mop making business plan

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Soap Making Business Plan

Low startup costs, high margins, and a diverse market make soap-making an excellent business choice, especially for those who enjoy DIY projects and artistic expression. However, starting a business without proper planning can make you feel overwhelmed at times.

Need help writing a business plan for your soap making business? You’re at the right place. Our soap making business plan template will help you get started.

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• Fill in the blanks – Outline
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How to Write a Soap Making Business Plan?

Writing a soap making business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your business: Start your executive summary by briefly introducing your business to your readers.
• This section may include the name of your soap making business, its location, when it was founded, the type of soap making business (E.g., handmade soap making, natural soap making, commercial soap making), etc.
• Market opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Product and services: Highlight the product line you offer your clients. The USPs and differentiator products you offer are always a plus.
• For instance, your product line may include handmade soaps, organic soaps, scented soaps, soap bars, liquid soaps, and lotion bars.
• Marketing & sales strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Business description: Describe your business in this section by providing all the basic information:
• Handmade soap making business
• Organic soap business
• Private-label soap-making business
• Liquid soap business
• Commercial soap making business
• Describe the legal structure of your soap making company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the owners of your soap making company. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business history: If you’re an established soap making service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
• Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future goal: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your business.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of products they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• For instance, a company offering private-label soaps might target a hotel chain, spa chain, or retail store that wants to offer its own branded soap products.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
• Competitive analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your products from them. Point out how you have a competitive edge in the market.
• Market trends: Analyse emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
• There is a growing demand for natural and organic products, so explain if you manufacture or sell organic soaps, and if not, what you plan to do next.
• Regulatory environment: List regulations and licensing requirements that may affect your soap making company, such as business registration, packaging and labeling requirements, ingredient regulations, environmental regulations, etc.

Here are a few tips for writing the market analysis section of your soap manufacturing business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Lotion bars
• Shampoo bars
• Liquid soaps
• Organic soaps
• Scented soaps
• Handmade soaps
• Quality measures: This section should explain how you maintain quality standards and consistently provide the highest quality products.
• This may include regular quality checks, testing pH levels, compliance with regulations, excellent manufacturing practices, and testing the final product for fragrance, texture, and performance.
• Packaging and labeling: Discuss your final product’s packaging and labeling options, including sustainable and eco-friendly packaging options. Explain how you meet regulations by providing relevant information about your packaging process.

In short, this section of your soap making plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique selling proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique products you provide. Identifying USPs will help you plan your marketing strategies.
• For example, handmade and natural ingredients, unique fragrances, creative shapes and designs, and eco-friendly packaging could be some of the great USPs for a soap making company.
• Pricing strategy: Describe your pricing strategy—how you plan to price your products and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing strategies: Discuss your marketing strategies to market your products. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, content marketing, and print marketing.
• Sales strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales calls, offering competitive pricing, seasonal discounts, product customizations, and attending trade shows and events.
• Customer retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, offering free samples, personalized service, etc.

Overall, this section of your soap making business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your soap making business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & training: Mention your soap making business’s staffing requirements, including the number of employees or production staff needed. Include their qualifications, the training required, and the duties they will perform.
• Operational process: Outline the processes and procedures you will use to run your soap making business. Your operational processes may include soap production, inventory management, sales and marketing, shipping and fulfillment, customer service, and administrative tasks.
• Equipment & machinery: Include the list of equipment and machinery required for soap making, such as mixing and blending equipment, heating equipment, cutting and molding equipment, safety equipment, etc.
• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your soap making business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founder/CEO: Mention the founders and CEO of your soap making company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include, key executives, senior management, and other department managers (e.g. operations manager, quality control manager.) involved in the business operations, including their education, professional background, and any relevant experience in the manufacturing industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your soap making services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance sheet: Create a projected balance sheet documenting your soap making business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.
• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing needs: Calculate costs associated with starting a soap making business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the soap making industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your soap making business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

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This sample soap making business plan will provide an idea for writing a successful soap making plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our soap making business plan pdf .

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Frequently Asked Questions

Why do you need a soap making business plan.

A business plan is an essential tool for anyone looking to start or run a successful soap making business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your soap making company.

How to get funding for your soap making business?

There are several ways to get funding for your soap making business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your soap making business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your soap making business plan and outline your vision as you have in your mind.

What is the easiest way to write your soap making business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any soap making business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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The Making of a Good Method of Procedure

Good MOPs (method of procedure) help humans manage the complexity inherent in data centers By Alfonso Aranda with Lee Kirby

Data centers are complex techno–human systems. The number of interrelated and interdependent elements (including the human element) that interact in the normal operation of a data center and the large number of interactions that take place combine to generate this complexity. These interactions include any installation or decommissioning of IT equipment; expansion or reconfiguration of the electrical, mechanical, control infrastructure, and ancillary installations (fuel, fire, and water treatment systems, etc.); and any maintenance action, etc. Increased automation adds more working and failure modes, which adds complexity to the system.

Failure Types Complexity generates a high risk of data center failure, which can originate in the infrastructure (electrical, mechanical, IT, communications) or as a result of interaction between those who manage the infrastructure and systems within those infrastructures or systems. Uptime Institute considers these interactions to be the leading cause of data center outages.

Failures of infrastructure can by contained and mitigated by redundancy in the data center, depending on the topology (Tier). Building a more robust and resilient infrastructure does not minimize these failures; additional mechanisms, organizational and operational in nature, must be deployed to prevent failures caused by human activities in the data center.

One such mechanism, the methods of procedure or MOP, is a step-by-step sequence of actions to be executed by maintenance/operations technicians performing an operation or action that implies a change of state in any critical component of an installation. Such actions include switching breakers on or off, opening or closing sectioning valves, and other actions that could pose a risk to the normal operation of the data center. The purpose of an MOP is to control actions to ensure the desired outcome.

MOPs, SOPs, and EOPs MOPs can be stand-alone documents or part of higher-level standard operating procedures (SOPs). In the latter case, the SOP is the overarching document that controls how changes are to be made during normal operations. They begin and end the overall procedure. Often, they comprise several MOPs that spell out specific steps for portions of the SOP. SOPs are not as detailed as individual MOPs.

Building an SOP from individual MOPs makes it easier to revise procedures, because the same MOP can be used as part of multiple SOPs. For example, the SOPs describing a filter change for CRAC1, CRAC2, etc., would include the same MOP of how-to steps to change out a filter but a different SOP for each CRAC. In that way updating the procedure for changing the filter only requires changes to the MOP, not to every SOP.

MOPs, SOPs, emergency operating procedures (EOPs), and site configuration procedures (SCPs) form the core of the data center site policies. EOPs are detailed written instructions that must be carried out sequentially when an abnormal event triggers the procedure.

Many of the characteristics of MOPs are also found in SOPs and EOPs, and all of these procedures can be applied—and actually are applied—in other fields (military, research, medical, etc.)

SCPs comprise those design and commissioning documents, drawings, schemes, tables, and studies that describe and document the normal configuration of the site, which sets up the initial conditions for the execution of any SOP or MOP.

Different sites may use different nomenclature in their site policies; however, to ensure their effectiveness, all site policies must cover the following areas:

• Description and administration of the normal operating configuration of the site (including setpoints, discrimination study, and normally open/normally closed breakers or valves, etc.)

• General overarching description of standard operations

• Detailed written instructions for executing changes of state or high/ medium-risk intervention

• Detailed written instructions for executing emergency operations for responding to abnormal events

The site policies and actual changes of state of the infrastructure operate within a change management environment.

Components of a MOP MOPs may contain different elements, fields, and details depending on the complexity of the activity to be carried out and the probability and impact of a failure in its execution. For instance, the field “expected result of the action” could be added to every step in the procedure.

In order to be effective, an MOP needs to be followed at the point and time of use by the appropriate person, supervised or not, depending on the company’s policies.

Every MOP should include a title, description of the procedure, author, approval authority/signature, date, unique identifier, and version control (see Figures 1-3).

Figure 1. Basic information to be included on all MOPs

Figure 2. Detailed step-by-step instructions form the basis of a good MOP. Note the columns for time and initials

Figure 3. The procedures continue, with a final step to inform the BMS operator that the procedure has finished, indicating cross-team communication.

MOPs should also include other information, including prerequisites, safety requirements, special tools and parts, procedure sequencing, and a back-out plan.

Prerequisites include any actions that must be completed prior to performing the procedure, including verifying that all appropriate approvals (e.g., change approval, permit to work, access approval) have been obtained, that any required notifications have been issued, and that any required reconfiguration of the infrastructure (SCPs) have been performed.

The MOP should list any special tools and parts, in addition to the basic toolbox and inventory of parts that technicians usually carry, needed to do the job. Interruptions to retrieve missing tools or parts will usually extend the length of maintenance windows and increase risk to the data center. Extensions of maintenance windows or deviations from the schedule agreed upon during the change approval can lead to the maintenance window being aborted. Aborted changes (maintenance windows are one type of change) can lead to deferred maintenance, which also increases risk to a data center.

Safety requirements include lockout/tagout (LOTO) procedures and the verifications associated with them, the required presence of safety representatives, and the required use of personal protective equipment (PPE).

Include any special tools and parts, in addition to the basic toolbox and inventory of parts that technicians usually carry, needed to do the job. Interruptions to retrieve missing tools or parts will usually extend the length of maintenance windows and increase risk to the data center. Extensions of maintenance windows or deviations from the schedule agreed upon during the change approval can lead to the maintenance window being aborted. Aborted changes (maintenance windows are one type of change) can lead to deferred maintenance, which also increases risk to a data center.

The most important parts of an MOP are the step-by-step instructions. Each and every step needs to be described in detail to indicate exactly what needs to be done and what the expected result is (e.g., alarms going off or indicator lights changing state).

MOPs must incorporate a mechanism that allows technicians to mark each step as completed, once it has been executed. This is normally achieved by adding a field for the technician to initial after carrying out the action indicated on that line. Additionally, incorporating a time stamp of the moment at which the action was completed provides a log of events in case a later analysis is needed.

Some MOPs incorporate pictures or diagrams to communicate certain steps and their outcomes.

Returning to State Back-out plans are step-by-step instructions for returning a system to its initial state or other pre-defined stable and safe state from which it can be operated at a later stage. The system could be taken at a later time to its initial state or any other intended state using the appropriate procedures (they could be EOPs). Back-out plans can be described as alternative action steps inserted within the MOP after some verification step or Go/No-Go checkpoint. These alternative action steps must be taken in case the outcome of the verification does not conform to the expected condition or if the result of the checkpoint is No Go. A back-out plan under certain predefined circumstances. These circumstances will usually be an unexpected outcome after the execution of one of the steps in the MOP, a No-Go condition at one of the verification steps, or any other abnormal event that might interfere with the normal execution of the MOP, for example, the unexpected interruption of the utility grid during the execution of the MOP.

MOPs must all be subject to certain processes to ensure that they are properly integrated in the operating routines of the data center. These include a review process and timing and preparation process.

Review and Approval Process MOPs must be integrated into the change management system to ensure that they are properly reviewed and approved. The duration and depth of the change approval reviews will depend on the criticality or risk of the MOP. A risk assessment must be performed to see if any of the actions or changes of state included in the procedure entail a high risk (high probability of occurrence of the problem or high impact if the problem happens).

Version control is critical for MOPs. The technician must have the latest official version and not an outdated or inaccurate one. This is particularly important in those sites where hard copies of MOPs (and EOPs) are located in the rooms of use.

MOPs should be reviewed at least annually to ensure that they are up to date and relevant. They should also be reviewed after any changes to the data center infrastructure, including setpoints, to reflect the new configuration.

Training and Preparation Process Employees must have the MOPs they need, understand them, and have practiced them prior to executing them. That is why employee training and qualification are so key to effectively executing an MOP.

Once an MOP is written and approved, it must be rehearsed, simulated via dry runs, and prepared with walk-throughs prior to executing it. The duration of the preparation stage, the number of checks and verifications, and the number of people involved will vary depending on the criticality of the change to be performed.

Corrections and adjustments must sometimes be made after executing a procedure. A mechanism to capture successful execution of MOPs or any identified discrepancies, issues, or lessons learned, or proposals for improvement is a key integral part of the MOP process.

Commissioning, when done completely and properly, is the single best training opportunity for the data center operations team and the reality check of all the processes and procedures in controlled, no-risk conditions. This will never be the case again once the data center is in production with IT loads. After that moment, any change of configuration in the data center will be subject to change control and the operators will not have a comparable level of freedom to exercise all components and elements of the installation.

The processes and contents by MOPs provide the framework for the successful daily operation of a data center.

Uptime Institute has found that successful MOPs share a number of common attributes. Successful MOPs

• define, detail, and delimit the interactions between the human and the machine and so effectively eliminate or minimize human error.

• describe actions that, when performed in the same sequence and starting from the same original configuration, lead to the same outcome.

• describe actions that leave no room for interpretation. Two different individuals following the same MOP will perform exactly the same actions in exactly the same order regardless of location, company, language, and cultural bias.

• describe actions in simple steps; the procedures never add complexity.

Achieving successful MOPs requires a careful balancing act. Overly long procedures and excessive detail may motivate technicians to cut corners, accelerate processes, or lose focus. Technicians may become bored or fatigued, or they may attempt to simplify the procedure. Overly complex layouts may frustrate a technician who must search for the right piece of information or subsequent steps in the document, which can lead to errors.

But the trait that stands out most: effective MOPs are those in which the technicians genuinely understand the need for the procedure and its objective.

There are many occasions on which a first version of site policies, including MOPs, have been created by the design consultant or commissioning agent, with more or less participation or input from the technicians who will ultimately execute those procedures. In these cases, it is very important to ensure that the ownership of reviewing, maintaining, and updating the procedures is transferred as soon as possible to the Operations team and that the technicians themselves originate a second and successive versions of the procedures, with as many changes and adaptations as they consider necessary. As covered in the best practice model Start With the End in Mind, developing, training and constantly updating procedures is a key component to any successful operation. This results in a committed team that buys into the concept and takes ownership of the responsibility over the accuracy and practicality of the procedures.

In summary, comprehensive MOPs are a key component to reducing data center outages caused by human error. However, they are only effective when they are complete and accurate and they are adequately followed.

Data center technicians must be trained, not only on the technologies and systems that configure the infrastructures but also on the different processes, procedures, and policies used on site. For MOPs in particular, technicians must know why it is important to use them, where to find them, and how they must be used. If the MOPs are complete and accurate and the technicians follow a disciplined approach to using them, the risk of an outage caused by human error will be minimized.

Alfonso Aranda

Alfonso Aranda Arias is a consultant with Uptime Institute. He performs Uptime Institute Professional Services audits and Operational Sustainability Certifications. He also serves as an instructor for the Accredited Tier Specialist course.

Mr. Aranda’s work in critical facilities has included design and engineering of data center facilities, project management for the design construction of large data centers, program management of major data center facility infrastructure developments, portfolio management of critical corporate real estate, and management of data center operations in EMEA. Mr. Aranda’s career has always been connected to data centers and project and energy management, through his technical roles and his management and senior leadership roles in corporations operating in the IT and telecommunications sectors.

R. Lee Kirby

R. Lee Kirby is Chief Technology Officer, Uptime Institute, providing thought leadership, new product development, and strategic marketing. He facilitates prospective engagements and delivers consistent quality services to contracted clients on a global basis. Additionally, Mr. Kirby serves as a spokesperson and evangelist for various initiatives that are focused on solving systemic issues in the industry.

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Soap Making Business Plan Template

Written by Dave Lavinsky

Soap Making Business Plan

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

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Soap Making companies.

Below is a template to help you create each section of your Soap Making business plan.

Executive Summary

Business overview.

Rose City Soap Company is a soap production company in Portland, Oregon that makes high-quality, all-natural, organic soaps. The company distributes its products across the metro area to major retailers and select department stores. The company’s products are also available directly to consumers via its website. We offer numerous fragrances to choose from, including rose, jasmine, and lavender. Our customers can depend on us to provide them with the perfect soap product that fits their preferences and needs.

Rose City Soap Company is run by Sandy Belrose. Sandy has worked for cosmetics stores for 10 years and has an in-depth knowledge of the industry and clientele. Throughout her career, she worked as a Store Manager, which has given her experience in the operations and management sides of running a business. Her experience, skills, and connections will be invaluable to the business.

Product Offering

Rose City Soap Company offers a variety of different soap products for consumers to choose from. The products come in four categories:

• Baby soap (bar and liquid)
• Liquid hand soap
• Foaming hand soap

Furthermore, the company will provide numerous scents for customers to enjoy. Some of our initial fragrances will include the following:

Customer Focus

Rose City Soap Company will primarily offer its products wholesale to local retailers, such as health and wellness shops, grocery stores, department stores, and cosmetics stores. However, the company will also have a website for individuals to purchase directly from the company rather than through a third party. We expect most of our retail and individual customers to be located in the Portland, Oregon metro area.

Management Team

Rose City Soap Company is run by Sandy Belrose, who has been a soap maker for 5 years. Over the years, she has experimented with various fragrances and ingredients to ensure all her products are high-quality and organic. She has already sold some of her products through online marketplaces but is making the transition to setting up her own website and selling her products in stores.

Though Sandy has never run a company of her own, she has been a manager of a cosmetics store for 10 years. This has given her an in-depth knowledge of the operations and management sides of running a business as well as of the clientele that typically purchases organic soaps.

Success Factors

Rose City Soap Company will be able to achieve success by offering the following competitive advantages:

• High-quality ingredients: Rose City Soap Company uses all-natural, organic ingredients and continuously strives to improve its product offerings. The company’s products do not contain any harmful chemicals. Instead, the company uses advanced organic and natural ingredients that don’t harm the skin.
• Management: The company’s management team has years of business and marketing experience that allows them to market and serve customers in an improved and more sophisticated manner than the competitors.
• Relationships: Having lived in the community for 20 years, Sandy Belrose knows all local leaders, newspapers, and other influencers in the area. It will be relatively easy for the company to build branding and awareness of the store and establish several product lines.
• Sustainability: Rose City Soap Company will be a zero-waste company with biodegradable packaging. It will maintain its eco-friendly status while scaling up to meet demand.

Financial Highlights

Rose City Soap Company is seeking $350,000 in funding to launch its soap-making business. The capital will be used for funding capital expenditures, staffing, marketing expenses, and working capital.

The breakdown of the funding may be seen below:

• Store design/renovation: $100,000
• Equipment, ingredients, and supplies: $50,000
• Three months of overhead expenses (payroll, rent, utilities): $100,000
• Marketing and advertising: $50,000
• Working capital: $50,000

The following graph below outlines the pro forma financial projections for Rose City Soap Company.

Company Overview

Who is rose city soap company, rose city soap company history.

Sandy Belrose is an entrepreneur who is passionate about providing soaps that are free of chemicals, preservatives, and other harmful ingredients. Rose City Soap Company will become a known soap manufacturer in Portland, offering a completely organic and natural experience.

Upon surveying the local customer base and finding the potential retail location, Sandy Belrose incorporated Rose City Soap Company as an S-Corporation on 11/11/202X.

Since incorporation, the company has achieved the following milestones:

• Found a location and signed a Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Determined equipment and inventory requirements
• Began recruiting key employees with experience in the cosmetics or soap manufacturing industries

Rose City Soap Company Services

Industry analysis.

The demand for organic and locally made cosmetics has increased substantially over the past decade. Consumers are eager to support local brands and want products that are free from chemicals. These factors have helped local soap industries thrive in recent years, and that trend doesn’t seem to be ending anytime soon.

For example, according to Grand View Research, the organic bar soap market is expected to increase at a compound annual growth rate of 8.2% from now until 2030. It is expected that the industry will be valued at USD 3.64 billion by the end of the decade.

A similar situation is occurring in the organic liquid soap industry. According to Allied Market Research, the industry will see a compound annual growth rate of 9.3% until 2027 and is expected to be valued at around USD 38 million by the end of the decade. These data show that as long as consumers continue to demand organic soaps and locally-made products, the soap industry will thrive.

Customer Analysis

Demographic profile of target market.

Rose City Soap Company will serve residents and businesses located in the Portland, Oregon metro area. There are hundreds of businesses and other establishments that would be interested in selling locally-made soap products.

The precise demographics for Portland, Oregon are:

Customer Segmentation

The company will primarily target the following customer segments:

• Individual buyers
• Grocery stores
• Cosmetics stores
• Department stores

Competitive Analysis

Direct and indirect competitors.

Rose City Soap Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

All Naturals

All Naturals is one of the most popular soap-making businesses in the Portland metro area. They have been in business for 20 years, selling a wide variety of soap products, including customized soaps. In addition to selling soaps, All Naturals also offers other skincare products such as lotions, body wash, and face wash.

Soap Experts

Soap Experts provides its customers with thousands of soap options in a variety of shapes, sizes, and fragrances. Customers can browse through their vast database via their website. Soap Experts also provides samples of their products for potential customers to try different scents and product types before purchasing.

Natural Bars

Natural Bars was established in 2010. Natural Bars’ current location is in Lake Oswego, where it can cater to a high-end clientele looking to be treated by experts and professionals in a more serene setting than that of the normal bustling soap shop. Its products are all 100% organic and free of chemicals. It also makes custom bars based on clients’ specific needs and preferences.

Competitive Advantage

Rose City Soap Company enjoys several advantages over its competitors. These advantages include:

• Relationships: Having lived in the community for 20 years, Sandy Belrose knows all local leaders, newspapers, and other influencers. It will be relatively easy for the company to build branding and awareness of the store and establish several product lines.

Marketing Plan

Brand & value proposition.

Rose City Soap Company seeks to position itself as a respectable, upper-middle-market competitor in the local soap-making industry.

The Rose City Soap Company brand will focus on the company’s unique value proposition:

• Offering a wide collection of soaps in liquid or bar form
• Offering a wide variety of fragrances
• Customer-focused mission
• Moderate price point
• Environmentally friendly, all-natural offering

Promotions Strategy

The promotions strategy for Rose City Soap Company is as follows:

Advertisement

Advertisements in local newspapers and magazines are an excellent way to connect with local consumers and retailers. Rose City Soap Company will advertise its products in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. Rose City Soap Company will use social media to develop engaging content in terms of soap-making and the company’s product offerings. Engaging with prospective consumers and businesses on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.

Word-of-Mouth Marketing

Rose City Soap Company will encourage word-of-mouth marketing from loyal and satisfied clients. The company will use recommendations and word-of-mouth marketing to grow its customer base through the network of its existing customers. The company will be incentivizing its existing customer base to encourage friends to come and try its service for the first time.

Special Offers

Rose City Soap Company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.

Rose City Soap Company’s pricing will be moderate, so customers feel they receive great value when availing of the products they are paying for. Customers can expect to receive high-quality soaps for a more affordable price than what they pay for ultra-premium brands.

Operations Plan

The following will be the operations plan for Rose City Soap Company.

Operation Functions:

• Sandy Belrose will operate as the President of the Rose City Soap Company. In addition to running the operations of the company, she will manufacture all the soap until demand requires her to hire additional help. She will also help out with marketing efforts and connect with local retailers who may be interested in selling the company’s products.
• Sandy will hire an Administrative Assistant to help with the administrative and operations sides of the business. They will also help with some of the marketing efforts, such as posting to social media.
• Once the business has several wholesale customers, Sandy will hire additional staff to help make and package the soap as well as provide customer service.

Milestones:

Rose City Soap Company expects to achieve the following milestones in the following six months:

• 4/202X Finalize lease agreement
• 5/202X Design and build out Rose City Soap Company
• 6/202X Hire and train initial staff
• 7/202X Kickoff of promotional campaign
• 8/202X Launch Rose City Soap Company
• 9/202X Reach break-even

Financial Plan

Key revenue & costs.

Rose City Soap Company’s revenues will come from its e-commerce sales as well as its wholesale accounts. The major costs for the company will be product costs and salaries. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.

Funding Requirements and Use of Funds

Rose City Soap Company is seeking $350,000 in funding to launch its soap making business. The capital will be used for funding capital expenditures, staffing, marketing expenses, and working capital.

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

• Year 5: 100
• Average order price: $25
• Annual Lease: $25,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Soap Making Business Plan FAQs

What is a soap making business plan.

A soap making business plan is a plan to start and/or grow your soap making business. 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 Soap Making business plan using our Soap Making Business Plan Template here .

What are the Main Types of Soap Making Businesses?

There are a number of different kinds of soap making businesses , some examples include: Glycerin Soap, Liquid Soap, Novelty Soap, and Herbal Soap business.

How Do You Get Funding for Your Soap Making Business Plan?

Soap Making businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Soap Making Business?

Starting a soap making business can be an exciting endeavor. Having a clear roadmap of how to start a soap business  will help you stay focused on your goals and get started faster.

1. Develop A Soap Making Business Plan - The first step in starting a business is to create a detailed soap making 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 soap making 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 soap making business is in compliance with local laws.

3. Register Your Soap Making Business - Once you have chosen a legal structure, the next step is to register your soap making 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 soap making 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 Soap Making Equipment & Supplies - In order to start your soap making 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 soap making 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 soap making business: 

• How to Start a Soap Business

Other Helpful Business Plan Templates

Ecommerce Business Plan Template Retail Business Plan Template

Building a Business Plan for Two Maids and a Mop: Success Checklist

Get Full Bundle

Looking to start your own Two Maids & A Mop franchise? With the demand for quality home cleaning solutions on the rise, now is the perfect time to dive into the industry. In this blog post, we'll provide you with a comprehensive checklist of 9 essential steps to help you write a successful business plan for your franchisee venture. But first, let's dive into some latest statistics about the industry and its growth.

The home cleaning industry has experienced steady growth over the years, with a market value of $XX billion in Year . This growth is expected to continue at a CAGR of XX% from Year A to Year B . As more homeowners seek reliable and professional cleaning solutions, there is a significant opportunity for Two Maids & A Mop franchisees to tap into this growing market.

To ensure your franchisee business plan is well-equipped for success, following a structured checklist is crucial. Let's dive into the 9 steps you need to take to write a comprehensive business plan for your Two Maids & A Mop franchisee:

• Conduct market research
• Identify target market
• Analyze competition
• Determine start-up costs
• Evaluate financing options
• Develop a marketing strategy
• Create a business structure
• Identify staffing needs
• Establish a timeline for implementation

By diligently following these steps, you'll be on your way to writing a comprehensive business plan that sets the foundation for a successful Two Maids & A Mop franchisee. Stay tuned for our upcoming blog posts where we'll dive deeper into each step and provide you with expert tips and insights to streamline your planning process.

Conduct Market Research

Before diving into the business plan for your Two Maids & A Mop franchisee, it is essential to conduct thorough market research. This step will provide you with valuable insights into the cleaning industry, local market dynamics, and customer preferences. Market research will be the foundation upon which you will build your business plan, allowing you to make informed decisions and increase your chances of success.

• Start by analyzing the demand for home cleaning solutions in your target area. Look for trends, patterns, and market gaps that you can exploit.
• Identify the key demographic segments that require professional cleaning services and understand their needs and preferences.
• Study your potential customers' behavior, such as their spending habits, preferred communication channels, and purchasing decision-making process.
• Assess the overall size and growth potential of the local cleaning industry. Look for statistics and forecasts to determine if the market is expanding or saturated.
• Examine the factors that influence the industry, such as economic conditions, population growth, and housing trends.

Tips for Conducting Market Research:

• Utilize both primary and secondary research methods. Primary research involves gathering data directly from potential customers through surveys and interviews, while secondary research utilizes existing sources like industry reports and government data.
• Take advantage of online resources and tools to access market data and industry insights. Websites like Statista and Census Bureau can provide valuable information.
• Consider hiring a market research firm if you have the budget. They can offer expert guidance and conduct comprehensive studies tailored to your specific needs.
• Stay up-to-date with the latest industry trends and innovations. Follow relevant blogs, participate in forums, and attend industry events to network with professionals and gain insights.

By conducting thorough market research, you will gather the necessary information to understand your target market, identify opportunities, and develop a strategy that will differentiate your Two Maids & A Mop franchisee from competitors. Remember, this step sets the stage for your business plan and lays the groundwork for success.

Identify Target Market

Identifying your target market is crucial for the success of your Two Maids & A Mop franchisee. By understanding who your ideal customers are, you can tailor your marketing efforts and product offerings to meet their needs and preferences.

To identify your target market, you first need to consider the specific demographics and characteristics of the customers who are most likely to be interested in your premium cleaning products and equipment. Consider factors such as age, gender, income level, and location.

Tip: Conducting market research surveys or analyzing data from existing franchises can help you gather information about your potential customer base. This data can provide insights into their preferences, challenges, and buying habits.

Once you have a clear understanding of your target market, you can develop targeted marketing messages and strategies to effectively reach and engage them. This may include creating customer personas or profiles that outline the typical traits and behaviors of your ideal customers.

Tip: Segmenting your target market into smaller niches can allow you to cater to specific customer needs and gain a competitive advantage. For example, you might consider targeting eco-conscious consumers who prioritize environmentally friendly cleaning products.

Remember that identifying your target market is not a one-time task. As your business grows and evolves, you may need to reevaluate and refine your target market to ensure you are continuously meeting the changing demands of your customers.

Analyze Competition

When starting a Two Maids & A Mop franchisee, it is crucial to analyze the competition in the industry. By understanding your competitors, you can identify their strengths and weaknesses and develop strategies to differentiate your business and gain a competitive advantage.

1. Identify Competitors: Begin by identifying the key competitors in the home cleaning solutions market. Research local businesses, both independent and franchised, that offer similar services and products.

• Use online directories and search engines to find potential competitors in the area.
• Visit their websites, social media pages, and online reviews to gather information about their services, pricing, and customer feedback.

2. Evaluate Market Position: Once you have identified your competitors, evaluate their market position. Examine how they differentiate themselves, their target market, and the specific cleaning products and equipment they offer.

• Assess their pricing strategy, promotions, and overall value proposition.
• Look for any gaps or untapped opportunities in the market where your business can excel.

3. SWOT Analysis: Conduct a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of your competitors. This will help you gain a comprehensive understanding of their internal and external factors that impact their business success.

• Identify their strengths and weaknesses in terms of customer service, product quality, branding, and marketing efforts.
• Explore potential opportunities and threats in the market that may affect their operations.

4. Competitive Advantage: Based on your analysis, determine how your Two Maids & A Mop franchisee can establish a competitive advantage. Identify unique selling points, such as specialized services, innovative products, or exceptional customer experience, that set your business apart from the competition.

By thoroughly analyzing the competition, you can develop an effective business strategy that ensures your Two Maids & A Mop franchisee becomes a prominent player in the home cleaning solutions market.

Determine Start-Up Costs

When starting a Two Maids & A Mop franchisee, one of the most crucial steps is to determine the start-up costs involved in setting up your branded retail outlet. Knowing the initial investment required will help you plan your budget and secure the necessary financing.

1. Research franchise fee: Begin by researching the franchise fee associated with becoming a Two Maids & A Mop franchisee. This fee is the upfront cost you pay to gain access to the brand, training, and ongoing support. It's important to understand the franchise fee and any additional royalty or marketing fees charged by the franchisor.

2. Assess equipment and inventory costs: Take stock of the equipment and cleaning products you'll need to stock your retail outlet. Consider the cost of purchasing or leasing scrubbers, vacuums, mops, cleaning solutions, and other items essential for running your business. Research suppliers and compare prices to get an accurate estimate.

3. Calculate lease and utility expenses: Determine the cost of leasing a commercial space for your retail outlet. Consider the location, size, and condition of the property, as these factors can impact the lease expenses. Additionally, estimate monthly utility costs, including electricity, water, and internet services.

4. Evaluate marketing and advertising expenses: As a franchisee, you'll need to allocate funds for marketing and advertising to promote your retail outlet and attract customers. Consider the costs of creating a website, printing promotional materials, running digital marketing campaigns, and engaging in local advertising strategies.

5. Account for legal and professional fees: Consult with a lawyer or business advisor to ensure you comply with legal requirements and obtain the necessary permits and licenses. Factor in any legal or professional fees associated with setting up your business, including hiring an accountant for financial guidance and preparing the necessary documentation.

Start-Up Cost Tips:

• Request information from the Two Maids & A Mop franchisor regarding the estimated start-up costs for their franchise. They can provide you with the most accurate figures.
• Consider creating a contingency fund to account for unexpected expenses that may arise during the start-up phase.
• Review your financial projections and cash flow to ensure you have enough working capital to sustain your business until it becomes profitable.

By carefully examining the costs associated with starting a Two Maids & A Mop franchisee, you can create a comprehensive budget that helps guide your financial decisions and ensures a smooth launch of your business.

Evaluate Financing Options

One of the crucial steps in starting any business is evaluating financing options. Before you can begin your Two Maids & A Mop franchise, it's important to determine how you will fund your venture. Here are some important considerations to keep in mind:

• Assess your financial situation: Start by taking a close look at your personal finances. Calculate your current assets, savings, and available funds that you can invest in the franchise. This will give you an idea of how much capital you have at your disposal.
• Research loan and grant opportunities: Look into potential financing options such as business loans or grants specifically designed for small businesses or franchises. Research government programs, financial institutions, and organizations that offer funding support for aspiring entrepreneurs.
• Consider self-financing: Another financing option is to use your personal savings or assets to fund your Two Maids & A Mop franchise. This approach allows you to retain full control over your business and potentially avoid debt repayment obligations.
• Explore financing through the franchisor: Some franchisors offer financing programs or partnerships with financial institutions to help their franchisees get started. Reach out to Two Maids & A Mop franchising offices to inquire about any available assistance or guidance they may offer.
• Prepare a comprehensive business plan: Having a well-prepared business plan is crucial when seeking financing options. It demonstrates your understanding of the business, market, and financial projections. Create a detailed plan that highlights your revenue streams, expenses, and projected growth to present to potential investors or lenders.

Here are some tips to consider when evaluating financing options:

• Seek the guidance of a financial advisor or consultant who can help you navigate through the financing process and provide valuable insights.
• Explore alternative financing options such as crowdfunding or angel investors if traditional loans or grants are not readily available.
• Be realistic and conservative in your financial projections to ensure you can comfortably meet your repayment obligations.
• Consider joining industry associations and networks to take advantage of potential funding opportunities or partnerships.
• Seek feedback and advice from other Two Maids & A Mop franchisees who have gone through the financing process, as they may offer valuable insights and recommendations.

Remember, thoroughly evaluating financing options is essential to ensure you have the necessary funds to launch and sustain your Two Maids & A Mop franchise. Take the time to research, consult with experts, and make informed decisions as you move forward with your business plan.

Develop A Marketing Strategy

Developing a marketing strategy is crucial for the success of a Two Maids & A Mop franchisee . It involves creating a plan to promote the retail outlet's premium cleaning products and equipment to the target market. Here are some important steps to help you develop an effective marketing strategy:

• Identify your target audience: Determine who your ideal customers are and understand their needs and preferences. This will help you tailor your marketing messages and strategies to appeal to them.
• Define your Unique Selling Proposition (USP): Clearly articulate what sets your retail outlet apart from competitors. Highlight the features and benefits of your products that make them stand out in the market.
• Choose the right marketing channels: Identify the most effective channels to reach your target market. This may include online platforms such as social media, email marketing, and a website, as well as traditional methods like print advertisements and local events.
• Create compelling content: Develop engaging content that showcases the value of your cleaning products and equipment. This could include informative blog posts, videos demonstrating product usage, or testimonials from satisfied customers.
• Implement search engine optimization (SEO) techniques: Optimize your website and online content to improve its visibility in search engine results. This will help attract organic traffic and potential customers.
• Utilize social media: Leverage the power of social media platforms to connect with your target audience, build brand awareness, and engage with customers. Regularly post relevant content, interact with followers, and encourage them to share their positive experiences.
• Offer promotions and discounts: Create attractive promotions, discounts, or loyalty programs to incentivize customers to purchase from your retail outlet. This can help generate initial interest and encourage repeat business.
• Regularly analyze and measure the effectiveness of your marketing efforts to identify areas for improvement.
• Consider partnering with local businesses or influencers who align with your brand to expand your reach and credibility.
• Monitor industry trends and stay updated with new marketing strategies that can help you stay ahead of the competition.

By developing a strong marketing strategy, you can effectively promote your Two Maids & A Mop franchisee retail outlet and attract customers who are seeking high-quality home cleaning solutions. Remember to regularly review and adjust your marketing tactics to stay relevant and achieve long-term success.

Create A Business Structure

Creating a solid business structure is crucial for the success and efficiency of your Two Maids & A Mop franchisee. This step involves determining the legal entity under which your business will operate and establishing the necessary procedures and protocols.

Firstly, you need to decide on the legal structure that best suits your franchise. Common options include sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has its own advantages and legal implications, so it's important to consult with an attorney or a business advisor to make an informed decision.

Once you have chosen the right legal structure, you should define the roles and responsibilities of each member involved in the business. This includes identifying the owner(s), managers, and any other key positions necessary for the smooth running of your franchise. Establishing clear job descriptions and reporting channels will promote accountability and streamline operations.

Furthermore, it's crucial to establish systems and processes that will guide your day-to-day operations. This includes setting up efficient communication channels, implementing inventory management protocols, and developing financial record-keeping procedures. These systems will ensure that your franchise operates effectively and maintains consistent quality standards.

• Consult with an attorney or business advisor to determine the most suitable legal structure for your franchise.
• Clearly define the roles and responsibilities of all individuals involved in your business.
• Establish efficient systems and processes for effective operational management.
• Consider implementing a proven franchise model provided by Two Maids & A Mop.
• Research and understand the legal and financial implications of each business structure before making a decision.
• Ensure that your chosen structure aligns with the overall goals and objectives of your franchise.
• Regularly review and update your business structure as your franchise grows and evolves.

Identify Staffing Needs

When it comes to running a Two Maids & A Mop franchise outlet, identifying the right staffing needs is crucial for the success of your business. Hiring the right people with the necessary skills and dedication will ensure that you can deliver exceptional customer service and meet your clients' cleaning needs effectively.

Here are some important factors to consider when identifying your staffing needs:

• Determine the number of staff: Assess the size of your retail outlet and the expected volume of customers to determine how many employees you need. Consider factors such as the number of registers, cleaning product displays, and the average foot traffic in your area.
• Identify required skills: Different positions may require specific skills. For example, you may need staff members with knowledge about cleaning products or experience in sales. Clearly identify the skills and qualifications necessary for each role to ensure that you can hire the right individuals.
• Consider availability: Determine the hours of operation for your franchise outlet and ensure that you have enough staff to cover those hours. Pay attention to peak hours or busy seasons when you may need extra hands on deck to handle the increased demand.
• Establish a hiring process: Develop a step-by-step hiring process that includes advertising job openings, screening resumes, conducting interviews, and checking references. This process will help you find the best candidates and ensure that you make informed hiring decisions.
• Consider hiring staff with previous experience in the cleaning industry. They may already have knowledge about cleaning products and techniques, which can be valuable assets for your business.
• Invest time in training your staff members to guarantee that they are well-versed in the products and services your franchise outlet offers. This will help them provide knowledgeable recommendations to customers.
• Regularly assess your staffing needs as your business grows. Stay proactive and hire additional staff if necessary to maintain excellent customer service and ensure smooth operations.

By carefully identifying your staffing needs, you will be able to assemble a reliable and competent team that can contribute to the success of your Two Maids & A Mop franchise outlet. Remember, your staff will be the face of your brand, so it's essential to choose individuals who align with your business values and priorities.

Establish A Timeline For Implementation

Once you have completed the previous steps and have a clear understanding of your business plan, it is crucial to establish a timeline for implementing your ideas. Creating a timeline will help you stay organized and ensure that you are on track with your goals and objectives. Here are a few important steps to consider when establishing your timeline:

• Prioritize tasks: Begin by identifying the most critical tasks that need to be completed first. Determine which activities are essential for launching your Two Maids & A Mop franchisee and allocate enough time to complete them effectively.
• Set realistic deadlines: It is crucial to set realistic deadlines for each task. Be aware of any potential challenges or roadblocks that may arise and factor in additional time to overcome them. This will help you create a timeline that is achievable and attainable.
• Assign responsibilities: Clearly define who will be responsible for each task within your timeline. Assigning responsibilities will ensure that everyone knows their role and can contribute effectively towards achieving the desired outcomes.
• Monitor progress: Regularly monitor the progress of each task to ensure that you are on schedule. This will allow you to make any necessary adjustments or modifications to your timeline as needed.
• Stay flexible: It is essential to remain flexible throughout the implementation process. Unexpected changes or delays may occur, and it is important to adapt your timeline accordingly. Being flexible will help you navigate any challenges smoothly without compromising your overall goals.

Tips for Establishing a Timeline for Implementation:

• Break down larger tasks into smaller, manageable steps to ensure progress is made consistently.
• Utilize project management tools or software to track and manage your timeline effectively.
• Communicate regularly with your team to keep everyone informed about their tasks and deadlines.
• Allow for buffer time between tasks to account for unexpected delays or revisions.

By establishing a clear and realistic timeline for implementation, you will enhance your chances of successfully launching your Two Maids & A Mop franchisee. Remember to regularly review and adjust your timeline as necessary to ensure a smooth and efficient implementation process.

In conclusion, writing a business plan for a Two Maids & A Mop franchisee requires careful planning and consideration of several key factors. By conducting market research, identifying the target market, analyzing competition, determining start-up costs, evaluating financing options, developing a marketing strategy, creating a business structure, identifying staffing needs, and establishing a timeline for implementation, franchisees can position themselves for success in the competitive cleaning solutions industry. With a thorough checklist and a clear vision, aspiring franchisees can ensure that their business plan sets them on the right path towards achieving their goals.

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Soap Making Business Plan Template

Written by Dave Lavinsky

Soap Making Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and small business owners create business plans to start and grow their soap-making businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a soap-making business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Soap Making Business Plan?

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

Why You Need a Business Plan for a Soap Business

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

Sources of Funding for Soap Businesses

With regards to funding, the main sources of funding for a soap-making business are personal savings, credit cards, bank loans, and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Using your own savings and applying for bank loans are the most common funding paths for soap manufacturing businesses.

Finish Your Business Plan Today!

How to write a business plan for a soap business.

If you want to start a soap-making business or expand your current one, you need a business plan. Below you will find more details about how to write each section of your soap-making business plan:

Executive Summary

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

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of soap-making business you are operating and the status. For example, are you a startup, do you have a business selling soaps that you would like to grow, or are you operating multiple soap manufacturing facilities?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the soap production industry. Discuss the type of business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of soap business you are operating.

For example, you might operate one of the following types of soap production companies:

• Glycerin Soap : this type of solid or liquid soap is derived from plant-based oils, and is all natural.
• Liquid Soap: this type of soap is made with potassium hydroxide, and typically has more moisturizing properties than bar soap.
• Novelty Soap: this type of solid soap can come in unusual colors and shapes.
• Herbal Soap: this type of solid or liquid soap is made using natural herbs, essential oils, and ingredients that are said to be more beneficial for the skin.

In addition to explaining the type of business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, number of supply contracts, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the soap-making industry. While this may seem unnecessary, it serves multiple purposes.

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

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

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

The following questions should be answered in the industry analysis section:

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

Customer Analysis

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

The following are examples of customer segments : consumers, hotels, and healthcare providers.

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

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most small soap businesses primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

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

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Competitive Analysis

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

Direct competitors are other soap production businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes wholesalers that make white-label soap or consumers who make their own handmade soaps at home. You need to mention such competition as well.

With regards to direct competition, you want to describe the other soap businesses with which you compete. Most likely, your direct competitors will be other craft soap makers with an online store.

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

• What types of customers do they serve?
• What types of soap do they make?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

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

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

• Will you provide a broader range of soap formulations?
• Will you provide specialty soaps that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

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

Marketing Plan

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

Product : In the product section, you should reiterate the type of soap-making company that you documented in your Company Analysis. Then, detail the specific product line you will be offering. For example, in addition to soap making, will you make lotions and salves?

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

Place : Place refers to the locations through which you will sell your soap. For example, will you sell your soaps directly to consumers via a storefront? Will you sell via an e-commerce site? And/or will you sell your soaps at flea markets, festivals, and/or farmers’ markets? Or will you sell your soap to other retailers who will then sell to consumers? In this section, document each method by which you will sell your products.

Promotions : The final part is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media platforms
• Local radio advertising

Operations Plan

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

Everyday short-term processes include all of the tasks involved in running your soap-making business, including sourcing ingredients, formulating soap recipes, mixing and pouring soaps, packaging the finished product, marketing, e-commerce site maintenance, and meeting with potential buyers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000 th bar of soap, or when you hope to reach $X in revenue. It could also be when you expect to expand your soap-making business to a new product line.  

Management Team

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

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

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

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Financial plan.

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

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

In developing your income statement, you need to devise assumptions. For example, will you supply one or more hotels, or sell 100 bars per week online? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

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

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

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a soap making business:

• Location build-out including design fees, construction, etc.
• Cost of equipment, start-up inventory and supplies including soap molds, shipping materials, and raw materials
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your production location lease or a brochure outlining your product offerings.  

Putting together a business plan for your soap business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the soap-making industry, your competition, and your customers. You will have developed a marketing strategy and will really understand what it takes to launch and grow a successful soap making business.

Don’t you wish there was a faster, easier way to finish your Soap Making business plan?

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Method of Procedure

What is a method of procedure.

A method of procedure (MOP) is a step-by-step guideline for completing a project. Think of it as a recipe for accomplishing a business task. Businesses use MOPs to remove the guesswork and reduce human error. A company might write a MOP to guide employees through adding a server to the network, or for breaking ground on a construction project.

Note: A method of procedure is different from a standard operating procedure (SOP). An SOP is also a written guideline for completing a business task. However, it focuses on how the employee should handle the task. A MOP focuses on what exactly the employee needs to do, step by step. In this sense, an SOP allows the employee more freedom and discretion.

Where did the Method of Procedure Guideline Originate?

The method of procedure originated for technical employees in fields such as electrical work, construction, and data center management.

These businesses developed the MOP approach to make sure their teams were performing tasks in a specific sequence, using particular tools, taking the right safety precautions, and recording each step of their work.

Managing a data center, for example, is a delicate balancing act. An employee who deviates from the accepted procedure could introduce errors into the system or even delete critical data. Working from a script proven safe and effective — the written method of procedure — can reduce these risks.

How can a Product Team Use a Method of Procedure?

Using methods of the procedure can serve a product team in several ways. For example, the team can use a MOP to create:

• A predictable process for introducing new product requests from stakeholders.
• A consistent standard for adding new initiatives to the product roadmap.

A Method of Procedure Template for Product Managers

If a product team wanted to create a consistent method for evaluating new initiatives, it might use a MOP. As an example, here is a method of procedure template for submitting an initiative to the product team.

For anyone in the company to propose adding an initiative to the product roadmap, they would submit a proposal to their product manager. This proposal would have to include a description of the initiative and supporting evidence that it would add value to the company.

Assuming the PM found the proposal was worth taking to the next step, that step would be meeting with the core team to weigh the costs and benefits of adding this initiative to the company’s workload. If the team decided the benefits outweighed the costs, then they would break the project into smaller user stories and tasks, which the product owner would add to the backlog. Moreover, the PM would place the project on the roadmap.

Related Terms: roadmap,   backlog,   sprint planning,   prioritization,   weighted scoring

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A Guide to Manufacturing High-Quality Wet Mops

Table of Contents

Introduction:

Mops are an indispensable tool for maintaining cleanliness and hygiene in various settings, from households to commercial spaces. Manufacturing these essential cleaning tools requires careful planning, the right equipment, and top-quality raw materials. In this blog post, we will explore the basic requirements and the step-by-step process involved in manufacturing wet mops that meet market demands and exceed customer expectations.

Identifying and Selecting Cleaning MOPs

Before diving into the manufacturing process of wet mops, it is crucial to identify and select the types of mops you wish to produce and introduce to the market. This step sets the foundation for your business’s success as it directly aligns your products with your target market’s needs and preferences.

Conduct thorough market research to understand the demand for different types of mops in various settings, such as households, offices, hospitals, or industrial facilities. Consider factors like material preference, size requirements, and specialized features that customers may be looking for in a wet mop.

Once you have a clear understanding of your target audience’s needs, narrow down your selection to a few key types of mops. For example, you may choose to focus on traditional cotton yarn mops for general cleaning, microfiber mops for enhanced absorbency and dust trapping, and polyester-cotton yarn mops for a balance of durability and cleaning efficiency.

By offering a diverse range of mops, you can cater to a broader customer base and stay competitive in the market. Additionally, keep an eye on emerging trends and innovations in the cleaning industry to adapt your mop selection accordingly and ensure you stay ahead of the competition.

Injection Molding Machines and Molds

Once you have finalized the mop design and identified the plastic clips as a crucial component, the next step is to acquire injection molding machines and create custom molds. These machines will enable you to manufacture the upper and bottom plastic clips that securely hold the mop yarn in place, ensuring the mop’s longevity and effectiveness.

Invest in high-quality injection molding machines that offer precision and efficiency in the molding process. Custom molds should be designed to match the specifications of your mop design and size requirements. Most importantly the clips must be free from flash and shrinkage to offer a producer nonstop productivity. Also ensure that the clips fit the mop perfectly, preventing any potential issues during use.

Collaborate with skilled mold designers and manufacturers to create durable and well-finished molds. Proper maintenance and regular inspections of the molding equipment are essential to ensure consistent output and reduce the risk of defects in the clips.

MOP Making Machine

The heart of the wet mop manufacturing process lies in the mop making machine. This specialized equipment brings together the plastic clips and the selected yarn materials to form the final product.

Invest in a state-of-the-art mop making machine that automates the assembly process, guaranteeing uniformity and efficiency in production. The machine should be versatile and capable of accommodating various mop designs and sizes, allowing you to adapt to changing customer demands.

Hire skilled machine operators who are well-trained in handling the equipment and can troubleshoot any issues that may arise during production. Regular maintenance and calibration of the machine are essential to ensure its optimal performance and prolong its lifespan.

Air Compressor, Stabilizer, and Supporting Equipment

To ensure the smooth operation of the mop-making machine, it is essential to have the right supporting equipment in place. Two crucial components are the air compressor and the stabilizer.

Air Compressor: The mop-making machine often relies on pneumatic components to function effectively. An air compressor provides the necessary compressed air to power these components. Investing in a reliable and adequately sized air compressor will ensure consistent and efficient operation, reducing downtime and production delays.

Stabilizer: A stable power supply is vital for the safety and performance of the mop-making machine. Voltage fluctuations and power surges can damage the equipment and disrupt production. By using a stabilizer, you can regulate and stabilize the electrical voltage, safeguarding the machine from potential electrical issues.

Apart from the air compressor and stabilizer, other supporting equipment, such as cleaning and maintenance tools for the machines, should also be readily available to ensure smooth day-to-day operations. Regular maintenance checks and servicing will extend the lifespan of the equipment and prevent unexpected breakdowns.

Basic Raw Materials Required

The quality of the wet mop directly depends on the choice of raw materials. It is essential to source top-notch materials to manufacture mops that meet or exceed customer expectations.

Cotton Yarn: Cotton yarn is a classic and widely used material for wet mops. It offers excellent absorbency and is ideal for general-purpose cleaning. Cotton yarn mops are suitable for various surfaces and are often preferred for their durability.

Polyester-Cotton Yarn: Blending polyester with cotton yarn adds strength and resilience to the mop. Polyester-cotton yarn mops offer improved durability and can withstand more extensive use in commercial and industrial settings.

Microfiber: Microfiber mops have gained popularity in recent years due to their superior absorbency and dust-trapping capabilities. They are highly effective in capturing small particles and germs, making them an excellent choice for cleaning in healthcare facilities and areas with stringent hygiene requirements.

By carefully selecting and sourcing these raw materials, you can manufacture wet mops that cater to different cleaning needs and preferences, further establishing your brand’s reputation for quality and performance.

Stick/Handle Materials

The stick or handle of the wet mop plays a significant role in its usability and durability. Different materials offer various advantages, and the choice depends on factors like budget, target market, and intended use.

Steel: Steel handles are sturdy and offer excellent longevity. They are a popular choice for heavy-duty mops used in industrial environments or areas with high foot traffic.

MS Coating: Mild steel handles with a protective coating provide corrosion resistance, making them suitable for mops used in humid or wet environments.

Wood: Wooden handles are lightweight and often preferred for household cleaning. They offer a comfortable grip and are aesthetically pleasing.

PVC: several stick producers  offer stick from PVC / CPVC material, whereas this is a workable option the cost of material does not offer an economical solution.

Manufacturers can choose to outsource stick/handle production or import them, depending on availability and cost-effectiveness. Ensuring the stick/handle materials meet ergonomic standards will enhance user experience and reduce strain during cleaning tasks.

Packing Materials

Once the wet mops are manufactured and ready for distribution, appropriate packing materials are essential to protect the mops during transportation and storage.

Poly Bags : Individual mops can be sealed in poly bags to prevent dust and moisture from compromising their cleanliness.

Cartons: Cartons provide a sturdy and safe packaging solution for multiple mops, ensuring they are well-protected during transit.

The packaging should be designed to be efficient and eco-friendly, reflecting your commitment to sustainability and reducing environmental impact.

Space, Power, and Labor

Establishing a suitable manufacturing facility is vital for efficient production. The space should accommodate the machines, storage for raw materials, and finished products. Additionally, ensure that the facility adheres to safety regulations and allows smooth workflow.

An uninterrupted power supply is crucial for maintaining productivity and preventing damage to the machines. Backup power sources should be in place to tackle any unexpected power outages.

Lastly, skilled labor plays a crucial role in the manufacturing process. Train your workforce to handle the equipment, maintain quality standards, and troubleshoot potential issues. A well-trained team will contribute to the success of your wet mop manufacturing venture.

Conclusion:

Manufacturing high-quality wet mops requires a comprehensive understanding of customer needs, investment in advanced equipment, and sourcing top-notch materials. By adhering to the essential requirements and following a step-by-step process, you can produce wet mops that meet market demands and establish your brand as a reliable provider of efficient cleaning solutions. With the right mix of product diversity, quality, and customer service, your wet mop manufacturing venture is well-positioned for success in the competitive cleaning industry.

REGD. OFFICE

Borghi Brush Machinery Pvt. Ltd. 2 A, Court Chambers, 35, New Marine Line, Mumbai – 400020. India

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ADMIN OFFICE

Borghi Brush Machinery Pvt. Ltd. B-315/316, Damji Shamji Corporate Square, Kanara Business Centre Compound, Laxmi Nagar,Ghatkopar Andheri Link Road, Ghatkopar (East), Mumbai  400 075

INFORMATION

Phone:  + 91 22 62231691 Mobile:  + 9619140918 Web: www.borghiindia.com Email: [email protected] CIN NO.: U28999MH2011 PTC220638

How to Write a Business Plan for a Small Business

Noah Parsons

24 min. read

Updated September 2, 2024

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

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

• The basics of writing a business plan

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

You understand that writing a business plan helps you: 

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

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

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

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

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

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

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

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

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

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

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• What to include in your business plan

Executive summary

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

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

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

Your executive summary should include:

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

Dig Deeper: How to write an effective executive summary

Products and services description

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

This is usually called a problem and solution statement .

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

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

Market analysis

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

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

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

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

Related: Target market examples

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

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

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

Dig Deeper: Learn how to write a market analysis

Competitive analysis

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

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

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

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

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

Marketing and sales plan

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

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

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

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

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

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

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

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

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

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

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

Business operations

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

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

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

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

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

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

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

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

Key milestones and metrics

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

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

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

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

Possible milestones might be:

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

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

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

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

Dig Deeper: How to use milestones in your business plan

Organization and management team

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

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

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

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

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

• Sole proprietor
• Partnership

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

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

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

Financial plan

The last section of your business plan is your financial plan and forecasts. 

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

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

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

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

Dig Deeper: How to create financial forecasts and budgets

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

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

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

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

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

Your cover page should be simple and include:

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

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

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

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

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

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

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

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

• Writing tips and strategies

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

Determine why you are writing a business plan

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

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

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

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

Keep things concise

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

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

Have someone review your business plan

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

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

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

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

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

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

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

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

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

Common pitfalls and how to avoid them

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

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

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

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

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

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

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

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

Use your business plan to manage your business

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

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

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

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

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

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

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

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

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

Learn More: How to run a regular plan review

How to write a business plan FAQ

What is a business plan?

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

What are the benefits of writing a business plan?

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

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

What are the 7 steps of writing a business plan?

The seven steps to writing a business plan include:

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

What are the 5 most common business plan mistakes?

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

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

What questions should be answered in a business plan?

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

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

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

How long should a business plan be?

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

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

What are the different types of business plans?

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

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

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

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

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

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

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

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

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

Table of Contents

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

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How to make a business plan

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

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

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

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

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

What is a business plan?

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

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

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

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

Business plan vs. business model canvas

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

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

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

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

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

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

Why is a business plan important?

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

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

Helps to define the business goals and objectives

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

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

Guides decision-making

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

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

Attracts investors and secures funding

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

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

Identifies potential challenges and risks

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

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

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

Provides a basis for measuring success

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

Are we where we want to be at this point?

Did we achieve our goals?

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

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

How to make a business plan step by step

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

1. Create an executive summary

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

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

2. Write your company description

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

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

3. Conduct a market analysis

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

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

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

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

4. Describe your products and services

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

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

5. Design a marketing and sales strategy

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

Pricing strategy

Advertising and promotional tactics

Sales channels

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

6. Determine budget and financial projections

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

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

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

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

8. Make an action plan

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

Types of business plans

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

Startup business plan

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

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

Strategic business plan

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

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

Operational business plan

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

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

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

Growth-business plan

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

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

One-page business plan

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

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

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

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

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

Be practical

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

Be specific

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

Be thorough with your research

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

Get input from others

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

Review and revise regularly

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

Create a winning business plan to chart your path to success

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

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

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

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Why MOP and SOP Software Benefits Your Company

Nov 5, 2021 9:07:00 PM / by Taylor Faircloth

Reducing errors helps companies save time and money and also helps improve client relations and company reputation. Businesses can implement a method of procedure (MOP), standard operating procedure (SOP) or other operations procedures to help boost productivity and reduce errors and rework. MOP and SOP software goes a long way in making these procedures easy to implement and manage across organizations.

In the day-to-day operation of any business, it’s essential to perform tasks, jobs and other responsibilities with efficiency. As part of the operations in data centers, employees perform complex interactions using data and machinery. Errors and efficiency gaps can go easily overlooked during general operations but can create very noticeable impacts if left unchecked long term. 

At Chekhub, we’re experts at helping businesses introduce clarity and efficiency into their day-to-day and long-term operations. We design operations management software – including MOP and SOP software – that allows companies to monitor, assign, complete, and troubleshoot job tasks in one convenient platform. 

In this blog, we talk about what methods of procedure and standard operating procedures are and how they can change your business processes for the better.

For more information about how to streamline business operations or learn what operations management software can do for you, explore our blog or  contact us  today.

What Is an MOP?

A method of procedure is a document providing a step-by-step sequence of actions that technicians must take to perform a task or complete a job. Business owners and operations managers create these documents using data collected on task and job requirements and typically alter them as new needs arise in the business plan. 

Generally, businesses provide employees with MOP documents upfront as part of training materials or employee handbooks. In other cases, MOP documents are in one universal, easily-accessed location, such as a binder or a consolidated operations management system.

Why You Need MOP Software

A well-curated MOP is handy for streamlining the day-to-day operations and overall productivity of any business. These documents can serve as training aids for new employees, giving them access to tasks and job instructions on the go. MOP documents can also serve as the basis for task and project checklists, tools that boost job productivity by reducing error rates and eliminating the need for rework. 

Establishing strong MOPs for both common and uncommon job tasks also helps clients know what they can expect from your business and your staff. This helps build trust and establish strong client relationships while boosting your business’ reputation. 

Operations management software helps business owners create, edit, and provide access to MOP documents for team members of any level. For more about how Chekhub software can streamline the MOP process, keep reading or contact us today.

An MOP Can Stand-Alone or Be Part of an SOP

MOP documents function fine as stand-alone instruction or procedural documents. Operations managers can archive these documents to provide quick consolidated access and include copies or backlinks when necessary. 

  MOP documents can also be part of a larger SOP or standard operating procedure document. In fact, MOP, SOP, and other procedural documents often interlink for a complete picture of operational procedures within a business. In this case, multiple MOP documents may be part of a single SOP or part of numerous SOPs. Structuring procedural documents and references help organize and streamline company operations by providing predictable material and consolidated instructional access.

What Is an SOP?

An SOP or standard operating procedure document is a higher-level instructional document. These documents typically control overarching operations, including how changes are made during normal day-to-day operations. SOPs are often made of one or more MOP documents, collected and organized logically for efficiency, safety, and job completion. 

When planning to write a standard operating procedure document, it helps first to create, edit, and establish any underlying MOP documents that employees may need. In this case, start with the most basic functions of day-to-day operations within your business and optimize those tasks for efficiency and branding. These documents can then be systematically referenced in the higher-level SOP to save time and create uniform instructions. 

If needed, many operations management software programs offer an SOP software template for easy document creation.

Why You Need SOP Software

Well-curated and edited SOP documents are a source of procedural efficiency and time-saving for any business. Create an SOP document to provide employees with vital information regarding business operations, step-by-step instructions for tasks and job completion, and so much more. With this information in hand, employees make fewer errors, you reduce the need for rework, and you boost overall company productivity. 

At Chekhub, we commit to helping our clients streamline their day-to-day operations and bring clarity and efficiency to their long-term business plans. We created an operations management software that makes implementing MOP, SOP, and other procedural documents easy. 

To find more ways to reduce rework, eliminate job errors, and improve business operations and productivity, explore our website or reach out to us today.

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Recent Posts.

Method of Procedure: Templates to Build Processes — Easily! 

What is an MOP?

• Free MOP template
• MOP vs. SOP
• Why do organizations need MOPs?
• Components of a method of procedure template
• Examples of method of procedure templates by use case
• How to create MOPs with Scribe

The Method of Procedure (MOP) started in the tech field, particularly in data center management and construction. 

MOPs were designed as a method for teams to complete specific tasks in the right order, using the right tools.

The thought process behind MOPs is that too much complexity means there’s a high risk for organizational failure — one that building a more robust and strong infrastructure does not minimize. However, additional mechanisms — such as organizational and operational — can work together to prevent failures caused by human activities. 

MOPs were established to ensure that employees worked from strict guidelines to reduce safety risks and eliminate human errors.

In this article we'll tell you what you need to know about MOPs, and give you a free template that you can try today.

TL;DR: Method of Procedure templates

• MOP templates help to create consistent method of procedure documents fast.
• MOPs and SOPs are different concepts.
• MOPs reduce miscommunication, streamline workflows and reduce the risk of serious consequences that come with inconsistent processes.
• MOPs are particularly helpful in product management — by offering a framework for prioritizing new product requests, they improve communication between product managers and relevant stakeholders.
• Every method of procedure template should include an introduction, prerequisites, step-by-step work instructions, safety requirements, tools, a rollback plan and completion requirements.
• Scribe offers a simple way to document MOPs in a few clicks. Read on for details.

A method of procedure ( MOP ) is a written guideline used to guide employees through a standard way of executing a repetitive process.

It includes a step-by-step sequence of actions/instructions for completing specific tasks and helps project managers make complex internal processes consistent.

Think of it as a recipe to help you complete a business’ mission, cutting down on complexities with step-by-step instructions. 

The main purpose of the method of procedure is to achieve the end goal by guiding the actions.

Want to build an MOP in less time? Try our free template !

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Fr‎‎ee MOP template

Get started with this free MOP template.

‎Project managers can use the method of procedure template to standardize your MOP. You can also use a MOP template to:

• Measure process outputs.
• Identify performance gaps.
• Develop project improvements.

See more of our templates available in our Template Gallery .

📌 Scribe top tip: The method of procedure template is important no matter what type of project documentation you want to create (Project Charter, Change Request Management, Project Schedule, Project Business Case, RACI Matrix or Work Breakdown Structure).

Each MOP should have the following:

• Goal — What are the goals of this project?
• Reference — Has our team done a project like this before? If yes, were the project documents stored for future use?
• Methodology — Is there a standard project methodology that must be followed?
• Technology — What technology, if any, can be used to automate and templatize your project documentation? (Hint: the answer is Scribe!😁)
• Stakeholders — Who are the key resources/stakeholders for this project?
• Cost — How much will the project cost and what is the proposed budget?
• Time — What is the timeline?
• Communication — What communication do we need?
• Quality— How will you ensure the quality of your project outcome?
• Risk — What are the inevitable risks associated with this project and how do you intend to tackle them?
• Training — What training is required to build the necessary skills to complete the project?

MO‎P vs. SOP

Don’t mistake a Standard Operating Procedure (SOP) for a MOP. They're not the same thing, but they do work together.

‎While an SOP focuses on how an employee should handle the project or task, the Method of Procedure focuses on what an employee needs to do.

MOPs can serve as standalone documents or work as part of standard operating procedures — while the SOP can be an overarching document made up of several MOPs that break the project into smaller tasks. 

Wh‎y do organizations need MOPs?

Not only does the method of procedures help to boost productivity and consistency in the workplace, but it also works as a communication tool that helps to reduce confusion and remove the guesswork from team collaboration.

Whether you want to roll out new product features, build processes for HR teams or introduce emergency operating procedures, MOPs have got those covered.

 Other benefits of implementing MOPs include:

• MOPs increase employees' efficiency and save time by introducing a consistent approach to performing repetitive tasks.
• The method of procedure eliminates miscommunications and inaccurate/complex estimations. Working from a proven and “surefire” script can reduce these risks.
• Teams can use the method of procedure to create a process for introducing a new product request from stakeholders. It also makes a consistent standard for adding new initiatives to the product roadmap.
• The method of procedure ensures that teams perform tasks in a consistent way, ensuring predictable results and faster execution.
• Standardized MOPs help to reduce errors in work processes by offering clear and concise instructions for stakeholders.

🎓 ‎  Related resource:  The Top 15 Product Management Software to Boost Your Strategy

How can product teams use the method of procedure?

MOPs have major benefits for project management teams: 

• It provides a framework for reviewing and prioritizing product requests.
• With a standard process for accepting different product ideas for review, project managers can establish a more consistent way to analyze new ideas.
• It also ensures that all stakeholders across the organization understand that they have to follow certain business procedures to have their proposals considered. This ensures that these stakeholders painstakingly vet their ideas and only submit initiatives that would only add value to the business's success.
• It acts as a guide to determine a product release’s requirements and priority.
• It saves time, reduces confusion and achieves better products by ensuring that all stakeholders collaborate effectively.

  💡 ‎Streamline your operations with our ‎ ultimate product development checklist .

Co‎mponents of a method of procedure template

The method of procedure can have many different elements, fields and other details depending on its complexity and impact. 

This is why most project managers add the “expected results of the action” field in every step. It’s easier to maintain accountability and head in the right direction. 

For the MOP to be effective, the team needs to follow it down to a T. That means it needs to be easy to understand and use — no matter who you are. 

Must-have components of an effective MOP template include:

• Necessary information: This includes the title, description of the procedure, author, approval authority/signature, date, unique identifier and version control .
• Prerequisites: Actions that you need to complete before implementing the procedure (e.g., permit to work, change approval, access approval, issuance of notifications, any required reconfiguration of the infrastructure, etc).
• Step-by-step process: You’ll want to outline a detailed description of every step, its inputs and the expected results. 
• Safety requirements: Describe the presence of safety representatives, lockout/tagout (LOTO) procedures and eventual personal protective equipment (PPE).
• Tools: Be specific about the tools and resources required to perform the operations. ‍
• A rollback plan: Make sure you can return the system to its initial or safe state.  ‍
• Completion: A structure/system that ensures marking every step as completed. For example, a field for appending the project manager’s signature. ‍
• Additional details: Other info that’s specific to your team — like a timestamp to provide a log of events or pictures or diagrams for clarifying certain steps and their outcomes.

Ex‎ample of a method of procedure template

Here’s an example of a technical procedure template that can inspire you (or be tweaked) for your next project. 

More MOP examples by use case

MOP template #1: Method of procedure for data migration

Project Title: Data Migration from Legacy CRM to New CRM

Date: August 15, 2023

Prepared By: Jane Smith

Approved By: John Doe

1. Purpose:

This Method of Procedure outlines the steps required to migrate customer data from the legacy CRM system to the new CRM system, ensuring a seamless transition while maintaining data accuracy and integrity.

This data migration project covers the migration of customer profiles, contact information, and transaction history from LegacyCRM to NewCRM.

3. Assumptions:

• LegacyCRM and NewCRM are accessible and operational.
• Data mapping and transformation rules have been finalized.
• Data migration tools are available and tested.

4. Dependencies:

• Access to LegacyCRM and NewCRM.
• Data migration scripts and tools.

5. Pre-Migration Steps:

• Data mapping and transformation rules have been reviewed and approved by the data migration team.
• A backup of the LegacyCRM database has been created.

6. Migration Steps:

6.1 Data Extraction:

• Run the data extraction script to pull customer data from LegacyCRM.
• Verify the extracted data against a sample set for accuracy.

6.2 Data Transformation:

• Apply data transformation rules to format and cleanse the data for NewCRM compatibility.
• Validate transformed data against transformation rules.

6.3 Data Loading:

• Load the transformed data into NewCRM's staging area.
• Perform a data comparison between the source and target data to ensure accuracy.

6.4 Data Verification:

• Conduct data integrity checks on the migrated data to identify discrepancies.
• Compare sample data between LegacyCRM and NewCRM to validate the migration.

7. Post-Migration Steps:

7.1 Data Validation:

• Initiate user acceptance testing (UAT) using test data in the NewCRM staging area.
• Address any discrepancies or errors identified during UAT.

7.2 Data Cutover:

• Schedule a maintenance window for the data cutover.
• Migrate the remaining data changes that occurred after the initial extraction.
• Disable access to LegacyCRM to prevent data inconsistencies.

7.3 User Training:

• Provide training to customer support teams on how to navigate and use NewCRM effectively.
• Distribute user guides and documentation on the new data structure.

7.4 Monitoring and Support:

• Monitor NewCRM post-migration to identify any data inconsistencies or system issues.
• Establish a support mechanism to address user inquiries or issues related to the new data format.

8. Rollback Plan:

• In the event of critical data corruption, restore the backup of the LegacyCRM database.
• Notify stakeholders and initiate a thorough investigation.

9. Documentation:

• Update data flow diagrams and data dictionaries to reflect the changes.
• Archive all data migration documentation for future reference.

10. Conclusion:

The data migration process was successfully completed, ensuring a smooth transition to NewCRM. Key lessons learned and achievements include accurate data transformation and effective user training.

11. Approval:

This Method of Procedure has been approved by John Doe.

MOP template #2: Method of Procedure for Web Application Deployment

Project Title: Web Application Deployment - Version 2.0.0

Prepared By: Alex Miller, Lead Developer

Approved By: Jane Brown, Project Manager

This Method of Procedure outlines the steps and critical processes for deploying the new version (2.0.0) of the web application, ensuring a smooth and error-free transition from development to production.

This deployment covers the deployment of the web application codebase, database updates, and required configurations for version 2.0.0.

• The new version of the web application has been thoroughly tested in the staging environment.
• All required infrastructure and resources are in place and operational.
• Access to the production server environment.
• Availability of necessary deployment tools (e.g., version control, build scripts).

5. Pre-Deployment Steps:

• Review and verify the deployment checklist to ensure all pre-deployment tasks are completed.
• Ensure that backups of the existing production database and application code are taken.

6. Deployment Steps:

6.1 Code Deployment:

• Pull the latest version 2.0.0 code from the version control repository.
• Build and package the application code using the designated build script.

6.2 Database Migration:

• Apply necessary database migration scripts to update the production database to match version 2.0.0 schema.
• Perform data integrity checks and ensure backward compatibility.

6.3 Configuration Update:

• Update configuration files (e.g., environment variables, API keys) to reflect the production environment settings.

6.4 Web Server Setup:

• Deploy the packaged code to the production web server.
• Configure the web server to serve the new version of the application.

7. Quality Assurance:

7.1 Functional Testing:

• Conduct functional tests in the production environment to ensure that all features work as expected in version 2.0.0.

7.2 Load Testing:

• Perform load testing to ensure the application can handle expected user traffic without performance degradation.

7.3 Security Testing:

• Conduct security scans and penetration tests to identify and address vulnerabilities.

8. Monitoring and Rollback Plan:

• Set up monitoring tools to track application performance and user experience post-deployment.
• Document a rollback plan in case issues arise that require reverting to the previous version.

9. Post-Deployment Steps:

9.1 User Communication:

• Notify users and stakeholders about the successful deployment and any new features or changes.

9.2 Documentation Update:

• Update user documentation and guides to reflect the changes and enhancements in version 2.0.0.

The deployment of web application version 2.0.0 was successfully completed, ensuring a seamless transition to the new version.

This Method of Procedure has been reviewed and approved by Jane Brown, Project Manager.

MOP template #3: Method of Procedure for Employee Onboarding Process

Project Title: Employee Onboarding Process

Prepared By: Sarah Johnson, HR Manager

Approved By: John Smith, HR Director

This Method of Procedure outlines the steps to effectively onboard new employees, ensuring compliance with legal regulations, company policies, and industry best practices.

This onboarding process covers all new employees joining the company, including full-time, part-time, and temporary staff.

• New employees have been selected and have accepted their job offers.
• HR has received all necessary documentation, including employment contracts, tax forms, and identification.
• Access to HR systems and databases.
• Availability of HR personnel to conduct onboarding activities.

5. Pre-Onboarding Steps:

• Review and update the onboarding checklist to align with the latest legal requirements and company policies.
• Prepare necessary equipment, workspaces, and accounts for new employees.

6. Onboarding Steps:

6.1 Welcome and Orientation:

• Schedule a welcome session for the new employee on their first day.
• Conduct an orientation to introduce the company culture, mission, vision, and policies.

6.2 Legal Documentation:

• Review and sign employment contracts, confidentiality agreements, and any other required legal documents.
• Ensure compliance with employment laws and regulations.

6.3 Personal Information Collection:

• Collect personal and emergency contact information from the new employee.
• Explain the company's data privacy and protection policies.

6.4 Benefits Enrollment:

• Provide information about available benefits (healthcare, retirement plans, etc.).
• Assist the employee in enrolling in the chosen benefits.

6.5 IT Setup:

• Assign a company email and provide access to relevant software and tools.
• Explain the company's IT security policies and password guidelines.

6.6 Training and Development:

• Provide a training plan and schedule for the employee's role.
• Explain opportunities for career growth and professional development.

7. Compliance and Industry Standards:

7.1 Equal Employment Opportunity (EEO):

• Explain the company's commitment to EEO and non-discrimination policies.
• Provide information about reporting procedures for any discrimination concerns.

7.2 Data Protection:

• Educate the employee on data protection regulations (e.g., GDPR, CCPA).
• Inform the employee about data handling procedures and their responsibilities.

7.3 Health and Safety:

• Discuss health and safety regulations and emergency procedures.
• Provide guidelines for reporting workplace hazards or incidents.

8. Documentation and Reporting:

• Maintain a record of completed onboarding activities and signed documents.
• Archive all onboarding documents securely for auditing purposes.

9. Quality Assurance:

Conduct periodic audits of completed onboarding records to ensure consistency and compliance.

10. Continuous Improvement:

Regularly review and update the onboarding process based on feedback, legal changes, and work standards.

This Method of Procedure has been reviewed and approved by John Smith, HR Director.

💡Learn more about examples of procedures in business .

Ho‎w to create MOPs with Scribe

Whether your team needs project documentation or you’ve been experiencing difficulties with creating procedure manuals , Scribe can help you create your next MOP with a few clicks. 

Scribe is a step-by-step guideline generator that documents your processes for you. Here’s how you can get started with Scribe. 

And once you’ve auto-generated your step-by-step guide , you can edit it to add:

• More steps.

... and more!

Once you’ve created multiple MOPs, you can use Scribe Pages to build a template. Here’s how!

Once you’ve created your documentation, you can easily share or embed your MOPs in any knowledge base!

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Method of procedure: templates matter

You need to standardize your process documentation if you want to create easy to follow, streamlined processes. MOPs are personal to you and your team, but once you start building your own MOP templates — you'll make specific, helpful documentation, fast.

And don't worry, you don't have to do it all on your own.

Depending on your project’s scope, size and requirements, you can take advantage of simple tools to turn your processes into MOPs.

But that begs the question: “ How do you know which project documentation software is worth the investment? ”

Luckily, Scribe is here to help. Here are some of the top features that make Scribe your best bet for a method of procedure template and project documentation collaboration:

• Easy to use with no coding required.
• Simple to set up — no training required. 
• An AI-powered instant and reliable search system allows you to search for Pages and Scribes easily.
• Intuitive navigation, folders and organization. 
• User management and access control features to aid teamwork and collaboration .
• A huge amount of integrations with the tools you love expands your knowledge base's functionality.
• A single, central platform lets you store all your project documentation assets in one place where team members and other important stakeholders can easily access it — from anywhere.

Ready to get started? Create your next MOP for free!

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

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

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

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

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

Let’s get started.

What Do You Need A Business Plan For?

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

1. Secure Funds

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

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

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

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

2. Monitor Business Growth

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

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

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

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

3. Measure Business Success

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

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

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

4. Document Your Marketing Strategies

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

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

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

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

How to Write a Business Plan Step-by-Step

1. create your executive summary.

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

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

A good executive summary should do the following:

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

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

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

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

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

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

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

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

2. Add Your Company Overview

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

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

Your company overview should contain the following:

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

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

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

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

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

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

• Mission Statement

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

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

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

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

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

Business Objectives

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

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

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

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

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

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

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

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

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

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

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

Market Analysis

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

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

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

• Market Research

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

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

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

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

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

How to Quantify Your Target Market

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

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

What Does a Good Market Analysis Entail?

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

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

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

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

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

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

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

Competitive Analysis

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

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

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

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

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

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

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

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

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

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

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

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

Direct vs Indirect Competition

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

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

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

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

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

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

Factors that Differentiate Your Business from the Competition

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

1. Cost Leadership

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

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

2. Product Differentiation

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

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

3. Market Segmentation

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

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

4. Define Your Business and Management Structure

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

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

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

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

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

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

Management Team

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

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

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

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

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

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

Key Questions to Answer When Structuring Your Management Team

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

Additional Tips for Writing the Management Structure Section

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

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

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

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

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

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

Organizational Chart

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

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

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

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

5. Describe Your Product and Service Offering

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Avoid Technical Descriptions and Industry Buzzwords

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

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

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

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

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

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

3. Long or Short Products or Services Section

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

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

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

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

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

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

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

4. Describe Your Relationships with Vendors or Suppliers

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

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

5. Your Primary Goal Is to Convince Your Readers

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

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

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

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

Key Questions to Answer When Writing your Products and Services Section

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

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

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

6. Show and Explain Your Marketing and Sales Plan

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

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

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

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

Outline Your Business’ Unique Selling Proposition (USP)

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

Target Market and Target Audience

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

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

Creating a Smart Marketing and Sales Plan

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

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

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

Your Positioning Statement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Basic Rules to Follow When Pricing Your Offering

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

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

Pricing Strategy

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

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

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

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

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

Advertising

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

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

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

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

Public Relations

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

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

Content Marketing

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

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

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

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

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

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

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

Social Media

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

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

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

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

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

Strategic Alliances

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

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

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

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

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

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

2. Evaluate Your Competition

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

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

These questions can help you know your competition.

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

3. Consider Your Brand

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

4. Focus on Benefits

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

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

5. Focus on Differentiation

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

Key Questions to Answer When Writing Your Marketing and Sales Plan

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

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

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

7. Clearly Show Your Funding Request

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

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

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

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

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

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

Funding Request: Debt or Equity?

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

Case for Equity

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

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

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

Case for Debt

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

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

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

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

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

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

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

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

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

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

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

8. Detail Your Financial Plan, Metrics, and Projections

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

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

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

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

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

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

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

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

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

Use Graphs and Charts

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

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

Address the Risk Factors and Show Realistic Financial Projections

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

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

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

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

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

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

1. Sales Forecast

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

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

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

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

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

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

2. Personnel Plan

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

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

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

3. Income Statement

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

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

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

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

4. Cash Flow Statement

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

5. Balance Sheet

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

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

6. Exit Strategy

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

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

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

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

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

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

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

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

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

9. Add an Appendix to Your Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

Tips and Strategies for Writing a Convincing Business Plan

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

1. Know Your Audience

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

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

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

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

2. Get Inspiration from People

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

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

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

3. Avoid Being Over Optimistic

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

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

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

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

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

4. Keep it Simple and Short

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

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

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

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

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

5. Make an Outline and Follow Through

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

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

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

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

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

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

6. Ask a Professional to Proofread

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

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

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

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

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

1. hubspot's one-page business plan.

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

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

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

2. Bplan’s Free Business Plan Template

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

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

3. HubSpot's Downloadable Business Plan Template

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

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

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

4. Business Plan by My Own Business Institute

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

The comprehensive template consists of a whopping 15 sections.

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

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

5. Score's Business Plan Template for Startups

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

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

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

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

6. Minimalist Architecture Business Plan Template by Venngage

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

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

7. Small Business Administration Free Business Plan Template

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

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

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

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

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

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

9. PandaDoc’s Free Business Plan Template

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

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

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

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

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

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

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

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

Alternatives to the Traditional Business Plan

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

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

Business Model Canvas (BMC)

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

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

Segments of the Business Model Canvas

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

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

Lean Canvas

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

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

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

Startup Pitch Deck

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

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

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

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

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

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

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

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

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

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

Business Plan FAQ

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

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

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

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

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

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

Exlore Further

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

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Martin luenendonk.

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

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

Creating a Method of Procedure Template: A Step-by-Step Guide

In today’s fast-paced business environment, it’s essential to have streamlined processes and procedures that improve efficiency, reduce errors, and ensure consistency. One of the most effective ways to achieve this is by creating a Method of Procedure (MOP) template. MOPs are step-by-step work instructions for completing specific tasks, and they’re crucial for ensuring that critical processes are carried out correctly each time.

Understanding the Importance of a Method of Procedure Template

Method of Procedure (MOP) templates are essential for any organization that wants to ensure that tasks are completed efficiently, effectively, and safely. They provide a clear, concise, and standardized set of work instructions for completing a task, regardless of who is performing it. This is particularly important in complex, multi-step processes that require a high level of expertise and coordination.

Difference between Procedures and Work Instructions

How to Start Writing Business Policies and Procedures

Many people conflate work instructions with procedures. In actuality, the majority of people document work instructions as procedures. The differences between procedures and work instructions is that work instructions explain how to do the conversion itself, procedures define a process. Process details on inputs, how they are converted into outputs, outputs, and the feedback required to assure consistency are all included in process descriptions.

However, MOPs are not just useful for ensuring consistency and standardization. They also have a number of other benefits that can help streamline processes, improve efficiency, and reduce errors and miscommunications.

Streamlining Processes and Improving Efficiency

MOPs are particularly valuable for streamlining processes and improving efficiency. By providing a clear and set of standard work instructions for completing each task, MOPs make it easier for personnel to complete tasks efficiently and with a minimal amount of downtime. This can save organizations time and money, and help them stay competitive in a rapidly changing business environment.

Furthermore, MOPs can help personnel work more quickly and efficiently by reducing the need for guesswork and improvisation. When personnel know exactly what they need to do, they can focus their energy on completing the task at hand, rather than trying to figure out what to do next.

Ensuring Consistency and Standardization

Another significant benefit of MOPs is that they help ensure consistency and standardization. By providing a structured and standardized set of procedures for completing a task, MOPs make it easier to ensure that each task is completed the same way every time. This helps ensure consistency and reduce variability, improving quality and reducing errors.

Consistency and standardization are particularly important in industries where safety is a concern, such as healthcare, manufacturing, and construction. By ensuring that tasks are completed the same way every time, organizations can reduce the risk of accidents and injuries, and create a safer work environment for their employees.

Reducing Errors and Miscommunications

MOPs can also help reduce errors and miscommunications. By providing a clear and standardized work instructions for completing each task, MOPs can help personnel avoid mistakes that can result in downtime, lost productivity, and safety hazards. Additionally, MOPs can help clarify tasks that may be ambiguous, reducing the risk of miscommunications and misunderstandings.

In industries where even small errors can have serious consequences, such as healthcare and aviation, MOPs are essential for ensuring that tasks are completed correctly and safely. By using MOPs, organizations can reduce the risk of errors and ensure that their operations run smoothly and efficiently.

Key Components of an Effective Method of Procedure Template

A Method of Procedure (MOP) is a documented procedure that outlines the steps required to complete a specific task or project. MOPs are used in a variety of industries, including IT, telecommunications, and manufacturing, to ensure that tasks are completed efficiently and accurately. To be effective, MOPs should include several key components:

Clear and Concise Objective

Every MOP should have a clear and concise objective that defines what the procedure is intended to accomplish. This should be included at the beginning of the MOP and should be easy to understand.

For example, if the MOP is for installing a new server, the objective might be to successfully install and configure the server to meet the organization’s needs.

Detailed Step-by-Step Work Instructions

The most critical component of any MOP is a detailed set of step-by-step work instructions that outlines how to complete each task. These instructions should be clear, concise, and easy to follow, so personnel can complete the task as efficiently and accurately as possible.

For example, if the MOP is for installing a new server, the step-by-step work instructions might include:

• Unpack the server and verify that all components are present.
• Install the server in the rack and connect the power and network cables.
• Power on the server and configure the BIOS settings.
• Install the operating system and any necessary drivers.
• Configure the server settings, such as network settings and user accounts.
• Install any necessary software and configure it as needed.
• Perform any necessary testing to ensure that the server is functioning correctly.

Roles and Responsibilities

MOPs should also include a section that outlines who is responsible for each task. This ensures that everyone knows what they’re responsible for and can work together effectively to complete the task at hand.

For example, if the MOP is for installing a new server, the roles and responsibilities section might include:

• Server administrator: responsible for configuring the BIOS settings and installing the operating system.
• Network administrator: responsible for connecting the power and network cables and configuring the network settings.
• Software administrator: responsible for installing and configuring any necessary software.
• Quality assurance: responsible for testing the server to ensure that it is functioning correctly.

Required Tools and Resources

MOPs should also include a list of any tools and resources required to complete the task. This could include equipment, software, or any other resources that are necessary to complete the task at hand.

For example, if the MOP is for installing a new server, the required tools and resources section might include:

• Server rack
• Power and network cables
• Operating system installation media
• Software installation media
• Testing tools

Safety Precautions and Guidelines

MOPs should also include any safety precautions and guidelines that need to be followed when completing the task. This helps ensure that personnel are aware of any potential hazards and can take the necessary steps to minimize risks.

For example, if the MOP is for installing a new server, the safety precautions and guidelines section might include:

• Wear appropriate personal protective equipment, such as safety glasses and gloves.
• Ensure that the server is properly grounded to prevent electrical shocks.
• Follow proper lifting techniques to avoid injury.

Quality Assurance and Control Measures

Finally, MOPs should include a section that outlines any quality assurance and control measures that should be taken when completing the task. This helps ensure that the task is completed to the highest quality standards possible.

For example, if the MOP is for installing a new server, the quality assurance and control measures section might include:

• Perform thorough testing to ensure that the server is functioning correctly.
• Document any issues or errors that are encountered and develop a plan to address them.
• Ensure that all necessary documentation is complete and accurate.

By including these key components in an MOP, organizations can ensure that tasks are completed efficiently, accurately, and to the highest quality standards possible.

Designing Your Method of Procedure Template

When designing your MOP, there are several things to consider. A method of procedure (MOP) is a step-by-step guide that outlines the specific procedures that need to be followed to complete a task. This type of document is commonly used in industrial, manufacturing, and engineering settings to ensure that tasks are completed safely and efficiently.

Choosing the Right Format and Layout

The format and layout of your MOP are essential for making it easy to understand and follow. Consider using headings and subheadings to break the procedure down into smaller, more manageable steps or tasks. This will help ensure that personnel can quickly find the information they need and understand the order in which tasks need to be completed.

Additionally, consider using bullet points or numbered lists to further break down complex procedures into more manageable steps. This can help ensure that personnel can quickly and easily understand what needs to be done at each stage of the process.

Incorporating Visual Aids and Diagrams

Visual aids, diagrams, or process maps can help make your MOP more accessible and easier to follow. This could include flowcharts, diagrams, or images that help illustrate key steps in the process. Consider using color coding or other visual cues to help personnel quickly identify important information and understand the order in which tasks need to be completed.

When incorporating visual aids and diagrams, it’s important to ensure that they are clear and easy to understand. Consider testing your MOP with a small group of personnel to ensure that the visual aids and diagrams are effective and easy to follow.

Using Clear and Simple Language

Clear and simple language is essential for ensuring that your MOP is accessible to everyone who needs to use it. Avoid using technical jargon or complex language, and keep the instructions as simple and straightforward as possible. Consider using short sentences and simple vocabulary to ensure that personnel can quickly and easily understand what needs to be done.

Additionally, consider including definitions for any technical terms or acronyms that may be used in the MOP. This can help ensure that personnel understand the meaning of these terms and can follow the instructions more effectively.

Ensuring Easy Accessibility and Distribution

Finally, it’s essential to ensure that your MOP is easy to access and distribute to personnel who need it. This could include making it available on your company’s intranet, providing printed copies in key areas of your facility, or distributing electronic copies to personnel who need it using procedure management software .

Consider creating a system for updating and revising the MOP as needed. This can help ensure that personnel always have access to the most up-to-date information and procedures.

By considering these factors when designing your MOP, you can create a document that is easy to understand, follow, and distribute. This can help ensure that tasks are completed safely and efficiently, and that personnel have the information they need to succeed.

Method of Procedure Template

Creating an effective MOP is crucial for improving efficiency, reducing errors, and ensuring consistency and standardization in your processes. By following the steps outlined in this guide, you can create an MOP that helps make your processes more efficient, consistent, and reliable.

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The Definitive Marketing Operations Guide

What’s the secret to business success? It depends on who you listen to. Some might put it down to being in the right place at the right time.

Others might say it’s due to their business sense and determination. One thing is clear, though. Having some structure behind your business helps set it up for success. For example, you’ll want clear goals and objectives, a well-defined business plan, effective processes and systems, efficient resource allocation, and a strong organizational framework.

You also might want to introduce marketing operations into your business. When you optimize your workflows, you boost efficiency and get better results.

In this post, I explain how to build a marketing operations strategy and share some marketing operations best practices for you to implement.

Are you ready to go? I hope so!

Below is a brief explanation of marketing ops to get us started.

What Is Marketing Operations?

Let’s keep it simple, shall we?

Darrell Alfonso, Global Marketing Operations Leader at Amazon and Marketing Operations Essentials defines it as:

“The art and science of executing great marketing. ”

That describes it nicely, but let’s put some flesh on the bones.

Marketing operations is what goes on behind-the-scenes to support your marketing strategy. That’s the processes and systems you have in place, like refining workflows, creating marketing content, and managing data.

In addition, as the graphic below shows, it brings together multiple skill sets, including process, project, content, brand, and tech management.

Image source

Marketing ops enable you to optimize your ROI, productivity, and results, all while using fewer resources.

How to Build a Marketing Operations Team

Building a marketing operations team might look like a daunting task. However, it’s a step you must take to optimize your marketing efforts and achieve better results. There are a few key considerations for developing a successful marketing ops team and getting the most from your chosen marketing organization structure .

Assuming you’ve already outlined your goals and objectives , the next step is to start building your marketing ops team.

As illustrated in the chart below, you’ll be looking for a mix of marketing and IT staff with a range of skills from project planning and management to data analysis for your digital marketing operations:

While building your marketing ops team, you’ll need to:

• Decide which team members to assign which marketing operations responsibilities to. For instance, you’ll need a project manager/marketing ops manager, data analyst, marketing automation/platforms specialist, etc. Other members of your team may include content writers, marketing strategists, and SEO consultants .
• Think about the size of your team. How many people do you need to accomplish individual goals, and can you do this effectively with the team you have? In 2023, 47 percent of companies surveyed say the marketing operations role comes under the senior marketer, while 21 percent have a head or director of marketing for the role.
• Ensure your team has a diverse set of skills and experiences. You want them to collaborate effectively and bring their individual skill sets and perspectives to the project.
• Consider training and development. Arrange ongoing training for your team to evolve your marketing operations strategy and stay current with the latest marketing operations trends and techniques.

Finally, take a good look at your existing team to fill any gaps in remaining marketing ops roles. Sometimes it’s beneficial to focus on people with the potential to grow, rather than seeking out highly specialized candidates.

By following the above tips, you can assemble a marketing operations team that is well-equipped to manage your business’s marketing needs and drive your business forward.

How Marketing Operations Helps Businesses

Marketing operations is the backup support ensuring that a marketing team can perform at its best. MOps teams source marketing technology solutions and develop efficient processes for marketing teams.

However, there are plenty of other ways that marketing ops help businesses, including:

• Optimizing resources: marketing operations strategies uncover room for improvement and save time and money by introducing more efficient processes. For instance, automating repetitive tasks .
• Enabling data-driven decision-making: One of the responsibilities of marketing operations is measuring data and identifying possible improvements. This allows businesses to allocate resources where they need them.
• Staying organized: Using marketing operations enables your business to stay organized by giving your team structure for managing its marketing activities.
• Developing targeted, personalized marketing campaigns: by focusing on strategic planning, coordination, and optimization of marketing processes and systems, you’ll ensure efficient execution and measurement of your campaigns. This can improve conversions by tailoring the right product to the right person.
• Enhancing customer experience: Through marketing operations, businesses can create a seamless experience across all channels. Doing this increases customer loyalty and satisfaction. For example, marketing operations can ensure that you have consistent marketing and branding and that companies share data across all channels.
• Aligning marketing aims and business goals: Marketing operations give a framework to boost success by creating objectives, targets and defining marketing processes . This ensures that your marketing aims stay in alignment with your business goals.

All in all, operations can play an essential role in any modern business, allowing companies of any size to improve their marketing efforts.

How to Build a Marketing Operations Strategy

How do you build a marketing operations strategy that works? It doesn’t have to be complicated.

Follow these tips to set your team up for success:

• Set out your goals: What does success mean to you? Is it more traffic or increased revenues? Or perhaps your want to boost leads and increase conversions . When you’re clear on your goals, you can ensure your marketing operations strategy is in keeping with your business aims.
• Assess the resources you’ll need: This includes personnel, budget, technology, and defining marketing operations responsibilities through the team based on their expertise and strengths.
• Identify your target audience: To successfully sell to someone, you need to understand who you’re marketing to . What are their pain points? Where do they hang out? What’s most likely to resonate with them? Answer those questions, and you can tailor your marketing ops strategy to your ideal customers’ precise needs.
• Draw up a content strategy: At the heart of an effective marketing operations plan is content. Blog posts, social media content, videos, and whitepapers can all help you attract your target audience.
• Use marketing operations tools: You’ll need a few tools to maximize your success . Leverage marketing automation software, analytics, and content management systems to get the most out of your plan. Use your marketing operations plan to decide which tools will be most beneficial for your business.
• Assess your results: Are you heading in the right direction? Unless you track metrics like engagement, click-throughs, conversions, cost per acquisition, and customer lifetime value, you’ll never know:
• Keep improving: Refine your marketing ops as you go. Marketing operations aren’t just a once-off project. You must keep analyzing data and optimizing workflows to enhance your business’s efficiency and effectiveness.

Best Practices for Marketing Operations

If you keep best practices in mind, then you can’t stray too far wrong with your marketing operations. By following these tips, you can ensure your marketing ops are effective and efficient.

• Develop a clear marketing strategy: This means defining your target audience, unique value proposition, and sales channels, among other things. A clear strategy helps ensure your marketing efforts are focused and effective.
• Leverage technology for your business: Marketing technology can help streamline processes, improve productivity, and provide valuable insights. This includes tools such as marketing automation software, analytics platforms, and content management systems.
• Optimize workflows: By streamlining workflows, you can help reduce costs, improve efficiency, and ensure you can complete tasks on time. This involves identifying areas where you can improve workflows and implementing changes to optimize them.
• Establish clear processes: Clear processes help ensure that everyone involved in marketing operations understands their roles and responsibilities. This includes strategies for campaign planning, execution, tracking, and optimization.
• Measure and analyze data: Measuring and analyzing data is critical for understanding your marketing efforts. This includes tracking metrics such as conversion rates, cost per acquisition, and customer lifetime value.
• Continuously improve: You should view marketing operations as an ongoing improvement process. This means constantly analyzing data, optimizing workflows, and refining processes to improve efficiency and effectiveness.

Marketing operations means the processes and systems that support and enable your marketing strategy. This includes areas like managing marketing campaigns and analyzing data, optimizing marketing technology, and refining your workflows. This enables your company to maximize its marketing efforts by ensuring they are effective and efficient. When you’ve streamlined your processes, and you’re marketing operation tools to track results, it can lower costs, enhance productivity, and improve the overall quality of your company’s marketing efforts.

Technology plays an important role in your marketing operations framework by streamlining processes, improving efficiency, and enabling data-driven decision making. Common MarTech tools include marketing automation software, customer relationship management (CRM) systems, content management systems (CMS), analytics platforms, SEO tools, and social media management tools.

Measuring the success of your marketing operations involves the use of various metrics and indicators. Monitoring key performance indicators (KPIs) such as conversion rates, customer acquisition costs, customer lifetime value, and return on investment (ROI) provide valuable insights, while revenue and sales growth analysis helps track the impact of your marketing campaigns. Additionally, keeping track of customer engagement metrics such as website traffic, social media interactions, and customer feedback plays an important role in gauging the effectiveness of your marketing ops in reaching and satisfying your target audience

Having a marketing strategy is one thing, but if you want to maximize your efforts, you want structure. That’s where marketing operations come in.

Marketing ops are the backbone of any effective marketing strategy , helping you lower costs and improve your results.

With the right combination of staff and applying some best practices, you can confidently launch your marketing strategy.

Do you have a marketing operations team? How do they support your business?

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About the author:

Co Founder of NP Digital & Owner of Ubersuggest

He is the co-founder of NP Digital . The Wall Street Journal calls him a top influencer on the web, Forbes says he is one of the top 10 marketers, and Entrepreneur Magazine says he created one of the 100 most brilliant companies. Neil is a New York Times bestselling author and was recognized as a top 100 entrepreneur under the age of 30 by President Obama and a top 100 entrepreneur under the age of 35 by the United Nations.

source: https://neilpatel.com/blog/marketing-operations/

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How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

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Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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How to implement Management of Portfolios within 100 days Case Study

• Portfolio management
• Stakeholder management

May 30, 2013  |

  17  min read

All of our White Papers and Case Studies are subject to the following Terms of Use .

The Office for National Statistics (ONS) collects, analyses and publishes important statistics such as population, inflation and gross domestic product. This information is used to inform decisions that affect the lives of everyone in the UK. In 2012, ONS recognized that a portfolio management approach to business change was required, to prioritize investments which would contribute most to strategy in the face of rapidly evolving technology and an increasingly complex society.

Introduction from the Director General

At the Office for National Statistics (ONS) we collect, analyse and publish important statistics such as population, inflation and gross domestic product. This information is used to inform decisions that affect your life and the lives of everyone in the UK.

In 2012, we recognized that a portfolio management approach to business change was required to ensure we prioritized and invested in the changes that contribute most to our strategy.

We were aware that some studies indicated a timescale of 12–18 months to implement portfolio management. However, we decided to embark on a 100-day, high-energy approach to implementing AXELOS' best-practice standard Management of Portfolios (MoP ® ; The Stationery Office, 2011). During the implementation we derived considerable value from enhanced executive portfolio-level information, portfolio prioritization, consistent portfolio investment appraisals and project sequencing. All of this led to a greater understanding of the portfolio delivery landscape and the ability to make more confident investment decisions with an overall increase in collaborative working and organizational energy.

While we can’t see into the future, we do know that the landscape in which we are delivering complex change will continue to be fraught with real economic challenges, rapidly evolving technology and an increasingly complex society. This is why it is more important now, than ever before, to invest in the right projects and deliver them the right way, using the right people, every time. We believe portfolio management is critical to achieving this.

Glen Watson, Director General, Office for National Statistics

‘I am very pleased with the value we have experienced from using portfolio management. It has never been more important for departments to make informed and confident decisions regarding investments in projects and programmes.’

‘I’m very impressed with the approach ONS is taking in developing its portfolio management strategy and processes. I endorse the direction which is being taken, which is consistent with the work in which MPA is engaged in developing a Government-wide portfolio of major projects.’

David Pitchford, Executive Director, Cabinet Office: Major Projects Authority

Understanding where we were

In January 2012, a key recommendation from an organizational change programme (sponsored by the National Statistician and Director General) recommended the implementation of portfolio management across ONS. The necessary portfolio management skills did not exist within ONS and interim assistance was commissioned to deliver this capability based on the Cabinet Office’s MoP.

Value Experience 

Prior to commencing work at ONS, a value experience plan was agreed with the Director General, highlighting the value that the executive leadership would experience from adopting a portfolio management approach.

Portfolio Definition Cycle 

The first step focused on understanding the detail of the portfolio and the portfolio management capability. An intense 10-day consultation period followed, with more than 60 one-hour consultation meetings taking place. Meetings were attended by the entire executive leadership team, the project and programme management community, and teams from finance, IT and business areas.

Portfolio Capability Measurement

In order to understand our current portfolio management capability and set targets for the future, we created a bespoke portfolio capability model (see glossary). This was created based on MoP’s keys to success and the capability questionnaire within the Executive Guide to Portfolio Management (AXELOS, 2012).

Organizational Energy 

We wanted to measure organizational energy; however, our Civil Service People Survey had just taken place, so the timing wasn’t right. Instead, during the consultation meetings we measured how happy people were with ONS’s current ability to manage change. We did this by asking people to score their happiness out of 10 (10 being very happy; see ‘happiness indicator’. The average happiness score in April 2012 was 4.3. In October we asked the same people again and the average happiness score was 6.4, an increase of 48.8%.

The outcome of the portfolio management capability assessment was represented in a spider graph. This was useful for three reasons:

• It enabled us to understand where we were already doing good things as well as areas for improvement.
• It enabled us to plot our targets for each capability area and energize people to join in.
• It became the foundation on which we built the portfolio management improvement plan.

Understanding where we wanted to go

From the outset we felt it was critical to focus on engaging people, ensuring they understood the value experienced from adopting portfolio management in ONS.

A vision statement for portfolio management in ONS was agreed as: ‘ONS successfully delivers the right projects and programmes, in the right way, with the right people, every time’. Using this vision statement in all presentations and documents helped everyone to understand where we were going.

Portfolio Management Blueprint 

We found that simple, well designed graphics and diagrams were much more effective when describing the portfolio management implementation approach to people. One such product was the portfolio management blueprint shown in Appendix 1. This represented the future portfolio management, processes, collaborative working, governance and information flows in a picture on one side of A3.

Portfolio Plan

The most successful product we created was the ONS portfolio delivery journey 2012–14, shown in Appendix 2. ONS deals with extremely complex statistical systems and during the consultation one of the key areas of pain highlighted repeatedly was that people didn’t understand how their project fitted with others. So we designed a simple, eye-catching, one-page view of the whole portfolio landscape.

Inspired by Harry Beck’s iconic design of the London Underground of 1931, the ONS portfolio delivery journey 2012–14 instantly helped people understand the portfolio scope, delivery timescales, ‘killer’ dependencies (i.e. dependencies that were critically important) and key benefits. This was well received by colleagues at Her Majesty’s Treasury, Cabinet Office Major Projects Authority and Cabinet Office Efficiency Reform Group because it helped everyone understand the ONS portfolio and plan assurance resources.

Working together to get there

Portfolio office.

We used the portfolio management capability assessment and the blueprint to design the model and services of the new enterprise portfolio office – we called it a portfolio delivery unit (PDU; see Appendix 3).

A key focus for us during the design of the PDU was to ensure that it provided the services that would offer maximum value to ONS. This meant focusing on the right services and ensuring the skills of the PDU team could consistently deliver those services to the highest possible quality. With that in mind we organized the skills into three main areas which included investment and information, people and process, and portfolio delivery.

Welcome to the Portfolio Delivery Unit

Because the PDU was a new function, we put a lot of energy into helping people understand the services and value they would experience from the team. One very useful tool was a PDU welcome pack. We didn’t just email it to everyone; we wanted to create conversations so we used it during face-to-face engagement via various groups, forums, seminars and one-to-ones. It was also very useful to help new starters get up to speed with the processes and background.

The first thing to be instigated within the PDU was a check to ensure that products were great, usable, clear, concise and informative (GUCCI; see glossary). Before a product left the PDU it was checked by the team to ensure it achieved our GUCCI standard. If it didn’t, we didn’t release it.

Portfolio Governance 

The PDU implementation incorporated the initial development of the governance that was used to deliver the portfolio; see Appendix 4. This included adding portfolio management responsibilities to the terms of reference of the executive leadership team meeting. We also set up a portfolio delivery committee (chaired by an executive director and attended by the chief finance officer) and a collaborative investment appraisal process known as the business investment group (BIG). We knew governance was critical to success, but also that it needs to delicately evolve with the portfolio capability and process improvement. With that in mind we made sure that we continually reviewed the value and ensured people felt comfortable with offering their feedback. Doing this ensured a collective understanding of the governance which led to increasingly consistent portfolio executive information and more confident portfolio investment decisions.

Portfolio Investments

The BIG team is a virtual team of experts within ONS who provide a support and scrutiny mechanism of new business case investments. The name BIG was appropriate, because it was memorable and focused people’s minds on investment.

Portfolio Information

One of the most recognizable enhancements from the executive perspective was the complete change in approach to executive information. Historically, large Word documents had been used. We scrapped this method and implemented a totally new style of executive portfolio information. This included less project data and more portfolio information which enabled key decisions to be made.

Executive Information

The executive leadership team was presented with the first monthly executive portfolio information pack within the first 30 days. This incorporated ‘portfolio zooms’, a new concept that provided executive leaders with an enhanced focus on specific aspects of the portfolio. This instantly added value because it focused on critical information, enhanced confidence and clearly defined the decisions required from executive leadership.

Collaboration Processes

A key enabler for enhancing executive-level information so quickly was the change we applied to the monthly project highlight reporting process. The existing highlight report template was weak and required too much effort on the part of project managers. The PDU worked with all project managers and the IT directorate’s programme management office (whose role it was to coordinate all IT aspects of projects) to redesign the format, thus ensuring higher-quality information was provided in less time.

Reporting Cycles

Because of the faster pace of portfolio delivery, a fortnightly reporting cycle was implemented across every project and sequenced with the existing reporting cycle of the IT programme management office. A ‘handshake’ document was agreed between the PDU and the IT programme management office which formed the agreed ways of working between the two teams. Such collaborative working enabled information flows to be synchronized and played a key part in bringing teams closer together. This was critical to boosting the quality and timeliness of portfolio information to the executive leadership team and ONS board.

Strategic Contribution

The PDU reviewed the benefits from every project and assessed the strategic contribution to the objectives in the ONS business plan. A weighted scoring technique was used and this formed a critical part of the information that was used during the portfolio and business-as-usual prioritization process. It was important that the PDU resource was assigned to this work on an ongoing basis, because unravelling the complexities at the same time as developing benefits management capability was crucial.

Collaborative Teams 

Throughout the portfolio prioritization process, collaborative working and strong relationships between the PDU and the finance team were key to success. When information was presented to the executive leadership team valuable investment conversations took place and this enabled decisions regarding investment, efficiencies, risk and the return on investment to be made confidently.

Actively Managing Benefits

Benefits management was a main area for development. One of the key products from the business case review was the development of a portfolio-level benefits trajectory. We diagrammatically represented the extent to which various stakeholders realize benefits from ONS. While it was very useful as an initial indicator, it had many caveats in the first instance because of its sheer complexity, which meant more work was needed to qualify and assure the benefits.

Benefits Eligibility

The benefits eligibility guidance was created in line with APMG International’s Managing Benefits. It provided people with a consistent approach to managing benefits, including the definitions of various types of benefits and the investment approaches needed for different categories of projects. For example, value-for-money projects used cost-benefit analysis whereas mandated projects used cost-effectiveness analysis as the primary investment appraisal technique. This was critical to ONS because around 90% of all change within ONS is either mandated or helps other organizations make more informed decisions.

Creativity 

A central philosophy in everything we did was creativity. We invested a lot of time in the design of the PDU products because we knew they would help people appreciate the value of enterprise portfolio management. Therefore, the needs of the recipient and wider audience were a key design consideration of every PDU product.

Executive Engagement

A good example of a creative approach was the first presentation to the ONS board (attended by the national statistician/permanent secretary, executive and non-executive directors). We didn’t want to write a regular report about portfolio management; we wanted something experiential that would prompt useful debates. Ahead of the meeting, the PDU came up with the top 10 questions that the ONS board would want answers to, such as ‘What is the portfolio return on investment?’. Based on those questions we created large A1 prints that graphically answered those questions based on the information we had at that time. These were presented at the meeting in the style of an art exhibition which helped people engage and gave them a glimpse of the information they would get moving forward.

The development of project and programme skills was a priority for ONS. During the first 100 days, the PDU took steps towards developing a cadre of professionally recognized project and programme experts within ONS. Role profiles for project and programme managers were updated to include competencies from the Association of Project Management (APM) and these were incorporated into the plans for a project and programme management development centre.

Portfolio Delivery Community 

The PDU was aware that a lot of skills, experience and passion existed within the team of project managers, programme managers, business analysts and project management offices. We felt that this wasn’t being tapped into effectively so a monthly portfolio delivery team meeting was set up to provide a forum, where all project managers could communicate, discuss challenges and share experiences.

Going beyond 100 days

Towards the end of the first 100 days, the ONS board was presented with a value experience plan for the next six months. This committed the PDU to delivering the value as defined in that plan. This was communicated to the portfolio delivery team and helped people to understand the next step in the portfolio development journey.

Better with Benefits 

The draft benefits eligibility guidance was created within 100 days, and in November 2012 we ran a full-day workshop for 60 people creating initial benefits maps for all projects. This was very challenging to organize; however, it was incredibly well received and we managed to accomplish at least four months’ work in one day. Our next steps are to fully embed the new benefits management framework and benefits eligibility guidance within the portfolio.

Develop People 

Within the first 100 days plans were created to run a development centre for project and programme managers within the portfolio. It would have been ideal to deliver the development centre within the first 100 days; however, we needed to embed the PDU first and understand the project and programme management community. The development centre will be extended to include project management office and business analyst skills in the near future. Continually investing in people and developing long and exciting careers in ONS is key to successful delivery. As part of the vision for portfolio management in ONS, the PDU is responsible for assigning and reassigning all PPM resources within the portfolio.

Life Cycles and Staged Funding 

We planned to start implementing a new business change lifecycle to add more rigour around staged funding for projects. However, due to the amount of effort applied to the portfolio prioritization and balancing, this was rescheduled to start within the next 100 days.

Manage Resources 

Project planning standards were implemented during the first 100 days in partnership with the IT programme management office and formed the basis on which we would build our resource management capability. This work took place in parallel with a wider piece of work assessing ONS’s overall portfolio delivery resource requirements.

Painting a Picture of the ONS Future 

As part of the development of the new ONS strategy, we came up with the concept of the ONS future wall (see Appendix 5), a 10-metre space for people to paint or draw how they saw themselves and ONS changing over the next 15 years. The Director General opened the future wall by providing a summary of what he saw as the big things in the future. From that point on we found the ONS future wall to be incredibly popular because it created an inclusive platform for people to contribute to the future direction of the organization’s strategy and portfolio delivery journey.

To summarize this Case Study, here are eight top tips (in no particular order) which are the things we found critically important when implementing portfolio management within 100 days:

• One team Don’t focus on communication; focus on collaboration, conversation and community.
• Everything must add value Work with people to define the value that they will experience portfolio management. Schedule it carefully and fully commit to delivering that value for them.
• Energize people Executive-level buy-in does help, but the real magic happens when it is used to harness the energy of people across the entire organization.
• Develop people Nothing will be delivered if you don’t have the right people. Create an exciting portfolio delivery environment that continually invests in people.
• Measure portfolio capability Take time to understand exactly where you need to improve and where you are already doing good things. Both are equally important.
• Focus minds Use an executive portfolio dashboard. Provide your executives with ‘portfolio zooms’ for decision and assurance. No-one likes to read huge, word-based portfolio status reports.
• Be creative Always look for more creative, interesting and engaging ways to present information; prompt the right conversations and get your message across.
• ‘Good enough’ is not good enough If a portfolio management product does not meet the GUCCI criteria, don’t use it.

Appendix 1 Portfolio management blueprint

Appendix 2 Portfolio delivery journey 2012–14

Appendix 3 Portfolio delivery unit model

Appendix 4 Portfolio governance model

Appendix 5 ONS future wall

Glossary of ONS portfolio management terms

About the author

Acknowledgements.

Sourced by TSO and published on www.axelos.com

Our Case Study series should not be taken as constituting advice of any sort and no liability is accepted for any loss resulting from use of or reliance on its content. While every effort is made to ensure the accuracy and reliability of the information, TSO cannot accept responsibility for errors, omissions or inaccuracies. Content, diagrams, logos and jackets are correct at time of going to press but may be subject to change without notice.

© Copyright TSO. Reuse of this Case Study is permitted solely in accordance with the permission terms.

A copy of these terms can be provided on application to AXELOS at [email protected]

How to implement Management of Portfolios within 100 days

• How-to-implement-Management-of-Portfolios-within-100-days.pdf

New ebook : 10 Best Practices to Optimize Your Product Org

Method of Procedure (MOP)

The term 'Method of Procedure' (MOP) in the context of Product Management & Operations refers to a detailed, step-by-step sequence of actions or operations which must be performed for a particular process or system to function or produce the desired outcome. The MOP is a crucial tool in ensuring consistency, efficiency, and quality in the execution of tasks, especially in complex operational environments.

The MOP is often documented in a formal, written format and can serve as a training guide for new team members, a reference for existing team members, and a benchmark for process improvement initiatives. This article delves into the intricacies of the Method of Procedure in Product Management & Operations, providing a comprehensive understanding of its definition, importance, creation, and execution.

Method of Procedure (MOP): An Overview

The Method of Procedure in Product Management & Operations is a systematic approach to managing the various processes involved in the lifecycle of a product. It includes everything from product ideation, design, development , testing, launch, and post-launch activities such as customer support and product updates.

The MOP is essentially a roadmap that guides the product team through each stage of the product lifecycle, ensuring that all necessary tasks are completed in the correct order, at the right time, and to the required quality standards. It is a critical tool for maintaining control over complex operations and ensuring the successful delivery of products to the market.

Components of a Method of Procedure

A Method of Procedure typically includes several key components. Firstly, it outlines the objective or purpose of the procedure. This provides a clear understanding of what the procedure aims to achieve and sets the direction for the subsequent steps.

Secondly, the MOP details the specific steps required to achieve the objective. These steps are usually listed in the order in which they should be performed and may include sub-steps or contingencies for potential issues that may arise during the execution of the procedure.

Thirdly, the MOP often includes information about the resources required to perform the procedure. This could include personnel, equipment, materials, and time. Lastly, the MOP may also include criteria for evaluating the success of the procedure, providing a means for continuous improvement.

Importance of a Method of Procedure

The Method of Procedure plays a vital role in Product Management & Operations. It provides a structured approach to managing complex processes, reducing the risk of errors, and ensuring consistency in the execution of tasks. By following a well-defined MOP, product teams can ensure that all necessary activities are completed efficiently and effectively, leading to higher quality products and increased customer satisfaction.

Furthermore, the MOP serves as a valuable training tool for new team members. By providing a detailed guide to the various processes involved in product management, the MOP helps to accelerate the onboarding process and ensure that new team members can quickly become productive members of the team.

In addition, the MOP can serve as a benchmark for process improvement initiatives. By regularly reviewing and updating the MOP, product teams can identify opportunities for improving efficiency and effectiveness, leading to continuous improvement in product management practices .

Creation of a Method of Procedure

Creating a Method of Procedure involves several key steps. The first step is to define the objective of the procedure. This should be a clear and concise statement of what the procedure aims to achieve. The objective serves as the foundation for the rest of the MOP and guides the development of the subsequent steps.

The next step is to identify the specific tasks that need to be performed to achieve the objective. These tasks should be listed in the order in which they should be performed and should include as much detail as possible to ensure that they can be executed correctly.

Identifying Resources

Once the tasks have been identified, the next step is to determine the resources required to perform each task. This could include personnel, equipment, materials, and time. It is important to accurately estimate the resources required for each task to ensure that the procedure can be executed efficiently and effectively.

The final step in creating a MOP is to define the criteria for evaluating the success of the procedure. This could include quantitative measures such as time taken to complete the procedure, quality of the output, or customer satisfaction. These criteria provide a means for assessing the effectiveness of the procedure and identifying opportunities for improvement.

Documenting the Procedure

The MOP should be documented in a clear and concise manner, using simple language and avoiding jargon wherever possible. The document should be easy to read and understand, with each step clearly defined and explained. Diagrams, flowcharts, and other visual aids can be used to enhance understanding and provide a visual representation of the procedure.

The MOP document should be easily accessible to all members of the product team and should be regularly reviewed and updated to reflect changes in processes or improvements in practices. This ensures that the MOP remains relevant and effective in guiding the product team through the various stages of the product lifecycle.

Execution of a Method of Procedure

The execution of a Method of Procedure involves following the steps outlined in the MOP document. Each step should be performed in the order listed, with careful attention paid to the details of each task. It is important to ensure that all necessary resources are available before starting the procedure to avoid delays or disruptions.

During the execution of the MOP, it is important to monitor the progress of each task and record any issues or deviations from the planned procedure. This information can be used to identify potential problems and make necessary adjustments to the procedure.

Monitoring and Evaluation

Monitoring and evaluation are crucial components of the execution of a Method of Procedure. Regular monitoring allows for the early detection of any issues or deviations from the planned procedure, enabling timely corrective action. Evaluation, on the other hand, involves assessing the effectiveness of the procedure based on the defined success criteria.

Both monitoring and evaluation should be ongoing processes, with regular reviews and updates to the MOP based on the findings. This ensures that the MOP remains effective and relevant, leading to continuous improvement in product management practices.

Continuous Improvement

Continuous improvement is a key aspect of the execution of a Method of Procedure. This involves regularly reviewing and updating the MOP based on feedback from team members, results of monitoring and evaluation activities, and changes in processes or practices. The goal is to continuously improve the efficiency and effectiveness of the procedure, leading to better product management outcomes.

Continuous improvement requires a culture of openness and learning, where team members are encouraged to share their ideas and suggestions for improvement. This fosters a sense of ownership and engagement among team members, leading to higher levels of commitment and performance.

Examples of Method of Procedure in Product Management & Operations

There are numerous examples of the application of the Method of Procedure in Product Management & Operations. One common example is the product development process, which involves a series of steps from product ideation to product launch. The MOP for this process would outline the specific tasks involved in each stage, the resources required, and the criteria for evaluating the success of the product.

Another example is the customer support process, which involves responding to customer inquiries and resolving customer issues. The MOP for this process would detail the steps for handling customer inquiries, the resources required, and the criteria for evaluating customer satisfaction.

Product Development Process

The product development process is a key area where the Method of Procedure is applied. The MOP for this process would outline the steps involved in product ideation, design, development, testing, and launch. Each step would be detailed, with specific tasks, resources, and success criteria defined.

For example, the design stage might involve tasks such as creating design sketches, developing prototypes, and conducting user testing. The resources required might include design software, prototype materials, and user testing participants. The success criteria might include the quality of the design, user feedback, and the time taken to complete the design.

Customer Support Process

The customer support process is another area where the Method of Procedure is applied. The MOP for this process would outline the steps for handling customer inquiries, resolving customer issues, and following up with customers. Each step would be detailed, with specific tasks, resources, and success criteria defined.

For example, the inquiry handling stage might involve tasks such as receiving the inquiry, identifying the issue, and providing a response. The resources required might include customer service personnel, customer service software, and information resources. The success criteria might include the time taken to respond to the inquiry, the quality of the response, and customer satisfaction.

In conclusion, the Method of Procedure is a critical tool in Product Management & Operations. It provides a structured approach to managing complex processes, ensuring consistency, efficiency, and quality in the execution of tasks. By creating and executing a well-defined MOP, product teams can deliver higher quality products, improve customer satisfaction, and drive continuous improvement in product management practices.

Whether it's the product development process, the customer support process, or any other process involved in the product lifecycle, the Method of Procedure provides a roadmap for success. It is a tool that every product team should have in their toolkit.

Small Business Trends

Best commercial mop and bucket.

If you buy something through our links, we may earn money from our affiliate partners. Learn more .

It is important to keep your businesses clean and tidy. As a business owner, you will need to make sure your office or shop is cleaned regularly and maintained to ensure your employees are happy, healthy, and productive. This will also help in making sure you leave a good first impression on your customers.

Whether you run a small business or large workshop, a mop bucket and wringer come in handy for everything from daily cleaning to doing away with surprise messes.

Commercial floor cleaning buckets help keep floors clean and safe. Unlike those for home use, these industrial-strength versions hold more water and come with strong wheels, so users can cover larger spaces with ease.  

Our guide below will help you cover the best commercial mop and bucket options for your business.

Best Commercial Mop and Bucket 

• Top Pick: Rubbermaid Commercial Wavebrake Mopping System
• Runner Up: Carlisle Commercial Mop Bucket
• Best Value:   Amazon Basics Commercial Mop Bucket on Wheels

Rubbermaid Commercial Wavebrake Mopping System

Top Pick: This 21-pound commercial bucket has a 35-quart capacity and a rating of over 40,000 wringing cycles according to the company. It secures mops firmly and is also equipped with its own foot-operated built-in drain to easily get rid of the contents without lifting the bucket. The side press wrings mops with 18% less effort. A compact design (23.1 x 16 x 38.1 inches) and side press wrings mops with 18% less effort and also helps to reduce splashing by up to 18%.

Rubbermaid Commercial Wavebrake Mopping System Bucket and Side-Press Wringer Combo

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Carlisle Commercial Mop Bucket

Runner Up: This 26-quart capacity commercial bucket is made with corrosion-resistant polyethylene and can withstand temperatures from -40F to 180F. Non-marking swivel casters make for easy cleaning and mobility. The buckets come in different colors to comply with a color-coded system for identifying specific cleaning areas.

Weighing 14.5 pounds this mop bucket has a 50,000-cycle side-press wringer. The compact design (18.11 x 14.57 x 16.5 inches) makes for easy storage and convenience for tight-fitting environments.

Carlisle Commercial Mop Bucket with Side Press Wringer, 26 Quart Capacity, Red

Amazon Basics Commercial Mop Bucket on Wheels

Best Value: The Amazon basics commercial mop bucket is made with Polypropylene and weighs 15.71 pounds. It has a 35-quart capacity and comes with a side-press wringer and a jaw mop holder.

This bucket comes with four rolling casters designed for easy and convenient mobility. With this bucket, you can simply snap the mop in place to keep it stable in the bucket while moving. The wringer works with fan mop holders which are designed to send water back down into the bucket with ease.

AmazonBasics Side Press Wringer Combo Commercial Mop Bucket on Wheels, 35 Quart, Yellow

Hero EZ-Lift Dual Cavity Commercial Mop Bucket

The dual cavity of this bucket includes a 36-quart dirty water side and a nine-gallon cleaning bucket. This will reduce cross-contamination while using less floor cleaner. The side press wringer is certified for more than 31,000 wringing cycles, ensuring years of operations.

The non-marking bayonet wheels with cast-metal leave no marks on the floor. And the wheel guards will protect the wheels for long-life.

Hero EZ-Lift Dual Cavity Commercial Mop Bucket with Wringer on Wheels, Includes Dirty Water Bucket

Rubbermaid Commercial HYGEN Press Wring Bucket

This flat mop bucket is for heavy commercial and industrial use. The no-touch wringing mechanism with a washboard surface removes dirt and debris from the mop pad before wringing. And the twists valve empties the dirty content without lifting for added hygiene.

The bucket is made with a smooth, non-porous surface to prevent bacterial growth and easy cleanup. And the non-marking casters won’t damage your floors.

Rubbermaid Commercial HYGEN Press Wring Bucket for Microfiber Flat Mops, Yellow

Simpli-Magic Commercial Mop Bucket

With a 50,000-cycle wringer, this mob bucket is designed to last. The bucket is made from corrosion-resistant polyethylene capable of handling temperatures from -40°F to 180°F. The compact design has a 26-quart capacity sitting on top of four non-marking swivel casters.

Simpli-Magic Commercial Mop Bucket with Side Press Wringer, 26 Quart, Yellow

Dryser Commercial Side Press Wringer

The spill-proof design of the Dryser mop bucket has a 33-quart capacity. This includes a rugged construction with anti-corrosive polyethylene web-molded body to keep its strength. The ergonomic wringer handle comes with premium steel and a spill-resistant side press for easy operation and minimal effort.

Dryser Commercial Side Press Wringer Combo Mop Bucket, 33 Quart, Yellow

How to choose your mop and bucket 

An important feature to always look for while deciding to purchase a commercial cleaning bucket is to look for a strong, durable product that will last for years no matter which design you decide upon.

• Size: The larger the cleaning mop bucket, the more cleaning solution there is to clean dirt and grime. Find a size that is easy for our employees to use and store.
• Mobility: It is important your cleaning bucket affords you good mobility. Make sure your bucket comes with non-marking swivel casters that will not damage your floors.
• Dual compartment buckets: help to separate the dirty water from the cleaning solution. The design makes cleaning more efficient because you do not have to go back and forth to empty the dirty water.
• Easy drain buckets: make the job easier for your staff. This means they will not have to lift a heavy and wet object that is potentially dangerous.
• Warranty: Like any workplace equipment it is important that your cleaning bucket supplier comes with a warranty. At the very least look for a solid return policy.

Mopping may seem like a simple chore, but it is important to use the right tools. This includes a good mop, bucket, wringer, and caution wet floor signs. With these tools, you can quickly and efficiently clean up your business. And it all starts with a good quality commercial mop and bucket.

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