In this section, make a list of all your strengths. For example, you can focus on what makes you stand out from your competition, what you bring to the table that no one else can, what differentiates you from the rest, etc.
In this section, jot down all information on how you may be lacking compared to your competitors. Maybe they’ve been in the industry for longer than you have, or have more capital than you, or a larger team than you, etc.
|
|
---|---|
Use this section to write about how you can use your strengths to your advantage. Address questions like what opportunities you see to grow, how can your strengths help you gain a competitive advantage, etc. | Here, write about which threats you expect to face from the market. Perhaps there’s a recession expected, or laws that are subject to change which might affect how you conduct business, etc. |
By the end of the (X year), we expect to achieve the following goals with this project:
Add details about your goal #1
Add details about your goal #2
Add details about your goal #3
|
---|
Add details about milestone #1 |
Add details about milestone #2 |
Add details about milestone #3 |
|
---|
Add details about timeline #1 |
Add details about timeline #2 |
Add details about timeline #3 |
Catalog management.
A DIY web-based platform wherein… ( [Sender.Company] & [Client.Company] )
A more sophisticated application for comprehensive project-based catalog management services ( [Client.Company] )
[Client.Company] owns the intellectual property, including, but not limited to, plans, methods and processes needed for the development of the systems and applications contemplated above.
[Sender.Company] brings capital/resources and marketing and business development expertise as well as expertise in hosting and managing online subscription-based platforms. (NOTE: the arrangement could be set up where funding is sought from outside [Sender.Company] ).
The table below shows each parties’ anticipated contributions during the development and execution phases of any Strategic Alliance or Partnership that shall be entered into.
| | [Client.Company] | [Sender.Company] |
---|---|---|---|
| Intellectual property, including plans & know-how. | Capital/Software Development | |
|
| Intellectual property, including plans & know-how. | Capital/Software Development |
|
| Intellectual property, including plans & know-how. | Capital/Software Development |
| | Intellectual property, including plans & know-how. | Capital/Software Development |
| | Intellectual property, including plans & know-how. | Capital/Software Development |
| | Intellectual property, including plans & know-how. | Capital/Software Development |
| | [Client.Company] | [Sender.Company] |
---|---|---|---|
| Consult on upgrades & sales support | Website hosting & maintenance, customer service, sales & marketing | |
|
| [Client.Company] will perform all efforts related to project-based/non-DIY services | |
|
| [Client.Company] will share data & provide sales support | Website hosting & maintenance, customer service, sales & marketing |
| | [Client.Company] will perform all royalty accounting | |
| | Sales support | Sales & marketing |
| | [Client.Company] will have right of first refusal for these services | |
The following depends on the legal structure of the arrangement. The below assumes a Strategic Alliance will be formed.
| | [Client.Company] | [Sender.Company] |
---|---|---|---|
| Ownership of IP and technology | Perpetual License to be agreed | |
|
| Ownership of IP and technology | Perpetual License to be agreed |
|
| Ownership of IP and technology | Perpetual License to be agreed |
| | Ownership of IP and technology | [Client.Company] may opt to license as an add-on to DIY catalog management platform |
| | | Rights/ownership in whole or part subject to existing agreements. |
| | Right of first refusal on… | |
This Alliance or Partnership will take on one of a number of forms. Given the complexities, a Strategic Alliance agreement may make the most sense, but clarification is necessary on a number of items for that kind of agreement (e.g. revenue/profit splits or royalty payments). A Joint Venture (JV) could be construed as a Partnership, and if a JV is desired, it may make sense to set the JV up as an LLC for liability reasons.
A discussion around revenue share, profit share, or royalties is dependent on the legal considerations above. TBD for now, and finalized at contract signing.
Although a formal contract is to be followed, both parties can agree on the following terms and conditions:
Both parties agree to enter into the partnership indefinitely, as opposed to a limited term or a period of time.
Both parties agree that they will do their best to ensure that their end of the bargain is kept. For example, if [Sender.Company] has X, Y, and Z responsibilities (as mentioned in the table above), they agree to deliver on those responsibilities.
If either party wishes to terminate the agreement, they must let the other party know in writing. After a letter has been shown to the other party, Party A agrees to stay on board for no less than a month to help Party B conduct a smooth transition.
If any disputes arise between either party, they may resolve them either through (i) an amicable discussion, with or without third party mediation, or (ii) by going to a court of law. Laws from [Sender.Country] will be applicable in case of any disputes seeking legal recourse.
Each party agrees to not commit to any unlawful business which may affect the credibility or the goodwill of the other party, or of the Partnership as a whole.
If either party recognizes any such wrongdoings by the other party, they may (i) resolve it with the guilty party, or (ii) seek remedy under the jurisdiction of [Sender.Country] .
[Sender.Company]
[Client.Company]
Download our free Referralology ebook with over 50 tips on how to grow your client portfolio by referral and turn your networking into a referral generating machine.
One of the partner business plan tools we use with our small firm clients is the STAGe model. This is widely used to create 3-year or 12-month business plans for them. The good news is that it is versatile enough to help you create your 3-year partner business plan or 12-month partner business plan or vision for your practice. In this article ,I explain how to use the tool, plus you can download a template to create your 3-year partner business plan or 12-month partner business plan for your own practice.
The STAGe Tool is a one-page vision summarising your practice’s expected performance over the next 3 years or 12 months. It gives you a simple visual way to explain how your practice will develop in the future. In other words, it acts as a very simple, but highly effective tool to help you create your partner business plan – a key component of your business case for partner.
The tool consists of 5 circles that correspond to now, year 1, year 2, year (or the timescales of your choice.), or Q1, Q2, Q3, Q4. The circles are dissected by axes which represent the performance measures that best illustrate how your practice will develop. Each performance measure is broken down into what it will be at each year. This article assumes you are creating a 3-year partner business plan. However, you can also use the same template to create a 12-month partner business plan.
Click here to download your free PDF of the STAGe model to help you rapidly put together your partner Business plan.
Here is a completed STAGe tool:
Take a moment to think about where you want your practice to be in 3 years if you are successful at the partnership vote. (Or 12 months if you are being asked to create a 12-month partner business plan) You may find it useful to do this exercise away from your desk and distractions.
You may like to consider the following areas:
Read: What needs to go in the 12-month marketing plan for your business case for partner
In stage 2, you identify what are the really important things for you and your practice. Those things that if you focus on them you will achieve your 3-year. These then become the axes on your STAGe diagram. Ideally, you will identify 8-12 measures of performance to accurately show how you will grow your practice in the next three years.
One of the most sought-after courses in our Progress to Partner Academy i s called “ How to Build a Cast-Iron Business Case for Partner” .It’s a must-have in your arsenal of tools and guidance to help with your career progression. There is also a section in Progress to Partner Academy on the Partnership Admissions process with guides and recordings to help you find your way through the system. Check it out!
Now take the STAGe template and label your performance measures and name the years on the concentric circles. For each performance, measure the axis and add what you are currently achieving. You now want to define your year 3 performance measures. By defining year 3 first you can then work backward towards your 12-month targets.
It can be very helpful to start the year 3 discussions by considering the fundamental financial measures for your practice such as revenue, GRF, turnover, profit, or contribution. This is because they are normally easier to complete, and it often sets the agenda for the rest of the performance measures.
Once you have completed your year 3 performance measures you then want to work along each of the performance measures axes to complete year 1 and year 2 goals. You may like to use questions such as:
“If I am to achieve this level of performance in year 3, what level should I achieve in year 2?”
Then…
“If I am to achieve this level of performance in year 2, what do I need to achieve in year 1? Is this too big a stretch from where I am now?”
At the end of this stage, you should have a fully completed diagram with each performance measure having a number or statement for each year on the diagram.
Now you have completed the partner business plan, it is time to critically review it. That means:
If you haven’t already click here to download your free PDF of the STAGe model to help you rapidly put together your partner Business plan.
Once you have completed your partner business plan, it’s time to get feedback on it, plus identify the projects or activities which are critical to achieving your year 1 targets.
For more guidance on how to progress your career in your firm why not sign up to my weekly newsletter here and you’ll find out what you need to be working on in your career development (and how to make the time for your career development) to progress your career in your firm.
Or Check out our How to Build a Cast-Iron Business Case for Partner self study course . ✔️ What makes a good Business Case for Partner ✔️ 5 things you need to consider so the partners take notice of you ✔️ What needs to go into your 12-month business development plan
With so many people working remotely right now, there has never been a more important time to have an online presence. Think about it, everyone is at home and searching online, so if you don’t have a presence, how will your prospects find you? We have always stressed how vitally important your online footprint is…
CONTINUE READING > >
Read this article for over 6 tips to successfully deal with tough colleagues.
London UK, New York US, Melbourne Australia, Amsterdam Holland, Delhi India, Toronto Canada, Dublin Ireland, Berlin Germany, Singapore, Mexico City.
How To Make Partner is a trading name of Excedia Group Ltd.
Registered address and mailing address: Unit A, Angel Business Centre, 1 Luton Road, Toddington, Dunstable, Bedfordshire, England, LU5 6DE
I need help with.
About Us | Courses | Our Coaches | Testimonials | GDPR Policy | Privacy Statement
Partnerships are incredibly common--and incredibly hard to sustain. here's how to set up a partnership that is equitable, efficient, and mutually rewarding..
When two or more people start a business or carry on a trade together to turn a profit, the result can often be a strong union that blends complementary skills, financial resources, customers and connections to help the venture succeed. But, sometimes, such relationships can sour, the business can fail, and the parties can decide to go their separate ways. In the eyes of the law, by the very nature of entering into business with another party, you may be considered a partnership -- whether you have a written agreement or not. It's best to follow certain legal and practical steps to structure this relationship so that it is a win-win for all concerned.
The number of business partnerships in the U.S. has been growing steadily by an annual rate of about 5.6 percent a year to more than 3 million in 2007, according to the most recent records reported by the U.S. Internal Revenue Service. The total net income for these partnerships has also been on the rise, increasing by 2.5 percent from 2006 to a total $683 billion for 2007, IRS figures show. With that much money at stake, it's important for partnerships to spell out what each person contributes, whether in terms of financing, property, labor or customers, and what each person expects in terms of profits and ownership. A partnership agreement can be solidified by an oral agreement between partners, but experts recommend putting the terms down in writing. "I liken the partnership agreement to a prenup negotiated before a marriage," says Barbara Weltman, a tax and business attorney and author of such books as J.K. Lasser's Small Business Taxes (Wiley 2009). "When everybody loves each other and has the best of intentions, it's a good idea to work out the 'what ifs.' You want to decide in advance who is getting what, who is doing what, who is responsible for what, and how to resolve disagreements -- what happens if one person wants to retire or one partner wants to expand and the other doesn't?" The following pages will cover the benefits and disadvantages of a partnership, how to structure a partnership in a written agreement to protect yourself and the business, and steps you need to take in forming a partnership. Why Form a Partnership? Once you have an idea for a company, whether this means selling a product or a service, understand the consequences of opting to become a partnership. As a business partner, you need to be prepared to devote time, use business methods, and get set up properly so you can make more money, minimize taxes, and generally avoid potential problems. Here are the pros and cons of forming a business partnership: Benefits of a partnership
Disadvantages of a partnership
Dig Deeper: The Pros and Cons of Business Partnerships
Structuring a Business Partnership: Who Qualifies?
The first step you need to take in forming a business partnership is to figure out who is in the partnership. Partnerships can be formed with two or more partners, although Ennico points out that partnerships with large numbers of partners (more than 10) can become unwieldy to manage. Professional firms with 50 or more partners have extremely detailed agreements spelling out rigid procedures over who gets admitted, who signs the lease, the structure of the partnership, etc. "It can get very involved," Ennico says. Partners can include employees, spouses, family members, or associates. There may be reasons arguing against including a spouse as a partner; for example, if you transfer title to your personal assets into your spouse's name to protect your personal property in the event the partnership is sued, the spouse cannot have any involvement in the partnership business whatsoever, according to Ennico.
If you are teaming up with someone else to perform services for a mutual client (for example, a website developer who subcontracts the design work to another consultant) and do not with to make that person your formal business partner, make sure the other person signs an agreement stating clearly that they are not your partner or agent. Ennico further recommends that you notify the client in writing or by e-mail that you are NOT in partnership with that person. Otherwise, Ennico says there's a risk the client may view you as partners and will hold both of you accountable as such if something goes wrong.
Dig Deeper: 10 Questions to Ask a Potential Business Partner
Structuring a Business Partnership: General or Limited?
There are two types of partnerships. Which one is the right kind for you?
Dig Deeper: How to Choose the Right Legal Structure
Structuring a Business Partnership: Writing a Business Plan
While this exercise is not mandatory, it is extremely helpful to ensure success of a partnership. "The plan serves as a roadmap for the partnership to implement actions necessary to start up and grow the company," Weltman says. "It also is useful in making you focus on various aspects of the business, such as where you plan to obtain start-up capital and whether you will be selling through the Web." A business plan should describe the responsibilities of each partner for the business, including who will be the head or managing partner.
Structuring a Business Partnership: Choosing a Name
Finding the right name for your business can describe what the business is all about. "Frequently, the fact that the business is a partnership is explained by the name, such as Wang and Williams Associates," says Weltman. "Other times, the name may relate to the product or service being offered by the partnership." After choosing the name, you need to protect it. Do this by making sure a suitable Internet domain name is available for your partnership, as most businesses these days should establish a website. Even if you don't set up a website immediately, reserve the name by registering your site. Check availability of the name you want to use through Register.com or other domain name providers. You will also need to register your partnership name with a local government, for which there is usually a modest fee. And while it's not required, it's often a good idea to gain legal protection for your partnership in the form of a trademark. Learn about trademark protection from the U.S. Patent and Trademark Office .
Dig Deeper: Advice on Naming Your Business
Structuring a Business Partnership: Understanding Your Tax Obligations
A business partnership does not pay taxes on income. The partnership is a pass-through entity and the individual partners pay tax on their distributive share of partnership income passed through to them. Each year, the partnership files a return, Form 1065, to report to the IRS the income, gains, losses, deductions, and credits from the business, Weltman says. It also files a Schedule K-1 for each partner, allocating a share of each item of income, deductions, etc. according to the terms of the partnership agreement. Similar reporting may be required at the state level. Each partner reports his or her share of income on Schedule C of his or her personal income tax Form 1040. If the partnership is profitable, each partner must pay self-employment taxes on his or her net earnings. These taxes cover the employer and employee share of Social Security and Medicare taxes. Because a partner is not an employee (a partner is a self-employed person), there is no withholding from a paycheck to cover income and self-employment taxes. Instead, these taxes are paid through quarterly estimated tax payments. There are special rule for husband-wife ventures. If a married couple operates a venture in which each materially participates and they file a joint return, they can opt not to file Form 1065. Instead, they can file a single Schedule C (the form used by sole proprietors) to report their share of business income and expenses.
Dig Deeper: How to Reduce Your Small Business Tax Bill
Structuring a Business Partnership: Other Details
Weltman says to make sure to deal with various other business matters before your partnership begins operations:
Structuring a Business Partnership: Writing the Partnership Agreement
General partnerships can be informal, oral arrangements to share profits and losses of a business venture. However, it is highly advisable to use a formal, written partnership agreement to spell out how income, deductions, gains, losses, and credits are to be split. If the agreement is silent, then state law is used to fill in gaps -- and that could leave a lot of decisions up to the courts if you and your partner(s) have a falling out. "Legally, you're not required to have a written partnership agreement but I think you're a fool not to have one," Ennico says. "If you don't have a written agreement, a judge looks at the partnership statute and that acts as your agreement."
That may be fine. But it may also not be so good, Ennico says, because the partnership laws in many states assume that all partners are equal. "If we set up a partnership on a handshake and agree to split the business 70-30, and we then have a falling out because you think you are working harder than I am and deserve a bigger share of the profits, the law may say we are 50-50 partners unless we can clearly document in writing, for example a signed Form 1065, our intent to create an unequal split," Ennico says.
Laws vary by state. There are sample partnership agreements available on legal websites on the Internet, such as Law Depot and LegalZoom . But a partnership agreement can be put in writing by a lawyer for between $500 to $1,000 and that might very well be worth the investment to your business, Ennico says. "Never undertake a partnership agreement without an attorney," he says. "I once handled an agreement involving a 20-member engineering firm that consisted of 90 pages plus schedules. It took more than six months for the partners to reach agreement on all the details."
Here are some critical elements to include in a partnership agreement:
1. Partnership information.
• List the name of the partnership, location, when it was formed and the purpose of the business. • Who the partners are and their capital contributions • Determine who the partners are and list them, their addresses, and Social Security Numbers. Then detail what the partners are putting into the partnership. These contributions may include money, intellectual property, customers, machinery, vehicles, etc.
2. Profit and loss distribution.
Each partner's "distribution percentage" – reflecting their share of partnership profits and losses – must be clearly stated in the agreement. Partners share in the profits and losses to the extent of their share in the business. If each contributes 50 percent of the start-up money, then each is entitled to 50 percent of the profits, according to Weltman. Ennico adds, "distributions of profit must be made in accordance with the partners' percentages – if you don't do that, there's a risk that the partnership tax laws may rearrange your percentages to reflect how much money you and your partners are actually taking out of the partnership checking account. 3. Rules concerning voting, admitting new partners, and management.
Determine who is going to manage the partnership, who can sign contracts, and whether partners are going to be receiving salaries for labor or services. "Unlike distributions of profit, salaries do not have to be made proportionately to the partners," says Ennico. "I frequently see situations where unequal partners decide to take equal salaries for the work they're doing to further the partnership business." You also need to determine the voting rights of the partners -- normally a simple majority vote of the partners decides what happens and what doesn't, but you can agree that important decisions be made by a "supermajority" vote of two-thirds or more of the partnership percentages.. "For example, many partnership agreements require that the partners be unanimous when deciding to admit new partners, merge with another company, sell part of their business, or make a bankruptcy filing," says Ennico.
4. The exit strategy
The most important thing to spell out in a partnership agreement is your "exit strategy" if things don't go as planned and you want to get out of the partnership. "The dirty little secret is that as long as everybody gets along and everybody communicates and everybody does what they're supposed to, no one will look at the partnership agreement again," Ennico says. "The only time anyone is going to dust off the agreement and run to an attorney is when they are unhappy and want out."
This section details how to dissolve the partnership – the circumstances under which partners can withdraw, how much notice they must provide, and how the assets will be distributed. This section may also deal with other issues, such as what happens if one partner retires, goes bankrupt, becomes disabled, or dies. When such events occur, the departing partner's share of a business doesn't automatically get divided between the remaining partners. It is an asset that may be transferred by law to someone (such as a deceased partner's heirs, or to the partner's ex-spouse in a divorce proceeding) that you don't want to be partners with. If you don't want to be a partner with that "someone else", you may want to insist on a buy/sell clause that specifies that the surviving partners have the right to buy out that "someone else" in the event of a partner's death, disability, divorce, bankruptcy or retirement. If you do this, you should specify the method of determining the value of the departing partner's share.
Ennico says your partnership agreement should clearly state "who gets what" when the partnership dissolves, and spell out rules for what the partners can and cannot do afterwards: "for example, can you still talk to your old customers? Can you take your customers with you? Are you prohibited from doing a similar business in the same geographic area as the partnership? All these things can and should be spelled out."
5. The means of dispute resolution.
In the event that partners have disagreements, you may want to include in your partnership agreement how those agreements will be worked out. You may want to specify that partners bring disputes to mediation before arbitration, go to arbitration directly, or agree to only go to arbitration.
Dig Deeper: Why Partnerships Fail
Structuring a Business Partnership: Recommended Resources
The Daily Digest for Entrepreneurs and Business Leaders
Privacy Policy
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.
Businesses create business plans for different purposes such as to secure funds, monitor business growth, measure your marketing strategies, and measure your business success.
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.
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:
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.
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.
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:
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:
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:
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.
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:
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.
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.
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:
When you fill in this information, you use it to write one or two paragraphs about your company’s history.
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.
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, 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.
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.
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:
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:
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
When describing the product life cycle of your products or services, here are some key factors to focus on.
When describing the production process for your products or services, you need to think about the following:
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.
Answering these questions can help you write your products and services section quickly and in a way that will appeal to your readers.
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.
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.
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).
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.
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 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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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.
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:
Some specific businesses can include some other essential sections, but these are the key sections that must be in every business plan.
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.
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:
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.
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.
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.
There are lots of helpful tips on how to fill each section in the free business plan template by MOBI.
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.
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.
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.
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.
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.
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.
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.
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.
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.
The business model canvas was developed by founder Alexander Osterwalder to answer important business questions. It contains nine segments.
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:
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.
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.
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.
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.
Home > Business > Business Startup
We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure .
Starting a business is a wild ride, and a solid business plan can be the key to keeping you on track. A business plan is essentially a roadmap for your business — outlining your goals, strategies, market analysis and financial projections. Not only will it guide your decision-making, a business plan can help you secure funding with a loan or from investors .
Writing a business plan can seem like a huge task, but taking it one step at a time can break the plan down into manageable milestones. Here is our step-by-step guide on how to write a business plan.
By signing up I agree to the Terms of Use and Privacy Policy .
Though this will be the first page of your business plan , we recommend you actually write the executive summary last. That’s because an executive summary highlights what’s to come in the business plan but in a more condensed fashion.
An executive summary gives stakeholders who are reading your business plan the key points quickly without having to comb through pages and pages. Be sure to cover each successive point in a concise manner, and include as much data as necessary to support your claims.
You’ll cover other things too, but answer these basic questions in your executive summary:
The next step in writing a business plan is to conduct market research . This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to gather this information. Your method may be formal or more casual, just make sure that you’re getting good data back.
This research will help you to understand the needs of your target market and the potential demand for your product or service—essential aspects of starting and growing a successful business.
Once you’ve completed your market research, you can begin to define your business goals and objectives. What is the problem you want to solve? What’s your vision for the future? Where do you want to be in a year from now?
Use this step to decide what you want to achieve with your business, both in the short and long term. Try to set SMART goals—specific, measurable, achievable, relevant, and time-bound benchmarks—that will help you to stay focused and motivated as you build your business.
Your business strategy is how you plan to reach your goals and objectives. This includes details on positioning your product or service, marketing and sales strategies, operational plans, and the organizational structure of your small business.
Make sure to include key roles and responsibilities for each team member if you’re in a business entity with multiple people.
In this section, get into the nitty-gritty of your product or service. Go into depth regarding the features, benefits, target market, and any patents or proprietary tech you have. Make sure to paint a clear picture of what sets your product apart from the competition—and don’t forget to highlight any customer benefits.
Financial analysis is an essential part of your business plan. If you’re already in business that includes your profit and loss statement , cash flow statement and balance sheet .
These financial projections will give investors and lenders an understanding of the financial health of your business and the potential return on investment.
You may want to work with a financial professional to ensure your financial projections are realistic and accurate.
Once you’ve completed everything, it's time to finalize your business plan. This involves reviewing and editing your plan to ensure that it is clear, concise, and easy to understand.
You should also have someone else review your plan to get a fresh perspective and identify any areas that may need improvement. You could even work with a free SCORE mentor on your business plan or use a SCORE business plan template for more detailed guidance.
$0.00 | ||||||
$0.00 | ||||||
$0.00 | ||||||
$10.00 (waivable) | ||||||
$0.00 |
Data effective 1/10/23. At publishing time, rates, fees, and requirements are current but are subject to change. Offers may not be available in all areas.
Writing a business plan is an essential process for any forward-thinking entrepreneur or business owner. A business plan requires a lot of up-front research, planning, and attention to detail, but it’s worthwhile. Creating a comprehensive business plan can help you achieve your business goals and secure the funding you need.
Best Small Business Loans
5202 W Douglas Corrigan Way Salt Lake City, UT 84116
Accounting & Payroll
Point of Sale
Payment Processing
Inventory Management
Human Resources
Other Services
Best Inventory Management Software
Best Small Business Accounting Software
Best Payroll Software
Best Mobile Credit Card Readers
Best POS Systems
Best Tax Software
Stay updated on the latest products and services anytime anywhere.
By signing up, you agree to our Terms of Use and Privacy Policy .
Disclaimer: The information featured in this article is based on our best estimates of pricing, package details, contract stipulations, and service available at the time of writing. All information is subject to change. Pricing will vary based on various factors, including, but not limited to, the customer’s location, package chosen, added features and equipment, the purchaser’s credit score, etc. For the most accurate information, please ask your customer service representative. Clarify all fees and contract details before signing a contract or finalizing your purchase.
Our mission is to help consumers make informed purchase decisions. While we strive to keep our reviews as unbiased as possible, we do receive affiliate compensation through some of our links. This can affect which services appear on our site and where we rank them. Our affiliate compensation allows us to maintain an ad-free website and provide a free service to our readers. For more information, please see our Privacy Policy Page . |
© Business.org 2024 All Rights Reserved.
Dividing a partnership with a net loss, how to pitch a business plan.
Remember the old saying, Two heads are better than one ? It applies in business, too. A strategic partnership can take your business to the next level and open new doors.
Regardless of your industry, you can tap into another company's experience and resources to strengthen your brand and reach more customers. It's a win-win for both parties – all it takes is a compelling partnership proposal.
Emphasize how the partnership will benefit the company you're targeting. Research its needs and any challenges it may be facing, and address them in your proposal.
Before making a partnership proposal, take the time to research the company you're interested in . Sure, you already know that it's a good fit for your business and that its vision aligns with yours, but that might not be enough. Try to find out more about its history, accomplishments, employees and organizational performance.
The more you know about it, the higher your chances of success. The whole idea is to demonstrate a keen interest in the company you want to partner with. Read case studies, check its website and social media pages, search for press releases and study its products. Make sure you know what differentiates it from the competition and what its selling points are.
With this information, you'll be better prepared to make a partnership proposal. Reach out to the company's CEO or other leaders, and briefly present your idea. Once you've caught their attention, write a proposal that describes your vision in detail. Emphasize how this partnership will benefit both parties and why it's a smart move.
The key to a strong partnership proposal is to convince the reader that your idea is profitable and plausible . Back up your claims with hard facts; structure your pitch so it communicates what they want and need to know. Keep it short and relevant. No one is going to read a 10-page proposal.
Address the recipient by name. Introduce yourself and your company. Highlight your key accomplishments and unique selling proposition to catch the person's attention. Cover the following points in your proposal:
Summary/conclusion :
Summarize the benefits of a business partnership and ask to set up a meeting or call.
Attach any supporting documents to your proposal. Use charts, graphs and other visuals to illustrate your point and emphasize the partnership's benefits.
A partnership proposal isn't a sales letter. Highlight your company's achievements and let its personality shine, but refrain from being overly promotional. Remember, you're trying to develop a mutually beneficial relationship. Be genuine and professional.
Use reasonable repetition to emphasize your key points. Only include facts and information relevant to the company you want to partner with. If you're reaching out to several companies, tailor your proposal to each organization , and make sure it aligns with their vision and goals.
Avoid superlatives and words or phrases that may set a negative tone. Cut the fluff and get to the point. Follow up with an email or phone call a few days after submitting your proposal. Let them know that you're ready to answer any questions they may have about a potential partnership.
Andra Picincu is a digital marketing consultant with over 10 years of experience. She works closely with small businesses and large organizations alike to help them grow and increase brand awareness. She holds a BA in Marketing and International Business and a BA in Psychology. Over the past decade, she has turned her passion for marketing and writing into a successful business with an international audience. Current and former clients include The HOTH, Bisnode Sverige, Nutracelle, CLICK - The Coffee Lover's Protein Drink, InstaCuppa, Marketgoo, GoHarvey, Internet Brands, and more. In her daily life, Ms. Picincu provides digital marketing consulting and copywriting services. Her goal is to help businesses understand and reach their target audience in new, creative ways.
How to write a new business pitch, how to write a preface for a business plan, how to approach corporations with business proposals, how to make a business plan presentation, how to write a referral letter for a business, an outline to pitch an idea to a company, how to propose a policy for approval, how to write a letter to a partner to dissolve a company, how to propose a strategic partnership, most popular.
Benjamin reimann, business proposals, business partnership proposal | business proposals | partnership proposal, august 11, 2021.
You know you need a partnership proposal to formally engage your prospective partner, but where do you start?
Everyone loves a good partnership: the Wright brothers, Larry Page and Sergey Brin, Bonnie and Clyde—okay, maybe not that last pair. The fact remains: a business partnership can be a catalyst for tremendous growth in your company.
But before you kick off a joint venture with your potential business partner, it’s essential that you first present them with a partnership proposal. Failing to do so can come across as lazy and unprofessional—but you don’t have to worry about that.
In this post, we’re going to delve into what a partnership proposal is, when you need one, and how to write one that can’t be turned down!
Try PandaDoc for free! Start building your templates and send out your first proposal today! * No credit card needed.
A business partnership proposal is a long-form document or letter that describes the viability of a partnership between you and a potential business partner. It is addressed to the individual or company and indicates your interest in pursuing a joint venture. You can think of it as an invitation to collaborate and do business together.
You’ll need a business partnership proposal in several different situations.
These also work in reverse! If you know someone whose business is expanding and you have the industry expertise to help, you should consider fleshing out a proposal.
There’s a common denominator in all of these cases: if you’ve been in serious talks to join forces with a potential partner, you need to formalize it with a business partnership proposal.
Like any great piece of writing, a business proposal should tell a story. To that end, proposals for all new business partnerships should include the following components:
Highlight shared values, clear goals and expected outcomes.
Let’s dive deeper into all of these sections:
Hooks are supposed to grab the reader’s attention and elicit curiosity, so provide details on your work experience and business accomplishments. But don’t make it all about you—to engage the potential partner, you need to highlight what’s in it for them . Whether it’s a broader customer base, new distribution channels, or brand synergy, it’s crucial that you allude to the mutual benefits of a new business partnership.
After hooking your reader, you need to tell them the story of your new business partnership:
Pro-tip for this section: use numbers. Charts, statistics, and graphs will all add to the professionalism and weight of your business proposal, and ground your ideas in reality.
You must explain how the brands and cultures of the businesses align. Creating a shared context and common ground is how you bridge the gap between your operations. Failure to do this is one of the biggest reasons that around 70% of business partnerships fail. As always, honesty is the best policy—it can save you a massive headache in the future.
For example, let’s say your company prioritizes highly personalized service for all of your customers. Your potential partner prioritizes seamless and rapid delivery.
Since you value in-depth customer service and they value quick turnaround times, there may be conflicts in your future. Alternatively, if the prospective partner emphasizes their ability to overdeliver on every order, your values are better aligned.
Your business partnership proposal should lay out a concrete plan for moving forward, where you indicate the specific objectives and outcomes you’re seeking. This can take many forms:
Include things like expected ROI, the proposed division of tasks, and protocols for handling conflicts or dissolving the partnership if needed. By incorporating this section, you can ensure that all parties are on the same page.
Writing a partnership proposal may seem daunting at first—but by including the key components we’ve covered, you’ll have no need to worry. Here are some final tips for constructing your business proposal:
To take your business to the next step, get in touch with Pure Proposals today and find out how easy it is to utilise Proposal Software to create your own unique Partnership Proposal!
Too many proposal software options? Not enough time? Let us help!
Systems Simplified. The top strategies and tools to streamline your sales process and close deals faster, in your inbox, every now and then.
Join hundreds of business leaders who receive Systems Simplified.
Pandadoc integration with hubspot.
May 30, 2024
In the digital age, businesses are constantly seeking ways to streamline their operations and improve efficiency. One...
A funding proposal is a document that outlines a request for financial support for a project or initiative. Whether...
Sponsorship proposals are essential documents for individuals and organizations seeking financial support for their...
Automated page speed optimizations for fast site performance
Newly Launched - AI Presentation Maker
Researched by Consultants from Top-Tier Management Companies
AI PPT Maker
Powerpoint Templates
Icon Bundle
Kpi Dashboard
Professional
Business Plans
Swot Analysis
Gantt Chart
Business Proposal
Marketing Plan
Project Management
Business Case
Business Model
Cyber Security
Business PPT
Digital Marketing
Digital Transformation
Human Resources
Product Management
Artificial Intelligence
Company Profile
Acknowledgement PPT
PPT Presentation
Reports Brochures
One Page Pitch
Interview PPT
All Categories
When partners enter a business at the outset, they are motivated and excited to embark on this exciting new adventure together. Initially, they agree on almost everything. These new entrepreneurs think they will be in business together for the rest of their lives or until they sell the company for untold millions of dollars.
They believe that nothing can or will go wrong. They are so sure of each other that they never bother to get a written partnership plan. What could possibly go wrong in this scenario? The short answer is, "A LOT!"
The reality is that, despite dreams of longevity and unwavering trust, business owners' desires and expectations change over time. A written partnership plan can manage these expectations and give each partner confidence in the business's future. A written plan can serve as a safeguard that protects both the business venture and the investment of each partner.
Now, you might be thinking, “How to get an effective partnership plan in place?” The quick answer: Partnership Plan Templates .
Every business requires a partnership plan. Small businesses seek out partnerships more to achieve their goals and objectives. Building a strategic partnership is more complicated than creating a partnership document, but it is the first step toward action. SlideTeam’s partnership plan templates maneuver your ship to the shore.
Let’s explore these!
Get this Strategic Partnership Plan PPT Template and deliver an impactful presentation to your audience. Its layout is divided into four sections, each describing a critical aspect: Plan, Analyze, Identify, and Act. There’s a specified section for review to ensure you have that extra cushion to make amendments, wherever necessary. Get this template now.
Download this template
This PowerPoint Template works wonders when you want to explain the role of strategic partnerships within an organization. It has ample space to highlight points you want to deliver in your presentation. You can use its standard layout to emphasize key details, including partner location, services they monitor, objectives, and more. Download it now.
The importance of proper communication in the successful accomplishment of business objectives can’t be overstated. With SlideTeam’s handpicked internal communication plan template, you can enjoy the convenience of an uninterrupted flow of information across departments in your company. This plan layout describes:
Download now.
Build a weekly timeline for your marketing campaign using this fantastic PPT Template. Till the campaign goes live, you can include and track KPIs to ensure your effort is successful. Here, there are some predefined parameters that you can use: Target mapping exercises, Prepare brands and categories, Assign partner roles, risk register update, Negotiation and recruitment, and Activation and management. Download it now.
Global partnership management is a painstaking task that can be made easy with our exemplary template. It has a unique framework that explains key insights encompassing the five stages, namely: Prepare, Share Knowledge, Plan, Execute, and Achieve Results. Being 100% editable, you can tweak the design and include points in this template to serve your purpose. Download it now.
Teamwork is the key to success! We know you would have heard this phrase at least a million times, but it doesn’t take away even a slight bit of truth. Build a six-month teamwork partnership framework using our exceptional PowerPoint Template. It highlights the team member and phases spread across a month-wise timeline. The phases include:
With a similar design to the previous template, this template accelerates the process of building a five-year teamwork partnership strategy roadmap. It has some predefined phases which you can change to suit your business requirements. You can present it to higher management to get their approval on the partnership roadmap you are long working on. Get it now.
If you need a pre-built framework for drafting a planned partnership strategy, this is the perfect piece for you. Its layout is designed into five stages that you can use to explain critical insights that underline your strategy. You can also use it to highlight KPIs as well. Get it now.
‘Strategic partnership’ is a complex subject that commands resources to spark clarity in your audience. Lucky for you, SlideTeam has prepared this template that touches every essential parameter that encompasses it. This template highlights the points of collaboration, teamwork, strategy, plan, performance, and success. It is a roadmap with checkpoints you need to surpass to foster better partnerships within your organization. Download it now.
A partnership action plan boiled down into three stages! Hard to believe, isn’t it? SlideTeam presents a PPT Template that displays a layout that does just that. It has three levels: Action, Planning, and Partnership. The idea behind these stages is, you have to define relevant actions to ensure your organizational plans aren’t affected. Doing so will ensure there’s a more inclusive partnership forging in your company across departments. Get it now.
Partnerships are critical to the success of any business. Merchants and traders have used the principles of strategic partnership to conduct their businesses since the genesis of trade and commerce; the trend continues today.
A partnership can take many forms, from business owners working together to invest in a project to firms sharing technical knowledge and ideas. Whatever a company does, finding the right partnership plan template that benefits both parties is critical. (And that’s why SlideTeam has put together this list of top 10 partnership plan templates!)
What is a partnership plan.
A partnership plan is a way two or more parties in a business agree on conducting the venture together. Each party takes different functions to perform, helping the business run more efficiently. This plan is documented in the form of an agreement. This document lays down the ground rules on how the partners will handle business responsibilities, ownership and investments, profits and losses, and company management.
While "partners" usually refers to two people, there is no limit to how many partners can form a business partnership in this context.
When forming a business partnership, it is critical to draft a partnership plan contract that outlines all of the terms and conditions of the professional relationship. Your business partnership plan should include a list of all partners and should address the following issues:
Here are the five stages of partnership:
Stage I. The Singles Stage (Non-Partnering)
Stage II. The Searching Stage (Pre-Partnering)
Stage III. The Courtship Stage (Active Partnering)
Stage IV. The Bonding Stage (Consolidated Partnering)
Stage V. The Commitment Stage (Going to Scale)
There are five basic tenets that work together to form a framework for establishing a solid foundation for effective business relationships.
While some of these are easier to quantify than others, each has a significant impact on the partnership's strength.
This form is protected by reCAPTCHA - the Google Privacy Policy and Terms of Service apply.
By Scott McDowell
Download our free guide to learn how to measure and analyze your website performance.
The email you entered is invalid.
Thank you for subscribing.
By entering your email, you indicate that you have read and understood our Privacy Policy and agree to receive marketing from Squarespace.
A business plan is a helpful step to create a roadmap as you start or start to grow your business. This guide will explain the value of having a business plan and provide a detailed, step-by-step process to help you create one.
Think of a business plan as more than just a theoretical overview. It is a practical, actionable resource that informs your business as you grow.
At its most basic, a business plan is a formal document that outlines your objectives, strategy, and timeline to profitability. It includes basic information all in one place: your mission , organizational structure, product offerings, financial projections, and more.
A good business plan will:
Clarify your vision and strategy
Guide growth and help you stay on track
Provide a framework for making informed decisions regarding your business
At the end of the day, a business plan helps you stay focused on your goals and demonstrates that you have a viable strategy for growth.
Even if you don’t need one right now, a business plan can help you clarify your goals and lay out the steps to grow your revenue and customer base, so you can keep doing work you enjoy. A solid business plan can keep you on track and provide a benchmark for measuring progress. Plus, you’ll likely need a comprehensive business plan if you plan to attract outside investors.
Before you start putting together your business plan, there are a few key pieces of thinking and research that will inform the details.
Take some time to evaluate your new business. This step helps you hone in on your mission and vision for the business and what makes it unique.
Ask and answer the following questions:
What problem does my business solve?
Is there a demand for my product or service?
What are the potential pitfalls and risks?
Market research involves gathering information about your industry, target audience, and competitors to understand your market and identify gaps and sales opportunities. This helps you look more closely at where you stand among similar businesses and how you can differentiate yourself.
Industry analysis: Look at industry trends, growth potential, and market size.
Target market: Identify who your customers are, their demographics, preferences, and buying behavior.
Competitor analysis : Analyze your competitors' strengths and weaknesses, their market positioning, and their strategies.
Read our guide to audience research
Developing a clear understanding of your target audience will help you figure out how to speak to them effectively, how to market your brand to them, and their unique needs.
Once you know your target market, dive deeper into their needs. Ask yourself:
How do you solve a problem or fill a need for them?
What are their priorities?
How do you reach them online or in person?
What type of message or behavior is likely to gain their trust or loyalty?
Creating a customer or buyer persona —a fictional version of your ideal customer—can be a helpful way to summarize these details.
A formal business plan includes several parts, including details about your business, how it’s structured, marketing plans, financials, and products. Which parts you need for your own business plan depends on its purpose. If you plan to present this to a potential partner or investor, you likely need most of the elements. If the business plan is to help you log your goals and plans, you can remove sections that don’t feel relevant to your needs.
The executive summary is the first section of your business plan, but you should probably write it last. It’s a one or two paragraph high-level summary of your entire plan. Remember, the executive summary is the first thing someone will see, so it needs to be concise and engaging.
What to include in your executive summary:
Business name: Your business' name and any relevant branding
Mission statement: A brief description of your business’s purpose and core values
Products/services: A summary of the products or services you offer
Market opportunity: An overview of the market need you are addressing
Financial highlights: Key financial projections, including expected revenue and profit
Example: For an eco-friendly clothing line, the executive summary might highlight the growing demand for sustainable fashion, the unique designs offered, and projected first-year revenues of $100,000.
"Our eco-friendly clothing line, GreenDress, is dedicated to providing stylish and sustainable fashion alternatives. With the mission to reduce fashion waste, our products are made from organic and recycled materials. Addressing the increasing consumer demand for eco-friendly options, we aim to capture a significant share of the sustainable fashion market, projecting first-year revenues of $100,000 with a profit margin of 20%."
Try the Squarespace Business Name Generator
Company description
Provide a comprehensive overview of your company, including its structure, history, and the problem it solves. This is similar to the About section you might write for your website bio .
What to include in your company description:
Business structure: Describe your legal business structure (for example, sole proprietorship, partnership, LLC ).
History: Provide a brief history of your business, if applicable.
Market needs: Reiterate the problem your business solves and why there’s a demand.
Example: “ GreenDress is an LLC founded in 2023 by Joan Campion, a fashion stylist and designer with over 10 years of experience in sustainable manufacturing. Our mission is to offer fashionable, eco-friendly women’s clothing options that minimize environmental impact. With growing awareness of fashion’s ecological footprint, there is an increasing demand for sustainable fashion.”
Market analysis
Conduct market analysis to help you understand your industry, market size, and competitors. This helps you and others understand where you sit among competitors, who your brand is for, and what makes you unique.
What to include in your market analysis:
Industry overview: Summarize the industry landscape and trends.
Target market: Define your target market, including demographics, location, and purchasing behavior.
Competitive analysis: Identify your main competitors and analyze their strengths and weaknesses.
Example: “The sustainable fashion industry is growing at an annual rate of 10%. Our target market consists of eco-conscious consumers aged 18-35 who value sustainability and unique design. Competitors include established brands like Patagonia, independent sustainable fashion brands, and direct-to-consumer startups like Everlane. GreenDress differentiates itself by offering more affordable and fashion-forward options.”
Highlight the experience and expertise of your team members. If you’re creating a business plan for your own planning purposes, you can likely skip this section unless it’s helpful to sketch out your team structure.
What to include in your organization and management section:
Organizational structure: Include an org chart and provide a one or two sentence overview of your business’s organizational structure.
Management team: Introduce team members, their roles, and relevant experience.
Advisors: Mention any advisors or board members.
Example: “ GreenDress is led by CEO Joan Campion, with over a decade of experience in sustainable fashion design. Our team includes COO Carlos Silver, who has a background in supply chain management, and CFO Emily Deschutes, an expert in financial planning for startups. We also have a board of advisors consisting of industry veterans and sustainability experts.”
Describe your products and explain what makes them unique. Writing this out can help you clarify how you talk about your products and the process for creating and selling them.
What to include in the products or services section:
Description: Provide detailed descriptions of your products or services.
Benefits: Highlight the key benefits to your customers and the unique selling points of your products.
Lifecycle: Outline the lifecycle of your products or services, including development and future plans.
Example: “ Our product line includes organic cotton dresses, jeans, t-shirts, and jackets made of recycled and repurposed materials. Each item is designed with style and sustainability in mind. Our clothing is durable, stylish, and eco-friendly, appealing to consumers who want to reduce their environmental impact without sacrificing fashion.”
Marketing and sales strategy
How will you attract and retain customers? Include information about your preferred marketing channels, sales tactics, and customer retention plans.
What to include in the marketing and sales strategy section:
Marketing channels: Describe the channels you will use to reach your target market (for example: social media , email marketing , influencers).
Sales strategy: Explain your sales process and tactics.
Customer retention: State how you plan to retain customers and encourage repeat business.
Example: “ We will leverage social media platforms, fashionistas, and eco-influencers to promote our brand. Our sales strategy includes an ecommerce website and pop-up shops in vibrant neighborhoods. We will implement a customer loyalty program, offer discounts for repeat buyers, and regularly update our product line to retain customers and keep our brand fresh and appealing.”
Read our guide to creating a marketing strategy
Provide an overview of your business’ financial projections. You may need to talk to a financial expert or ask a friend who understands the financials of starting a business.
What to include in the financial plan section:
Revenue model: Explain how your business will make money.
Funding requirements: Detail any funding you need to start or grow your business.
Financial projections: Provide projected income statements, cash flow statements, and balance sheets for the next 3-5 years.
Example: “ Our revenue model is based on direct-to-consumer sales through our website and pop-up shops. We are seeking $50,000 in seed funding to cover initial production costs and marketing expenses. Projected first-year revenue is $100,000, with a net profit margin of 20%.”
Include any additional information that supports your business plan in an appendix. Consider what additional questions your audience might have. If this business plan is for your records, think about what business documentation would be useful to keep in your plan for easy reference.
The appendix can include things like:
Resumes: Detailed resumes or bios of the management team.
Product photos: High-quality images of your products .
Legal documentation: Any relevant legal documents, such as patents or trademarks.
Depending on your business stage and goals, you may only need a truncated, straightforward business plan outline. Focus on the essentials and don’t get bogged down in too much detail. Instead of including everything listed above, start with these sections:
Financial projections
A shorter business plan may be all you need to get your venture off the ground. It will provide enough of a framework to take the idea in your head and make it a real, viable business.
A few best practices apply no matter how long your business plan is or who it’s for. A great business plan is clear, realistic, and based on research.
Use clear and straightforward language. Avoid jargon and overly technical terms, use short sentences and paragraphs, and be specific and direct.
Support your claims with data and research. Use credible sources for market data, provide references and cite your sources, and use charts or graphs to illustrate data and make it easy on the eyes.
Set feasible and achievable goals. Base your projections on realistic assumptions and don’t be overly optimistic, consider potential challenges and risks and how you plan to address them, and be able to explain for your projections.
Seek feedback from friends, mentors, and advisors. Share your plan with someone you trust, ideally with more experience than you and use the feedback to refine and improve your plan.
Crafting a well-structured business plan is an elemental step for starting a new business or side hustle. You can start with a simple bare-bones plan or develop a more robust one, depending on your needs. The process can seem daunting, but armed with a clear and detailed plan, you will be ready to guide your business to success.
Posted on 01 Aug 2024
How to Design a Fashion Ecommerce Website
By Sam Edmonds
21 Sep 2023
How to Create a Marketing Strategy
By Annie Zaleski
03 Jul 2024
Subscribe to receive the latest MAKING IT blog posts and updates, promotions and partnerships from Squarespace.
By providing your email, you indicate you have read and understood our Privacy Policy .
Business plans serve as a foundational framework that aligns the operational strategy of your partner firms with the overarching goals and expectations of your company. Tailored for each partner, these business plans outline specific sales, marketing, and training objectives that are designed to be in perfect sync with your organization's aspirations. These plans are indispensable tools for effectively overseeing your network, enabling you to evaluate and measure performance continually and, as needed, take strategic actions to bolster your partners on their path to success.
By collaboratively constructing business plans in conjunction with each partner, you foster a sense of cohesion within your indirect sales ecosystem. This shared roadmap ensures that all partners are working in synergy, collectively pursuing the identified actions necessary for accomplishing mutual success, further strengthening the strategic alignment between your firm and its partner network.
1. know your partners well.
A thorough understanding of your partner network is a fundamental prerequisite for the successful development of partner business planning. Within your indirect sales ecosystem, business providers, integrators, value-added resellers (VARs), IT service companies, and resellers each operate within distinct logic and economic models. Acquiring deep insights into the nuances of each partner type is crucial for crafting business plans that align with both your partner's strategic objectives and your company's overarching goals.
Isabelle Castellanet, the founder of IXC, a firm specializing in Partners and Growth, emphasizes the importance of recognizing the diverse expectations and requirements of partners based on their typology. She notes, "Depending on the typology of its network, it is important to see that the partners do not expect the same information. A wholesaler, for example, does not require the same information and tools as a VAR, an integrator, or even a third-party publisher who prescribes or resells for you."
Recognizing these key elements in partner business planning ensures that your efforts are tailored to cater to the specific needs and expectations of each partner category, ultimately fostering a more productive and mutually beneficial collaboration.
Creating a robust business plan in collaboration with your partner necessitates a well-defined and quantifiable overarching business objective. This objective must be crystal clear and expressed in measurable terms. For instance, it could be aimed at achieving specific milestones, such as:
This overarching business objective serves as the cornerstone upon which you will construct the business plans tailored for each of your partners. The core concept is to apportion individual objectives to your partners that harmonize with your global strategy. Consequently, each partner's unique business plan becomes an instrumental component contributing to the fulfillment of your company's overarching business objective. This strategic alignment ensures that the combined efforts of your partner network work in unison to advance your business toward its ultimate goals.
Setting objectives within your partner's business plan is essential, engaging, and decisive for the success of the partnership. Aligned with the main objective of your business, these objectives, whether quantitative or qualitative, must be measurable and, therefore, quantified.
Based on a careful analysis of historical sales performance, specific criteria such as outcomes, geographical location, and seniority within the partner network, distinct objectives will be strategically allocated to each partner. These objectives encompass a variety of key areas that guide their contributions to the partnership:
By customizing these objectives based on partner history and characteristics, the partnership becomes more adaptable and efficient, with each partner playing a unique role in contributing to the collective success of the collaboration. This tailored approach maximizes the potential for growth and achievement within the network.
Incorporating qualitative objectives into your business plan imparts a heightened level of professionalism to your partner network. This is especially pivotal when embarking on new indirect sales partnerships. Training sessions play a central role in this process, serving as a crucial avenue for partners to equip their sales teams with comprehensive knowledge about your brand. These sessions not only elevate your partners' understanding of your products but also empower them to embrace and disseminate your vision over the short, medium, and long-term horizons. This alignment ensures that they are seamlessly integrated into your strategic framework. As an illustrative example, you may set a target, such as achieving a certification for a specific number of "X" sales, within your business plan.
To ensure the optimal monitoring of your business plan and to gauge the progress of your partners, it is imperative to implement KPIs. These quantifiable benchmarks enable you to assess the attainment of objectives, offering valuable insights into areas where potential refinements or additional support may be necessary. By embracing KPIs, you introduce a structured, data-driven approach that ensures the partnership remains on a well-tracked trajectory toward realizing the objectives outlined in your business plan.
In pursuit of ongoing refinement and shared operational efficiency, it's essential that these objectives are periodically defined and subject to regular monitoring. Constructing a business plan without a system for ongoing objective assessment is a critical oversight, as it can become too late to take corrective action should your partner deviate from their established objectives. To ensure the long-term success of your collaborative efforts, it's highly advisable to assess and potentially adjust objectives on a monthly basis, accounting for variances such as weaker performance in a specific month, such as August.
KPIs play a pivotal role in facilitating the monitoring and analysis of your partners, allowing you to identify both their strengths and areas that may require improvement. With a monthly review and a systematic reporting mechanism, you gain the capability to:
In the endeavor to establish a comprehensive business plan and ensure its effective management with full transparency into your partner's activities, a PRM, or Partner Relationship Management system, emerges as the quintessential tool. Going beyond the capabilities of conventional management software, a PRM empowers you to systematically structure your indirect sales processes and engage with your partner ecosystem in real time, irrespective of the hour or location.
When crafting business plans for your partners within a proficient PRM platform, you can expect to benefit in several key ways:
By leveraging a PRM , your business can optimize its partnership management, ensuring that business plans are not only efficiently established but also actively tracked and adjusted as necessary, fostering the mutual success of both your company and your partner network.
Looking for inspiration to never stop learning.
Your right to know, why are partner business plans important, what elements should be included in a partner business plan, how do you write a business plan for a partner, what are the 3 types of partners in a business set up, what is an example of a strategic partnership plan, still have questions.
Business partnership proposals | ms word | google docs | apple pages, 25+ sample business partnership proposals, what is a business partnership proposal, the advantages of business partnerships, how to create a business partnership proposal, the dos and don’ts of a business partnership proposal.
Step 2: explain how your values align, step 3: focus on the value proposition, step 4: discuss how the partnership will conclude, don’ts, share this post on your network, you may also like these articles, 25+ sample construction company proposal in ms word.
Navigating the intricate world of construction demands a seasoned company with a proven track record. Our comprehensive guide on the Construction Company Proposal is your blueprint to understanding the…
Julia Child said: “Drama is very important in life: You have to come on with a bang. You never want to go out with a whimper. Everything can have…
Business News Daily provides resources, advice and product reviews to drive business growth. Our mission is to equip business owners with the knowledge and confidence to make informed decisions. As part of that, we recommend products and services for their success.
We collaborate with business-to-business vendors, connecting them with potential buyers. In some cases, we earn commissions when sales are made through our referrals. These financial relationships support our content but do not dictate our recommendations. Our editorial team independently evaluates products based on thousands of hours of research. We are committed to providing trustworthy advice for businesses. Learn more about our full process and see who our partners are here .
Every partnership needs a formal agreement. We'll show you what it should include.
Since joining Business News Daily in 2015, Adam Uzialko has become a trusted resource for small businesses. As our Small Business Insider and an entrepreneur, he has spent thousands of hours researching and writing about the software and services entrepreneurs need most.
A business partnership agreement is a document that establishes clear business operation rules and delineates each partner’s role. These agreements are enacted to resolve disputes, delineate responsibilities, and define how to allocate profits and losses .
Any business partnership in which two or more people own a stake in the company should have a business partnership agreement. This legal document provides critical guidance in a company’s operations.
We’ll explore what a business partnership should include, as well as share resources and best practices for creating this critical legal document.
A business partnership agreement is a legal document between two or more business partners that spells out the business’s legal structure and purpose. It outlines the following information:
The agreement also outlines what steps will be taken if one business partner decides to sell their interest or leave the company and how the remaining partner or partners would split profits and losses.
“I highly suggest formal partnership agreements are put in place as businesses evolve from solo practices into a partnership or ensembles,” said Rich Whitworth, former head of business consulting for Cetera Financial Group. “The biggest reason is that it establishes the ‘rules of engagement’ between the business and its owners … and lays out a road map on how to deal with entity-level issues.”
While businesses seldom begin with concerns about a future partnership dispute or how to dissolve the business, business partnership agreements are essential in situations in which emotions might otherwise take over. A written, legally binding agreement is an enforceable document instead of a spoken agreement between partners.
A business partnership agreement must include all foreseeable issues regarding the business’s co-management. The easiest way to prepare a business partnership agreement is to hire an attorney or to find a customizable template. If you’re writing your own agreement, find a template for a company that’s similar to the business you’re starting .
A business partnership agreement should follow a logical process and include the following information:
Once you’ve spelled out everything in detail, each partner must sign the agreement for it to take effect.
A business partnership agreement doesn’t have to be set in stone, especially as a business grows and develops. You’ll be able to add to the agreement, especially if unforeseen circumstances occur. According to Whitworth, there are four primary stages to consider.
“Partnership agreements need to be well crafted for myriad reasons,” said Laurie Tannous, owner of law firm Tannous & Associates Inc. “One main driver is that the desires and expectations of partners change and vary over time. A well-written partnership agreement can manage these expectations and give each partner a clear map or blueprint of what the future holds.”
Business partnership agreement templates are available for free online. These resources can help you draft your agreement, but you should have legal counsel review your draft and help you revise and finalize the document before you sign it.
Once a lawyer confirms that your business partnership agreement is thorough and legally binding, you and your partners can sign it to make it official.
When you’re searching for business partnership agreement templates, start with the following resources:
Partnership agreements are complex documents. Unfortunately, many people get bogged down in details and make crucial startup mistakes in their partnership agreement.
Here are some common mistakes to avoid:
Business partnership agreements formalize the relationship between partners and enumerate their rights and responsibilities. This limits partner liability and helps resolve disputes. Failing to draft an appropriate agreement can lead to problems later, including significant personal liability.
A business partnership agreement establishes a set of agreed-upon rules and processes that owners sign and acknowledge before problems occur. If any challenges or controversies arise, the business partnership agreement defines how to address them.
“A business partnership is just like a marriage: No one goes into it thinking that it’s going to fail, but if it does fail, it can be nasty,” said Jessica LeMauk, marketing director at Voxtur. “With the right agreements in place, which I’d always recommend be written by a qualified attorney, it makes any potential problems of the business partnership much more easily solved and/or legally enforceable.”
In other words, a business partnership agreement protects all partners if things go sour. By agreeing to a clear set of rules and principles at the partnership’s outset, partners exist on a level playing field developed by consensus and backed by law.
A well-crafted, airtight business partnership agreement clarifies each partner’s expectations, duties and obligations. In business, things change constantly, so it’s crucial to establish a business partnership agreement that can serve as a grounding force in turbulent or uncertain times. A business partnership agreement also defines how the business should grow and governs the addition of new partners.
If you’re going into business with a partner, establish a business partnership agreement while incorporating as an entity. Even if it seems unnecessary today, when an issue arises, you’ll be glad you had an agreement in place.
Dock Treece contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article.
Insights on business strategy and culture, right to your inbox. Part of the business.com network.
4 min. read
Updated October 25, 2023
If you plan on going into business with a business partner, a written partnership agreement is important. If you and your partners don’t spell out your rights and responsibilities in a written business partnership agreement, you’ll be ill-equipped to settle conflicts when they arise, and minor misunderstandings may erupt into full-blown disputes. In addition, without a written agreement saying otherwise, your state’s law will control many aspects of your business.
A partnership agreement allows you to structure your relationship with your partners in a way that suits your business. You and your partners can establish the shares of profits (or losses) each partner will take, the responsibilities of each partner, what will happen to the business if a partner leaves, and other important guidelines.
Each state (with the exception of Louisiana) has its own laws governing partnerships, contained in what is usually called the “Uniform Partnership Act” or the “Revised Uniform Partnership Act”—or, sometimes, the “UPA” or the “Revised UPA.” These statutes establish the basic legal rules that apply to partnerships and will control many aspects of your partnership’s life, unless you set out different rules in a written partnership agreement.
Don’t be tempted to leave the terms of your partnership up to these state laws. Because they were designed as one-size-fits-all fallback rules, they may not be helpful in your particular situation. It’s much better to put your agreement into a document that specifically sets out the points you and your partners have agreed on.
Here’s a list of the major areas that most partnership agreements cover. You and your partners-to-be should consider these issues before you put the terms in writing:
Have you gone into business with a partner, and did you write up an agreement beforehand? What would you have done differently? Share your stories or questions with us in the comments.
Brought to you by
Using ai and step-by-step instructions.
Secure funding
Validate ideas
Build a strategy
Nolo's mission is to make the legal system work for everyone—not just lawyers. What we do: To help people handle their own everyday legal matters—or learn enough about them to make working with a lawyer a more satisfying experience—we publish reliable, plain-English books, software, forms and this website.
Table of Contents
Related Articles
9 Min. Read
How to Legally Register for Your Business Name
3 Min. Read
How to Apply for an EIN: Federal Tax ID Number
6 Min. Read
How and Where to Obtain Business Licenses and Permits
3 Reasons Why You Shouldn’t Wait to Register for a DBA
The LivePlan Newsletter
Your first monthly newsetter will be delivered soon..
Unsubscribe anytime. Privacy policy .
Fill-in-the-blanks and automatic financials make it easy.
No thanks, I prefer writing 40-page documents.
Discover the world’s #1 plan building software
You have the perfect idea for a business you believe has real potential. Congratulations, but this is only the beginning. Now comes the hard part: writing a business plan.
Your business plan is a roadmap for your business. It articulates your goals and strategies, including the actions and resources needed to achieve them. And it’s not just for you — a solid business plan can help you secure funding, attract the right investors, and guide your business once it grows.
Format and introduction to your business plan.
Every good business plan starts with a killer introduction or executive summary. This is crucial because it is the first thing that readers will see. Think of it as a book cover — it needs to be compelling enough to make people want to keep reading. The primary purpose of an executive summary is to outline your business concept and provide a broad overview of your strategy . A strong executive summary is the key to making a great first impression and paving the way for your startup’s success.
Your introduction should include your business name, location, product, and service offerings. You must also express your mission and vision, encompassing your big-picture goals. Ensure your introduction is clear and concise to avoid confusion by keeping it simple.
Don’t pressure yourself to compile your business plan in just one document. If there are too many sections and it’s easier to tackle each one individually before collating them, you can easily convert the documents to PDF once they’re ready for publication and use a free PDF editor to compile them into your formal business plan. This is a great way to keep all your formatting intact across all the individual sections of your business plan as well.
Knowing your market is essential to success. The market analysis section of your business plan should outline your knowledge of the industry and the market you’re in.
Start by outlining the industry landscape, current size, trends, and growth potential. Ensure that data and statistics support this section. Afterward, outline your target market. Who are your ideal customers or clients? What are their demographics, needs, and purchasing behaviors? Use surveys, focus groups, and market research reports to gain valuable insights. This will help you create products or services that meet clients’ needs better.
Lastly, analyze your competition. Figure out who you’re up against, what they offer, and their strengths and weaknesses. This helps you identify areas where you can excel and find your unique selling point. So, find those market gaps and ride the wave to success!
A clear organizational structure is essential for efficient operations and enables potential investors to see how your business will work. Begin this section by outlining your business’s legal structure. Are you a sole trader, a partnership, or a proprietary limited company? You should also indicate why you have chosen this structure and how it benefits your business.
Then, introduce your team. Provide comprehensive profiles of the main members of the management team. You should include their roles, qualifications, and experience. This can inspire trust in potential investors as they will see that experienced professionals are running your organization.
If your team has some gaps, remember to explain how you plan to fill them and what types of professionals you will need as your company develops. Organizational charts can be helpful here—they display your hierarchy and the relationships between the different positions in the company. This ensures that everyone understands their roles and responsibilities, which is vital for smooth operations.
Your product and/or service are the heart of your business, and this section deals with them. Explain exactly these products or services, how they meet market needs, and their unique characteristics. Keep everything easy to understand, and avoid using complicated jargon or overly technical terms.
Next, explain how you will get your products/services to your audience. If you sell physical products, outline your supply chain, manufacturing process, and quality control measures. If it’s a service you’re offering, describe how it will be delivered and what tools and equipment you need. Overall, this section should demonstrate how you plan to deliver your goods at a consistent level of quality.
This section should also include information on your pricing strategy. What are the reasons behind your current prices? Will they allow you to hit your revenue goals? Are people willing to pay these prices?
This section demonstrates that you’ve done your market research.
Your marketing and sales strategy is how you attract and retain customers. Talk about the channels you plan to use. These can be digital, like social media and email, and traditional, like posters and brochures. Clearly state why your chosen marketing channels are the best ways to spend your limited budget.
Next, describe your acquisition strategy. In other words, how do you plan to convert leads into paying customers? This might include discounts, Google ads, and a referral program. You should also talk about how you plan to use CRM strategies like email marketing and push notifications to retain existing customers.
Don’t forget to outline your brand. Discuss why your brand is a certain way and how you intend to spread the word. Outline your brand values, voice, and other unique brand elements. A strong brand can help you stay ahead of the competition and build a loyal customer base, so don’t neglect this crucial aspect of marketing.
While this might not be the most exciting part of writing a business plan, a comprehensive financial plan is critical. In this section, you should provide detailed projections of your business’s financial future.
First, include your revenue model. How exactly is your business going to make money? Mention primary and potential secondary revenue streams.
Then, outline your financial projections. You should cover a minimum of three to five years and, in the following order, provide your projected income statements, cash flow statements, and balance sheets. Remember to be realistic and support everything with data.
Remember to prepare a break-even analysis, including how much money you need to make to cover all your expenses. Investors will analyse this section, in particular, when assessing whether or not your business might be profitable.
Lastly, outline your funding requirements. How much money do you need to start and expand your business, and how do you plan to use these funds? Clearly explain your funding strategy, including potential funding sources like loans, investments, and grants.
The appendix section is for any other information that supports your business plan. This might include market research data, detailed financial projections, legal documents, resumes of key team members, product images, and any other relevant documentation. These all help make your business plan more credible and comprehensive.
A PDF editor is a good tool for organizing your appendix. Having all your documents in PDF format ensures that the business plan is easily readable and can be shared electronically.
Writing a business plan is a time-consuming and complex activity, but it is necessary if you plan to start a business. A high-quality business plan not only helps you formulate your business idea and strategy but also helps you attract investors.
Following the steps in this guide will allow you to prepare a helpful and engaging business plan. Understanding that a business plan is not a one-time activity is also essential. As your business develops, plans and strategies may change. Therefore, your business plan should be reviewed regularly and modified to meet new opportunities and challenges.
Starting a business in this day and age is no walk in the park, but with a solid business plan, you’ll be prepared to navigate the rocky road ahead. ‘
*This is a Sponsored Article
Type above and press Enter to search. Press Esc to cancel.
A partnership agreement outlines how the business will operate and who will be responsible for what roles. Learn how this legal document will set your business up for success.
Find out more about Forming a Partnership
by Fabrienne Bottero
Fabrienne is a writer and journalist who specializes in branding and content strategy. In the last five years, s...
Read more...
Legally reviewed by Allison DeSantis, J.D.
Allison is the Director of Product Counsel at LegalZoom, advising and providing leadership to internal teams on the d...
Updated on: August 7, 2024 · 10 min read
Why you need a partnership agreement, how to create a partnership agreement in 5 steps, frequently asked questions about partnership agreements.
Clear and effective boundaries empower healthier relationships, including business partnerships. Before you start a business with one or more partners, establish clear communication, define roles and responsibilities, and help prevent future conflicts through a partnership agreement.
A partnership agreement is a legal document that outlines the terms and conditions between two or more individuals who agree to manage and operate a business together.
A written partnership agreement clarifies three things:
By answering these important questions upfront, you can create clear guidelines that help your business continue to run smoothly when faced with common challenges later on.
Various types of partnerships exist to accommodate different businesses' needs. There are three major types of business partnerships in the United States. Another type of partnership is LLLP, but this is not permitted in all states and is not common. The major business partnerships in the U.S. are:
General partnership : the most common type of business partnership. Under a general partnership agreement, all partners share ownership and equal responsibility for managing the business and are personally liable for business debts.
Limited partnership (LP): a type of partnership that includes both general partners (who manage the business and are liable for its debts) and limited partners (who invest but do not manage the business and have limited liability). They make capital contributions but aren't active in the business’s daily operations or decisions.
Limited Liability Partnerships (LLP) : A type of partnership structure where every partner has a limited personal liability for the debts or claims of the partnership. Partners are responsible for daily operations and legal liabilities, but they’re not responsible for the actions of other partners.
Other partnerships: Some states also offer limited liability limited partnerships. Limited liability limited partnerships (LLLPs) are somewhere between an LP and an LLP. Partners are fully responsible for daily business operations but aren't fully liable for business debts.
An effective partnership agreement should include at least the following topics:
Other important elements will depend on your partnership business' industry, the rules and regulations of your state, and your partnership's personal needs and expectations. An attorney can help you clarify a more refined agreement.
A partnership agreement is not a legal requirement. However, it's highly recommended if you want to ensure smooth operations and clear expectations among your business partners.
Further, a customized partnership agreement allows you to override state partnership rules and dictate how you want to approach important business issues.
Your partnership agreement should clearly outline each partner's roles, responsibilities, and authority before you start your business . Detail the specific tasks each partner will take on with defined obligations and expectations for each position.
These boundaries prevent conflicts by setting clear expectations on who handles various aspects of the business. Allocate responsibilities in a way that ensures every aspect of the business is equally covered.
The agreement should specify the percentage of ownership stake. Define how profits and losses will be shared among each partner to ensure that every member is treated fairly and knows what to expect in terms of financial returns or obligations. Determine whether you'll distribute profits and losses equally, by fixed percentages, or based on capital contributions.
Defining the terms of a business relationship provides a legal framework that protects the interests of all partners. In the absence of a partnership agreement, default state laws will apply, which might not be in the best interest of all partners or the specific business needs.
Certain partnership agreements—such as an LLP agreement —can establish rules that legally protect other partners from one partner's bad business decisions. For example, doctors or lawyers in an LLP can determine that not all members are responsible for malpractice committed by one member.
The agreement can include mechanisms for resolving disputes among partners, thus avoiding costly and time-consuming legal disputes. It can specify mediation, arbitration, or other methods to address disagreements.
For example, establish the weight of each partner's vote and whether you'll make major decisions based on majority rules or unanimous consent. Detail how you’ll make business decisions that ensure every partner is heard and no partner can question the validity of a decision once it's made.
It outlines the process for adding new partners and the conditions under which partners can exit the partnership. This includes the steps necessary for a partner's withdrawal, retirement, or expulsion, and details on handling the partner’s stake in the business.
In the event of a partner's death or incapacity, the partnership agreement can specify how the partner's interest in the business is to be handled, ensuring the business continues smoothly without legal complications.
Additionally, you can include a clause to ensure that one partner leaving the company doesn't dissolve the entire partnership and that the remaining partners have the option to buy out the interest of the withdrawing partner.
A partnership agreement helps prevent misunderstandings that can arise from verbal agreements by having everything in writing, ensuring all partners are on the same page.
Several U.S. states currently observe the Revised Uniform Partnership Act that dictates general rules regarding general partnerships and limited liability partnerships. A partnership agreement allows partners to structure their relationship to suit their specific needs and the needs of the business, offering flexibility that laws cannot provide.
Every business partnership is unique and requires a customized approach. You may draft several versions of this agreement before all the partners agree. However, we've drafted some best practices for crafting your contract.
Whenever you draft a legal document of this nature, you'll want to consult a legal expert . Your attorney will act as both an advisor and a mediator to ensure both the needs of the business and the needs of each individual partner are adequately addressed. Their knowledge of state and federal laws will also ensure that you've addressed any governing law that can impact your business down the line.
Taxes are another area in which you'll greatly benefit from legal counsel, but we'll outline some important points that you should know.
Partnerships must file an annual tax return that reports the income, deductions, gains, and losses of that tax year. However, the partnership itself does not pay income tax . Instead, profits or losses "pass through" to its partners, who report their share of income or loss on their personal tax returns.
However, partnerships with 100 or fewer partners who are part of an eligible partnership can elect to opt out of the centralized partnership audit regime for that year.
These partnerships are eligible:
Partnerships that elect out of the centralized partnership audit regime choose to be treated as taxable entities instead of filing individual audits.
Every partnership agreement should include core partnership details such as the names, addresses, and established roles of all partners, where the business is located. Here are a few of the basic details that your agreement should include:
The partner's names and addresses: Include the full names and addresses of all partners involved in the partnership as well as the address of the business. This information identifies the parties responsible for the partnership’s actions and is essential for legal and practical purposes. Specify if each partner is an individual, partnership, LLC , or corporation, as this will have tax implications.
The business name and purpose: Your business name is also necessary for legal purposes. Search for available names in your state to ensure you choose a name that another business isn’t already using. Define business goals upfront to ensure all partners are aligned on what you aim to achieve.
The industry and partnership roles: Your type of business and the services you provide will impact the type of partnership agreement you want to enter into and how you'll allocate roles and responsibilities. Clearly outline the specific duties of each partner —including management responsibilities—to avoid overlap and ensure the partnership operates efficiently.
Once you've established the basics, you can start to lay the foundation for your partnership. You'll want to outline all key elements and terms clearly and comprehensively.
Details will vary, but there are some key elements every partnership agreement should include:
Capital contributions: Record the value of each partner's contributions to the business and what those contributions are. This refers to the amount of time, money, or assets each partner will offer the business.
For example, one partner may contribute $100,000 in cash, another might contribute the property from which the business will operate, and a third partner may contribute the industry expertise necessary to ensure successful operations.
Partnership rules: Establish a set of rules to prepare for the most common business occurrences. This should include if and how the partnership will allow new members, rules around how a partner may withdraw, and how to approach a voluntary dissolution of your partnership.
Management responsibilities: Determine which, if not all, partners will manage the business. Consider voting methods, partnership liability, signing authority, and which decisions require unanimous consent.
Accounting principles: Decide upfront how you will make financial decisions. Determine how your partnership will vote on financial decisions, how you'll distribute profits and losses, and whether or not partners will receive additional compensation for services performed for the business.
If you didn't build this agreement with the help of an attorney, review the draft with a legal expert to ensure compliance with state laws and the protection of all partners’ interests.
Don’t rush the drafting process. Take as much time as you need to ensure every partner's voice is heard and the language is clear and concise. Once you've laid out the terms of your contract and reviewed it with an attorney, all partners will sign the agreement.
State agencies may require partnerships to register their business with the Secretary of State’s office, a business bureau, or a business agency in the state where they do business. Partnerships often have to work with a registered agent in your state who'll receive official papers and legal documents on behalf of your company.
If you have more questions related to partnership agreements, explore these frequently asked questions.
No, a partnership agreement isn't a legal requirement. However, having a partnership agreement can protect you from a lot of potential confusion and unwanted outcomes down the line by creating rules around how your business will operate, who will be responsible for what, and how you'll approach changes when they arise.
Yes, you can amend a partnership agreement if aspects of the business change and call for a restructuring. However, you must modify the agreement before the end of the tax year.
If you identify the need for an amendment, communicate it to your partners, negotiate new terms, draft an amendment, and hold a vote. This type of vote should likely be unanimous.
A partnership agreement is used in partnerships, while operating agreements are used specifically for LLCs (limited liability companies). However, both clarify how the business will run, the ownership and investment stakes, and the division of profits and losses.
You may also like
5 steps to filing partnership taxes
All partnership owners are required to file specific tax forms each tax year.
June 15, 2023 · 3min read
Adding partners to an LLC
To add a member to an LLC, you must generally follow the operating agreement or state law, though there are additional considerations, including tax concerns.
March 21, 2024 · 2min read
A beginner's guide to cash-flow management for small businesses
Proper cash-flow management is essential to a small business's success.
August 14, 2023 · 3min read
Negotiating your salary can be a key step in advancing your career and boosting your financial stability—but it can also be pretty intimidating. The good news is that with the right approach, it doesn’t have to be so scary. That's where a salary increase letter comes in.
Whether you're asking for a raise due to your great performance, increased responsibilities, or changes in the market, a well-crafted letter asking for salary increment can be a powerful (and smooth) way to make your case.
In this article, we'll walk you through everything you need to know about writing a salary increase letter, from understanding its purpose to tips on crafting an effective one. We'll also include sample letters and templates to help you get started. Plus, we’ve interviewed Muse career coach Jenn Smith , who shares her top advice on navigating this critical career move.
Need a higher salary? Check out open jobs on The Muse for your next big move »
A salary increase letter is a formal document that employees use to request a raise from their employer. Unlike a salary review letter—which is typically initiated by the employer to communicate pay adjustments—a salary increase letter is written by the employee seeking a boost in compensation.
Writing a salary increase letter can be necessary for several reasons:
When writing a letter to request a salary increase, it's generally more effective to address it to your direct manager or your department’s director rather than HR. Your manager is more familiar with your work, contributions, and the value you bring to the team. They are also likely involved in budget decisions and have the authority to advocate for your raise.
Yes, writing a salary increase letter can be a formal and respectful way to request a raise. It allows you to clearly articulate your reasons, provide evidence of your achievements , and give your employer time to consider your request. Plus, a letter is a documented record of your request and can be reviewed by decision-makers at different levels of the organization.
On the other hand, having an in-person conversation can be generally more effective. “This allows you to present your case dynamically, outlining your accomplishments, contributions, and the value you bring, and respond to questions or concerns in real-time,” Smith says, adding that a direct conversation also allows for immediate feedback. “Your manager can provide insights into decision-making, share any constraints or considerations, and offer guidance.”
She also believes it’s a good idea to supplement your conversation with a follow-up email to ensure clarity and provide a reference for future discussions.
These tips will prepare you for writing an effective pay raise letter:
Conducting extensive research will strengthen your case and help you present a compelling argument.
“Research industry salary benchmarks for your role, experience level, and geographic location,” Smiths says. “Use reliable sources like industry salary surveys, compensation reports, and online salary databases.”
Additionally, be sure to understand your company's salary ranges, performance evaluation criteria, and typical raise percentages.
Timing is crucial when it comes to writing a letter requesting pay increase. Making your request at the wrong time can significantly reduce your chances of success.
“Typically, organizations have annual or semiannual performance review cycles,” Smiths says. “Discuss this with your manager before the performance review process starts so they can consider it as they begin budget conversations.”
One common mistake she sees is “asking for a raise at an inappropriate time, such as during a company's financial downturn or immediately after a major organizational change or layoffs.” Avoid doing that at all costs.
Begin your letter by setting the context for your request and remind your employer of your role within the company. Clearly state your position, tenure with the company, and the purpose of the letter.
In the main section of your letter, outline your accomplishments and contributions to the company. Highlight specific achievements, projects, or responsibilities that demonstrate your value.
Provide evidence of your impact, such as performance metrics, positive feedback from clients or colleagues, and examples of how your work has benefited the company, explaining how your contributions justify the proposed raise.
Summarize your key points and reiterate your appreciation for the opportunity to discuss your compensation. Express gratitude for the support and experiences you have gained and reiterate your commitment to the company. This positive tone reinforces your professionalism and leaves a lasting impression.
Here’s a sample letter for salary increase request to show you how these tips can be put into practice:
Alex Johnson 123 Elm Street Springfield, IL 62704 [email protected] July 25, 2024
Emma Thompson Director of Sales Innovative Tech Solutions 456 Maple Avenue Springfield, IL 62704
Dear Ms. Thompson,
I hope you are well. I am writing to formally request a review of my current salary. I have thoroughly enjoyed working at Innovative Tech Solutions over the past three years and appreciate the opportunities for growth and development that have been provided to me.
During my time here, I have consistently exceeded expectations and made significant contributions to the Sales team. For example, I spearheaded a new email marketing campaign that increased sales by 15% and successfully launched our new TechY product line, resulting in a 20% revenue boost.
In addition to my core responsibilities, I have taken on new challenges, such as leading the training program for new sales representatives and managing key client accounts, which have significantly contributed to our team's success.
I have also undertaken several professional development activities, including completing a certification in Advanced Sales Strategies and attending workshops on market trends, which have further enhanced my skills and ability to contribute to our team.
Based on my research of industry standards and salary benchmarks for my role and experience level, I believe that an adjustment in my compensation is warranted. Therefore, I respectfully request a salary increase to $85,000. This adjustment would better reflect the value I bring to the team and align my compensation with industry standards.
I am confident this increase will further motivate me to continue delivering high-quality work and contributing to the success of Innovative Tech Solutions. I am more than willing to discuss this request in person and provide any additional information that may be required.
Thank you for considering my request and for your ongoing support.
Sincerely, Alex Johnson
Now, here's a template for a raise request letter to help guide you in drafting your own:
[Your Name] [Your Address] [Email Address] [Date]
[Recipient’s Name] [Recipient’s Title] [Company’s Name] [Company’s Address]
Dear [recipient’s name],
I hope you are well. I am writing to formally request a review of my current salary. I have thoroughly enjoyed working at [Company’s Name] over the past [number] years and appreciate the opportunities for growth and development that have been provided to me.
During my time here, I have consistently exceeded expectations and made significant contributions to the [Department] team. For example, I [List your accomplishments, using quantifiable results whenever possible, such as increased sales by 15% through a new email marketing campaign; successfully launched a new product line, resulting in a 20% revenue increase; etc.].
In addition to my core responsibilities, I have taken on new challenges, such as [List additional responsibilities].
In addition to these accomplishments, I have undertaken several professional development activities, including [certifications, courses, and training programs], which have further enhanced my skills and ability to contribute to our team.
Based on my research of industry standards and salary benchmarks for my role and experience level, I believe that an adjustment in my compensation is warranted. Therefore, I respectfully request a salary increase to [desired salary or salary range]. This adjustment would better reflect the value I bring to the team and align my compensation with industry standards.
I am confident this increase will further motivate me to continue delivering high-quality work and contributing to the success of [Company Name]. I am more than willing to discuss this request in person and provide any additional information that may be required.
Sincerely, [Your name]
Typically, you should ask for a raise once a year, ideally around your annual performance review. If you have taken on significant additional responsibilities or have had exceptional achievements, it might be appropriate to request a salary review sooner. However, be mindful of your company's financial health and the timing of your request.
Waiting for a performance review is often a good strategy, as this is a natural time for salary discussions. However, if you feel that your contributions have significantly outpaced your current compensation, you might consider requesting a meeting outside of the review cycle. Just ensure your request is well-timed and substantiated.
If a salary review is denied, consider asking for specific feedback. “Work with your manager to set clear goals—create a development plan that outlines the steps you need to receive a raise,” Smith says. “Consider discussing alternative forms of compensation, which could include bonuses, additional vacation days, flexible working arrangements, and professional development opportunities.”
Whether you opt for a formal letter via email , a direct conversation, or a combination of both, the key is to present a well-reasoned case for your increased-salary request. When crafting your letter, keep these takeaways in mind:
Home >> #realtalk Blog >> Manage a business >> How to Start a Smoot…
Starting a smoothie business? You’re tapping into a market that’s growing fast. With health and wellness trends on the rise, the timing couldn’t be better.
Smoothies offer a simple yet profitable business model. They require less initial investment compared to other food ventures, making it easier to get started.
Let’s explore the benefits of diving into the smoothie business.
Starting a smoothie business is more than just blending fruits; it’s about capitalizing on a booming trend and turning your passion for health into profits. But, the journey can feel overwhelming without knowing the key benefits and steps involved.
The health and wellness industry continues to expand. More people are prioritizing nutritious diets and healthy lifestyles. Smoothies, packed with fruits, vegetables, and superfoods, fit perfectly into this trend. By starting a smoothie business, you can cater to this growing demand and attract health-conscious customers.
Starting a smoothie business doesn’t require a massive investment. You won’t need a full kitchen or extensive cooking equipment. Basic essentials like commercial blenders, refrigerators, and serving supplies are enough to get you started. This lower barrier to entry makes it an attractive option for new entrepreneurs.
Smoothies can offer impressive profit margins. The cost of ingredients like fruits, vegetables, and add-ins is relatively low, especially when bought in bulk. With strategic pricing, you can achieve a significant markup on each smoothie sold. This potential for high returns makes the smoothie business a lucrative venture.
Running a smoothie business involves straightforward operations. The menu can remain simple, focusing on a variety of smoothie flavors and combinations. This simplicity reduces the complexity of inventory management and staff training. It also allows you to maintain consistent quality and service, ensuring customer satisfaction.
Creating a solid business plan sets the foundation for your smoothie business. For someone passionate about health and wellness, the idea of turning that passion into a business can be both exciting and daunting. Addressing your concerns about market research and financial planning is crucial to turning your vision into reality.
Start by defining your target market and unique selling proposition. Identify who your ideal customers are. Are they health-conscious individuals, busy professionals, or fitness enthusiasts? Understanding your audience helps tailor your offerings to meet their needs. Your unique selling proposition differentiates your business from competitors. What makes your smoothies special? It could be organic ingredients, unique flavors, or a focus on sustainability. If you’re thinking of starting a business , these steps are crucial.
Next, outline your menu, pricing strategy, and supplier relationships. Decide on the variety of smoothies you’ll offer. Consider including options like protein-packed smoothies, green detox blends, and fruit-based classics. Set competitive prices that reflect the quality of your ingredients and the value you provide. Establish relationships with reliable suppliers to ensure a steady flow of fresh and high-quality ingredients. This helps maintain consistency and customer satisfaction. For more detailed guidance, see how to write a business plan .
Project startup costs, operating expenses, and revenue. Calculate the initial investment required to launch your business. Include costs for equipment, initial inventory, marketing, and any renovations. Estimate ongoing expenses such as rent, utilities, salaries, and ingredient costs. Project your revenue based on expected sales volume and pricing. This financial forecast helps you understand the viability of your business and plan for profitability. Consider exploring small business loans and small business grants to secure funding.
Determine your business structure and financing needs. Decide whether you’ll operate as a sole proprietorship, partnership, or corporation. Each structure has different legal and tax implications. Assess your financing options. Will you use personal savings, seek investors, or apply for a small business loan? Understanding your financial needs and options ensures you have the necessary funds to start and sustain your business.
Setting up your smoothie business requires the right equipment and supplies to ensure smooth operations and high-quality products. Ensuring you have everything in place not only makes operations smoother but also helps in delivering top-notch quality to your customers.
Invest in high-powered commercial blenders. These machines handle large volumes and blend ingredients smoothly, creating the perfect texture for your smoothies. Look for blenders with durable motors and multiple speed settings to accommodate various recipes. Reliability and efficiency are key, as these blenders will be in constant use.
Proper storage of ingredients is vital. Commercial refrigerators and freezers keep your fruits, vegetables, and other perishable items fresh. Choose units with ample storage space and adjustable shelving to organize your inventory efficiently. Energy-efficient models can help reduce operating costs over time.
Efficient food prep equipment streamlines your operations. Equip your kitchen with sharp knives, sturdy cutting boards, and peelers. These tools help you prepare ingredients quickly and safely. Consider investing in food processors for chopping and slicing tasks, which can save time and effort.
Stock up on serving supplies like cups, straws, and napkins. Opt for eco-friendly options to appeal to environmentally conscious customers. Biodegradable or compostable materials can enhance your brand’s image. Ensure you have a variety of cup sizes to cater to different customer preferences.
Quality ingredients are the foundation of your smoothie business. Source fresh and frozen fruits, vegetables, and add-ins like protein powders, seeds, and nuts. Establish relationships with reliable suppliers to ensure a consistent supply of high-quality produce. Consider offering organic options to attract health-conscious customers.
A mix of fresh and frozen fruits provides flexibility in your menu. Fresh fruits offer vibrant flavors and textures, while frozen fruits ensure availability year-round and add a thicker consistency to smoothies. Popular choices include berries, bananas, mangoes, and pineapples.
Incorporate vegetables like spinach, kale, and carrots for nutrient-rich smoothies. Add-ins such as chia seeds, flaxseeds, and protein powders boost the nutritional value of your offerings. Experiment with different combinations to create unique and appealing flavors. For hiring tips, consider these interview questions for hiring .
Choosing the right location for your smoothie shop can significantly impact your success. High foot traffic areas like shopping centers, busy streets, and near gyms or schools can attract more customers. But it’s not just about foot traffic; understanding your competition and ensuring ample parking are crucial too.
Evaluate space requirements and build-out costs. Determine the size of the space you need based on your equipment, storage, and seating requirements. A larger space may allow for more customer seating and a broader menu but will also increase your rent and build-out costs. Calculate the expenses for any necessary renovations, including plumbing, electrical work, and interior design. Ensure the space meets your operational needs without exceeding your budget. For those considering flexible options, transitioning from a retail pop-up to permanent location can be a strategic move.
Explore alternative models like food trucks or pop-ups. If a traditional storefront is too costly or not feasible, consider starting with a food truck or pop-up shop. These models offer flexibility and lower overhead costs. Food trucks can move to different locations to find the best customer base, while pop-ups can test the market in various areas before committing to a permanent location. Both options allow you to build brand awareness and customer loyalty with lower initial investment.
Research local zoning and health regulations. Before finalizing your location, ensure it complies with local zoning laws and health regulations. Check if the area is zoned for food businesses and if there are any restrictions on operating hours or signage. Contact the local health department to understand the requirements for food safety, permits, and inspections. Compliance with these regulations is necessary to avoid fines and ensure a smooth opening. Learn more about business licenses and permits .
Making your smoothie business stand out in a crowded market requires strategic marketing. It’s not just about having a great product; you need to build a brand that resonates with your target audience.
Creating a memorable brand identity sets your smoothie business apart. Choose a catchy name, design a unique logo, and establish a consistent color scheme. Your brand should reflect the values and vibe of your business, whether it’s health-focused, eco-friendly, or fun and vibrant. Consistency across all marketing materials, from your storefront to your social media profiles, helps build recognition and trust with customers.
Social media platforms like Instagram, Facebook, and TikTok are powerful tools for promoting your smoothie business. Share high-quality photos and videos of your smoothies, behind-the-scenes content, and customer testimonials. Engage with your audience by responding to comments and messages promptly. Encourage satisfied customers to leave positive reviews on platforms like Google My Business and Yelp. Positive reviews boost your online reputation and attract new customers. For more tips, explore social media marketing .
Forming partnerships with local fitness and wellness businesses can drive traffic to your smoothie shop. Offer exclusive discounts or promotions to their members. Provide samples or host smoothie-making demonstrations at their events. Display flyers or business cards at their locations. These partnerships create a mutually beneficial relationship, increasing exposure for both businesses and attracting health-conscious customers to your smoothie shop.
Loyalty programs incentivize repeat business. Implement a simple system where customers earn points for each purchase, redeemable for discounts or free smoothies. Use digital tools to track and manage loyalty points. Regular promotions, such as a discount on a specific smoothie of the week or a buy-one-get-one-free offer, keep customers coming back. Promote these offers through your social media channels and in-store signage.
Engage with your local community by participating in events and festivals. Set up a booth at farmers’ markets, health fairs, and local festivals to showcase your smoothies. Offer samples and distribute promotional materials to attract new customers. Sponsoring community events or sports teams can also increase your visibility. Active participation in community activities builds goodwill and strengthens your brand’s presence locally.
Running a successful smoothie business requires more than great recipes. It involves focusing on quality, training, and staying updated with industry trends. These tips address your concerns about operations and customer satisfaction.
Using high-quality ingredients sets your smoothies apart. Fresh, organic fruits and vegetables not only taste better but also appeal to health-conscious customers. Experiment with unique flavor combinations to create signature smoothies that customers can’t find anywhere else. Think beyond the usual strawberry-banana mix. Consider blending exotic fruits like dragon fruit or acai with greens like kale or spinach. Adding superfoods such as chia seeds, flaxseeds, or spirulina can also enhance the nutritional value and attract a more diverse customer base.
Your staff plays a significant role in the success of your smoothie business. Train them thoroughly to ensure they can prepare smoothies efficiently and handle customer interactions professionally. Emphasize the importance of friendly, prompt service. Customers appreciate a warm greeting and a willingness to accommodate special requests. Regular training sessions can keep your team updated on new menu items and best practices. Happy, well-trained employees contribute to a positive customer experience, which encourages repeat business and word-of-mouth referrals. For hiring tips, check out how to hire your first employee .
A well-optimized menu balances variety with simplicity. Offer a range of smoothies that cater to different tastes and dietary needs, but avoid overwhelming customers with too many choices. Highlight your best-selling and most profitable items. Use cost-effective ingredients that don’t compromise on quality. Streamline your preparation process to reduce wait times and minimize waste. Consider offering add-ons like protein powders or extra fruits for an additional charge. This not only increases your average transaction value but also gives customers the flexibility to customize their orders.
Marketing is an ongoing effort. Regularly evaluate the effectiveness of your campaigns and be willing to make adjustments. Use social media analytics to track engagement and identify which posts resonate most with your audience. Experiment with different types of content, such as behind-the-scenes videos, customer testimonials, and promotional offers. Email marketing can also be a powerful tool. Send newsletters with updates on new flavors, special deals, and health tips. Engaging with your community through events and collaborations can further boost your visibility and attract new customers.
The smoothie industry evolves rapidly, with new trends emerging regularly. Stay informed about the latest developments by following industry publications, attending trade shows, and networking with other business owners. Pay attention to consumer preferences and be ready to adapt your menu accordingly. For example, plant-based diets and functional beverages are gaining popularity. Offering options like vegan protein smoothies or immunity-boosting blends can help you stay relevant. Regularly seek feedback from your customers to understand their needs and preferences. This proactive approach keeps your business competitive and ensures you meet customer expectations. For more on fostering a positive work environment, learn how to create a DEI strategy .
Onboard employees, track their time, and pay them — all in one place.
Analyzing the profitability of popular smoothie franchises and independent shops reveals key insights. For someone passionate about health and wellness, understanding the financial viability of your dream business is crucial. Seeing how others have succeeded can provide valuable lessons and inspiration.
Several factors impact profitability. Location plays a significant role. High-traffic areas like malls, busy streets, and near fitness centers attract more customers. Pricing strategy is another crucial element. Competitive pricing that reflects the quality of ingredients and market demand can drive sales. Competition in the area also affects profitability. Understanding your competitors and differentiating your offerings can give you an edge.
To maximize profitability in your own smoothie business, consider these tips. First, focus on high-margin items. Smoothies with add-ins like protein powders or superfoods can command higher prices. Second, streamline operations to reduce costs. Efficient prep processes and inventory management minimize waste and save money. Third, leverage marketing to attract and retain customers. Engaging social media content, loyalty programs, and partnerships with local businesses can boost sales. Finally, stay adaptable. Monitor industry trends and customer feedback to refine your offerings and stay competitive.
Ready to turn your smoothie business dream into reality? Simplify your operations with Homebase’s all-in-one employee scheduling, time clocks, and payroll management tool. Get started today and let’s make work easier.
Remember: This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.
August 3, 2024
How to Open a Successful Bookstore Cafe
You’ve always loved books and coffee. Combining these passions into a business seems like a dream come true. But what…
How to Start a Juice Business in 2024
Thinking about starting a juice business in 2024? You’re not alone. The demand for healthy, convenient beverages continues to grow….
How to Start a Food Truck in Florida
Starting a food truck in Florida can be an exciting venture. You get to bring your culinary creations to different…
How to Start a Bar Step by Step
Thinking about starting a bar? You’re not alone. Many people dream of owning a place where friends gather, drinks flow,…
How to Create a Successful Cat Cafe
Thinking about starting a cat cafe? You’re not alone. The concept has gained popularity worldwide, offering a unique blend of…
How to Start a Flower Shop in Simple Steps
Whether you’re passionate about arranging blooms or eager to run your own business, opening a flower shop can be incredibly…
Looking for ways to stay up to date on employment laws and small business news?
Homebase makes managing hourly work easier for over 100,000 local businesses. With free employee scheduling , time tracking , and team communication , managers and employees can spend less time on paperwork and more time on growing their business.
BLACKSBURG, Va. (WDBJ) -From more grocery store options to possible chain restaurants and stores, Blacksburg residents could have more places to shop in the future.
The Town of Blacksburg and the Blacksburg Partnership have partnered with Retail Strategies , a firm that specializes in recruiting national retail to college towns.
Jenn Gregory is the president of downtown strategies at Retail Strategies.
She says Virginia Tech students make Blacksburg a hotspot for consumer spending; they want to help the town reach its full potential.
“It’s a growing market and so for national retail recruitment, it’s a very attractive area for national brands. We know that the town has specific desires for new businesses and hospitality and restaurants,” said Gregory.
The businesses and restaurants that may come to the town will not be chosen randomly. The partnership will last for three years and consist of community surveys, tracking cell phone data and finding the best pieces of real estate for new experiences.
“What we’re hoping to be able to assist the town with is helping identify ways to really enhance and bring out the true character of Blacksburg and provide that character a little more seamlessly to the residents, certainly, but also visitors and university stakeholders as well,” said Gregory.
Retail Strategies will also be a part of the Town’s five-year comprehensive plan to help revitalize the downtown area.
Copyright 2024 WDBJ. All rights reserved.
Latest news.
IMAGES
VIDEO
COMMENTS
1) Create LLP Partnership Agreement In Mins 2) 100% Free, Export & Download! Simple Platform - Create, Edit, & Print Partnership Agreements - Try For Free!
Pitch, Plan, & Track Your Business Plan From Start To Finish. Start Today! Create A Strong Business Plan for Any Industry Without the Wait, For Less Cost.
Steps For Planning a Business Partnership. Write a mission statement to clearly state the direction and goals the business plans to take. By writing a mission statement, the partners agree to the company's direction now and in the future. Develop a reimbursement plan for the costs and investments incurred during startup.
2. State Your Purpose. Your purpose for the proposal is what you want to make out of this partnership or what problem exists that you need to fix through it. Provide clear information about the proposal and make the main message clear immediately. 3.
Financial projections are essential in any business proposal. This section should provide an analysis of the expected financial outcomes of the partnership. Include revenue forecasts, cost analysis, and any investments required from both parties. If possible, use data and analytics to back up your projections.
A good business plan guides you through each stage of starting and managing your business. You'll use your business plan as a roadmap for how to structure, run, and grow your new business. It's a way to think through the key elements of your business. Business plans can help you get funding or bring on new business partners.
Describe Your Services or Products. 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 ...
5. Discuss and Negotiate. A partnership proposal is just one milestone in a partnership discovery process. Take your time setting the right terms and tone for the deal. Once you've submitted a partnership proposal, welcome a dialogue and back-and-forth negotiation as you align your goals and values and settle on terms.
Step 4. Add e-signatures. The next step is to add e-signatures to your proposal. This will turn the proposal into a binding agreement, so that once signed by all partners, the partnership can begin with clear terms. You should add the e-signatures to the final page of the proposal.
Partner business plans are important for any company seeking to maximize its success. They can help to create a vision and direction for an organization, define key objectives, and develop strategies to achieve those objectives. The key elements of a successful partner business plan include: 1. Vision and Strategy: A clear vision and strategy ...
Follow the steps below to create an incredible business partner proposal that grabs attention and puts your organization in the best light. 1. Research Your Prospective Partner. Before you start creating your proposal, you need to collect as much information as possible about the company you're reaching out to.
A solid partnership business plan will: Help the company understand the business potential for partnerships. Enable business owners to understand and predict costs and benefits for proper resource and revenue planning. Provide straightforward ways to track progress toward achieving channel goals.
Client.Company] met with [Sender.Company], and shared with them plans related to describing the business venture. [Client.Company] possesses rare insights and expertise necessary to develop systems and applications related to the above, while [Sender.Company] has the resources needed to develop such systems and applications. The parties believe there may be mutual benefit in forming a business ...
Stage 1: Envision the future. Take a moment to think about where you want your practice to be in 3 years if you are successful at the partnership vote. (Or 12 months if you are being asked to create a 12-month partner business plan) You may find it useful to do this exercise away from your desk and distractions.
2. Profit and loss distribution. Each partner's "distribution percentage" - reflecting their share of partnership profits and losses - must be clearly stated in the agreement. Partners share ...
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.
Step 2: Do your market research homework. The next step in writing a business plan is to conduct market research. This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to ...
1. Investors Are Short On Time. If your chief goal is using your business plan to secure funding, then it means you intend on getting it in front of an investor. And if there's one thing investors are, it's busy. So keep this in mind throughout writing a business plan.
The key to a strong partnership proposal is to convince the reader that your idea is profitable and plausible. Back up your claims with hard facts; structure your pitch so it communicates what ...
A business partnership proposal is a long-form document or letter that describes the viability of a partnership between you and a potential business partner. It is addressed to the individual or company and indicates your interest in pursuing a joint venture. You can think of it as an invitation to collaborate and do business together.
Template 1: Vendor Strategic Partnership Engagement Plan. Get this Strategic Partnership Plan PPT Template and deliver an impactful presentation to your audience. Its layout is divided into four sections, each describing a critical aspect: Plan, Analyze, Identify, and Act.
4 tips for writing a good business plan. A few best practices apply no matter how long your business plan is or who it's for. A great business plan is clear, realistic, and based on research. Use clear and straightforward language. Avoid jargon and overly technical terms, use short sentences and paragraphs, and be specific and direct.
Develop Partner Bussiness Plan: Two Key Steps to Consider. 1. Know Your Partners Well. A thorough understanding of your partner network is a fundamental prerequisite for the successful development of partner business planning. Within your indirect sales ecosystem, business providers, integrators, value-added resellers (VARs), IT service ...
The success of your company should also come as a priority, so if both parties are equally committed to this goal, embarking on a 50/50 partnership could be your best option. 3. Do prioritize your business goals. Just because you're writing to impress your audience doesn't mean you can ignore smart business goals.
Start by stating the business's name, its legal structure and the business's location (i.e., which state's laws will govern it). Business operations. State the partnership's purpose, and ...
Name of the partnership. One of the first things you must do is agree on a name for your partnership. You can use your own last names, such as Smith & Wesson, or you can adopt and register a fictitious business name, such as Westside Home Repairs. If you choose a fictitious name, you must make sure that the name isn't already in use.
Local partnership with Bloom Florist for fresh flowers in the salon weekly; We'll use Salon Iris software for appointment scheduling, client management, and inventory tracking. ... Yes, there are professionals who can help you write your business plan. However, it's important that you're heavily involved in the process, as no one knows your ...
Now comes the hard part: writing a business plan. Your business plan is a roadmap for your business. It articulates your goals and strategies, including the actions and resources needed to achieve them. And it's not just for you — a solid business plan can help you secure funding, attract the right investors, and guide your business once it ...
A partnership agreement allows partners to structure their relationship to suit their specific needs and the needs of the business, offering flexibility that laws cannot provide. How to create a partnership agreement in 6 steps. Every business partnership is unique and requires a customized approach.
Learn how to write a compelling salary increase letter to your boss. Get tips, examples, and a template to help you request a raise professionally and effectively. ... Business Operations Jobs 4. Human Resources and Recruitment Jobs. 5. ... is denied, consider asking for specific feedback. "Work with your manager to set clear goals—create a ...
How to Write a Smoothie Business Plan. Creating a solid business plan sets the foundation for your smoothie business. For someone passionate about health and wellness, the idea of turning that passion into a business can be both exciting and daunting. ... Decide whether you'll operate as a sole proprietorship, partnership, or corporation ...
At Gray, our journalists report, write, edit and produce the news content that informs the communities we serve. Click here to learn more about our approach to artificial intelligence. A Gray ...