed event venue business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your event venue business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your event venue business is in compliance with local laws.

3. Register Your Event Venue Business - Once you have chosen a legal structure, the next step is to register your event venue business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your event venue business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Event Venue Equipment & Supplies - In order to start your event venue business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your event venue business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful event venue business:

• How to Start an Event Venue Business

Where Can I Get an Event Venue Business Plan PDF?

You can download our free  event venue business plan template PDF here . This is a sample event venue business plan template you can use in PDF format.

Other Business Plan Templates

Catering Business Plan Template

Bakery Business Plan Template

Coffee Shop Business Plan Template

Food Truck Business Plan Template

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7 Strategies to Maintain Business Continuity

Aaron Ricadela | Content Strategist | April 29, 2024

In This Article

What Is Business Continuity?

Seven tips to maintain business continuity, minimize downtime and interrupted services with oracle, business continuity faqs.

When a natural disaster, major IT outage, or other calamity knocks the systems employees use offline, companies need both disaster recovery technology and a sound business continuity strategy. A solid plan accounts for potential threats—including natural disasters, cyberattacks, and local and widespread outages—and lays out how the organization will respond to each.

Business continuity plans typically include instructions for keeping communication lines open, protecting data, and making sure employees are safe and as productive as possible. A sound plan will minimize downtime, financial losses, and reputational damage and maximize the speed with which normal operations are resumed.

Business continuity refers to the plans, processes, and procedures an organization puts in place to ensure that essential functions continue during and after a disaster or unexpected event. Key components of a business continuity plan include risk assessments, emergency response procedures, communication plans, backup and recovery strategies, instructions on how to train staff on their responsibilities, and a schedule for updating and testing protocols.

Risk assessments should include disruptive events, such as natural disasters, wars, acts of terrorism, heat waves, and floods, as well as IT failures caused by software bugs, human errors, and cyberattacks—anything that could derail your normal business operations and lead to financial losses. A strategy for responding to and coping with these events starts with a business impact analysis that rates the likelihood of each potential threat and the possible resultant damage.

Successful business continuity plans depend on a mixture of technology investments, sound processes, and training that walks employees through crucial steps before disaster strikes. Here are some strategies for building the needed technology infrastructure, preparing staff, and keeping external stakeholders informed.

One key: Cloud technologies, including hybrid IT architectures, can lower the cost of the disaster recovery piece of business continuity and disaster recovery (BCDR) by helping departments restart systems faster.

1. Train team members.

Research has shown that business continuity plans benefit from having visible executive sponsors. Companies also need to update and train team members regularly on their responsibilities. Stakeholders can benefit from tabletop testing, where they verbally run through steps in a conference room or a physical walk-through of the actions they’d take during a disaster.

2. Embrace automation.

Automation can support business continuity by helping to put select processes on “autopilot,” reducing the potential for human error or information overload to cause an outage. As an example, consider automated data backups to the cloud , whereby important files are continuously saved and stored securely in multiple locations that are accessible from anywhere an employee has internet access. Another example is an automated monitoring system that can spot indications of an attempted data breach and stop it before data is lost.

3. Invest in IT.

IT teams that help their companies excel at business continuity design with resilience in mind. What that entails depends on the organization’s risk profile, but it generally involves building in redundancy in communications, staffing, data protection, and physical infrastructure. The cloud can help. For each essential service, ask: How can we provide continuous access both on-location and offsite with minimal interruption?

4. Move to the cloud.

A key aspect of business continuity is the ability to recover from outages that interrupt manufacturing, sales, transportation, and other operations. Cloud computing and newer application development approaches designed for the internet are changing how companies develop business continuity strategies. Instead of doubling or tripling IT budgets for redundant on-premises systems that need extra licenses, servers, storage, networking, and cooling, cloud services let businesses deploy crucial applications in multiple cloud data centers in different cloud regions. The apps can scale up resources in response to increased demand.

5. Prioritize reporting.

Business continuity planning relies on businesses providing timely updates that internal staff and external partners and regulators can depend on. Different communication styles and data could be necessary, depending on whether the recipients are executives, staff, customers, business partners, shareholders, or regulators.

6. Audit your business continuity plan.

It’s paramount that your plan aligns with your organization’s goals and with industry standards and key benchmarks, including state, national, and international requirements. Audits are particularly relevant for highly regulated industries, including financial services, healthcare, and utilities. Companies need to review their risk assessments, impact analyses, and recovery plans to make sure they meet the latest standards, for example, FEMA’s Federal Continuity Directive for federal organizations and the international ISO 22301 standard for business continuity management systems, and add testing and training where needed. Consider professional certifications in the field of business continuity and disaster recovery, such as those offered by Disaster Recovery Institute International (DRI) .

7. Communicate clearly.

Even the best-laid plans are no help if the people who need to execute them aren’t informed and equipped with the right tools. Department leaders, business continuity teams, and human resources departments can help communicate the importance of knowing what to do until normal operations resume. Businesses may create communication plans for the whole company and for individual departments whose work would be affected by a disaster.

Oracle Cloud Infrastructure (OCI) can help organizations guard against disaster-related computing downtime. Oracle separates its global cloud regions, which serve different geographic areas, into isolated, fault-tolerant availability domains, each with its own power and cooling. That means a failure in one domain is highly unlikely to stop computing work happening in another. Oracle Cloud technologies let IT departments add server resources to applications remotely and deploy their critical applications to multiple cloud regions.

Business continuity is especially important as IT systems become increasingly interdependent and more transactions are done online. An outage at one company can have a ripple effect on others. Business leaders need to determine which of their processes and associated software are mission-critical, rank others in tiers, and budget for recovery plans accordingly.

A distributed cloud provides the flexibility to choose where and how services are delivered to meet your needs—including BCDR. See why Oracle has been named a Leader in the 2023 Gartner® Magic Quadrant™ for Distributed Hybrid Infrastructure. Get the free report now.

How do organizations manage business continuity?

Business leaders generally start their business continuity planning by deputizing key members of IT, operations, HR, and other departments to catalog potential disasters that could disrupt work. They prioritize processes that their organizations can’t afford to go without and draw up detailed plans and personnel assignments for actions during a calamity and recovery afterward. Companies that effectively manage business continuity ensure staff are trained and plans are rehearsed.

What are examples of business continuity?

Examples of business continuity are strategies that enable organizations to minimize disruptions and continue functioning even in the face of unexpected events. Business continuity strategies include having a crisis communication plan in place to keep stakeholders informed during an emergency and having remote work capabilities to ensure employees can work from anywhere.

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• Business and industry
• Trade and investment
• Export finance
• UK Export Finance Business Plan 2024-29
• UK Export Finance

UK Export Finance Business Plan 2024-2029

Published 30 April 2024

© Crown copyright 2024

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected] .

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/publications/uk-export-finance-business-plan-2024-29/uk-export-finance-business-plan-2024-2029

1. Executive Summary

This is UK Export Finance’s (UKEF’s) 5‑year strategic plan. It sets out how UKEF will grow the impact it delivers for the UK public, looking out to 2029.

UKEF supports UK exports – from companies large and small – helping to create economic growth and support jobs across the UK. It also creates wider impacts, like bolstering the UK’s leadership in green industries and building commercial partnerships with fast growing developing markets.

1.1 The structure of our plan

Delivery objectives.

Five objectives setting out the real‑world impact UKEF will target over the next five years.

Five‑year milestones

Puts a number on our ambition by setting out our numerical expectation of the impact we will create by 2029.

Strategic enablers

Describe how UKEF will evolve as an organisation to deliver the best service possible for our customers.

1.2 Our strategic enablers

• Putting the customer at the heart of everything we do
• Being purposeful and responsible with our risk taking
• Making UKEF the best place to work for our people
• Ensuring we have the right digital and data solutions to inform our activities
• Ensuring UKEF is an agile, fit-for-purpose organisation

1.3 Our objectives and five-year milestones

2. foreword.

I am exceptionally proud to present UK Export Finance’s (UKEF) next business plan. When I took on the role of UKEF’s Chief Executive Officer, I saw first‑hand the impact we have, and the momentum and drive of a department committed to serving its customers and delivering for the taxpayer. In that spirit, I set out my priorities for the department: maximising our real‑world impact, delivering services for our customers, growing the reach and relevance of our support, and continuing to invest in our people to ensure UKEF remains a great place to work. This plan builds on those priorities and sets out the department’s guiding strategy for the next five years. It is rightly bold, ambitious and challenging, and will deliver impact across the UK and in communities overseas.

Our mission has changed since our last business plan. We are now aiming to advance prosperity by ensuring no viable UK export fails for lack of finance or insurance, doing that sustainably and at no net cost to the taxpayer. Those principles – of delivering prosperity to individuals and communities, of doing our business sustainably, and of upholding our responsibility to the UK taxpayer – underpin all the work we do and our approach to supporting UK exporters.

This business plan also marks a shift for the department. UKEF has a proud track record of delivering tangible outcomes for our customers and partners, helping UK businesses realise their global ambitions. Our success will always be their success. Now we are also putting that impact at the heart of our business plan for the first time.

This approach is about recognising the strength of the UKEF offer and the role we can play as a catalyst for the UK economy – whether supporting the low‑carbon transition or using our deep sectoral understanding, global relationships and the opportunities created by new free trade agreements to get more UK businesses involved in large international projects. It is already guiding our strategic focus, most obviously in our new objectives and our Sustainability Strategy that I am pleased to launch alongside this business plan.

For our customers, this plan means a reaffirmation – and evolution – of the UKEF proposition. It means more digital services, a better user experience and a continued commitment to deliver innovative and game‑changing solutions that work for them, so that UKEF can unlock the finance they need to export. But our customers are not the only stakeholders we serve. We also have a responsibility to the taxpayer – to ensure that our services are delivered in a way that delivers value for money, protects against the risk of financial crime, and mitigates effectively against the risk of default.

Our ambitions build on strong foundations. Under our last business plan, we grew our portfolio, diversified our customer base and product range, and played a pivotal role in the response to some of the most pressing challenges of our time – the pandemic, the invasion of Ukraine and climate change.

None of this would have been possible without UKEF’s greatest asset: our people.

As we enter this next period, we will continue to invest in them, ensuring UKEF remains a place where talented people choose to build their careers, motivated by the real impact we have on the world.

Tim Reid, Chief Executive Officer

3. ukef’s strategic context.

Our world has faced a series of crises that have upended norms and led to a substantial global realignment. The pandemic, the war in Ukraine, persistent inflation and the effects of climate change are all having marked impacts not just on the UK but across the world. Against this backdrop, UKEF will play a key role in growing the UK’s trade base, supporting a greater value and volume of exports across this period.

Looking across the period of the business plan, the fundamentals of UKEF’s work will not change. The UK is a major exporting nation, and throughout our history UK companies have sold their goods and services across the world. Our core purpose remains as relevant as ever – but our offer will need to evolve. While UK service exports have stayed strong due to a deep comparative advantage across financial, cultural and business services, our goods exports are currently below pre‑pandemic levels. We will need to do more to help bring the domestic benefits of trade to more businesses large and small. This will mean supporting more exporters, significantly scaling the number of small and medium‑sized enterprises (SMEs) we support in all regions of the UK, and better targeting those who are underserved, such as ethnic‑minority and women‑led businesses.

At the same time, this is an era of global challenges – from climate change and biodiversity loss to the slowing progress towards poverty reduction and an uncertain economic environment. Export credit agencies are increasingly looked to not only to fulfil a market gap, but also to support their governments’ wider international and domestic policy objectives. Geopolitical tension and uncertainty is leading to increased global defence spending and a focus on building greater supply chain security – requiring us to continue to play a pivotal role in financing exports from the UK’s world‑leading defence and aerospace sectors. The imperative of addressing climate change means we will also need to expand our provision of clean growth and transition finance. And we will increase our financing for social infrastructure in developing countries, helping to build strong trading and investment partnerships with the markets of the future.

We live in an increasingly contested and volatile world. Trade can help us solve the problems of our time, unlocking the potential of British businesses, growing economies across the world and bringing the benefits of the climate transition to all. Helping UK businesses seize the opportunities of a changing world is the core of our 2024‑29 business plan.

4. Our mission, vision and values

UKEF is a purpose‑led organisation. We embed our vision and mission across our business, driving progress against the government’s priorities, delivering value for our customers and ensuring UKEF remains a great place to work.

Our mission

We advance prosperity, ensuring no viable UK export fails for lack of finance or insurance, doing that sustainably and at no net cost to the taxpayer.

To empower UK businesses, drive local growth and create a global impact.

5. Our impact

Each year, UKEF provides billions of pounds of financial support, helping businesses across the whole of the UK to export. This support makes a crucial difference, allowing UK firms – large and small – to grow by tapping into the enormous opportunities that global markets provide. This is at the core of our mandate, but the real‑world impact of our work is much wider: from supporting quality jobs in local communities in the UK and driving place‑based growth, to financing clean energy technologies that are needed for the global low‑carbon transition, and helping build much needed infrastructure in emerging economies.

Across the financial sector, firms are increasingly considering the impact of their finance and how they can drive better outcomes for customers and communities across the world. As a government department and a key tool for the UK government’s economic and foreign policy agenda, it is right that we do the same. Our staff consistently report that it is the impact of what we do that sets us apart and helps make UKEF a great place to work. Whether this is helping a small, local business in Teesside win a place in an overseas project, or financing a hospital to be built in Angola, our support touches individuals and communities across the world.

To ensure we fully understand the impact of our support, we have developed an impact framework, stemming from our mission statement, that sets out three thematic outcomes which UKEF support drives. Most importantly we support the UK’s prosperity, enabling firms to win contracts, create employment opportunities and pay higher wages. We have a sustainability impact, which includes supporting the low‑carbon transition. And we contribute to the UK government’s public policy aims, such as levelling up and the international development strategy. We work alongside the other public finance institutions in the UK, maximising the impact public finance can have and catalysing benefits for UK businesses through our combined approaches.

Our approach to impact has informed the development of this plan, with each of our delivery objectives aligned to the impact we want to have on the world. We are committed to ensuring that every strand of our operations – from our people, to how we use data and insights, to our approach to managing risk – are all focused on maximising the impact of our finance and support. The public rightly has high expectations for how their money is spent. This approach will give us assurance that we are driving positive outcomes while remaining responsible and appropriate with the amount of risk we take.

6. Delivery objectives for 2024-29

Our five delivery objectives set out what ukef will do to achieve our mission and continue to drive impact over the next five years:.

Catalyse UK trade through UKEF’s world-leading export finance and insurance offer

Significantly increase the number of SMEs that benefit from UKEF’s support

Support a broad range of businesses to export, driving local growth across all regions of the UK

Position UK exporters and suppliers at the heart of the global low-carbon transition

Use our finance in developing markets to create positive impact on communities overseas and in the UK

7. Objective 1: Catalyse UK trade through UKEF’s world-leading export finance and insurance offer

UKEF’s offering is our core strength – government‑backed finance on commercial terms that is focused on enabling British businesses to win contracts, fulfil orders and get paid. We will use our finance and insurance in support of the government’s trade agenda, driving UK exports, maintaining our place as a world‑leading export credit agency and expanding our support to more businesses than ever.

Support UK firms to win over £12.5 billion of export contracts by 2029

Enable £5 billion of finance to help exporters build their capability by 2029

7.1 How we will achieve this

8. objective 2: significantly increase the number of smes that benefit from ukef’s support.

The importance of the UK’s SMEs should not be understated. Comprising over 99% of all British businesses, they account for three‑fifths of employment and half of turnover in the private sector. Located across all regions and nations of the UK, these businesses provide local employment opportunities, bring UK expertise into global supply chains and are the heart of the UK economy. We want to support more SMEs that are looking to export and address the challenges they face in securing finance or insurance from the private sector. Underpinned by our trade finance products, including the General Export Facility, we will build on our historic successes and broaden our reach to even more of these businesses.

Support 1,000 SMEs per year before 2029

8.1 How we will achieve this

Expanding our reach to fill our addressable market for smes.

• Making it easier for SMEs to access our support, with more digital and automated services and quicker response times
• Delivering a targeted offering for smaller SMEs that struggle to access finance, covering both experienced and new exporters
• Doing more to help SMEs access finance from the private market
• Onboarding alternative finance providers that specialise in financing SMEs
• Better connecting SMEs with the projects that UKEF supports overseas, helping them win contracts
• Developing our offer for the overseas buyers of SMEs
• Modernising and expanding our insurance offering
• Delivering more targeted marketing and communications to build awareness of the UKEF offer

9. Objective 3: Support a broad range of businesses to export, driving local growth across all regions of the UK

UKEF is the export credit agency for the whole of the UK, so it is important that the benefit of our support is available to all businesses – irrespective of location, size or ownership. We know that underserved businesses have huge potential, but face barriers to accessing finance.

We are committed to increasing the impact we have on customers from underserved groups and ensuring that all regions and nations of the UK can benefit from UKEF’s offer.

Maintain a minimum of 80% of the businesses we support based outside of London over the business plan period

Measure the number of underserved businesses we support, setting a baseline and increasing the proportion of these businesses year-on-year

9.1 How we will achieve this

10. objective 4: position uk exporters and suppliers at the heart of the global low-carbon transition.

UKEF was one of the first export credit agencies to commit to reaching net zero by 2050, and we remain strongly committed to using our finance to facilitate the net zero transition. To achieve this, we will work with our partners to maximise positive climate impacts and mitigate negative ones, helping to accelerate the global transition to low‑carbon and climate‑resilient economies. We will enable the export of clean growth technologies, playing our part to bolster the UK as the world’s leading hub for green finance.

Provide £10 billion of clean growth finance to accelerate the UK’s green export sector by 2029

10.1 How we will achieve this

11. objective 5: use our finance in developing markets to create a positive impact on communities overseas and in the uk.

UKEF’s finance in developing and emerging markets can create mutual benefits, securing UK export wins and helping to deliver the infrastructure and other priority projects overseas that create economic growth. We know that developing countries will need vast quantities of finance to unlock clean and sustainable growth. UKEF actively mobilises finance into developing markets, de‑risking deals for commercial lenders and investors, and we remain committed to reforming and greening the international financing system. Over the course of this business plan, we will continue to contribute to the UK government’s international development offer, bringing the benefits of our support to the countries that need it the most.

Mobilise £10 billion of finance in low- and middle-income countries

11.1 How we will achieve this

12. our strategic enablers, 12.1 the blueprint for our delivery.

Our strategic enablers set a blueprint for achieving our business plan objectives. We have identified five enablers that will chart the path for us to deliver and will act as key areas of transformation over the next five years.

13. Customers

13.1 putting the customer at the heart of everything we do.

Serving the customer – UK exporters and those who buy from them – is at the core of our plan. We want our customers to benefit from clear, easy-to-use services. This means greater digitalisation to provide faster response times, innovative product development to respond to their needs, and consistent stakeholder engagement so our customers feel confident in our offering.

13.2 How we will achieve this

14. risk taking, 14.1 being purposeful and responsible with our risk taking.

Within our legislative and policy framework, effectively managing risk is key to everything we do. Due to the nature of our work – complementing the private sector, rather than competing with it – our portfolio tends to have a higher risk profile, a focus on emerging market risks, longer risk horizons and greater risk concentrations across certain sectors and geographic regions.

To manage this effectively, we must also act within our risk appetite using an appropriate risk management framework. Over the next five years, we will continue to strike that balance between ambition and responsible risk management, so that we can take the right risks to deliver against our objectives.

14.2 How we will achieve this

15.1 making ukef the best place to work for our people.

It is our people that shape our culture, uphold our values and who will ultimately make this plan a reality. Their knowledge, skills, creativity, and dedication will be what enables us to deliver on the strategy and ambitions we have mapped out for the next five years.

For UKEF to succeed, we must continue to build a working environment where our people feel valued, supported, and able to reach their full potential.

15.2 How we will achieve this

16. digital and data solutions, 16.1 ensuring we have the right digital data solutions to inform our activities.

A vast quantity of data flows into UKEF and is generated by UKEF every day.

Making sense of this data is key to ensuring our offer remains at the forefront of good practice, and that all our decision-making is evidence-driven and insight-rich.

Data and insights are the foundation of our organisation’s ability to take informed decisions, understand risks and secure business opportunities, and our use of technology helps us leverage this. Over the next five years we will continue on our path to becoming an insight‑driven organisation.

16.2 How we will achieve this

17. governance and accountability, 17.1 ensuring ukef is an agile, fit-for-purpose organisation.

UKEF is committed to high standards of governance and accountability, and as a ministerial government department, to delivering to the highest standards within our statutory remit for our ministers and wider stakeholder base.

Following the UK’s departure from the EU, this also includes opportunities created by our independent role in international forums to influence the wider enabling architecture for export credits. This will enable us to deliver our services more effectively and deliver on the government’s broader policy agenda.

17.2 How we will achieve this

18. our fiscal responsibility, 18.1 delivering value for taxpayers’ money.

UKEF operates at no net cost to the taxpayer over the long run, maintaining high standards of responsibility by adhering to the UK government’s Managing Public Money principles, and acting in accordance with our financial obligations as set out in HM Treasury’s Consent and UKEF’s governing legislation. We operate within an exposure limit and charge a premium that covers both the risk we take on and our operating costs. We have a number of financial objectives and a series of detailed risk policies, procedures and individual risk methodologies which determine how we assess, measure, manage and report the categories of financial risk we are exposed to.

One of the ways we can report on the level of financial risk we are taking on is through our measurement of maximum liability, which reflects the theoretical maximum value of claims payable across the portfolio. We are constrained on the amount of business we can underwrite by our maximum commitment limit, which sets out the maximum amount of exposure we are allowed to take.

But it is not only fiscal risk we manage. We monitor and assess a variety of other non‑credit risks, including:

• fraud, bribery and corruption, safeguarding taxpayer funds and avoiding loss occurring through export transactions tainted by financial crime
• legal risks, ensuring compliance with public law principles and applicable legislation and ensuring that UKEF’s documentation protects its position
• sustainability, environmental, social and governance risks, including the risk of supporting projects that do not adhere to human rights and modern slavery standards
• ensuring debt related to the transactions we support is consistent with sustainable lending principles

Our ministers and the UK taxpayer need to be confident that we remain a model of responsible and purposeful risk management. We will continue to proactively manage our risk and adhere to our fiscal requirements in pursuit of delivering our mission.

19. Contact us

[email protected]

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Toronto’s Villiers Island plan will waste a once-in-a-lifetime opportunity

Draft drawings of the demonstration plan for the revised Villiers Island precinct plan, as presented to the Waterfront Toronto Design review panel in March. Handout

Toronto’s public sector is planning a 33-hectare neighbourhood on Lake Ontario. It features fine new parks and vast swaths of empty public land. It represents a once-in-a-lifetime opportunity for dense, creative city-building.

And it is being wasted.

A plan for Villiers Island, located in the Port Lands just east of downtown, went to a public meeting on Thursday; it will go to Toronto City Council in June. The plan is a failure. It is supposed to maximize the delivery of housing; it will not. It could create a unique sense of place; it won’t do that either. Instead, it will deliver dull and regressive city-building with a focus on the car and indifferent public space.

This revised precinct plan, which amends the 2017 proposal, locks in key decisions about Villiers: density and the street pattern. The city “wants to have certainty around the density to confirm the infrastructure and servicing required,” a spokesperson said in a statement last week.

City hall should stop this train. It should call for a design competition to develop a new holistic vision for the area. Villiers should be a test case for a future Toronto: a dense city where people move by bike and transit, punctuated by lanes and squares that shun cars in favour of people.

Villiers Island precinct plan

This plan shows an arrangement of new

buildings under proposed zoning regulations.

Tower heights on public lands

12 to 24 storeys

25 to 34 storeys

35 to 44 storeys

45 storeys or more

Lake Shore Blvd.

Commissioners St.

developments

the globe and mail, source: sidewalk labs;

openstreetmap; the port lands

This plan shows an arrangement of new buildings under proposed zoning regulations.

Keating Channel

Tower heights

on public lands

the globe and mail, source: sidewalk labs; openstreetmap; the port lands

The world of Toronto architecture and planning is insular and conservative. But big things are possible. Right now, the Port Lands are being reshaped on a biblical scale. The $1.2-billion Port Lands Flood Protection Project redirects the Don River into a newly constructed valley lined with wetlands and green space.

Both projects are the work of Waterfront Toronto, which is owned by the city, the province and the federal government.

But while the river is poetry; the neighbourhood is prose. The flood protection plan came out of an international design competition, and New York landscape architects Michael Van Valkenburgh Associates have found a visionary solution. They are now completing the project with large parks that will be extraordinary.

A concept drawing for Promontory Park Playground, on Toronto's Waterfront.

But the precinct plan, from 2017, is the work of Toronto consultants under the eye of city hall. It reflects 1990s urban design thinking: Everything is uniform and lies on an axis. “View corridors” are left open to distant landmarks. Buildings are short. Each block is ringed by a wide road.

There is no sign that the area was once a wetland of deep significance to the place’s Indigenous occupants – including the Mississaugas of the Credit First Nation, who have had no major role in the plan so far. Vancouver is getting car-light, Indigenous-led new neighbourhoods in Senakw and Jericho Lands; Villiers gets a grid, just like the one British surveyors imposed on this place 200 years ago. (Villiers Sankey was once Toronto’s city surveyor. His name will soon come off the island, to be replaced by a one with Indigenous significance, but he would approve of the grid.)

The 2017 vision for Villiers had almost no tall buildings. The idea was the place should be “special,” so it should have “a lower scale than the rest of the city,” as Waterfront Toronto chief planning and design officer Christopher Glaisek told me two years ago .

That weird ethos – that a neighbourhood is not beautiful or functional when it has lots of people – pervades Toronto City Planning. When the public sector has full control of a new neighbourhood, it is far less dense than its contemporary counterparts. We’ve seen this in the early phases of Regent Park and (in Waterfront Toronto’s area of influence) the West Don Lands. Each of those places has a lot of asphalt and concrete, a lot of empty space and not enough street life.

At Villiers, it has been belatedly recognized that the place could take more people. In 2023, Toronto’s government asked Waterfront to alter the plan and ” maximize the amount of housing available .” That work is now coming forward.

But the original plan was so modest that, after a 60 per cent increase, the numbers remain low. Villiers is now about 9,000 homes on 33 hectares. By comparison, a 2024 proposal for co-op housing in Scarborough calls for 918 apartments on one hectare. The goal in both cases is to use market housing to subsidize social housing. If the buildings are too small, the numbers won’t work.

Certainly, the Villiers plan does not follow Toronto city council’s direction to “maximize” housing. Why does it not call for 15,000 homes? Or more? What are the actual constraints?

It’s unclear. Waterfront and city staff seem to be shaping it using subjective design ideas, which are mostly misguided. Density dies by a thousand cuts. Towers are spaced extremely far apart, and they are cut short to avoid casting shadows on a park blocks away. But the biggest problem is the streets: Staff seem to believe that they can never be too big. In the world’s most beloved city neighbourhoods, side streets are tight and labyrinthine. On Villiers, the narrowest will be 20 metres across, comparable to an arterial such as Bathurst Street. This adds up: Every metre spent on roads can’t hold green space or housing.

It can hold cars, though. These will be almost everywhere. While the neighbourhood will be served by an LRT and a showpiece cycle bridge, those in charge think it needs to accommodate lots of driving.

How were these choices made? What was prioritized? Despite multiple requests, the city’s urban design leaders, director Emilia Floro and downtown-area manager James Parakh, declined to speak with me.

That secrecy is a huge red flag. The governments of Toronto, Ontario and Canada are advocating for more new housing in our cities. Yet Waterfront Toronto – an agency they own – is leaving thousands of homes unbuilt, in one of the best locations in the country, and nobody will explain why.

In an interview Friday, Mayor Olivia Chow said she is closely watching the project to ensure it hits its targets of affordable housing and that the infrastructure is adequate. “There also has to be a really good public realm,” she said. “This needs to be beautiful in the true sense of the word.”

There are ways to achieve this. Imagine a neighbourhood where the streets are quiet, green, meandering passageways free of vehicles. Big social-housing towers and little condo blocks lounge across the landscape, linked by mews and plazas for walking, rolling and cycling. Copses of trees grow up in the corners. An LRT stop and accessible vehicle parking spots are always a block away.

That is the vision by Dutch firm BURA for Merwede in Utrecht – a 24 hectare district that will be largely car-free. It is now in construction.

There is even an example in Toronto at 2150 Lake Shore, in a far corner of Etobicoke. This development is roughly 2.5 times as dense as the new Villiers. (Its ratio of building area to land area is about 6.0, versus 2.4.) Yet it will have minimal car access and an enormous variety of buildings and spaces. This is the work of Allies and Morrison , a London firm that knows how to design a neighbourhood.

2150 Lake Shore, in a far corner of Etobicoke, is roughly 2.5 times as dense as the new Villiers. Allies & Morrison/Handout

Villiers should be shaped by such professionals: experienced urbanists who are willing to blow up the grid and erase tired local conventions. This is why a design competition is needed. Someone needs to show Toronto – and Canada – that a better city is still possible.

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Using partnerships and corporations to transfer farm assets

• Managing a farm
• Transfer and estate planning
• Utilizing partnerships and corporations to transfer farm assets

Quick facts

• Establishing a business entity, such as a partnership or corporation, can help with the process of transferring a farm business to the next generation.
• In Minnesota, there are two major categories of partnerships: partnerships and limited partnerships. 
• The two corporation entities available to farm businesses are S corporation and C corporation.

Developing any business entity is a complicated process. Seek assistance from a qualified legal expert and accounting assistance if you plan to explore developing a business entity.

Transferring the farm business to the next generation can be a daunting task. However, there are strategies and methods that can help simplify the process.

When operating as a sole proprietorship, it can be challenging to establish a transition plan. There are many individual assets that need to be accounted for such as machinery, equipment, livestock and land. It is difficult and time consuming to transfer separate, individual assets.

One possible solution is to establish a business entity such as a partnership or a corporation to accomplish the business transition. As members and owners of the entity, the parents are issued ownership shares or shares of stock in the entity. These shares can be sold, gifted or passed through an estate to the entering generation, over time, as a method of transferring the business. This does away with the need to transfer separate, individual assets. This also spreads out the parent’s income and thus tax obligations. It allows the entering generation the ability to acquire assets over time thus minimizing their need for large amounts of capital. 

In Minnesota, there are two major categories of partnerships: 1. partnerships and 2. limited partnerships. There are separate entities under each category which function differently.

1. Partnerships

There are two entities: general partnerships and limited liability partnerships.

General partnerships (GP)

Two or more people are required for the GP and are referred to as general partners. All partners are generally liable for all debts and obligations of the GP. There is no liability protection for their personal or partnership assets. Minnesota state law does not require a written partnership agreement. However, such an agreement outlining decision making and job responsibilities might be useful. If the name of the partnership is that of the partners (Henderson Family Partnership), the entity does not have to be registered with the State of Minnesota. The entity is taxed as a partnership, pass-through entity, with income allocated to each partner based on their ownership and included in their personal income tax.

Limited liability partnerships (LLP)

The LLP is similar to the GP with exceptions. All partners are general partners (no limited partners) but their liability exposure is limited to the assets they have placed into the LLP. Their personal assets are protected from liability exposure. The LLP is required to register with the Secretary of State in Minnesota. The LLP is taxed as a partnership, pass-through entity.

2. Limited partnerships

There are three partnership categories: limited partnership (LP), limited liability limited partnership (LLLP), and limited liability company (LLC).

Limited partnership (LP)

Two or more persons are required. There are both general and limited partners. General partners have no liability protection for their business assets but do for their personal assets. The limited partners’ assets in the LP as well as their personal assets have liability protection under the LP. The LP is required to register with the Secretary of State in Minnesota. and the Minnesota Department of Agriculture to comply with the Minnesota Corporate Farm Law. The LP is taxed as a partnership, pass-through entity.

Limited liability limited partnership (LLLP)

Two or more people are required. There are both general and limited partners and they have liability protection of both their LLLP assets and their personal assets. The State of Minnesota requires the LLLP be registered with the Secretary of State and the Minnesota Department of Agriculture to comply with the Minnesota Corporate Farm Law. The LLLP is taxed as a partnership, pass-through entity.

Limited liability company (LLC)

Requires only one person as a member of the entity. From a tax standpoint, the LLC can be taxed as a partnership pass-through entity or as an S Corporation. In addition, the LLC can afford tax savings via discounting assets and potential savings of self-employment taxes. The LLC provides liability protection much like that of a corporation.

The LLC has both members and managers. Members elect or appoint a board of directors. The State of Minnesota requires that the LLC register with the Secretary of State and the Minnesota Corporate Farm Law of Agriculture to comply with the Minnesota Corporate Farm Law.

The LLC can offer one additional level of liability protection by being registered in one of what are referred to as “protective states”. Although the list changes occasionally, some of the protective states include: Alaska, Arizona, Delaware, Nevada, New Jersey, South Dakota, Texas, Virginia and Wyoming. These states have written their LLC statutes to include an additional level of liability protection as long as the LLC members abide by all the statute rules. It is legal to register, for example, your Minnesota farm business in one of these protective states and still operate in Minnesota as you have been. You would need a contact in the state where registered. That contact would establish the entity on your behalf and at year end send you a K-1 form for income and you file your tax return just as you do now. This is a complicated process so seek expert legal help if you decide to develop an LLC in one of the protective states.

Registering with Minnesota Department of Agriculture

For the entities that are required to register with the Minnesota Department of Agriculture  for compliance with the Minnesota Corporate Farm Law, this is an annual requirement and there is a $15 fee required to file the documentations. In addition, land held in trust must also register annually with the Minnesota Department of Agriculture for compliance with the Minnesota Corporate Farm Law.

As mentioned, partnerships pay no income taxes. All profit/loss, capital gains and credits are passed through to the partners on a prorated basis, depending upon the percent of ownership. However, the partnership must file a Form 1065 informational tax return, which is due each year by April 15.

Advantages and disadvantages

An advantage over sole proprietorship is that the owners have ownership units or shares. These units or shares can be sold, gifted or passed through an estate as a means of transferring the business over time to the entering generation.

One disadvantage with a partnership, except the LLC, is that the death of a shareholder or willful withdrawal by a partner can seriously disrupt partnership operations. The partnership agreement, if put into place at time of formation of the entity, should clearly describe buy-out provisions or state how the remaining partners are protected, no matter how circumstances change.

Partnership tax laws

Partnership tax laws are similar to individual tax laws. A partnership can generally take over the depreciation schedule of contributed machinery or buildings. A partnership can claim the Section 179 depreciation expense which is passed on pro rata to the partners. Each partner can claim depreciation, which includes his or her portion of the partnership allocation plus any other personal Section 179 depreciation.

Partnership members are self-employed individuals and must pay self-employment tax on their share of earned partnership profits. Partnerships do not receive the favorable tax treatment on fringe benefits (medical, accident and life insurance, housing and meals) as do “C” corporations. However, it generally costs less to form a partnership than a corporation and partnerships can be less formal to operate.

There are two corporation entities available to farm businesses. They are: S corporation and C corporation.

1. S corporation

The S corporation offers a higher level of asset liability protection than a sole proprietorship and some of the partnerships. It must be registered with the Secretary of State in Minnesota. The S corporation is taxed as a pass-through entity with profits allocated to the stock shareholders based upon their ownership percentage. The income then shows up on the shareholders personal income tax. There is no double taxation issue.

Business operating assets can be placed into the S corporation or they can be left out with only the corporate checkbook as part of the corporation operating entity. Placing assets into the corporation is a non-taxable event but getting them out is not. For that reason, it is a general rule of thumb not to place land into the corporation. See your attorney and accountant for advice specific to your situation.

2. C corporation

The C corporation also affords a higher level of asset protection than the sole proprietorship or some of the partnership entities. The C corporation offers longevity to the business because it is technically an entity onto itself with a life of its own. That is, people can enter and leave the C corporation and it continues on without interruption. It also affords many tax advantages regarding deductible expenses.

The C corporation however, can be subject to double taxation. The dividends paid to shareholders are taxed. If the corporation is not growing or acquiring new assets resulting in the corporation retaining earnings, those earnings can be taxed as well. Corporate tax rates are generally higher than other tax rates. Business operating assets can be placed into the C corporation or they can be left out with only the corporate checkbook as part of the corporation operating entity. Placing assets into the corporation is a non-taxable event but getting them out is not. For that reason, it is a general rule of thumb not to place land into the corporation. See your attorney and accountant for advice specific to your situation.

One additional point that applies to both S and C corporations. Shareholders have to maintain an employer-employee relationship with the corporation. If the shareholders maintain personal ownership of what they consider corporate assets, charge corporate business expense against those assets, are audited by the IRS, they may be denied those expense deductions because the assets were owned by the shareholders, not the corporation.

A corporation is established under state law. Each state permits corporations the right to do business. A corporation consists of owners who are called shareholders. The shareholders are the basic decision making group. They elect a board of directors to act for them on most operational decisions. Majority vote governs corporate decisions. Ownership of 51 percent or more of the stock gives you control. Minority shareholders have little if any decision making control unless permitted to do so by the majority shareholders.

Once a corporation is created, it functions much as a self-employed individual might. Corporations must establish their own name and bank accounts. The corporation can become an employer, a lessor or lessee, a buyer or seller, or engage in any other business activity.

Reasons why farms incorporate 

• It is easy to transfer shares. Shareholders can gift, sell or pass through an estate, shares to others as they see fit. A majority shareholder can transfer up to 49 percent of the outstanding shares without losing control of the business.
• A corporation may simplify estate settlement in that it may be easier to value shares than individual farming assets.
• Self-employment (SE) tax can sometimes be reduced with a corporate structure. Instead of paying SE tax on all the Schedule F income as a self-employed individual would, the farmer becomes an employee of the corporation and social security taxes are paid only on wages they receive. See your accountant.
• A portion of meals and lodging furnished to employees of a C corporation are generally deductible to the corporation, but not taxable income to the employee. If lodging is provided on the farm and is a condition of employment, the home’s depreciation, heat, electricity and interest become deductible to the corporation. Remember the employer-employee relationship issue.
• Fringe benefits are deductible by C corporations. Health, accident and up to $50,000 of term life insurance is deductible to the corporation, but not taxable to employees.
• The corporation offers perpetual life, some economic efficiencies regarding capital acquisition, and provides income and social security tax flexibility. It can also provide continuation of a farm business through several generations.

Potential concerns related to the corporation

• Getting into a corporation is generally a tax-free event. Getting out is a taxable event. Don’t start a corporation unless you plan to continue it for many years.
• If the C corporation is profitable but is not growing and acquiring new assets, it can be troubled with retained earnings or excess profits. This can result in a tax obligation.
• Corporations have a different set of rules. Corporate meetings, extra record keeping, corporate income tax returns, reporting requirements, and quarterly tax estimates are part of corporate life. Complying with extra legal and regulatory requirements cost time and money each year.
• Minority shareholders have no power in directing the corporate business and can be easily “frozen out.” A majority shareholder (farming heir) can direct that no dividends be paid. Minority (non-farm heirs), may own shares that generate no income, and hence have no practical value.
• Corporate ownership of a house eliminates the use of the exclusion of gain or a sale of personal residence.
• Corporate ownership sometimes reduces independence and individual pride of ownership.
• It can be very difficult for a retired shareholder to receive any retirement income from an operating corporation. This is especially true if the retiree has no rental property, discontinues working for the corporation, and the corporation pays no dividends.

The farm corporation can be a valuable tool in tax planning and in the transfer process. However, it is a major commitment and a complex task to start a farm corporation. Before starting a corporation, make sure it fits your goals, objectives and business personality.

Self-employment tax on land, buildings and facility rent regarding entities

The US Eight Circuit Court of Appeals has ruled that if you are a member of any business entity (such as a partnership or corporation explained above); own land, buildings, or facilities that are outside that entity; and rent those items to the entity; the rental income is exempt for self-employment tax IF the rent is fair and reasonable.

This applies only to those states in the eighth circuit which include Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota and South Dakota. With any of these laws, they are subject to change so seek legal advice on this matter.

Discounting business entity assets

An additional strategy that may be useful is the discounting of assets being placed into a business entity, such as any of the partnerships or corporations described earlier.

When you place business assets such as machinery or livestock into the business entity, you can elect to discount those assets. The main reason for discounting assets being placed into the business entity is to reduce the size of an estate in order to get below the federal and perhaps even the state estate applicable exclusion amounts. Doing so will reduce or eliminate any estate tax.

Justification for the discount is based upon lack of marketability of the assets due to a fractional ownership interest.

One disadvantage of discounting is that you have artificially lowered the basis of the assets in the entity. This can be a problem if the entity is discontinued and the assets are sold as a result. This could result in a tax obligation. If the assets are replaced due to use, this is not an issue.

Assets being discounted and placed into an entity should be appraised. If, at a future date, the entity is audited by the IRS, you can document the value of the assets placed into the entity. For machinery and equipment, simply take the depreciation schedule to the local implement or equipment dealer and ask them to put a value on all machinery. Have them put the values in writing on their dealership letterhead along with a signature and date. For livestock you can take a list to a livestock auction facility or someone who deals in livestock and would have a grasp of the values. The values should be put in writing and listed on their letterhead with a signature and date. For land, seek the help of a realtor who deals with ag land. Simply have them do an estimate or appraisal of the land, put it in writing on their letterhead, with a signature and date.

Note:  In late 2016, the Internal Revenue Service and the US Treasury Department enacted 2704 rules which drastically changed discounting rules and during which situations they may apply. If assets are transferred and then sold, discounting will definitely not apply.  If you are contemplating discounting any assets seek legal and accounting assistance to make sure you are in compliance with 2704 rules.

Business entities and maintaining homestead classification

When using a business entity for ag land ownership, caution must be used in order to maintain eligibility for the Minnesota Qualified Small Business Property Qualified Farm Business Property estate exclusion. In addition, utilizing limited liability companies (LLCs) as a business entity have new rules to comply with due to passage of the Minnesota Revised Uniform Limited Liability Company Act of 2015. The law states the land-owning LLC and its members must be the ones farming the land on behalf of the owner LLC. If the owner LLC rents the land to someone else, even another member of the LLC who then farms it personally, homestead classification is lost and therefore the qualified farm property estate exclusion is also lost. New LLCs must have complied with the new law as of August 1, 2015. Existing LLCs must have complied with the new law by January 1, 2018.

Ag land held in any trust, except a revocable living trust, as well as land in limited partnerships, limited liability limited partnerships, S and C corporations and LLCs must file documentation with the Minnesota Department of Agriculture under the Minnesota Corporate Farm Law in order to be eligible for the qualified farm property exclusion. The application must be done annually and there is a filing fee of $15 per application.

For more details on the Minnesota Homestead Classification requirements see maintaining farm land homestead classification and qualification . This is a complex area and there is a lot at stake regarding the qualified farm property estate exclusion so seek legal advice specific to your situation when establishing any entity that owns ag land.

Farm Service Agency (FSA) payments and business entities

Under the current farm bill, there are some restrictions regarding commodity program payments made to individuals versus entities. Entities that limit member’s liability exposure (all entities except the general partnership) are limited to one maximum payment limit regarding FSA commodity program payments.

This is a complicated issue. If you have any questions or concerns related to your situation, check with your FSA office for details of the program.

Caution: This publication is offered as educational information. It does not offer legal advice. If you have questions on this information, contact an attorney.

Gary Hachfeld, former Extension educator; David Bau, Extension educator and C. Robert Holcomb, Extension educator

Reviewed in 2017

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