how long should a business plan take to write

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

When Should Entrepreneurs Write Their Business Plans?

• Francis J. Greene
• Christian Hopp

Don’t write a plan before you understand your customer.

It pays to plan. Entrepreneurs who write business plans are more likely to succeed, according to research. But while this might tempt some entrepreneurs to make writing a plan their very first task, a subsequent study shows that writing a plan first is a really bad idea. It is much better to wait, not to devote too much time to writing the plan, and, crucially, to synchronize the plan with other key startup activities.

It pays to plan. Entrepreneurs who write business plans are more likely to succeed, according to our research, described in an earlier piece for Harvard Business Review . But while this might tempt some entrepreneurs to make writing a plan their very first task, our subsequent study shows that writing a plan first is a really bad idea. It is much better to wait, not to devote too much time to writing the plan, and, crucially, to synchronize the plan with other key startup activities.

• FG Francis J. Greene is Chair in Entrepreneurship in the University of Edinburgh Business School.
• CH Christian Hopp is Chair in Technology Entrepreneurship in the TIME Research Area, the Faculty of Business and Economics, RWTH Aachen University.

Partner Center

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Write a Business Plan, Step by Step

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

What is a business plan?

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

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

ZenBusiness

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

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

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

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

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

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

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

Your business’s registered name.

Address of your business location .

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

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

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

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

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

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

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

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

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

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

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

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

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

Licenses and permits.

Equipment leases.

Bank statements.

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

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

How much do you need?

with Fundera by NerdWallet

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

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

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

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

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

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

On a similar note...

Find small-business financing

Compare multiple lenders that fit your business

• Search Search Please fill out this field.

What Is a Business Plan?

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

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

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

Key Takeaways

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

Investopedia / Ryan Oakley

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

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

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

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

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

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

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

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

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

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

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

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

2 Types of Business Plans

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

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

Why Do Business Plans Fail?

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

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

What Does a Lean Startup Business Plan Include?

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

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

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

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

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

• How to Start a Business: A Comprehensive Guide and Essential Steps 1 of 25
• How to Do Market Research, Types, and Example 2 of 25
• Marketing Strategy: What It Is, How It Works, and How to Create One 3 of 25
• Marketing in Business: Strategies and Types Explained 4 of 25
• What Is a Marketing Plan? Types and How to Write One 5 of 25
• Business Development: Definition, Strategies, Steps & Skills 6 of 25
• Business Plan: What It Is, What's Included, and How to Write One 7 of 25
• Small Business Development Center (SBDC): Meaning, Types, Impact 8 of 25
• How to Write a Business Plan for a Loan 9 of 25
• Business Startup Costs: It’s in the Details 10 of 25
• Startup Capital Definition, Types, and Risks 11 of 25
• Bootstrapping Definition, Strategies, and Pros/Cons 12 of 25
• Crowdfunding: What It Is, How It Works, and Popular Websites 13 of 25
• Starting a Business with No Money: How to Begin 14 of 25
• A Comprehensive Guide to Establishing Business Credit 15 of 25
• Equity Financing: What It Is, How It Works, Pros and Cons 16 of 25
• Best Startup Business Loans 17 of 25
• Sole Proprietorship: What It Is, Pros and Cons, and Differences From an LLC 18 of 25
• Partnership: Definition, How It Works, Taxation, and Types 19 of 25
• What Is an LLC? Limited Liability Company Structure and Benefits Defined 20 of 25
• Corporation: What It Is and How to Form One 21 of 25
• Starting a Small Business: Your Complete How-to Guide 22 of 25
• Starting an Online Business: A Step-by-Step Guide 23 of 25
• How to Start Your Own Bookkeeping Business: Essential Tips 24 of 25
• How to Start a Successful Dropshipping Business: A Comprehensive Guide 25 of 25

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

Starting a Business | How To

How to Write a Business Plan in 7 Steps

Published February 2, 2024

Published Feb 2, 2024

WRITTEN BY: Mary King

Get Your Free Ebook

Your Privacy is important to us.

This article is part of a larger series on Starting a Business .

Starting A Business?

Step 1: Gather Your Information

Step 2: outline your business plan, step 3: write each section, step 4: organize your appendix, step 5: add final details, step 6: add a table of contents, step 7: get feedback, bottom line.

A solid business plan helps you forecast your future business and is a critical tool for raising money or attracting key employees or business partners. A business plan is also an opportunity to show why and how your business will become a success. Learning how to write a business plan successfully requires planning ahead and conducting financial and market research.

How to write a business plan step-by-step:

• Gather your information
• Outline your business plan
• Write each section
• Organize your appendix
• Add final details
• Add a table of contents
• Get feedback.

Your first step is to get organized by gathering all your relevant business information. This will save you time completing the various sections of your business plan. At a minimum, you’ll want to have the following handy:

• Business name, contact information, and address
• Owner(s) names, contact information, and addresses
• Names, contact information, and addresses of any business partners (if you will be working with partners)
• Resume and relevant work history for yourself and any key partners or employees
• Any significant sales, commerce, traffic, and financial data and forecasts
• Customer data (if applicable)
• Any significant data about your nearest competitors’ commerce, traffic, or finances

Now it’s time to outline your business plan, making note of the sections you need to include and what data you want to include in each section. You can create an outline on your own or use a business plan template to help. Whichever route you choose, it is common to include these sections in your business plan outline:

• Introduction
• Executive summary
• Company overview
• Products and services
• Market and industry analysis
• Marketing strategy
• Sales strategy
• Management and organization
• Financial data, analysis, and forecasts

Connect the data you gathered in step one to specific sections of your outline. Make a note if you need to convert some information into charts or images to make them more compelling for potential investors. For example, you’ll want to include relevant work history in your management section and convert your sales forecasts into charts for your financial data section.

Now it’s time to write your business plan. Attack this one section at a time, adding the relevant data as you go.

Executive Summary

The executive summary is an overview of the business plan and should ideally be one, but no more than two, pages in length. Some investors actually only request the executive summary. So make it an informative, persuasive, and concise version of your business plan.

It can be easier to write the executive summary last, after the other sections. Then you can more clearly understand which sections of your business plan are the most important to highlight in the executive summary.

When learning how to write an executive summary for a business plan, remember to include the following:

• Business objectives : Your business objectives are specific and attainable goals for your business. Create at least four business objectives organized by bullet point. If you’re not sure how to phrase your objectives, read our SMART goals examples to understand how to do so.
• Mission statement: The mission statement discusses the aim, purpose, and values of your business. It’s typically a short statement from one sentence to several sentences in length. You may find that your mission statement evolves as your business grows. Learn more on how to write your mission statement in our guide.

Consider also including the following in your executive summary:

• Business description : Similar to a 30-second pitch, describing your business and what makes it unique
• Products and services : The type of products and services you’re providing and their costs
• Competitors : Your biggest competitors and why your business will succeed despite them
• Management and organization : The owners’ backgrounds and how they will help the business succeed; management structure within the business
• Business location (or facility) : Location benefits and the surrounding area
• Target market and ideal customer : Who your ideal customers are and why they’re going to purchase your products or services
• Financial data and projections : Provide brief financial data and projections relevant to your business, such as startup costs, at what month the business will be profitable, and forecasted sales data
• Financing needed : Explanation of the startup funding sources and the amount of financing being requested

The bullets above can be combined into several paragraphs. You can add or remove sections based on your business’ needs. For example, if you don’t have a physical location, you might remove that piece of information. Or, if a web presence is crucial to your success, include two to three sentences about your online strategy .

Company Overview

The company overview (sometimes also called a “business overview”) section highlights your company successes (if you’re already in business) or why it will be successful (if you’re a startup). In the opening paragraph or paragraphs, provide information like location, owners, hours of operation, products, and services.

How you structure this section depends on whether you’re a startup or an established business. A startup will discuss the general expenses and steps needed to open the business, such as permits, build-outs, rent, and marketing. An established business will briefly discuss the company’s financial performance over the past three years.

If you’re trying to raise capital from an investor or bank, include a chart listing the items your business will acquire with the capital. For example, if you’re purchasing equipment with the additional funding, list each piece of equipment and the associated cost. At the bottom of the chart, show the total of all expenses, which should be the requested amount of funding.

This startup cost table for a pizza restaurant separates startup expenses from startup assets.

Your company overview should cover the following:

• Location & Facilities : If you have a brick-and-mortar location or a facility, like a warehouse, describe it here. Detail the benefits of your location and the surrounding areas. Write about square footage, leases or ownership, the surrounding area, and a brief description of the population.
• Ownership : Briefly mention the company ownership team and their backgrounds. Show why these owners are likely to be successful in operating this business by providing certain details, such as each owner’s industry experience, previous employers, education, and awards. This will be discussed more in-depth in the management and organization section below.
• Competitive advantage : Ideally, your competitive advantage is what your business can do that your competitors cannot. It’s the one big differentiator that will make your company successful. Many investors are looking for specific competitive advantages, such as patents, proprietary tech, data, and industry relationships. If you don’t have these, describe the top aspect in which your business will do better than competitors, such as quality of products, quality of services, relationships with vendors, or marketing strategy.

Products & Services

The products and services section is the most flexible section because its structure depends on what your business sells. Regardless of what you’re selling, include a description of your business model to explain how your business makes money. Also include future products or services your business could provide one, two, or five years down the road.

List and describe all physical and digital products you plan to sell, as well as any services the business provides. Services don’t necessarily have to be sold for a cost—your business might offer entertainment, like live music or bar games as a free service.

Whether you’re selling products, services, or both, it’s important to discuss fulfillment, or how each will be delivered. If you make or sell physical products, describe how products will be sold, assembled, packed, and shipped. If your business is service-based, describe how a service, such as a window installation, will be ordered and completed. Where will the glass be purchased from and acquired, how will customers place orders, and how will the window be installed?

Market & Industry Analysis

The market and industry analysis section is where you analyze potential customers and the forces that influence your industry. This section is where you make the case as to why your business should succeed, ideally backed by data. You’ll want to do a deep dive into your competitors and discuss their challenges and successes. Learn more about sales targeting to improve how you approach your sales strategy.

Market Segmentation

Market segmentation, or your target market, consists of the customers who are most likely to purchase your products or services. Describe these groups of customers based on demographics, including attributes like age, income, location, and buying habits. Additionally, if you’ll be operating with a business-to-business (B2B) model, use characteristics to describe the ideal businesses to which you’ll sell.

Once your target market is segmented into groups, use market research data to show that those customers are physically located near your business (or are likely to do business with you if you’re online). If you’re opening a daycare, for example, you’ll want to show the data on how many families are in a certain mile radius around your business. You can obtain this kind of data from a free resource, like the U.S. Census and ReferenceUSA .

Once you have at least three segments, briefly outline the strategy you’ll use to reach them. Most likely it will be a combination of marketing, pricing, networking, and sales.

Learn the best approach to product pricing in our guide.

Industry Analysis

Take a look at your business’s industry and explain why it’s a great idea to start a business in that niche. If you’re in a growing industry, a bank is more likely to lend your business capital because it’s predicted to be in demand and have additional customers. Learn about how to find a niche market .

Find industry statistics from a free tool, like the Bureau of Labor Statistics , or a paid tool like the Hoovers Industry Research , which provides professionally curated reports for over 1,000 industries.

Competitor Research

Wrap up the market and industry analysis section by analyzing at least five competitors within a five-mile radius (expand the radius, if needed). Create a table with the five competitors and mention their distance from your business (if applicable), along with their challenges, and successes.

During your analysis, you’ll want to frame their challenges as something you can improve upon. Persuade your reader that your business will provide superior products and services than the competitors.

Marketing Strategy & Implementation Summary

In the opening paragraphs of your marketing strategy and implementation summary, give an overview of the subsections below.

Include any industry trends you may take advantage of. If applicable, include the advertising strategy and budget, stating specific channels. Mention who in the business will be responsible for overseeing the marketing.

Include any platforms and tools the business will use, like your website, social media, email marketing, and video. If you’re hiring a company to do any online work, like creating a website or managing social media, briefly describe them and the overall cost (you can elaborate more on costs in the financial data section ).

Don’t forget to include a subsection for your traditional marketing plan. Traditional marketing encompasses anything not online, such as business cards, flyers, local media, direct mail, magazine advertising, and signage.

Sales Strategy

If sales is an important component of your business, include a section about your sales strategy. Describe the role of the salesperson (or persons), strategies they’ll use to close the deal with clients, lead follow-up procedures, and networking they’ll attend. Also, list any training your sales staff will attend.

Sales Forecast Table

A sales forecast table gives a high-level summary of where you expect your sales and expenses to occur for each of the next three years in business. In the paragraph before the table, state where you expect growth to come from and include a growth percentage rate. The annual sales forecast chart will be broken down further in the financial projections section below.

The annual sales forecast for this restaurant summarizes sales, cost, and profit for the first three years in business.

Pricing Strategy

In the pricing strategy section, discuss product/service pricing, competitor pricing, sales promotions , and discounts—basically anything related to the pricing of what you sell. You should discuss pricing in relation to product and service quality as well. Consider including an overview of pricing for specific products, e.g., pizza price discounts when ordering a specific number of pizzas for catering.

Milestones in a business plan are typically displayed in a table. They outline important tasks to do before the business opens (or expands, if already in business). For each milestone, include the name, estimated start and completion date, cost, person responsible, and department responsible (or outside company responsible). List at least seven milestones.

Milestones for this commercial photography business include hiring staff and completing marketing campaigns.

Management & Organization Summary

The management and organization summary is an in-depth look at the ownership background and key personnel. This is an important section because many investors say they don’t invest in companies, they invest in people. In this section, make the case why you and your team have the experience and knowledge to make this business a success.

Ownership Background

Discuss the owners’ backgrounds and place an emphasis on why that background will ensure the business succeeds. If you don’t have experience managing a retail business, consider finding a co-owner who does. Typically, banks won’t lend to someone who doesn’t have experience in the type of business they’re trying to open.

Management Team Gaps

If there are any experience or knowledge gaps within the management team, state them. List the consultants or employees you will hire to cover the gaps. Investors who know your industry well may recognize gaps within your business plan, and it’s important to state the gaps without waiting for the investor to bring it up. This makes it appear that you know the industry well.

Personnel Plan

The personnel plan outlines every position within your business for at least the next three years. In the opening paragraph, discuss the roles within the company and who will report to whom. Include a table with at least three years of salary projections for each employee in your business. Include a total salary figure at the bottom. This table may be broken down further into salaries for each month in the financial projections or appendix.

This commercial photography business has the CEO at the same salary every year, with their employees’ salaries increasing year over year.

Financial Data & Analysis

The financial data and analysis section is the most difficult part of a business plan. This section requires you to forecast income and expenses for the next three years. You’ll need a working knowledge of common financial statements, like the profit and loss statement, balance sheet, and cash flow statement.

In the opening paragraphs of the financial data and analysis section, give an overview of the sections below. Discuss the break-even point and the projected profit at the first, second, and third year in business. State the assets and liabilities from the projected balance sheet as well.

If you’re getting a loan from a bank, say how long and from what source the loan will be repaid. One of the main pieces of information bankers want to ascertain from financial forecasting is if they will be paid back and how likely that is to happen.

You might also include the following financial reports:

• Break-even analysis : Break-even is when your business starts to make money. Break-even analysis is where you illustrate the point at which your revenue exceeds expenses and a profit occurs. In this section’s opening paragraph, state your monthly fixed costs and average percent variable costs (cost that changes with output, like labor or cost of goods). In the example below, variable costs increase 8% for every additional dollar made.

The break-even point for this document shredding business is $31,500 in a month.

• Projected profit & loss: The profit and loss table is a month-by-month breakdown of income and expenses (including startup expenses). Typically, you should expect your business to show a profit within the first year of operating and increase in years two and three. Be sure to show income and expenses month-by-month for the first two years in operation. Create a separate chart that shows income and expenses year-by-year for the first three years.
• Projected cash flow : The cash flow section shows your business’s monthly incoming and outgoing cash. It should cover the first two years in business. Mention what you plan to do with excess cash. See how to run a statement cash flow in QuickBooks Online .
• Projected balance sheet: The balance sheet shows the net worth of the business and the financial position of the company on a specific date. It focuses on the assets and liabilities of the business. Ideally, the balance sheet should show that the net worth of your business increases. Prepare a projected year-by-year balance sheet for the first three years.
• Business ratios: Also called financial ratios, these are a way to evaluate business performance. It’s helpful to compare your projected business ratios to the industry standard. Project your business ratios by year for the first three years.

The appendix is where you put information about the business that doesn’t fit in the above categories. What you put here largely depends on the type of business you’re creating. It’s a good idea to put any visual components in the appendix. A restaurant might add an image of the menu and an artist rendering of the interior and exterior, for example.

Consider including the following items in your business plan appendix:

• Artist mock-up of interior
• Building permits
• Equipment documentation
• Incorporation documents
• Leases and agreements
• Letters of recommendation
• Licenses and permits
• Marketing materials
• Media coverage
• Supplier agreements

An appendix isn’t required in a business plan, but it’s highly recommended for additional persuasion. Documents like media coverage, agreements, and equipment documentation show the investor and banker you’re serious about the business. If your appendix is more than 10 pages, consider creating a second table of contents just for the appendix.

Detailed Financial Projections

Put the more detailed projections in the appendix. The financial projections in the previous section is typically a year-by-year breakdown for three years in the future. But many bankers and investors want to see the first two years broken down month-by-month for at least the profit and loss statement, balance sheet, cash flow, and personnel plan.

Typically, you can print out the spreadsheet in smaller font and include it in the appendix. You don’t need to create additional charts for the appendix.

With all of your information organized, now it’s time to add the final details, like cover pages and a nondisclosure agreement (NDA).

• Cover Page: The cover page provides contact information about the business and its owner. The cover page should have the business name and who prepared it, including your name, address, phone number, and email address. Additionally, if the registered company name with the state is different from the business name, you may want to add that as a “company name.”
• Nondisclosure Agreement: An NDA ((also called a confidentiality agreement) is a legal document that safeguards business information. You’d want someone to sign it before reading your business plan if you believe they could use the information to their advantage and your disadvantage, such as to steal your business idea or marketing strategy.

Fit Small Business provides a free non-disclosure agreement.

Once your final details are added, proofread all the sections of your business plan, ensuring that the information is accurate and that all spelling and grammar are correct. If there are any illustrations, projections, or additional information you forgot to include, now is the time to add it.

The final step is adding a table of contents so that bankers and potential investors can easily navigate your business plan. A table of contents lists the sections and subsections of your business plan. All of the headers above (Executive Summary, Business Objectives, Company Overview, Products and Services, and so on) are considered sections of a business plan. You can number the sections for additional organization. For example, 1.0 is the executive summary, 1.1 is the business objectives, and 1.2 is the mission statement.

Editing and formatting can change the pagination of your business plan. So you’ll save yourself work if you finalize the business plan content first, then arrange the table of contents at the end.

Congratulations! You’ve captured your business idea and plan for profitability on paper. Before you send this business plan to loan officers and potential investors, ask friends, family, and other supportive business owners to read it and provide feedback. They may notice typos or other errors that you missed. They may also identify details you can add to make your business plan more persuasive.

Frequently Asked Questions (FAQs) About How to Write a Business Plan

These are the most common questions I hear about writing a business plan.

What needs to be in a business plan?

What you should put in a business plan depends on its purpose and your industry. If you’re seeking funding from a bank or investor, you’re going to need most of the sections above, with a strong focus on your financial projections. If you are using your business plan to attract key employees (like a chef for your restaurant), mock-ups and vendor agreements will be more useful. Think about the information that will help your target reader make a decision about whether to get involved with your business—whether that is a location, a business model, or product idea—and be sure your business plan includes that information.

How do you write a business plan for a startup?

The business plan for a startup is similar to a business plan for an established business. The startup business plan will include startup costs, which will be listed by item and factored into the financial projections. Additionally, since your business hasn’t proven it can be successful yet, you may need additional information about the ownership, business model, market, and industry to convince the reader your business will succeed.

How long does it take to write a business plan?

A simple business plan may only take a couple of hours. However, for the business plan provided with this template, which includes financial projections, it may take over 60 hours to research the income and costs associated with running your business. You also have to format those costs into a chart, because it’s best to showcase the data with easy-to-understand charts.

Is writing a business plan hard?

Creating a business plan for funding from a bank or investor is a detailed process. Unless you have a background in financial statements, the financial projections may be difficult for the average business owner. But you can ask for help; it is common to hire a bookkeeper or accountant to assist you with financial projects to ensure your math is correct. Outside of the projections, most other business plan sections are simple, though you’ll want to give yourself time to make each section persuasive.

Every type of business, whether it’s a side hustle or a multimillion-dollar business, should have a business plan. The industry analysis and market segmentation sections validate your business idea. Researching and forecasting financial projections helps you logically think through income and expenses, which lessens the risk of business failure. Remember to get feedback on your business plan from business employees and associates. If necessary, have them sign an NDA before they review the plan.

About the Author

Find Mary On LinkedIn Twitter

Mary King is an expert restaurant and small business contributor at Fit Small Business. With more than a decade of small business experience, Mary has worked with some of the best restaurants in the world, and some of the most forward-thinking hospitality programs in the country. Mary’s firsthand operational experience ranges from independent food trucks to the grand scale of Michelin-starred restaurants, from small trades-based businesses to cutting-edge co-working spaces.

Join Fit Small Business

Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Select the newsletters you’re interested in below.

How to write a business plan

Writing a business plan will help nail down your idea and give you a blueprint for executing it.

What is a business plan?

A business plan describes your product or service, identifies who the customer is, explains why they need your product or service, and shows how you’ll make money from that opportunity.

Why write a business plan

How you write a business plan will depend on what you need it to do. There are a couple of key jobs a business plan can have. It can:

• explain a business idea
• convince lenders or investors to put money behind that business idea

It doesn’t take a book to do the first job. You can write a business plan that’s short, to the point, and easy to update. That may be all you ever need. But if you’re going for funding, your business plan will need to be a good deal longer and more comprehensive.

Why every business should start with a one-pager

Even if you will eventually write a long business plan, a one-pager is a great place to start. It could take as little as an hour to do your first draft and will make your idea stronger. Writing about customers, competitors, income and expenses will help develop your thinking.

How to write a one-page business plan

You’ll see in the example below that there are nine sections, or things to write about. So give yourself just a small space to write about each. Keeping it short will help you focus on what’s important.

Download a one-page business plan template.

When you need a longer business plan

The greater the risk you’re taking, the more comprehensive your plan should be. For instance, you’ll need to write a long-form business plan if you’re going to fund it with other people’s money. Banks and investors will expect it.

How to write a longer business plan

Long-form business plans touch on all the same things as a one-pager, but they go into more detail and contain fewer assumptions.

Back-of-the-napkin numbers are replaced by forecasts and budgets. And guesstimates for things like costs, market size, customer preferences, and competitor weaknesses need to be backed up with proof. It’s a good idea to involve an accountant or bookkeeper in developing the budgeting and finance sections.

Contents of a business plan:

• Executive summary: A short summary of the main points of your business plan. Write it last.
• Company overview: Identify your industry, what you’re selling, and how you’ll charge.
• Products or services: Include a description of the problem you’re solving for customers.
• Market analysis: Describe your target market, and examine the competition.
• Risk assessment: Flag potential hurdles (including assumptions that could be proved wrong).
• Marketing and sales plan: How will you find customers and make sales? How many sales will there be?
• Milestones: What needs to happen and when?
• Progress reporting: When and how will you report against the milestones?
• Team: Who will be involved in the business? Note their skills and responsibilities.
• Budget: Estimate your costs and income (and any debt that you plan to take on).
• Finance: Show how you’ll fund the business.

You can also add an appendix with any supporting or background documents.

Make a start by downloading our free business plan template.

How not to write a business plan

Avoid these common business planning mistakes:

• Underestimating how much money it will take to get started
• Failing to budget for the first few months of operation (before revenues start flowing)
• Expecting sales to ramp up too fast
• Relying too heavily on one or two customers (or suppliers)
• Not including contingencies for unexpected delays or costs

For more information, visit the SBA (Small Business Administration) page on writing a business plan , which comes complete with templates to help get you started.

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

How to start a business

Thousands of new businesses open every day. If all those people can do it, why not you? Here’s what to do, and when.

A Xero survey of 1,000 North American startups reveals why and how they started their businesses.

Your business idea is clearly inspired. But it helps to check you’re not the only one who thinks so.

It’s time to run some numbers on your business idea. Budgeting and forecasting help with that.

Your prices can influence the number of sales you make and the profit you earn on each transaction.

Your business structure can affect how much tax you pay, and how you're treated by the law.

If you’re starting a business, then you’ll need to get familiar with some accounting basics.

After all the excitement of deciding to start a business, you’ll have some paperwork to do.

Treat your website like an online version of a storefront. It’s the first impression for many customers and prospects.

Now that you’re in business, you want to stay there. Xero’s got resources and solutions to help.

Download the guide to starting a business

Learn how to start a business, from ideation to launch. Fill out the form to receive this guide as a PDF.

Privacy notice .

Start using Xero for free

Access Xero features for 30 days, then decide which plan best suits your business.

• Included Safe and secure
• Included Cancel any time
• Included 24/7 online support

Or compare all plans

Business Plan Development

Masterplans experts will help you create business plans for investor funding, bank/SBA lending and strategic direction

Investor Materials

A professionally designed pitch deck, lean plan, and cash burn overview will assist you in securing Pre-Seed and Seed Round funding

Immigration Business Plans

A USCIS-compliant business plan serves as the foundation for your E-2, L-1A, EB-5 or E-2 visa application

Customized consulting tailored to your startup's unique challenges and goals

Our team-based approach supports your project with personal communication and technical expertise.

Pricing that is competitive and scalable for early-stage business services regardless of industry or stage.

Client testimonials from just a few of the 18,000+ entrepreneurs we've worked with over the last 20 years

Free tools, research, and templates to help with business plans & pitch decks

How Long Does It Take to Write A Business Plan? Well, It Depends.

You've been thinking about this for a decade. You are going to open the perfect coffee shop. You've worked at three different cafés in the last nine years (four if you include the one where they didn't have a POS and you only lasted a week). Your list of what-not-to-do is as long as your list of to-dos. You even have your eye on a spot with great sidewalk seating. You bought some rad chairs last month and have them stored in your cousin’s garage.

But you know that starting a coffee shop is expensive, and you’re going to need more money than you have saved. So the first thing you think to do is call your bank, and the first thing they ask you is if you have a business plan. You pause, and for a split second, you think to reply, “Yeah, my plan is to open a café.” But you're smarter than that, and you know that can't be what she's asking. “Um,” you say, formulating your thoughts, “I’m still working on the formal plan. Will I need that ready for next month’s meeting?” The banker says yes, and you start to sweat.

So after hanging up, you Googled “how long does it take to write a business plan,” and that brought you here. And now you’re waiting for us to get to the point and finally tell you the answer. First, take a deep breath. You got this.

What Is a Business Plan?

Let’s start with a simple definition:

A business plan is a document that describes a company's objectives and its marketing, financial, and operational strategies for achieving them.

Depending on the needs of your business, the length of your plan (and the time needed to create it) will vary. But one thing is certain: your business plan should be written with the audience in mind, and the closer you are to opening your business, the more details and specifics they'll want to see.

A business plan should not only be a guide for you but also be a way for you to share your vision with others. And a business plan isn’t just for startups; it should be a living document that is flexible and can expand to meet your needs.

However, keep in mind that not every type of business plan is useful when it comes to obtaining a bank loan, but we'll get to that later. First, let's go over the four different kinds of business plans and what they're used for.

The Back-of-Napkin Business Plan

Time consideration.

30 minutes to 1/2 day

Key Elements

Ideation and initial thoughts.

This type of business plan is all about spontaneity and creativity. It's where the business owner jots down initial thoughts, market analysis, potential customers, and even a rough financial projection. It's a free-flowing brainstorming session that captures the essence of a business idea.

The Spontaneity of Ideas

The Back-of-Napkin Business Plan thrives on spontaneity. Whether you're an aspiring small business owner or an experienced entrepreneur, this plan allows you to explore your business goals, target market, and competitive advantage without the constraints of a formal business plan format.

Application and Use

Capturing inspiration.

Capturing inspiration is vital for crafting a good business plan. It's about recognizing a good idea when it strikes and having the foresight to jot it down. This plan is not about detailed industry analysis or a polished executive summary. It's about the raw, unfiltered vision that could become a success story.

Part of the Process

Writing a business plan is an iterative process. No one sits down the day they come up with a new business idea and just cranks out a full business plan. The Back-of-Napkin Business Plan is that beginning step. It may lead to a more solid business plan, complete with a company description, mission statement, business model, and company overview, or it may inform you what market research is necessary to pursue. But no matter what comes next, the Back-of-Napkin Business Plan is a stepping stone towards achieving your entrepreneurial dreams.

Audience: Yourself, Trusted Friends & Family

The audience for this plan is limited to yourself and perhaps a few trusted friends or family members. It's not meant for a potential investor or the Small Business Administration. It's a personal, intimate document that serves as a starting point for your business planning.

The Lean Business Plan

1/2 day to a week

The Lean Business Plan represents a significant step forward in the business planning process. It's more structured than the Back-of-Napkin Plan but retains a sense of flexibility and agility. This plan typically takes anywhere from half a day to a week to complete, depending on the complexity of the business idea.

Unique Value Proposition

At the heart of the Lean Business Plan is the Unique Value Proposition. This is where you define what your business is trying to accomplish, the problem it will solve, and who it will solve this problem for. It's a concise statement that encapsulates the essence of your business and sets it apart from competitors.

Goals, Timelines, and Metrics

The Lean Business Plan is about setting clear goals, timelines, and metrics. It's a roadmap that guides you from where you are to where you want to be. It includes considerations for finances, potential competition, and strategies for finding your first customers.

Flexibility

Unlike more detailed plans, the Lean Business Plan thrives on flexibility. Bullet points, simple charts, and concise language make it a living document that can adapt to changes and new insights.

Defining the Business

The Lean Business Plan helps you articulate your business idea in a more formal way. It's about getting the idea out on paper, exploring how much money you'll need, where you could get those resources, and how you'll find your target market.

Collaboration and Feedback

Share your plan with someone you trust, like a friend or family member, to gain perspectives and enhance collaboration. The more collaboration, the better the plan becomes.

A Tool for Vision Sharing

Once you have your Lean Business Plan, it becomes a perfect tool to share your vision with possible business partners. It gives you a sense of what you know, what you need to know, and the next steps to take.

Audience: Yourself, Potential Partners, Advisors, Internal Strategy

This plan is meant for a broader audience than the Back-of-Napkin Business Plan, including potential partners, advisors, and as an internal strategy document. It's a tool to share your vision and gain insights from others. 

The LeanPlus Business Plan

A week to 2 weeks

10-12 Pages

The LeanPlus Business Plan is a document that combines clarity and conciseness with a high-level overview of the business, including simple financials. This plan is designed to be presented to landlords, pre-seed investors, vendors, and partners. But how long does it take to write a business plan of this nature? The time consideration for the LeanPlus Business Plan ranges from a week to two weeks.

Clarity & Conciseness

The LeanPlus Business Plan emphasizes clarity and conciseness. It provides a high-level executive summary and includes a simple Profit & Loss Statement. Unlike the Lean Business Plan, the LeanPlus Business Plan should be a narrative document with key headers for organization. It's a document that's prepared for an outside party to read, offering a clear and concise overview of the business idea, target market, and financial projections.

High-Level Overview

This plan offers a high-level overview of the business, addressing key aspects such as the problem or opportunity, product or service features, marketplace, target customers, revenue model, and management team. It's a snapshot of the business that provides essential information without delving into excessive detail.

Simple Financials

The financial aspect of the LeanPlus Business Plan is simplified, focusing on expected revenue, Cost of Goods Sold, and key expenses like marketing, rent, and utilities. However, it's worth noting that for pre-revenue companies, especially those in a development phase like SaaS, the financial forecast may not include revenue forecasting at all. Instead, they may opt for a cash burn analysis, which measures the rate at which the company spends its cash reserves, or a burdened cash flow analysis, which provides a comprehensive view of how money will be spent over time, including all associated expenses.

Presenting to Outsiders

At some point during the business planning process, you will almost certainly need to present your vision to outsiders. The LeanPlus Business Plan serves this purpose, providing a more professional document that offers a general overview of the business. It's a tool for sharing your vision and securing support from key stakeholders.

A Professional Document

The creation of the LeanPlus Business Plan is a professional endeavor. It requires careful consideration of the content, structure, and presentation. The LeanPlus Business Plan bridges the gap between the initial ideation and the detailed Traditional Business Plan. It's a document that reflects the entrepreneur's evolving understanding of the business, the market, and the path to success. It's a tool for communication, collaboration, and progress, aligning with the goals of the business owner and the expectations of potential investors and partners.

Audience: Landlords, Pre-Seed Investors, Vendors & Partners

The LeanPlus Business Plan is tailored for landlords, pre-seed investors, vendors, and partners. It's a document that conveys the essence of the business without overwhelming the reader with complexity. It's suitable for presenting to stakeholders who have a vested interest in the company's success but don't require exhaustive detail.

Traditional Business Plan

1 month to 12 months

40 to 60 pages

The Traditional Business Plan is the most comprehensive and detailed of all business plans. It's the tool you need when you want to confidently convince someone to share their money with you, and it's also useful for setting key goals and tracking your progress as your business grows. 

Cited Market Research

The Traditional Business Plan is characterized by its thoroughness. It covers a lot of the same topics as the Lean and LeanPlus Business Plans but in much more detail. It requires meticulous market research and citation, adhering to an established business plan outline.

Pro Forma Financials

This plan includes a full financial projection, with a detailed five-year revenue forecast and key financial statements such as the Balance Sheet and Profit & Loss Statement. It's a comprehensive financial plan that provides potential investors, banks, and other stakeholders with a clear understanding of the business's financial forecast. A full financial model typically comprises 12-15 pages of the document.

Demonstrates Deep Understanding

The Traditional Business Plan is a comprehensive document that requires careful planning and consideration. It's not merely a written document but a strategic roadmap for the business. This plan demands a deep understanding of various aspects, including the industry, the target customer (and a marketing strategy for reaching them ), and a full competitive analysis that includes a profile of each key competitor and your competitive advantage.

Not Done In One Sitting

Creating a Traditional Business Plan is an iterative and time-consuming process. It's not something that can be done in one sitting. Instead, it requires continuous drafting, thinking, re-writing, researching, and re-thinking. 

Audience: Banks, Investors, Government Agencies, Board of Directors

The Traditional Business Plan is typically employed to solicit funding for startups from banks and investors. It also plays a crucial role in various government applications, such as petitioning the USCIS for entrepreneurship visas or applying for specific licensing, such as in the cannabis industry. While all Traditional Business Plans are well-researched and written in a professional manner, it's essential to recognize that each audience has distinct needs that must be addressed. This customization ensures that the plan resonates with the specific stakeholders, aligning with their expectations and requirements.

Crafting a Sustainable Business Through Planning

Planning is the backbone of a successful business, serving as a bridge that aligns vision with reality. It transforms ideas into actionable strategies, guiding entrepreneurs through the multifaceted journey of starting and growing a business. Whether a fleeting sketch or a comprehensive Traditional Business Plan, proper planning harmonizes all aspects of the business, defining competitive advantages, shaping marketing strategies, and forecasting financial needs.

Going Beyond the Clock

Creating a business plan transcends mere time constraints. It's not about plugging your information into a business plan template; it's about capturing the essence of the business idea, analyzing the market, and devising robust strategies. The emphasis is not on the hours and days but on the depth and breadth of understanding required to lay a solid foundation for the business.

The Role of Professional Guidance

Business plans are complex, and entrepreneurs don’t have to go it alone. Professional business planners like Masterplans provide expertise in aligning vision with reality and transforming ideas into actionable strategies. We serve as invaluable sounding boards, allowing entrepreneurs to refine their ideas with experienced insights.

A good business plan writer can take your ideas and tailor them to the specific needs of diverse audiences, whether investors, lenders, or government agencies like USCIS. It's a collaborative process that goes beyond mere document-creation.

A Living Document

A business plan is not a static document but a living guide that evolves with the business. It must be revisited and updated regularly to reflect changes in the market, goal-setting, and strategies to reach those goals. This continuous journey ensures alignment with the dynamic landscape of business, reinforcing the plan's role as an essential tool for sustained success.

How to Write a Management Summary for Your Business Plan

Entrepreneurs are often celebrated for their uncanny ability to understand others – their customers, the market, and the ever-evolving global...

Understanding Venture Debt vs Venture Capital

Despite growth in sectors like artificial intelligence, venture capital funding has seen better days. After peaking at $347.5 billion in 2021, there...

Going Beyond Writing: The Multifaceted Role of Business Plan Consultants

Most people think of a professional business plan company primarily as a "business plan writer." However, here at Masterplans, we choose to approach...

How to Write a Business Plan (Plus Examples & Templates)

• 3 years ago

Have you ever wondered how to write a business plan step by step? Mike Andes, told us: 

This guide will help you write a business plan to impress investors.

Throughout this process, we’ll get information from Mike Andes, who started Augusta Lawn Care Services when he was 12 and turned it into a franchise with over 90 locations. He has gone on to help others learn how to write business plans and start businesses.  He knows a thing or two about writing  business plans!

We’ll start by discussing the definition of a business plan. Then we’ll discuss how to come up with the idea, how to do the market research, and then the important elements in the business plan format. Keep reading to start your journey!

What Is a Business Plan?

A business plan is simply a road map of what you are trying to achieve with your business and how you will go about achieving it. It should cover all elements of your business including: 

• Finding customers
• Plans for developing a team
•  Competition
• Legal structures
• Key milestones you are pursuing

If you aren’t quite ready to create a business plan, consider starting by reading our business startup guide .

Get a Business Idea

Before you can write a business plan, you have to have a business idea. You may see a problem that needs to be solved and have an idea how to solve it, or you might start by evaluating your interests and skills. 

Mike told us, “The three things I suggest asking yourself when thinking about starting a business are:

• What am I good at?
• What would I enjoy doing?
• What can I get paid for?”

If all three of these questions don’t lead to at least one common answer, it will probably be a much harder road to success. Either there is not much market for it, you won’t be good at it, or you won’t enjoy doing it. 

As Mike told us, “There’s enough stress starting and running a business that if you don’t like it or aren’t good at it, it’s hard to succeed.”

If you’d like to hear more about Mike’s approach to starting a business, check out our YouTube video

Conduct Market Analysis

Market analysis is focused on establishing if there is a target market for your products and services, how large the target market is, and identifying the demographics of people or businesses that would be interested in the product or service. The goal here is to establish how much money your business concept can make.

Product and Service Demand

A search engine is your best friend when trying to figure out if there is demand for your products and services. Personally, I love using presearch.org because it lets you directly search on a ton of different platforms including Google, Youtube, Twitter, and more. Check out the screenshot for the full list of search options.

With quick web searches, you can find out how many competitors you have, look through their reviews, and see if there are common complaints about the competitors. Bad reviews are a great place to find opportunities to offer better products or services. 

If there are no similar products or services, you may have stumbled upon something new, or there may just be no demand for it. To find out, go talk to your most honest friend about the idea and see what they think. If they tell you it’s dumb or stare at you vacantly, there’s probably no market for it.

You can also conduct a survey through social media to get public opinion on your idea. Using Facebook Business Manager , you could get a feel for who would be interested in your product or service.

 I ran a quick test of how many people between 18-65  you could reach in the U.S. during a week. It returned an estimated 700-2,000 for the total number of leads, which is enough to do a fairly accurate statistical analysis.

Identify Demographics of Target Market

Depending on what type of business you want to run, your target market will be different. The narrower the demographic, the fewer potential customers you’ll have. If you did a survey, you’ll be able to use that data to help define your target audience. Some considerations you’ll want to consider are:

• Other Interests
• Marital Status
• Do they have kids?

Once you have this information, it can help you narrow down your options for location and help define your marketing further. One resource that Mike recommended using is the Census Bureau’s Quick Facts Map . He told us,  

“It helps you quickly evaluate what the best areas are for your business to be located.”

How to Write a Business Plan

Now that you’ve developed your idea a little and established there is a market for it, you can begin writing a business plan. Getting started is easier with the business plan template we created for you to download. I strongly recommend using it as it is updated to make it easier to create an action plan. 

Each of the following should be a section of your business plan:

• Business Plan Cover Page
• Table of Contents
• Executive Summary
• Company Description
• Description of Products and Services

SWOT Analysis

• Competitor Data
• Competitive Analysis
• Marketing Expenses Strategy 

Pricing Strategy

• Distribution Channel Assessment
• Operational Plan
• Management and Organizational Strategy
• Financial Statements and/or Financial Projections

We’ll look into each of these. Don’t forget to download our free business plan template (mentioned just above) so you can follow along as we go. 

How to Write a Business Plan Step 1. Create a Cover Page

The first thing investors will see is the cover page for your business plan. Make sure it looks professional. A great cover page shows that you think about first impressions.

A good business plan should have the following elements on a cover page:

• Professionally designed logo
• Company name
• Mission or Vision Statement
• Contact Info

Basically, think of a cover page for your business plan like a giant business card. It is meant to capture people’s attention but be quickly processed.

How to Write a Business Plan Step 2. Create a Table of Contents

Most people are busy enough that they don’t have a lot of time. Providing a table of contents makes it easy for them to find the pages of your plan that are meaningful to them.

A table of contents will be immediately after the cover page, but you can include it after the executive summary. Including the table of contents immediately after the executive summary will help investors know what section of your business plan they want to review more thoroughly.

Check out Canva’s article about creating a  table of contents . It has a ton of great information about creating easy access to each section of your business plan. Just remember that you’ll want to use different strategies for digital and hard copy business plans.

How to Write a Business Plan Step 3. Write an Executive Summary

An executive summary is where your business plan should catch the readers interest.  It doesn’t need to be long, but should be quick and easy to read.

Mike told us,

How long should an executive summary bein an informal business plan?

For casual use, an executive summary should be similar to an elevator pitch, no more than 150-160 words, just enough to get them interested and wanting more. Indeed has a great article on elevator pitches .  This can also be used for the content of emails to get readers’ attention.

It consists of three basic parts:

• An introduction to you and your business.
• What your business is about.
• A call to action

Example of an informal executive summary 

One of the best elevator pitches I’ve used is:

So far that pitch has achieved a 100% success rate in getting partnerships for the business.

What should I include in an executive summary for investors?

Investors are going to need a more detailed executive summary if you want to secure financing or sell equity. The executive summary should be a brief overview of your entire business plan and include:

• Introduction of yourself and company.
• An origin story (Recognition of a problem and how you came to solution)
• An introduction to your products or services.
• Your unique value proposition. Make sure to include intellectual property.
• Where you are in the business life cycle
• Request and why you need it.

Successful business plan examples

The owner of Urbanity told us he spent 2 months writing a 75-page business plan and received a $250,000 loan from the bank when he was 23. Make your business plan as detailed as possible when looking for financing. We’ve provided a template to help you prepare the portions of a business plan that banks expect.

Here’s the interview with the owner of Urbanity:

When to write an executive summary?

Even though the summary is near the beginning of a business plan, you should write it after you complete the rest of a business plan. You can’t talk about revenue, profits, and expected expenditures if you haven’t done the market research and created a financial plan.

What mistakes do people make when writing an executive summary?

Business owners commonly go into too much detail about the following items in an executive summary:

• Marketing and sales processes
• Financial statements
• Organizational structure
• Market analysis

These are things that people will want to know later, but they don’t hook the reader. They won’t spark interest in your small business, but they’ll close the deal.

How to Write a Business Plan Step 4. Company Description

Every business plan should include a company description. A great business plan will include the following elements while describing the company:

• Mission statement
• Philosophy and vision
• Company goals

Target market

• Legal structure

Let’s take a look at what each section includes in a good business plan.

Mission Statement

A mission statement is a brief explanation of why you started the company and what the company’s main focus is. It should be no more than one or two sentences. Check out HubSpot’s article 27 Inspiring Mission Statement for a great read on informative and inspiring mission and vision statements. 

Company Philosophy and Vision

The company philosophy is what drives your company. You’ll normally hear them called core values.  These are the building blocks that make your company different. You want to communicate your values to customers, business owners, and investors as often as possible to build a company culture, but make sure to back them up.

What makes your company different?

Each company is different. Your new business should rise above the standard company lines of honesty, integrity, fun, innovation, and community when communicating your business values. The standard answers are corporate jargon and lack authenticity. 

Examples of core values

One of my clients decided to add a core values page to their website. As a tech company they emphasized the values:

•  Prioritize communication.
•  Never stop learning.
•  Be transparent.
•  Start small and grow incrementally.

These values communicate how the owner and the rest of the company operate. They also show a value proposition and competitive advantage because they specifically focus on delivering business value from the start. These values also genuinely show what the company is about and customers recognize the sincerity. Indeed has a great blog about how to identify your core values .

What is a vision statement?

A vision statement communicate the long lasting change a business pursues. The vision helps investors and customers understand what your company is trying to accomplish. The vision statement goes beyond a mission statement to provide something meaningful to the community, customer’s lives, or even the world.

Example vision statements

The Alzheimer’s Association is a great example of a vision statement:

A world without Alzheimer’s Disease and other dementia.

It clearly tells how they want to change the world. A world without Alzheimers might be unachievable, but that means they always have room for improvement.

Business Goals

You have to measure success against goals for a business plan to be meaningful. A business plan helps guide a company similar to how your GPS provides a road map to your favorite travel destination. A goal to make as much money as possible is not inspirational and sounds greedy.

Sure, business owners want to increase their profits and improve customer service, but they need to present an overview of what they consider success. The goals should help everyone prioritize their work.

How far in advance should a business plan?

Business planning should be done at least one year in advance, but many banks and investors prefer three to five year business plans. Longer plans show investors that the management team  understands the market and knows the business is operating in a constantly shifting market. In addition, a plan helps businesses to adjust to changes because they have already considered how to handle them.

Example of great business goals

My all time-favorite long-term company goals are included in Tesla’s Master Plan, Part Deux . These goals were written in 2016 and drive the company’s decisions through 2026. They are the reason that investors are so forgiving when Elon Musk continually fails to meet his quarterly and annual goals.

If the progress aligns with the business plan investors are likely to continue to believe in the company. Just make sure the goals are reasonable or you’ll be discredited (unless you’re Elon Musk).

You did target market research before creating a business plan. Now it’s time to add it to the plan so others understand what your ideal customer looks like. As a new business owner, you may not be considered an expert in your field yet, so document everything. Make sure the references you use are from respectable sources. 

Use information from the specific lender when you are applying for lending. Most lenders provide industry research reports and using their data can strengthen the position of your business plan.

A small business plan should include a section on the external environment. Understanding the industry is crucial because we don’t plan a business in a vacuum. Make sure to research the industry trends, competitors, and forecasts. I personally prefer IBIS World for my business research. Make sure to answer questions like:

• What is the industry outlook long-term and short-term?
• How will your business take advantage of projected industry changes and trends?
• What might happen to your competitors and how will your business successfully compete?

Industry resources

Some helpful resources to help you establish more about your industry are:

• Trade Associations
• Federal Reserve
• Bureau of Labor Statistics

Legal Structure

There are five basic types of legal structures that most people will utilize:

• Sole proprietorships
• Limited Liability Companies (LLC)

Partnerships

Corporations.

• Franchises.

Each business structure has their pros and cons. An LLC is the most common legal structure due to its protection of personal assets and ease of setting up. Make sure to specify how ownership is divided and what roles each owner plays when you have more than one business owner.

You’ll have to decide which structure is best for you, but we’ve gathered information on each to make it easier.

Sole Proprietorship

A sole proprietorship is the easiest legal structure to set up but doesn’t protect the owner’s personal assets from legal issues. That means if something goes wrong, you could lose both your company and your home.

To start a sole proprietorship, fill out a special tax form called a  Schedule C . Sole proprietors can also join the American Independent Business Alliance .

Limited Liability Company (LLC)

An LLC is the most common business structure used in the United States because an LLC protects the owner’s personal assets. It’s similar to partnerships and corporations, but can be a single-member LLC in most states. An LLC requires a document called an operating agreement.

Each state has different requirements. Here’s a link to find your state’s requirements . Delaware and Nevada are common states to file an LLC because they are really business-friendly. Here’s a blog on the top 10 states to get an LLC.

Partnerships are typically for legal firms. If you choose to use a partnership choose a Limited Liability Partnership. Alternatively, you can just use an LLC.

Corporations are typically for massive organizations. Corporations have taxes on both corporate and income tax so unless you plan on selling stock, you are better off considering an LLC with S-Corp status . Investopedia has good information corporations here .

There are several opportunities to purchase successful franchises. TopFranchise.com has a list of companies in a variety of industries that offer franchise opportunities. This makes it where an entrepreneur can benefit from the reputation of an established business that has already worked out many of the kinks of starting from scratch.

How to Write a Business Plan Step 5. Products and Services

This section of the business plan should focus on what you sell, how you source it, and how you sell it. You should include:

• Unique features that differentiate your business products from competitors
• Intellectual property
• Your supply chain
• Cost and pricing structure 

Questions to answer about your products and services

Mike gave us a list  of the most important questions to answer about your product and services:

• How will you be selling the product? (in person, ecommerce, wholesale, direct to consumer)?
• How do you let them know they need a product?
• How do you communicate the message?
• How will you do transactions?
• How much will you be selling it for?
• How many do you think you’ll sell and why?

Make sure to use the worksheet on our business plan template .

How to Write a Business Plan Step 6. Sales and Marketing Plan

The marketing and sales plan is focused on the strategy to bring awareness to your company and guides how you will get the product to the consumer.  It should contain the following sections:

SWOT Analysis stands for strengths, weaknesses, opportunities, and threats. Not only do you want to identify them, but you also want to document how the business plans to deal with them.

Business owners need to do a thorough job documenting how their service or product stacks up against the competition.

If proper research isn’t done, investors will be able to tell that the owner hasn’t researched the competition and is less likely to believe that the team can protect its service from threats by the more well-established competition. This is one of the most common parts of a presentation that trips up business owners presenting on Shark Tank .

SWOT Examples

Examples of strengths and weaknesses could be things like the lack of cash flow, intellectual property ownership, high costs of suppliers, and customers’ expectations on shipping times.

Opportunities could be ways to capitalize on your strengths or improve your weaknesses, but may also be gaps in the industry. This includes:

• Adding offerings that fit with your current small business
• Increase sales to current customers
• Reducing costs through bulk ordering
• Finding ways to reduce inventory
•  And other areas you can improve

Threats will normally come from outside of the company but could also be things like losing a key member of the team. Threats normally come from competition, regulations, taxes, and unforeseen events.

The management team should use the SWOT analysis to guide other areas of business planning, but it absolutely has to be done before a business owner starts marketing. 

Include Competitor Data in Your Business Plan

When you plan a business, taking into consideration the strengths and weaknesses of the competition is key to navigating the field. Providing an overview of your competition and where they are headed shows that you are invested in understanding the industry.

For smaller businesses, you’ll want to search both the company and the owners names to see what they are working on. For publicly held corporations, you can find their quarterly and annual reports on the SEC website .

What another business plans to do can impact your business. Make sure to include things that might make it attractive for bigger companies to outsource to a small business.

Marketing Strategy

The marketing and sales part of business plans should be focused on how you are going to make potential customers aware of your business and then sell to them.

If you haven’t already included it, Mike recommends:

“They’ll want to know about Demographics, ages, and wealth of your target market.”

Make sure to include the Total addressable market .  The term refers to the value if you captured 100% of the market.

Advertising Strategy

You’ll explain what formats of advertising you’ll be using. Some possibilities are:

• Online: Facebook and Google are the big names to work with here.
• Print : Print can be used to reach broad groups or targeted markets. Check out this for tips .
• Radio : iHeartMedia is one of the best ways to advertise on the radio
• Cable television : High priced, hard to measure ROI, but here’s an explanation of the process
• Billboards: Attracting customers with billboards can be beneficial in high traffic areas.

You’ll want to define how you’ll be using each including frequency, duration, and cost. If you have the materials already created, including pictures or links to the marketing to show creative assets.

Mike told us “Most businesses are marketing digitally now due to Covid, but that’s not always the right answer.”

Make sure the marketing strategy will help team members or external marketing agencies stay within the brand guidelines .

This section of a business plan should be focused on pricing. There are a ton of pricing strategies that may work for different business plans. Which one will work for you depends on what kind of a business you run.

Some common pricing strategies are:

• Value-based pricing – Commonly used with home buying and selling or other products that are status symbols.
• Skimming pricing – Commonly seen in video game consoles, price starts off high to recoup expenses quickly, then reduces over time.
• Competition-based pricing – Pricing based on competitors’ pricing is commonly seen at gas stations.
• Freemium services –  Commonly used for software, where there is a free plan, then purchase options for more functionality.

HubSpot has a great calculator and blog on pricing strategies.

Beyond explaining what strategy your business plans to use, you should include references for how you came to this pricing strategy and how it will impact your cash flow.

Distribution Plan

This part of a business plan is focused on how the product or service is going to go through the supply chain. These may include multiple divisions or multiple companies. Make sure to include any parts of the workflow that are automated so investors can see where cost savings are expected and when.

Supply Chain Examples

For instance, lawn care companies  would need to cover aspects such as:

• Suppliers for lawn care equipment and tools
• Any chemicals or treatments needed
• Repair parts for sprinkler systems
• Vehicles to transport equipment and employees
• Insurance to protect the company vehicles and people.

Examples of Supply Chains

These are fairly flat supply chains compared to something like a clothing designer where the clothes would go through multiple vendors. A clothing company might have the following supply chain:

• Raw materials
• Shipping of raw materials
• Converting of raw materials to thread
• Shipping thread to produce garments
• Garment producer
• Shipping to company
• Company storage
• Shipping to retail stores

There have been advances such as print on demand that eliminate many of these steps. If you are designing completely custom clothing, all of this would need to be planned to keep from having business disruptions.

The main thing to include in the business plan is the list of suppliers, the path the supply chain follows, the time from order to the customer’s home, and the costs associated with each step of the process.

According to BizPlanReview , a business plan without this information is likely to get rejected because they have failed to research the key elements necessary to make sales to the customer.

How to Write a Business Plan Step 7. Company Organization and Operational Plan

This part of the business plan is focused on how the business model will function while serving customers.  The business plan should provide an overview of  how the team will manage the following aspects:

Quality Control

• Legal environment

Let’s look at each for some insight.

Production has already been discussed in previous sections so I won’t go into it much. When writing a business plan for investors, try to avoid repetition as it creates a more simple business plan.

If the organizational plan will be used by the team as an overview of how to perform the best services for the customer, then redundancy makes more sense as it communicates what is important to the business.

Quality control policies help to keep the team focused on how to verify that the company adheres to the business plan and meets or exceeds customer expectations.

Quality control can be anything from a standard that says “all labels on shirts can be no more than 1/16″ off center” to a defined checklist of steps that should be performed and filled out for every customer.

There are a variety of organizations that help define quality control including:

• International Organization for Standardization – Quality standards for energy, technology, food, production environments, and cybersecurity
• AICPA – Standard defined for accounting.
• The Joint Commission – Healthcare
• ASHRAE – HVAC best practices

You can find lists of the organizations that contribute most to the government regulation of industries on Open Secrets . Research what the leaders in your field are doing. Follow their example and implement it in your quality control plan.

For location, you should use information from the market research to establish where the location will be. Make sure to include the following in the location documentation.

• The size of your location
• The type of building (retail, industrial, commercial, etc.)
• Zoning restrictions – Urban Wire has a good map on how zoning works in each state
• Accessibility – Does it meet ADA requirements?
• Costs including rent, maintenance, utilities, insurance and any buildout or remodeling costs
• Utilities – b.e.f. has a good energy calculator .

Legal Environment

The legal requirement section is focused on defining how to meet the legal requirements for your industry. A good business plan should include all of the following:

• Any licenses and/or permits that are needed and whether you’ve obtained them
• Any trademarks, copyrights, or patents that you have or are in the process of applying for
• The insurance coverage your business requires and how much it costs
• Any environmental, health, or workplace regulations affecting your business
• Any special regulations affecting your industry
• Bonding requirements, if applicable

Your local SBA office can help you establish requirements in your area. I strongly recommend using them. They are a great resource.

Your business plan should include a plan for company organization and hiring. While you may be the only person with the company right now, down the road you’ll need more people. Make sure to consider and document the answers to the following questions:

• What is the current leadership structure and what will it look like in the future?
• What types of employees will you have? Are there any licensing or educational requirements?
• How many employees will you need?
• Will you ever hire freelancers or independent contractors?
• What is each position’s job description?
• What is the pay structure (hourly, salaried, base plus commission, etc.)?
• How do you plan to find qualified employees and contractors?

One of the most crucial parts of a business plan is the organizational chart. This simply shows the positions the company will need, who is in charge of them and the relationship of each of them. It will look similar to this:

Our small business plan template has a much more in-depth organizational chart you can edit to include when you include the organizational chart in your business plan.

How to Write a Business Plan Step 8. Financial Statements 

No business plan is complete without financial statements or financial projections. The business plan format will be different based on whether you are writing a business plan to expand a business or a startup business plan. Let’s dig deeper into each.

Provide All Financial Income from an Existing Business

An existing business should use their past financial documents including the income statement, balance sheet, and cash flow statement to find trends to estimate the next 3-5 years.

You can create easy trendlines in excel to predict future revenue, profit and loss, cash flow, and other changes in year-over-year performance. This will show your expected performance assuming business continues as normal.

If you are seeking an investment, then the business is probably not going to continue as normal. Depending on the financial plan and the purpose of getting financing, adjustments may be needed to the following:

• Higher Revenue if expanding business
• Lower Cost of Goods Sold if purchasing inventory with bulk discounts
• Adding interest if utilizing financing (not equity deal)
• Changes in expenses
• Addition of financing information to the cash flow statement
• Changes in Earnings per Share on the balance sheet

Financial modeling is a challenging subject, but there are plenty of low-cost courses on the subject. If you need help planning your business financial documentation take some time to watch some of them.

Make it a point to document how you calculated all the changes to the income statement, balance sheet, and cash flow statement in your business plan so that key team members or investors can verify your research.

Financial Projections For A Startup Business Plan

Unlike an existing business, a startup doesn’t have previous success to model its future performance. In this scenario, you need to focus on how to make a business plan realistic through the use of industry research and averages.

Mike gave the following advice in his interview:

Financial Forecasting Mistakes

One of the things a lot of inexperienced people use is the argument, “If I get one percent of the market, it is worth $100 million.” If you use this, investors are likely to file the document under bad business plan examples.

Let’s use custom t-shirts as an example.

Credence Research estimated in 2018 there were 11,334,800,000 custom t-shirts sold for a total of $206.12 Billion, with a 6% compound annual growth rate.

With that data,  you can calculate that the industry will grow to $270 Billion in 2023 and that the average shirt sold creates $18.18 in revenue.

Combine that with an IBIS World estimate of 11,094 custom screen printers and that means even if you become an average seller, you’ll get .009% of the market.

Here’s a table for easier viewing of that information.

The point here is to make sure your business proposal examples make sense.

You’ll need to know industry averages such as cost of customer acquisition, revenue per customer, the average cost of goods sold, and admin costs to be able to create accurate estimates.

Our simple business plan templates walk you through most of these processes. If you follow them you’ll have a good idea of how to write a business proposal.

How to Write a Business Plan Step 9. Business Plan Example of Funding Requests

What is a business plan without a plan on how to obtain funding?

The Small Business Administration has an example for a pizza restaurant that theoretically needed nearly $20k to make it through their first month.

In our video, How to Start a $500K/Year T-Shirt Business (Pt. 1 ), Sanford Booth told us he needed about $200,000 to start his franchise and broke even after 4 months.

Freshbooks estimates it takes on average 2-3 years for a business to be profitable, which means the fictitious pizza company from the SBA could need up to $330k to make it through that time and still pay their bills for their home and pizza shop.

Not every business needs that much to start, but realistically it’s a good idea to assume that you need a fairly large cushion.

Ways to get funding for a small business

There are a variety of ways to cover this. the most common are:

• Bootstrapping – Using your savings without external funding.
• Taking out debt – loans, credit cards
• Equity, Seed Funding – Ownership of a percentage of the company in exchange for current funds
• Crowdsourcing – Promising a good for funding to create the product

Keep reading for more tips on how to write a business plan.

How funding will be used

When asking for business financing make sure to include:

• How much to get started?
• What is the minimum viable product and how soon can you make money?
• How will the money be spent?

Mike emphasized two aspects that should be included in every plan, 

How to Write a Business Plan Resources

Here are some links to a business plan sample and business plan outline. 

• Sample plan

It’s also helpful to follow some of the leading influencers in the business plan writing community. Here’s a list:

• Wise Plans –  Shares a lot of information on starting businesses and is a business plan writing company.
• Optimus Business Plans –  Another business plan writing company.
• Venture Capital – A venture capital thread that can help give you ideas.

How to Write a Business Plan: What’s Next?

We hope this guide about how to write a simple business plan step by step has been helpful. We’ve covered:

• The definition of a business plan
• Coming up with a business idea
• Performing market research
• The critical components of a business plan
• An example business plan

In addition, we provided you with a simple business plan template to assist you in the process of writing your startup business plan. The startup business plan template also includes a business model template that will be the key to your success.

Don’t forget to check out the rest of our business hub .

Have you written a business plan before? How did it impact your ability to achieve your goals?

Brandon Boushy

Brandon Boushy lives to improve people’s lives by helping them become successful entrepreneurs. His journey started nearly 30 years ago. He consistently excelled at everything he did, but preferred to make the rules rather than follow him. His exploration of self and knowledge has helped him to get an engineering degree, MBA, and countless certifications. When freelancing and rideshare came onto the scene, he recognized the opportunity to play by his own rules. Since 2017, he has helped businesses across all industries achieve more with his research, writing, and marketing strategies. Since 2021, he has been the Lead Writer for UpFlip where he has published over 170 articles on small business success.

Related posts

• September 27, 2023

How to Start a Business: The Ultimate Guide (2024)

• August 3, 2022

Free Business Plan Template (With Examples)

• May 3, 2022

How to Get a Business License (In 3 Steps)

Join the discussion cancel reply.

Save my name, email, and website in this browser for the next time I comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed .

2 thoughts on “How to Write a Business Plan (Plus Examples & Templates)”

My Name is PRETTY NGOMANE. A south African female. Aspiring to do farming. And finding a home away from home for the differently abled persons in their daily needs.

nice work https://binarychemist.com/

Compare listings

Reset Password

Please enter your username or email address. You will receive a link to create a new password via email.

• Skip to main content
• Skip to primary sidebar

Huskey Practice Manager Blog

Helping Accounting Firms Grow

How Long Does It Take to Write a Business Plan? A Comprehensive Guide

June 3, 2023 by Jason Huskey

Writing a business plan is an essential step for any entrepreneur looking to start a business. It can be a daunting task, and many people wonder how long it takes to write a business plan.

One of the most significant factors that can impact the time it takes to write a business plan is the complexity of the business. A simple business, such as a sole proprietorship, may only take a few hours to write a business plan. However, a more complex business, such as a corporation, may take several weeks or even months to complete a business plan.

The whole process can be sped up significantly by using an AI tool such as ChatGPT.

Write a Winning Business Plan in Record Time with ChatGPT : 5 Steps to Success

Here are some steps you can follow:

• Start by defining your business idea, target market, and unique value proposition. You can use ChatGPT to generate ideas and insights on these topics by giving it prompts like “What are some unique value propositions for a [business type]?” or “What are some market trends for [industry or niche]?”
• Use ChatGPT to create an outline for your business plan. You can give it a prompt like “Can you help me create an outline for a comprehensive business plan?” and it can provide you with a structure to follow.
• Research your industry, competitors, and market trends using ChatGPT. You can give it prompts like “What are the top competitors in [industry or niche]?” or “What are some emerging trends in [industry or niche]?”
• Use ChatGPT to draft your business plan by giving it prompts like “Can you help me write an executive summary for my business plan?” or “Can you provide me with a template for a marketing plan?”
• Revise and refine your business plan using ChatGPT. You can give it prompts like “Can you help me improve my financial projections?” or “Can you provide me with feedback on my business plan?”

It’s important to note that while ChatGPT can be a helpful tool in writing a business plan quickly, it’s still important to do your own research and use your own judgment in making strategic decisions for your business.

Another great AI tool is Koala .

Tips for Writing a Business Plan Efficiently

1. start with a clear outline.

Before you begin writing your business plan, create a clear outline of the key sections you need to include. This will help you stay focused and ensure you cover all the necessary information. You can use a template or create your own outline. See below for a sample outline.

2. Keep it concise

Your business plan should be concise and to the point. Avoid using jargon or technical terms that your audience may not understand. Use simple language and keep your sentences short and easy to read.

3. Focus on the key points

Your business plan should focus on the key points that will help you achieve your goals. Don’t get bogged down in details that are not important. Focus on the big picture and highlight the most important information.

4. Use visuals

Visuals can be a powerful tool to help convey information in your business plan. Use graphs, charts, and tables to illustrate your points and make the information easier to understand.

5. Get feedback

Once you’ve written your business plan, get feedback from others. This can help you identify areas that need improvement and ensure your plan is clear and concise.

By following these tips, you can write a business plan efficiently without sacrificing quality. Remember to stay focused on the key points and use visuals to help convey your message. With a little effort, you can create a business plan that will help you achieve your goals.

Sample Business Plan Outline

Here’s an outline for a comprehensive business plan:

• Executive Summary
• Brief overview of the business, including mission statement, goals, and objectives
• Summary of products or services offered
• Brief overview of target market and competition
• Financial projections and funding needs
• Company Description
• Detailed description of the business, including legal structure, ownership, and management team
• Industry analysis and market research
• SWOT analysis
• Products or Services
• Detailed description of products or services offered
• Unique value proposition and competitive advantage
• Intellectual property and patents
• Market Analysis
• Target market and customer demographics
• Industry trends and market size
• Competitive analysis and market share
• Marketing and Sales Strategy
• Marketing plan and budget
• Sales channels and distribution strategy
• Pricing strategy and promotions
• Production or service delivery process
• Key suppliers and vendors
• Facilities and equipment needs
• Financial Projections
• Historical financial data (if available)
• Projected income statement, balance sheet, and cash flow statement
• Break-even analysis and financial ratios
• Funding needs and sources
• Supporting documents, such as resumes, licenses, permits, and contracts
• Additional market research and industry data
• Any other relevant information

How long does it take to write a business plan?

Factors that affect the time it takes to write a business plan, business plan format.

The format of the business plan can significantly affect the time it takes to write it. A lean startup business plan, for example, is much shorter and more concise than a traditional business plan. A lean startup business plan can take anywhere from a few hours to a few days to write, while a traditional business plan can take weeks or even months.

Scope of the business plan

The scope of the business plan is another factor that affects the time it takes to write it. A business plan for a small startup with a limited budget and few employees will be much shorter than a business plan for a larger company with multiple departments and a significant budget.

Availability of information

The availability of information is another critical factor that affects the time it takes to write a business plan. If the entrepreneur has all the necessary information at hand, the business plan can be written much faster. However, if the entrepreneur needs to conduct extensive research and gather data, the process can take much longer.

Experience of the entrepreneur

The experience of the entrepreneur can also affect the time it takes to write a business plan. An experienced entrepreneur who has written business plans before can write a plan much faster than someone who is writing a business plan for the first time.

Complexity of the business

The complexity of the business is another factor that affects the time it takes to write a business plan. A business with multiple products or services, a complex sales strategy, and a large target audience will require more time to write a business plan than a simpler business.

In conclusion, the time it takes to write a business plan depends on various factors such as the business plan format, the scope of the business plan, the availability of information, the experience of the entrepreneur, and the complexity of the business. Entrepreneurs should take the time to write a comprehensive and well-organized business plan to increase their chances of success.

In conclusion, the time it takes to write a business plan varies depending on the size and complexity of the business, research requirements, and writing experience. While a small consulting business may only need a few pages to outline their plan, a large corporation may require a more comprehensive document.

It is important to take the time to create a well-thought-out business plan as it serves as a roadmap for the company’s success. Rushing through the process can lead to oversights and mistakes that could hinder growth and profitability.

Entrepreneurs should also consider seeking assistance from professionals such as business consultants, accountants, or lawyers to ensure their plan is accurate and comprehensive.

About Jason Huskey

Meet Jason Huskey, a CPA since 2011. When he's not crunching numbers, Jason enjoys unwinding by playing guitar and piano, sharing his love for music with his wife and three kids. He's also a computer programmer and the creator of Huskey Practice Manager, a tool designed to help streamline accounting practices. Here on the blog, Jason shares insights from his experiences in both accounting and tech.

• Sample Plans
• WHY UPMETRICS?

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

• 400+ Sample Business Plans

Customers Success Stories

Business Plan Course

Strategic Canvas Templates

E-books, Guides & More

Business consultants

Entrepreneurs and Small Business

Accelerators and Incubators

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai pitch deck generator

Stratrgic Planning

See How Upmetrics Works  →

Small Business Tools

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Strategic Planning

Confused On How Long Should A Business Plan Be? Here Is The Answer

Business Plan Template

• December 18, 2023

What should be my business plan length? It is a common question for entrepreneurs who are new to business planning.

Certain people hold the opinion that a business plan should be one page long, while some people hold that a business plan should be extensive and filled with minute details.

Are you confused about the length of a business plan? Every business plans and businesses are different. While some strategies may be heavily text-based and include extensive market research, others may rely on graphics to make their points.

If your business plan is too brief, you’re probably not offering potential investors enough details about your operation. In contrast, if it goes on for too long, you will bore them, and they will lose interest since you are giving them too much information.

Your business plan should be as extensive as necessary to persuade the reader that it is worthwhile to invest in or take an interest in.

In light of this, a business plan for achieving that objective typically has between 15 and 30 pages.

Let’s see the detailed guide on how long should a business plan be .

Length Depends On The Purpose Of Your Business Plan

While determining the ideal length of your business plan, don’t overlook the main mission of your plan. The goal of your business plan is to persuade readers to support your business financially or by being an active part of your business.

The length depends on the purpose of the action you want your audience to take. Certain questions to answer to know your purpose are:

• Who is the target audience, first, for whom you are creating a business plan ? (as an example for banks, investors, hiring people, or someone else)
• Will it have details of the business and the management team that everyone can read?
• Do you require showing the whole business plan or only the executive summary to your readers?
• Does it contain thorough research, plans, designs, and charts?

The Length Of An Executive Summary Is Crucial

The executive summary is typically the whole overview of the business plan, so it is one of the essential components. Therefore, make sure your summary is well-presented and brief with all the details.

The Executive Summary’s opening paragraph in particular is of utmost significance, since if you don’t grab the reader’s attention right away, they won’t continue reading.

It should normally be one to two pages long to get the reader’s interest in your plan.

A good executive summary should be 5-10% of the whole business plan, so write all the information in a synchronized yet clear manner.

Your business plan has six essential components after the executive summary. These sections should each be between one and two pages long.

→ Download Now: Executive Summary Template

Correctly Format Your Plan

By organizing your plan, you can avoid including information that would make the plan too cluttered, long, and difficult to read. Formatting will:

• Give readers a more enjoyable experience and make it simple for them to locate the exact information
• Help you fit in the ideal length of the business plan
• Increases engagement and your chances of getting results
• Will also help you understand key elements of your business

No One Wants A Novel

When it comes to your business plan length: no one would be interested in reading 100 long pages.

If you include every question, your plan will be excessively lengthy, and the majority of readers will become bored. Keep in mind that no one will read a 100-page business plan.

Instead, include the most significant information in the executive summary, and then in the other sections of your plan, validate what you mentioned in the executive summary.

Move Supporting Documents To the Appendix

While an executive summary gives a quick overview of your overarching strategy, the appendix supports the data presented in the plan, making it simple to read with all the evidence.

For instance, the primary component of your plan includes revenue projections for years 1 and 5. You can include the specifics of how those forecasts were made in your appendix, rather than putting all pertinent information in the main text.

Therefore, do not include all the documents in the other sections of a business plan, and move all the supporting documents to the appendix.

The 15 Minutes Readability

The 15-minute readability is an actual answer to the question; how long should a business plan be? After quickly scanning the main points of a strong business plan for 15 minutes, the reader should have a good understanding of its main components.

Format, headlines, white space, and graphics all significantly impact readability. The main ideas of a business strategy should be presented as rapidly as they are in a business proposal or business presentation.

If you are still confused about how to write a business plan, then you can also use free business plan samples  to make your plan perfect.

Use Graphics Wisely

Never reduce a plan by removing helpful graphics. Readability and understanding of the plan are much more important with the help of graphics.

Make your financial projections easier to understand by using business charts to illustrate the numbers. As much as possible, use pictures and drawings to illustrate locations, items, sample menus, product images, and other things.

Types Of Business Plans

The page count of a business plan also depends on its type. There are three types of business plans , let’s deep dive into them, and then you can decide the ideal length of your business plan.

One-Page Business Plan

A business owner prefers a one-page business plan to introduce their business to investors. A one-page business plan encompasses the key elements of the company into one page, much like an executive summary.

One of the advantages is that investors can read it quickly because it is simply one-page long and has just enough details to pique their interest.

A one-page business plan is not for investors who are already interested in your business, as it doesn’t give away much information.

→ Download Now: One Page Business Plan Template

Mini Business Plan

A mini business plan contains 1 to 10 pages and has every component that is in a normal business strategy, but all are synchronized.

A short business plan gets right to the point and frequently uses bullet points to complete the section. Even though it contains some of the same details, a detailed business plan is still necessary.

If an investor asks for further details, after reading a one-page business plan, then this mini-business plan can come in handy.

This version will contain more detailed information, such as the problem, the solution, the marketing plan, the expected financial results, the target market , the company and management team, short financial tables, business charts, and the details to secure funding.

The Comprehensive Business Plan

Comprehensive business plans can range in length from 15 to 35 pages and beyond.

This business plan provides readers with a complete overview of the company, including the market problem, the proposed solution, company description, objectives, and goals, as well as its marketing plan, competitive analysis, operational plan, financial projections, financial plan, management team, and funding request.

A comprehensive plan starts with an executive summary and then expands on it with supporting data. This plan includes essential research to validate the overall business idea.

These business plans should only be provided upon request and following the delivery of a one-page or mini-business plan. An extensive business plan gives investors a complete picture of the company while raising the starting capital.

Which Type Of Business Plan Do You Want?

Many business owners merely write up one business plan, which they send out in every circumstance. Unfortunately, this approach is ineffective.

Instead, business owners should be prepared to provide the appropriate business plan when required by having all three types of business plans in their toolbox.

The most crucial factor isn’t how long your plan is; it’s knowing which kind of plan to utilize and when that will offer you an advantage when looking for finance.

Are You Ready For Your Business Plan?

Whether you are a small business or a startup, a business plan page count can not be that lengthy. To keep your readers interested till the last page, make it to the point and be researchful.

Start writing your plan today with the help of our sample business plans, and make the procedure of an investment-ready plan as easy as possible with us.

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

Frequently Asked Questions

What are the 7 essential elements of a business plan.

• Executive summary 
• Company description 
• Products and services 
• Market analysis 
• Strategy and implementation 
• Organization and management 
• Financial plan and projections

How Long Should A Business Plan Take?

According to the research , three months was the ideal amount of time to devote to the plan. This led to a 12% improvement in the likelihood of developing a successful business plan with all the market analysis and business understanding. 

What Are The 3 C's Of A Business Plan?

The main three C’s of the business plan are: 

• A clear idea of what your business entails
• Determining who your customers or clients will be
• The cash flow of your firm 

About the Author

Riya Shah is a skilled content writer experienced in various areas of writing, currently working with Upmetrics. Fascination with reading led her to be a writer. Highly creative, focused, imaginative, and passionate. Read more

Related Articles

How to Write a Business Plan Complete Guide

17 Reasons Why do you Need a Business Plan?

How to Prepare a Financial Plan for Startup Business (w/ example)

Reach your goals with accurate planning.

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

• Domain Names
• Websites & Hosting
• Email & Marketing
• Partner Programs
• Reseller Programs
• GoDaddy Pro - Designers & Developers
• Search for Domain Names
• Auctions for Domain Names
• Transfer Domain Names
• Appraise Domain Name Value
• Browse Domain Name Options
• Generate Domain & Business Names
• Domain Broker Service
• Find a Domain Owner (WHOIS)
• Save with Bundles
• Website Builder
• Online Store
• Website Design Services
• All Website Options
• Web Hosting
• WordPress Hosting
• WordPress eCommerce Hosting
• All Hosting Options
• SSL Certificates
• Website Security
• All Web Security Options
• Email & Microsoft 365
• Content & Photo Creator
• Free Logo Maker
• Digital Marketing Suite
• All Marketing Options
• Call our award-winning sales & support team 24/7 1-866-938-1119

Explore our online help resources

Have an account? Sign in now.

New to GoDaddy? Create an account to get started today.

• Control Panel Links:
• Manage Domains
• Manage Website Builder
• Manage Hosting
• Manage SSL Certificates
• Manage Email
• Inbox Links:
• Office 365 Email Login
• GoDaddy Webmail Login

How to write a business plan in 10 steps

• Share "How to write a business plan in 10 steps" on Facebook
• Share "How to write a business plan in 10 steps" on X
• Share "How to write a business plan in 10 steps" on LinkedIn
• Share "How to write a business plan in 10 steps" on Pinterest

Your business plan is the document that will take you from idea to execution. You’ll likely depend on it to organise your thoughts, strategise for success and stay focused on your goals.

In addition, business plans are often required for public or private funding.

Ready to build your business plan, but not sure where to get started? We’ve got you covered with our step-by-step guide.

In this article:

What is a business plan?

Why do you need a business plan.

• Create your executive summary
• Describe your company
• Introduce your team
• State your company goals
• Detail your values and mission statement
• List your products or services
• Do market research
• Create your marketing and sales plan
• Set financial projections
• Add an appendix

Business plan format

Tips for writing your small business plan, frequently asked questions.

A business plan is a document that you use to strategize for your business’s future. The business plan includes an overview of:

• Your business
• Your marketing strategy
• Your financial forecast

Need help deciding on a business to start? Check out this list of 25 side hustles to make money. You might also consider other new business ideas .

Related: Discover how you can register a .ca domain name

Back to top

Writing a business plan entails setting your business goals and describing the strategies you will use to reach them.

By putting these ideas on paper, you’re forcing yourself to properly think through your plan and vet its likely success. A little bit of planning really pays off.

Studies show that a business plan creates a 30% greater chance of growth

Outside of your personal reasons for writing a business plan, you will need this document if you need to convince funders or investors that your business is legitimate and likely to return a profit. You will be expected to provide investors with a well-thought-out business plan that shows your market awareness and financial planning.

How to write a business plan

If you’re ready to dig in and write your business plan, just follow our 10-step process. You want to be thorough at every step, especially if you expect to share the plan with potential stakeholders

Worth remembering? This is your business, and your plan will be unique to you.

1. Create your executive summary

Your executive summary is essentially the first impression for potential partners or investors. In a few sentences, it needs to grab readers’ attention and explain what you/your business does, so they’re compelled to read on.

Many people wait to write this summary until after they’ve completed the other sections.

Think of it like an elevator pitch — a short summary of what your business does that’s quick, clear and to the point.

2. Describe your company

Next up is a description of your company:

• What you do
• Who you do it for
• Exactly what problem you are solving

Think about your elevator pitch as you are writing your company description. Be very clear here.

You’re unlikely to be the first person to create a company solving a particular problem for your audience, so try and detail what it is that makes your company stand out.

3. Introduce your team

If you have any particularly credible or expert team members, be sure to introduce them in your business plan. Write a short bio for each person that highlights their key credentials and how they will contribute to your new business.

4. State your company’s goals

Every business needs goals, but choosing these goals isn’t always easy.

Yes, your company must make a profit, but this goal must be broken down into measurable and actionable steps.

Start with your desired business goals (number of products sold over a certain period, etc.). Then decide what you need to achieve to meet each goal. For example:

• How many sales do you need to make for your company to meet your projected revenue goal?
• What marketing tactics will your business use to hit your business goals?

Some businesses include goals that address the greater good. For example, you may choose to set a goal for reaching net-zero carbon targets by a particular year. Or you could commit to using 75% locally sourced materials in your products.

5. Detail your values and mission statement

When writing a business plan, it’s easy to get wrapped up in the data and the money.

But your why is the lifeblood of your business.

Take some time to create a page that digs into the meaningful element of your business.

• What larger problem are you trying to solve?
• What are your business values?
• What do you expect from your staff (and yourself)

This section is useful to help keep you going when times get tough.

It can also be used to help you train employees later and to define your target market .

6. List your products or services

As you are writing your business plan, list out products or services.

Within this section, include details about:

• What your products or services are
• How they help your customers
• How they stand out in the marketplace

For product-based businesses, include:

• A brief introduction to your costs (you’ll expand on them later in your plan)
• Where your products are sourced
• How many products you have on hand now
• How quickly more products can be produced

Related: How to price products to sell

7. Do market research

Every business must conduct market research. You need to think both about your local market and, if you’re starting an online business, the digital market. You may have different competitors in each marketplace.

It’s crucial to invest in good market research that helps you understand your competitors and your place amongst them.

• What does your prospective customer base look like?
• How many competitors operate in the same space?
• Are there any gaps in what competitors are providing (that you could step into)?

Your market research will help you determine if your business venture is justified. It can also act as support for your proposition — which is especially useful when pitching to investors.

The market research section of your business plan will help you see where the gaps are between your business and competitors, as well as where you hold an advantage.

It will form the foundation of your sales and marketing plan as you strategise to catch up to (and overtake) your competitors.

8. Create your marketing and sales plan

Your marketing and sales plan will generally be built on your competitor research. You can use competitive data to get a feel for what’s working. However, it’s important to remember that your brand and your audience are unique.

Keep your plan simple to start.

You are better off doing less better than trying to do more poorly. This helps conserve your budget and makes it easier to pivot if marketing efforts don’t go as planned.

Remember that you don’t need to be a marketing expert. Start with a basic outline, then use expert tools and insight to build out your plan.

9. Set financial projections

When it comes down to it, finances determine a successful business from an unsuccessful one.

If you’re seeking investment, your financial forecast is everything. One thing that investors need to know very clearly is the financial estimations and performance of your business over time.

In your projection, plan for:

• Expenses (including wages, website operating costs and rent if any)
• The pricing of your products and/or services
• A contingency plan for unexpected finance need

Related: How much does it cost to build a website in Canada?

10. Add an appendix

It’s not enough to simply write a business plan; every claim you make within it needs to be well-documented. So, include an appendix.

Your appendix is a compilation of supporting documentation and/or evidence. Possible appendix items include:

• Resumes of your key team members
• Documentation of your market research and analysis. If your plan summarises findings, include your marketing research and data
• Legal documents, such as incorporation papers, patents or trademarks
• Marketing materials, such as websites, brochures or social campaigns
• Customer testimonials or case studies. New businesses might not have these, but if you have conducted focus groups, you can include those findings
• Product prototypes or lab tests if you have them
• Any other relevant supporting materials that were referenced in your business plan

Editor's note: GoDaddy can help set you up with its free logo maker , free Website Builder and Microsoft 365 , all backed by GoDaddy's award-winning customer help.

There are three types of business plans:

Traditional

Not-for-profit.

While this article focuses primarily on the most common business plan format — the traditional plan — it helps to know what might be involved in the other formats.

The traditional format provides a detailed business overview and is useful for presenting to investors or lenders.

In a traditional plan, you will likely write more than you would in a lean plan.

Some businesses might start with a traditional plan and then create a lean version for specific uses.

The lean business plan format is a simplified version of a traditional business plan. The lean business plan format includes the most critical aspects of the business.

If you’re writing a lean business plan and you want to pitch to investors, then you must include key sections like market analysis, revenue forecasts, etc.

The not-for-profit business plan is similar to the traditional business plan but includes items that are required to run a not-for-profit organisation.

For example, if you were writing a not-for-profit business plan, you would likely include all elements of the traditional plan, plus fundraising and development, governance and financials.

You may also have research from the local area you’re serving to help with your market analysis section.

Your aim is to prove that there’s a public need for your not-for-profit organisation.

Before jumping into writing your business plan, check out our plan-writing tips.

Use a business plan template

Business plans are not new, so why not start with a tried and tested template?

There’s no need to reinvent the wheel.

There’s plenty of space to turn the template into something unique that feels like yours. Using a template avoids providing too much information to readers and it provides structure.

Check out these free business plan templates you can download and customise in a cinch.

Write for yourself (not just investors)

Your business plan is yours . Writing it is your chance to organise your thoughts and understand what business means to you.

Upon completion, you should feel satisfied with your roadmap to success.

Of course, consider your audience and investors when writing it and give them everything they need, but don’t forget to satisfy your own intent.

Remember the business plan formats; you can always start with a traditional plan for yourself and then provide your investors with the lean version.

Demonstrate what makes you unique

As of 2022, there were 1.19 million small businesses in Canada . This means you need to go in ready to disrupt and stand out.

• Clearly articulate what sets your business apart from your competition (e.g., quality of service, product uniqueness).
• Explain why customers should choose your products or services (e.g., x% of proceeds go to a worthy cause).

Use concrete data and examples

Writing your business plan takes your dreams and helps you turn them into something tangible and achievable.

You should be able to support your ideas with concrete data and real-world examples. You need to prove to yourself — and investors — that your business is viable.

Be realistic with your projections

Because writing your business plan is about creating something that’s achievable. This means you must be realistic with your projections.

While being optimistic is exciting — and you can still be privately optimistic — you must be realistic in your plan. So, keep your projections modest.

Realistic projects are better for you mentally, too. If you’re more likely to achieve your goals, you’re less likely to get overwhelmed.

Plus, goals that are not realistic will heap pressure on you and your team, and that’s the last thing a new business needs.

A business plan is just one part of the journey of starting a new business, for the entire step-by-step process check out our guide on how to start an online business

Here are your most asked questions, answered.

How do I write a simple business plan?

You will write a simple business plan if you keep focused and aim to be thorough but concise.

Cover all the important aspects — give special attention to your executive summary — and don’t over-plan.

Focus on shorter time frames and be realistic about what can be done.

Rely on research and data to help shape your projections.

Can I write a business plan myself?

Yes, you can write a business plan yourself. Just stay focused and be thorough. Cover the key aspects but don’t over plan.

That said, if your plan covers areas of business where you’re not so strong, you might need help. Feel free to consult with financial and legal professionals.

How long should a business plan be?

Your business plan will be as long as it needs to be, but the aim is to create something thorough yet concise. As a guide, aim for around 15 to 20 pages.

How long should it take to write a business plan?

Writing your business plan will probably take a few days, but you’ll need to do a lot of research behind the scenes.

Once you’ve finished the first draft, step away from the plan for a day or two, then return and review it to ensure it is accurate and void of errors.

Finally, use spellcheck to correct simple spelling and grammar errors.

On average, creating a business plan should take three months from beginning to end.

Products Used

An article of the Accelerated MBA written by:

Antoine Martin (Ph.D) | Business coach

Is this article relevant? Share it & help someone!

In this article:

How long does it take to write a business plan.

Writing a business plan is usually a time-consuming process, and many business owners and entrepreneurs get quickly put off by it. As a result, we often receive questions from small business owners who wonder how much time they should spend writing their business plans. How long does it take to write a business plan? How much time should I spend on it? What parts should I really focus on? Should I write it myself or have someone else write it for me? So forth and so on.

In this article, we not only answer those questions.

We also give you tips on approaching business plan writing efficiently and effectively. We bust a myth or two since we’re at it. And we put you on tracks to get things started, easy as 1, 2, 3.

Long story short? Writing a business plan takes time, especially when you don’t have a clear framework to follow and tools to use to facilitate the process. And, no, having it written by someone else makes no real sense. Why? Because the point of business plan writing is not to get a damn pdf (Excuse our French). It is to conduct an impactful business planning exercise that’ll give you some perspective on how to get your business to its next level.

Before we dig into the topic, though, please keep three essential points in mind!

First, in this article, we will not explain what a business plan is and why it is important to your business . As we’ve said before, a business plan is a storytelling tool that you should use to show your interlocutors that you have a business AND a strategic plan for that business . If that concept doesn’t sound very clear to you, please follow the link and read the other article before moving on. It’s fundamental.

Second, this article is part of a comprehensive series of blog posts on business plan writing that we’ve made available on Impactified for free. We’re trying to make your life easier with these, so give them a look!

Third, if you wonder how to write your business plan in no time and without breaking the bank, our best-selling Business Plan Builder module was designed for you.

That module includes a complete business plan template, two designer-made decks, a work tool to get you started and tell you what to write (and how), the automated financial tables you’ve been dreaming of, and over two hours of video designed to take you by the hand! So, if writing a business plan is a serious issue for you, you have no excuse!

Now, back to our topic: how long does it take to write a business plan? And is it worth having it written by someone else? Let’s dig.

Why does writing a business plan take time?

Before we elaborate on how long it takes to write a business plan, we first want to clarify ‘why’ business plan writing takes time. There are several factors and variables to take into account here.

Format vs. Substance

One of the critical factors you have to consider here is that people often confuse format and substance.

we know. Let us explain.

For instance, those who think that a business plan is a matter of getting a pdf document written, quick and dirty, to make the bankers happy typically see the exercise as a matter of formatting. Put the information into boxes, format the boxes, and you are done.

However, the essential keyword in the previous paragraph is not “getting a pdf document written”. Instead, it relates to the importance of gathering information. Not generic information, though, the correct information for the right interlocutor.

Said differently, business plan writing is a time-consuming exercise because it involves a very significant amount of work on the information-gathering side of things. In contrast, formatting is very straightforward and doesn’t create any specific issue – especially if you follow the right section structure and have access to a proper template. We’ll get back to that later

Alone vs. By someone else

Another critical factor to consider is ‘who’ writes the document.

On the one hand, working on your business plan yourself will take time and is very likely to slow you down. Depending on how well you know your business and on how deep you have pushed your strategic thinking, the exercise could take between a couple of days and a couple of months.

A couple of days, if your ideas are clear and all you have to do is format your information. A couple of months, if you can’t explain clearly what makes you different. Or what your business model is and what traction you have.

Not to forget the financial projections you have in mind , so forth, and so on. Then, of course, add the work you need to do alongside your writing, and you quickly get a couple of months of work.

On the other hand, having someone to work on your plan will also take time, but for different reasons. Whoever does the writing will need to know your business as precisely as possible before they can come up with anything serious.

Hence they will require you to spend time on data compilation and clarification. Perhaps more importantly, you will have to go through all the work and trust that their research reflects your market and positioning. Of course, you will also lose a fantastic opportunity to develop your thinking on your own business.

Think about time-saving twice.

Timewise, business plan writers will promise to deliver results within a few weeks. Still, of course, they won’t come up with miracles if you have no clue about your own business. More on business plan consultants and writers here by the way.

That being said, one clever exception to that logic could be to delegate the brainstorming and writing exercise to someone close to you.

For instance, someone from your team. Someone who knows the business well enough to develop sharp insights and relevant ideas. In that case, though, you will still need to spend some time on collaboration, clarification, questioning. Needless to say, you will also need to digest and assimilate the plan well enough to defend it when the time comes.

Deep plan vs. Surface scratching

Of course, the time you will need to spend on your business plan writing exercise also depends on how deep you want to go into your thinking.

Please stop smiling. we’m trying to be serious here!

Suppose your goal is to write a one-page business plan , quick and dirty style, without going into the details? You could probably come up with results you’ll like after a couple of days. However, the issue is that nobody cares if you like the result you obtain. What matters is not what YOU think, but what THEY think about your business proposal and whether you give them the type of information THEY want to hear. That’s a very different story.

In contrast, conducting a deep business planning exercise will take you a lot more time. Still, you will develop genuine insights regarding your business and your industry. In addition, you will gain some forecast on your earning potential to help you communicate with stakeholders. And all these will equip you to formulate storytelling your interlocutors will want to listen and remember.

The choice is yours here. But we’re sure you understand what we’d do if we were in your seat right now.

Don’t forget the pitching preparation

One last thing, before we move on to the next point. Another critical factor to consider when assessing how long you’ll need to write your business plan is the preparation time you’ll have to put into the exercise.

Whether you write your plan or whether someone does that for you, you will have no choice but learn to defend it yourself in front of investors if you write an investor proposal for funding purposes . Or in front of a banker if you write a business plan to obtain a loan .

From there, the work thus becomes a matter of working on your pitch. Then a matter of working on your pitch again. Then a question of actually pitching it, pitching it again, and revising that pitch until someone bites. But, again, that takes a lot of time – specifically when someone else wrote the damn thing for you.

Either way, having your document ready is only the beginning, and you have no choice but to think thoughtfully about what to do AFTER creating your business plan .

Four time-consuming variables when writing a business plan

• Focusing on substance vs. just working on formatting
• Writing the business plan yourself vs. paying someone to do it
• Going deep into the topic vs. scratching the surface
• Pitching preparation, pitching, and pitching revision

Four typical time-wasters that systematically ruin a business plan

Now that we’ve explained why the exercise typically takes time, let me explain what entrepreneurs and business owners usually waste their time on. Spoiler alert: the following paragraphs are strategic business killers (or savers, it depends), so don’t just skim through them.

Time waster #1: Figuring out what’s expected from you

First, business owners typically get into their business plan writing exercise fast to get the thing done once and for all. However, they forget to start with the basics by doing this, i.e., understanding what their final reader or interlocutor expects from the pitch and wants to hear.

That’s a business killer because, by building their pitch around what makes sense for themselves, these business owners shoot themselves in the foot.

For instance? If you ask us a million dollars to boost your business because you think that your idea is excellent and you are convinced that it is the next unicorn, then think twice. Your point needs to be a lot better than that, and it’d better be built around something more reasonable than “trust me!” or “I can feel it in my bones”.

Please don’t roll your eyes here; that’s typical.

As investors, we expect some persuasive arguments! First, say, on market research and the traction you have obtained so far. Then, some numbers showing how viable the business is. More numbers and insights as to how you’ll spend our million. And something to show me how you estimate the company’s valuation a few years from now.

Let us provoke you here: we won’t explain why we wrote the previous paragraph like this. If you understand our point, then keep reading. If you don’t, then do yourself a favor and watch our videos on the business plan logic. You have no chance whatsoever if you can’t master that kind of discussion.

The expectations, by the way, are also super important as far as the structure of your business plan is concerned. Business plan writing is a codified exercise, remember? Hence your interlocutors will expect a few points to be treated one by one, in a specific order.

We explain all these points in our Business Plan Builder module, so go for it if you need clarification.

If you’d rather try and find some free information first, our articles on what a business plan outline should look like and how long a business plan should be will give you some food for thought.

Time waster #2: Clarifying what creates a viable opportunity worth betting on

Second time-waster and business plan killer: business owners typically focus on obtaining what they want. However, they usually fail to explain what viable opportunity they create for the partners and why it is worth the investment.

There are a few critical points in what we just said.

One, the point is not to explain what YOU want. It is to explain what you want AND why that makes sense from an investment perspective.

Two, the point is not to say that you are producing the next unicorn.

Seriously, that’s how it looks.

No. The point is It is to show that you are giving investors an opportunity to put money into a viable and promising new venture that mainly needs capital to grow exponentially.

And if you are talking to a banker? Don’t waste your time on the promising side of the business. Instead, show that your finances and sales projections are viable enough to repay the loan asap. Period.

Three, the point is not to convince your interlocutor to give you money. Instead, it is to show them that their money will provide them with access to a successful business that will pay back – money in their pocket – down the road.

Said differently, what matters is not you. It’s them. And writing a business plan without having this clearly in mind will waste your time (and theirs) without the slightest doubt.

Time waster #3: Coming up with numbers that make no sense in the medium and long term

Third-time-waster and business-killer: business owners typically struggle with building and writing their business plan’s financial statements.

The complexity, indeed, is not simply to find a comprehensive template. That’s pretty easy these days. However, that template needs to tell you what needs to be done. It should tell you why things have to be done this or that way. And it has to explain how understanding the logic can help you from a storytelling perspective!

In plain English? Can you tell me, right now, without thinking more than five seconds, how much your business is worth? And no, not now. Five years from now.

Again, this question is fundamental, and you have no choice but to have a clear answer for it. If you can’t give me that answer, or if the logic isn’t clear, you need to clarify quickly.

We have some good news, though: the Impactified Business Plan Builder tool and videos can help! It will provide you with video explanations, and with the automated financial tables you’ll need to get to a result you’ll be able to use – you have no excuse.

Okay. You sound fantastic, so here’s a hint. The money you can raise relates directly to the amount of shareholding you’ll have to give away. And both depend on the valorization of your business, not now but in three to five years. As to how to get those numbers, everything is in the module; give it a try!

Time waster #4: Building some storytelling with real sex-appeal

Fourth time-waster and business killer: storytelling is super, duper, important. And you have to prepare it sharp, sharp, sharp.

We heard a guy once who thought that he would get people in his pocket by being natural. In plain English? He refused pitch training because he had a natural talent and thought people wanted authenticity rather than a fake, prepared pitch.

Well, guess what? That guy was an ass.

Excuse our French (again), but he really was.

He spoke so much that his point wasn’t clear. Worse, his pitching was boring because it was all about him and him again, so people lost interest after a couple of minutes. We won’t tell you the feedback we had on that guy: if the previous paragraph was rude, the next would be indecent.

The lesson here is simple: the point is not you, and it’s not to build a pitch based on boring facts and numbers either. No, the point is to use your business plan as an excuse to develop some strong business planning skills and to build storytelling with so much sex appeal that people will want to hear more and get on board.

The four biggest time waster with business plan writing

• Not knowing what you are expected to provide
• Failing to show that you are creating a viable business opportunity worth investing in
• Coming up with numbers that make no sense
• Going to war when your storytelling sucks (and you have no clue)

Is there a format I can use to save on preparation time?

Still with me? Great.

If you wonder how long it takes to write a business plan, the next question on the list often relates to formatting. And there, the answer is easy: yes, you can use template formats to save a lot (lot, lot) on preparation time. You just have to opt for the proper one, however.

Again, we’ve explained what your business plan outline should look like in another article, so we’re not coming back on this here. Still, there are two routes to consider here as far as short formats are concerned.

Is the one-pager a good idea?

First route: from a pure formatting perspective, business owners often look to write a one-page business plan . In their mind, this is a time-saver because one page is more accessible to write than a complete plan; hence the idea is smart.

Okay. But not okay.

Like it or not, the only way your one-pager can make sense is if it is built as an innovative and highly visual executive summary . However, getting there implies that you have gone through the whole process of business planning. Otherwise, what can you summarize?

That’s not what you wanted to read, but we’re a business coaches, not a candy seller. Oopsie but no sorrrieees!

Using a pitch deck template makes a lot more sense

Second route: relying on a business plan writing framework and using a predefined template will save you tons of time.

Shameless plug here again, but really, as business coaches and entrepreneurs, we know that writing a business plan is complicated when you don’t know where to start. So, we built a package tool:

One is a preparation template. It gives you all the points you need to deal with in the correct order and with a world limit—no way to go crazy with the number of words.

Then, two design-made templates to put your work into a visually appealing shape. One gives you a comprehensive format to give people a clean document with your storytelling, eight pages max. And the other gives you a slides-shaped structure, ideal if you prefer presenting your business plan on a screen.

Of course, we also provide you with a dummy case you can use for educative purposes. And finally, we added a complementary set of videos (two hours, guys!) to ensure that you get all the logic right.

Look, it’s simple. Business plan writing can kill your business because focusing on the wrong things and is a waste of time from A to Z !

We built this tool to make sure that doesn’t happen to you – there isn’t much we can add to that – except perhaps that the rest depends on you.

Wrap up: How long does it take to write a business plan? Depends on your goal…

To wrap things up? Writing your business plan is likely to require two days if your mind and storytelling are crystal clear, up to a couple of months if you have to build things from scratch.

Some do it themselves or with a team. Others just leave this with a consultant, so you have several options. The latter typically makes no sense and won’t make you save on costs for sure , so we would advise against it.

However, going through the exercise is important whether you are a Palo Alto startup or a small business. And doing the exercise yourself or with your team will give you a real opportunity to put some vital business planning into place. Beyond writing a stupid pdf, that’s one of the best ways available to get your business to its next step.

And just in case you wondered – no, we won’t write your business plan for you because that makes no sense (and you can read our opinion about business plan consultants here ). However, our Business Plan Builder with its framework, templates, and videos was made to get you started, so give it a look.

Alternatively, a business coach will also guide you through the exercise ( you can book a business coach here ). And they will also be at best to facilitate dedicated workshops if you want to build your business plan while involving your team. Get in touch!

Psss! Share this Article!

Topics related to How long does it take to write a business plan?:

• Startup business plan template free
• Ideal business plan
• Prepare a business plan for a small business

Need help with building & scaling your business?

At Impactified , we are on a mission to make you build, grow, and scale businesses you can be proud of, and we do that by making our business coaching expertise available to you, in person and through kick-ass self-coaching modules. You will love the experience either way, the only question is, what makes the most sense to you?

More Insights on Business Plan Writing

Financial Projections: How to write the financial plan in business plan

Hey coach! I’m writing a business plan and I’m wondering how to build the financial projections part of the document. What’s the importance of financial projections exactly – I mean, isn’t it absolute BS? How do I write the financial plan in business plan, and even more importantly, how can I make sense of all those messy tables? Can you help me understand this? Thanks in advance!

Do I Need a Business Plan Consultant? No, You Don’t!

Hey there Coach! I’m a small business owner and I need to find some support with my business plan. People suggested that I find a business plan consultant near me, but that’s a big cost and I’m not too sure about what to expect from that. What’s your opinion about business plan consultants in general? Is there any alternative you would highly recommend? Thanks!

How Much Does a Business Plan Cost? Just Under $100!

Hey coach! I was wondering – how much does a business plan cost? I need one, and I’m thinking about having it written for me, so I’d love your insights. Also, I’ve heard business plan writers cost a lot of money, so I’m interested if you have tips for writing a low-cost business plan! Thanks!

The #1 Growth & Scale Facilitation Platform for Entrepreneurs

Building & scaling a business is tough, so we’ve built easy-to-use tools & programs you can leverage anytime to make your business rock. The rest is up to you!

Get Started

• Book a Call!
• Pitch Your Biz!
• Read our Entrepreneurs' blog!

Business Facilitation

• Why Hire a Facilitator?
• Entrepreneur Training
• Our Brochures
• Team performance Survey
• The FREE Coaching Newsletter
• Impactified News
• Get in touch

© 2019-Present - All Rights Reserved - Impactified.com

How to Write a Business Plan: Step-By-Step Guide for Small Business Owners

A business plan defines a company’s goals and strategies. Businesses may develop a detailed written plan extending into dozens of pages or keep their business plan as simple as a short slide deck. 

What to Include

The elements to include in a business plan will vary depending on a company’s unique status and goals. Businesses seeking to attract investors should include comprehensive market research and financial projections to demonstrate expected profits. Lean startups, businesses owned and operated by families or individuals, and other small businesses may not need detailed market research and financial projections.

• Executive Summary : Introduces the reader to the company and provides a high-level overview of the overall business plan. This section should illustrate a compelling picture of the company’s potential for growth and success.
• Company Structure : Establishes basic details, including legal structure , leadership, location(s), and hours of operation (if applicable). 
• Company Summary : Provides a more in-depth description of the company’s mission, products or services, and objectives. This section should address the problem the company seeks to solve and why it is uniquely positioned to do so.
• Competitive Analysis : Describes the company’s standing among its competitors, including types of competition, descriptions of specific companies that are similarly situated, and competitive advantages that help substantiate the company’s viability.
• Market Analysis : Analyzes the industry conditions and target market, including customer demographics and behaviors, demand, market size, and supporting statistics.
• Marketing Strategy : Explains how the company will attract customers and drive sales. 
• Financial Outlook : Determines operating costs, funding needs, budget details, and profit projections.

Business Plan vs. Strategic Plan

Business plans and strategic plans are complementary but separate documents. Whereas a business plan provides a specific roadmap for achieving immediate to medium-term goals, a strategic plan defines a company’s broader objectives from a big-picture, longer-term perspective. 

A business plan encompasses a company’s value proposition , market positioning , and financial metrics , while a strategic plan focuses on mission, values, and vision. 

How Long Should a Business Plan Be?

The optimal length of a business plan depends on the type of business, the intended audience, and the plan’s purpose. 

What is a Business Continuity Plan?

A business continuity plan prepares a company for potential threats. Implementing such a plan may include creating new security systems and training staff for emergency response and recovery protocols.

Businesses are vulnerable to various risks, from natural disasters to technology failures to crime. By implementing a business continuity plan, companies can take steps to safeguard their assets and prepare their staff and leadership to respond appropriately.

How to Write a Business Plan

Creating a business plan can be intimidating, but the process is invaluable for any business and can break down into manageable steps. By developing a thoughtful, well-researched business plan, business leaders can refine their idea, attract the right partners, and create a strong foundation for success.

Step One: Decide What Type of Business Plan You Need

Before sitting down to write a business plan, think through its purpose and intended audience. This process will set parameters for the plan development process by helping to determine the amount of research and time needed. 

Is your business looking to attract investors or partner with financial institutions to raise capital ? If so, set aside time for market research and financial projection modeling. Do the company’s leadership and staff need an operational guide to benchmark progress as the business grows? In this case, the business plan may focus more on vision, goals, and day-to-day processes, focusing less on in-depth metrics. 

There is no prescribed format for a business plan, but deciding what type is most appropriate for your business will guide the content and length of the plan. A simple business plan might only take a few hours to assemble, while a traditional one requires comprehensive detail and considerable time.

Step Two: Create a Bulletproof Elevator Pitch

Regardless of your business plan, you must have a solid business idea that you can communicate in one or two sentences. Can you concisely state the need the company is fulfilling and why it’s uniquely positioned to do so? Take some time to define a crystal-clear elevator pitch . The pitch will serve as the foundation of the business plan.

Step Three: Outline, Research, Write, Refine

Now that you know what type of business plan to create, who the business plan is for, and what the business is setting out to accomplish, it’s time to write.

Get your hands on a template to provide a basic structure for the plan. Choose critical elements to focus on if you’re creating a simple plan. Create an outline first.

You might start by drafting an executive summary, introducing the plan, and expanding on each point in subsequent sections. Or, you might tackle the individual sections and draft the executive summary at the end.

Business Plan Outline and Examples

Creating a detailed outline will streamline and simplify the process of writing a business plan. Decide what sections will be included and break these down into subsections. 

Example Outline

• Business Plan Confidentiality Agreement
• Introduction
• Problem/Need
• Market Size
• Competitive Advantages
• Ownership & Management
• Legal Structure
• Company Description
• Products & Services
• Revenue: Pricing and Profitability
• Revenue Strategy
• Keys to Success
• Competition
• Management / Key Roles
• Personnel Plan
• Functional Roles
• Local Demographics
• Target Market
• Sales Strategy
• Positioning
• Opportunities
• Use of Funds/Costs
• Financial Plan

Executive Summary Introduction Example

An executive summary distills a business plan’s highlights and essential elements into a brief introductory section. The reader should be able to glean exactly what’s included in the business plan from the summary and be convinced about the company’s viability. 

Introduction Maya’s Bagels is Orange County’s only New York-style bagel shop and deli. Conveniently located in the City of Irvine’s financial district, Maya’s Bagels serves customers craving an authentic east coast experience.  Sourcing the finest ingredients and using traditional methods, Maya’s Bagels are baked fresh daily alongside an assortment of gourmet schmears, smoked fish, salads, and sandwiches. What sets us apart? Our magic ingredient: authentic New York City tap water.   

Keeping Receipts: The Dos and Don’ts

Receipts: the tiny scraps of paper that have the power to make life miserable every April 15. If you’ve […]

7 Best Paying Jobs in Publishing (And How to Land Them)

If you love devouring mysteries, memoirs, and everything in between, you can turn your bibliophilia into a well-paying career.  […]

Everything You Need to Know About Becoming a Food Writer (Plus Tips on Starting a Food Blog)

Food writing could be your calling if you’re a hungry wordsmith who loves inventing recipes and visiting new restaurants.  […]

How long does it take to write a business plan?

How long does it take to write a business plan it depends. i've done one as fast as two days. it wasn't quality work. but, you can do them quickly and with quality..

I write a lot . During any given week I can have upwards of three to four business plans in flight between my day job and working with entrepreneurs on their pitch decks and business plans. In the past, I have written a business plan, for my own business, in as little as two days. But it wasn't my best work. In other instances, for enormous projects, it took me and another author months to come to a finalized version. Which got me thinking, how long does it take to write a business plan? Or, better yet, how long should it take?

What takes up the most time?

There are two things that take up the most time when it comes to writing a business plan. Neither of which is the writing itself. At least, not if you have experience writing plans. When you have done as many as I have, the act of writing the plan usually goes really quickly. If you have done your legwork.

By legwork, I mean your research. That is the first item that takes up the most time in the process. Gathering together all of the data that you intend to use in the document. The good news is, as I eluded to earlier if you do your research the document will essentially write itself.

The other piece that takes up a lot of time is the editing process. This is certainly true if you are editing your own document. But, it is even more true if you have others, such as clients, who are editing the document and providing feedback.

Multiple editors can be tough

One of the biggest challenges with writing a business plan is when you have multiple stakeholders involved. I've worked on business plans and pitch decks before where I thought the only person who I needed approval from was the founder, only to find out, later, that they had co-founders who wanted to weigh in after I was a long way down the road with the work.

Those circumstances can be counter-productive. By all means, I recommend having other people edit or make suggestions about what you put in your plan. Even if that means having your spouse take a look at your document. But, I also recommend only having one main editor. If others want to get their opinions heard I suggest having all that feedback flow through one main contact.

The more people you add to the process the longer it will take to complete your business plan.  Sure, there are instances where the more feedback you get the better the document becomes. But, there are also instances where you will hit a point of diminishing returns by trying to assuage too many stakeholders.

How long should it take?

There are no perfect worlds. But, based on my experience, the best case cadence seems to be around two weeks for pitch decks/business plans for early-stage startups. If the business is more established, such as in my day job, the process can take a lot longer.

I generally tell clients to expect a three-week process. That assumes that they will be quick with their review/edits and that there is one main contact funneling all feedback in our direction.

The truth is that I and my team can knock out a business plan in less than three weeks. Sometimes in as fast as two weeks. Here is how that process breaks down.

My team's business plan timeline

2 days of research; 1 day of outlining; three days of writing; 1 day of internal review

Note that a full week has gone by

3 days of client review; 1 day of meetings with clients to discuss their feedback; 2 days of making final adjustments; 1 day of final review with the client 

Keep in mind, the above process requires that everyone, including the client, is timely with their reviews, suggestions, and availability for meetings.

I have seen other companies promoting a one-week process.  Is it possible? Sure. But, I question the quality and thoroughness of the work.

Remember this

Most of the business plans I write are used for obtaining funding (e.g. investors or loans). I've always told entrepreneurs that you are always fundraising. Even when you "don't need it yet".

Don't wait until you need a business plan to get started on having one prepared. Part of being a good business owner is planning ahead. The more time you give yourself the better quality product you can expect.

• Legal & Privacy Notice

How Long Does It Take To Write A Business Plan?

Table of Contents

Owning a good business plan comes with a lot of advantages for the entrepreneur. It’s more of a strategic tool that allows business owners to focus on specific steps, which are much needed to make business ideas succeed. That’s not all; a good business plan will also enable entrepreneurs to achieve their short- and long-term business objectives.

Depending on the amount of information you have at your disposal, writing an excellent traditional business plan to completion could take several hours or even days. For a basic business plan, since you’re still pretty much likely to adjust it over time, it shouldn’t take more than 3 hours to write.

What is a business plan, and why is it essential for you to have one? How long does it take to write a business plan? When is the ideal time to write your business plan? What are the components of a good business plan? These and more are the questions that you’ll find answers to as you read through the rest of this article.

Understanding What A Business Plan Means

There’s no denying that many of us have seen business plans before or understand what they mean. However, if you don’t know, a business plan is a formal written document containing the details of business objectives.

A business plan is usually standard for startups. Of course, that’s so because one of the very first steps of starting up a new business from scratch is to craft a business plan.

Why Is It Important To Have A Business Plan?

As earlier mentioned, owning a business plan comes with tons of excellent benefits for people. Let’s have a quick look at some of them below:

• See the entire business

A business plan, as previously defined, is a type of document that contains the goal and objectives of your business. One of the benefits of crafting this type of document is that it will offer you a clearer picture of the whole industry. Furthermore, owning a clearly and effectively crafted business plan will allow you to quickly connect the dots in your business.

• Business plans will help you create a marketing roadmap

A marketing roadmap is more of a specific plan and timeline that allows business owners to finish their projects at the right time frame. It will enable you to develop a long-term view of how you will promote your business and achieve success.

Apart from seeing your entire business, crafting a good business plan will provide you with a good marketing roadmap. With that, you’ll be able to highlight your key projects and set priorities for your company’s marketing department.

• Accountability

The importance of accountability in business can’t be overstressed, and this factor is essential as it helps entrepreneurs eliminate the time and effort often spent on unnecessary activities. That said, with a well-crafted business plan, you will undoubtedly develop accountability for your business.

Having a good business plan will help you set expectations for yourself, and it’ll also enable you to understand what to do and exactly when to do it.

• Recruit top talents

As a business owner or someone interested in turning an idea into a business, I’m sure you’ll agree with me that having top talents in your company is one of the critical factors for business success. It’s one of the few factors that venture capitalists look for before deciding to fund businesses .

Since capital is essential for every business, owning a solid team is also crucial. One of the best ways to attract top talents to your business is by crafting a good business plan. Here’s the thing; every employee looking to make a shift to a new company wants to understand the vision and objectives of the business . Interestingly, that’s exactly what having a business plan will do for you.

• Secure funds

As you know, securing funds for your business is pretty much essential. You can always get capital for your business using several different approaches. However, in most cases, you’ll need a good business plan for you to do that.

So, one of the benefits attached to owning a standard and well-written business plan is that it’ll boost your chances of getting funds for your business.

What Are The Different Types Of Business Plans?

There are several different types of business plans. Some of them are internal business plan, strategic business plan, feasibility business plan, operation business plan, and start-up business plan.

Furthermore, business plans are grouped into two main categories; traditional business plan and lean startup business plan .

The traditional business plan is usually very detailed and requires a longer time to craft. It’s the type that you need to own to attract venture capitalists to your company .

On the other hand, lean startup business plans are pretty quick and easy to draft, and they usually contain the necessary details needed to keep a new business growing fast. To many investors, however, having this type of business plan isn’t always enough.

Compared to lean startup plans, traditional business plans often take more time to be drafted. Well, that is because the document needs to be detailed, including several different things.

A properly written traditional business plan should have about nine different sections, including an executive summary, market analysis, company’s description, management , service line or product line, funding requests, marketing & sales, and a few others.

That said, it could take several working hours or even days to draft an excellent traditional business plan. Yes, it’s not a day job as it requires a lot of readjustment before reaching completion.

Don’t get it twisted; writing your initial or basic business plan is different from writing an excellent traditional business plan. Unlike the latter that could take several days, the former can be concluded within 2 to 3 hours. Again, this is only possible if you already have the necessary data to create the document.

As for a lean startup plan, this shouldn’t take you much time to write. This type of document is pretty much easy to come by because it doesn’t always contain all the long-form writing of a traditional business plan. It’s usually short and precise, containing only superficial descriptions of business strategies and tactics. You can always write this type of document in a couple of hours.

Looking For Targeted Leads?

Find accurate B2B contact information for targeted marketing. Close more deals and start more conversations.

How Long Should Your Business Plan Be?

It varies and depends on the type of plan you’re looking to create.

You can always measure your business plan using readability as a yardstick. When I say “a good business plan,” I mean a type of document that has enough information regarding your business goals and objectives.

That’s not all; the formal document should also leave anybody reading it a pretty good general idea of what it contains. This also extends to when the reader is only having a quick skimming of the document.

That said, in terms of readability, a good business plan provides a good general idea of its contents and shouldn’t take longer than fifteen minutes to read quickly or skim.

When Is The Ideal Time To Write Your Business Plan?

When is the best time to start writing a business plan?  According to Harvard Business Review , writing a good business plan makes a startup business more likely to succeed. However, the probability of that happening also depends on the timing of writing the program.

First, you need to understand that there’s no exact time to write your business plan.

However, according to a study carried out by Francis J. Greene and Christian Hopp of the hbr.org, it was revealed that, on average, the most successful entrepreneurs out of 1,000 of them (which the study was based on), were those that drafted their business plan between 6 and 12 months after deciding to start a business.

That said, the bottom line is that there’s no ideal time to write your business plan. However, based on past success, writing your plan between six months and a year after considering starting a business is okay.

What Are The Components Of A Good Business Plan?

As you now know, there are two main types of business plans. There’s the traditional business plan, which usually takes a long time to draft. There’s also a lean startup plan, which takes little time to create. Below, we’ll be looking at the components of an excellent traditional business plan.

Here Are The Components Of A Traditional Business Plan

A traditional business plan should contain an executive summary, market analysis, company description, and many more. You can check below to see each of them and how they should be drafted:

• Executive summary

An executive summary is one of the nine sections that an excellent traditional business plan should contain. This part should address everything a reader needs to know about your company. That’s not all; an executive summary should also tell people why the business will be successful.

Furthermore, other vital elements often included in an executive summary of a business plan are your company’s mission statement, information regarding its leaders and staff, where it’s located, what you offer (product or service), and your growth plan.

• Company description

The second part that shouldn’t miss out on a traditional business plan is the description of your company. This section needs to provide the readers with detailed information regarding your company . Here’s where you’ll need to state the target consumers and other businesses your company is looking to serve.

It doesn’t end there; you also need to include the advantages your business has over its competitors that’ll make it successful.

• Market analysis 

The third section, market analysis, is the part where you’ll talk about your target market . Let your readers understand how you’ll stand out from other corporations in your target market.

What structure will be used to develop your company? Who will be the CEO and the head of departments in your company? Here are the questions you’ll need to provide answers to in this section.

So, for this section, you need to describe in detail your business’ legal structure. What type of business will you be choosing for your business? Is it a limited liability company (LLC), an S corporation, or a C corporation?

• Product- or service-line

What type of product or service are you looking to offer your target audience? In this section, you’ll need to describe in detail what you’re going to be selling and how it will benefit your consumers.

• Marketing and sales

The ” marketing and sales ” section is another element you need to include in your traditional business plan is the “marketing and sales” section. For this part, you need to describe your marketing strategy, including how you will attract and retain potential customers to your company.

Here’s a quick question, how will your company provide sales to your customers? This is another factor to consider when writing the marketing and sales section of your traditional business plan. The strategies you will most likely use for your marketing and sales campaign are much. So, ensure you list all of them in detail in this section.

• Funding request

Capital is an essential factor for every successful business. Since you won’t be funding the company by yourself every time, it’s necessary to write how you’ll go about sourcing funds in your business plan.

So, for this section, you need to highlight all your funding requirements for your readers to see. In addition to that, you also need to outline how you’ll be utilizing the funds raised for the business.

• Financial projection

The financial projection section of your business plan has to focus on the cash flow of your business. Let the reader understand that your business is stable and will be successful financially over time.

Your business plan isn’t complete without the appendix . This is the section where you need to back up all the information written so far with credit histories, CVs of your members, reference letters, licenses, and legal documents.

Writing a good business plan can take some time, and it’s essential to understand the components of a good one and how long it takes to complete them all to make an educated decision about whether or not you have enough time for this process.

Whether you are starting a new business or looking to grow your existing one, you must have a good blueprint for what the future holds.

In this blog post, we’ve covered the essentials of a business plan. We hope you feel more confident about creating your own and that it will be an essential tool for getting started on launching your new small business, startup, or expanding upon an existing one!

A marketing plan is a business plan, and it tells you how to get customers and potential investors. The business plan writer may use a template to create a marketing plan, including the business idea, business planning, and details of a small business loan.

Marketing Lean plan is the process of planning and executing everything related to strategic marketing. It’s a business discipline that focuses on effectively using limited resources so that campaigns are in harmony with one another.

A balance sheet summarizes the company’s assets, liabilities, and shareholder equity at a point in time (usually near the end of its accounting period).

A business proposal is a written document that outlines the plan for a type of business and communicates it to potential investors. They provide all the details about what you aim to do, how you’ll do it, and what you need from them to make this happen.

A cash flow statement gives a complete picture of a company’s financial health. Unlike a traditional income statement which looks at revenues, expenses, and net profits throughout an accounting period, the cash flow statement deals with actual cash inflows and outflows.

A company’s income statement is a financial statement that provides detailed information about how the company made money, where it spent money. It’s worth it as of the end of its fiscal year.

Industry analysis is the process of examining a particular industry on many levels and using the info to create a strategy that will help improve your company’s position.

Competitor analysis or competitive analysis is the process of studying the strengths and weaknesses of your competitors, typically as a means to identify market opportunities. Businesses need to check their competition because it can lead to better decisions about pricing, marketing, product development, and more.

A business model is a plan of how the business will make money, focusing on the inputs needed to operate and produce goods or services and the outputs that it can sell.

A financial forecast is an estimate of future expenditures and revenues. It’s a way for you to plan to know how much money will likely come in, over what period, and how much money will probably have to be spent to make ends meet.

A competitive advantage can be used to distinguish a company in the marketplace from a competitor. It comes down to understanding what a potential customer seeks and how that is communicated effectively , so customers know it is available for them.

Strategic planning involves many processes that lead to an organization maximizing time, resources, and opportunities.

A financial plan consists of the steps one can take to reach a specific financial goal. The three essential elements are income, expenses, and a savings plan.

A financial statement is a document by the management team that shows the financial information for a particular company.

A business structure , in a nutshell, is the form under which your business operates for tax purposes (often incorporating as a limited company) and what percentage of your profit the government invokes rates on.

A swot analysis is an evaluation of the strengths, weaknesses, opportunities, and threats a person or organization intends to succeed in achieving a goal.

A one page business plan is just a summary of your primary objectives. It should be no more than one page and ideally should include the following information: What is the business name , what does it do, who are we targeting (demographic), competitors, address/location, contact information, how will your startup. How much does it cost to start? How much money will you need to reach your goal? What’s the long-term growth plan after project initiation?

An operations plan in the business world is a blueprint for handling an operation, what resources will be needed, and who will handle it. The operational plan can also be put as a template for new or existing processes that need to be taken on.

A strategic plan is a blueprint for all areas of your company to make sure they are working together well. The program typically outlines the goals and what will be done to meet those goals.

A target customer is a specific type of customer a company proposal hopes to reach, typically because they have the most potential as being profitable (i.e., business-wise). A target customer is usually based on demographics like age and gender, or they are chosen to buy products at higher rates or just in general. Target customers are often determined through market research data so that marketing can be more effective over time and space.

Related posts:

• Business Strategy Vs Business Plan
• Business Plan For Climate Change
• Business Strategy Deck

Wasim Jabbar

Hi, I'm Wasim - a startup founder and proud dad of two sons. With 15 years of experience building startups, I'd like to share my secret to achieving business success - quality marketing leads. Signup today to gain access to over 52 million leads worldwide.

Recent Posts

Is Inside Sales Telemarketing?

In my discussions with those new to the sales industry, I often encounter the misconception that inside sales and telemarketing are one and the same. This couldn't be further from the...

Is Inside Sales Part Of Marketing?

When I first ventured into the world of business, I found myself pondering where exactly inside sales fit into the grand scheme of things. Is it a branch of the sales team, or does it fall under the...

8 Business Plan Templates You Can Get for Free

8 min. read

Updated April 10, 2024

A business plan template can be an excellent tool to simplify the creation of your business plan. 

The pre-set structure helps you organize ideas, covers all critical business information, and saves you time and effort on formatting.

The only issue? There are SO many free business plan templates out there. 

So, which ones are actually worth using? 

To help remove the guesswork, I’ve rounded up some of the best business plan templates you can access right now. 

These are listed in no particular order, and each has its benefits and drawbacks.

What to look for in a business plan template

Not all business plan templates are created equal. As you weigh your options and decide which template(s) you’ll use, be sure to review them with the following criteria in mind:

• Easy to edit: A template should save you time. That won’t be the case if you have to fuss around figuring out how to edit the document, or even worse, it doesn’t allow you to edit at all.
• Contains the right sections: A good template should cover all essential sections of a business plan , including the executive summary, product/service description, market/competitive analysis, marketing and sales plan, operations, milestones, and financial projections. 
• Provides guidance: You should be able to trust that the information in a template is accurate. That means the organization or person who created the template is highly credible, known for producing useful resources, and ideally has some entrepreneurial experience.
• Software compatibility: Lastly, you want any template to be compatible with the software platforms you use. More than likely, this means it’s available in Microsoft Word, Google Docs, or PDF format at a minimum. 

1. Bplans — A plan with expert guidance

Since you’re already on Bplans, I have to first mention the templates that we have available. 

Our traditional and one-page templates were created by entrepreneurs and business owners with over 80 years of collective planning experience. We revisit and update them annually to ensure they are approachable, thorough, and aligned with our team’s evolving best practices.  

The templates, available in Word, PDF, or Google Doc formats, include in-depth guidance on what to include in each section, expert tips, and links to additional resources. 

Plus, we have over 550 real-world sample business plans you can use for guidance when filling out your template.

Download: Traditional lender-ready business plan template or a simple one-page plan template .

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

2. SBA — Introduction to business plans

The U.S. Small Business Administration (SBA) offers two different business plan templates along with a short planning guide. 

While not incredibly in-depth, it’s enough to help you understand how traditional and lean plans are structured and what information needs to be covered. The templates themselves are more like examples, providing you with a finished product to reference as you write your plan.

The key benefit of using these templates is that they were created by the SBA. While they may provide less guidance, you can be assured that the information and structure meet their expectations.

Explore: The SBA’s planning guide and free templates

3. SCORE — Planning workbook

SCORE’s template is more like a workbook. It includes exercises after each section to help you get your ideas down and turn them into a structured plan.

The market research worksheets are especially useful. They provide a clear framework for identifying your target market and analyzing competitors from multiple angles. Plus, they give you an easy way to document all the information you’re collecting.

You will likely have to remove the exercises in this template to make it investor-ready. But it can be worth it if you’re struggling to get past a blank page and want a more interactive planning method.

Download: SCORE’s business plan template

4. PandaDoc — A template with fillable forms

PandaDoc’s library offers a variety of industry-specific business plan templates that feature a modern design flair and concise instructions. 

These templates are designed for sharing. They include fillable fields and sections for non-disclosure agreements, which may be necessary when sending a plan to investors.  

But the real benefit is their compatibility with PandaDoc’s platform. Yes, they are free, but if you’re a PandaDoc subscriber, you’ll have far more customization options. 

Out of all their templates, the standard business plan template is the most in-depth. The rest, while still useful, go a bit lighter on guidance in favor of tailoring the plan to a specific industry.

Explore: PandaDoc’s business plan template library  

5. Canva — Pitch with your plan

Canva is a great option for building a visually stunning business plan that can be used as a pitch tool. It offers a diverse array of templates built by their in-house team and the larger creative community, meaning the number of options constantly grows.

You will need to verify that the information in the template you choose matches the standard structure of a traditional business plan. 

You should do this with any template, but it’s especially important with any tool that accepts community submissions. While they are likely reviewed and approved, there may still be errors.

Remember, you can only edit these templates within Canva. Luckily, you only need a free subscription, and you may just miss out on some of the visual assets being used. 

To get the most value, it may be best to create a more traditional planning document and transfer that information into Canva. 

Explore: Canva’s business plan gallery

6. ClickUp — The collaborative template

Out of all the project management tools that offer free business plan templates, ClickUp’s is the most approachable.

Rather than throwing you into all the features and expecting you to figure it out—ClickUp provides a thorough startup guide with resource links, images, and videos explaining how to write a plan using the tool. 

There’s also a completed sample plan (structured like an expanded one-page plan) for you to reference and see how the more traditional document can connect to the product management features. You can set goals, target dates, leave comments, and even assign tasks to someone else on your team. 

These features are limited to the ClickUp platform and will not be useful for everyone. They will likely get in the way of writing a plan you can easily share with lenders or investors. 

But this is a great option if you’re looking for a template that makes internal collaboration more fluid and keeps all your information in one place.

Sign Up: Get a free trial of ClickUp and explore their template library

7. Smartsheet — A wide variety of templates

I’m including Smartsheet’s library of templates on this list because of the sheer number of options they provide. 

They have a simple business plan template, a one-page plan, a fill-in-the-blank template, a plan outline, a plan grading rubric, and even an Excel-built project plan. All are perfectly usable and vary in visual style, depth of instructions, and the available format.

Honestly, the only drawback (which is also the core benefit) is that the amount of templates can be overwhelming. If you’re already uncertain which plan option is right for you, the lengthy list they provide may not provide much clarity.

At the same time, it can be a great resource if you want a one-stop shop to view multiple plan types.

Explore: Smartsheet’s business plan template library  

8. ReferralRock affiliate marketing business plan

I’m adding ReferralRock’s template to this list due to its specificity. 

It’s not your standard business plan template. The plan is tailored with specific sections and guidance around launching an affiliate marketing business. 

Most of the template is dedicated to defining how to choose affiliates, set commissions, create legal agreements, and track performance.

So, if you plan on starting an affiliate marketing business or program, this template will provide more specific guidance. Just know that you will likely need to reference additional resources when writing the non-industry sections of your plan.

Download: ReferralRock affiliate marketing business plan template

Does it matter what business plan template you use?

The short answer is no. As long as the structure is correct, it saves you time, and it helps you write your business plan , then any template will work. 

What it ultimately comes down to, is what sort of value you hope to get from the template. 

• Do you need more guidance? 
• A simple way to structure your plan? 
• An option that works with a specific tool?
• A way to make your plan more visually interesting?

Hopefully, this list has helped you hone in on an option that meets one (or several) of these needs. Still, it may be worth downloading a few of these templates to determine the right fit. 

And really, what matters most is that you spend time writing a business plan . It will help you avoid early mistakes, determine if you have a viable business, and fully consider what it will take to get up and running. 

If you need additional guidance, check out our library of planning resources . We cover everything from plan formats , to how to write a business plan, and even how to use it as a management tool . 

If you don’t want to waste time researching other templates, you can download our one-page or traditional business plan template and jump right into the planning process.

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

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

Table of Contents

• Qualities of a good template
• ReferralRock
• Does the template matter?

Related Articles

10 Min. Read

Use This Simple Business Plan Outline to Organize Your Plan

6 Min. Read

Business Plan vs Business Model Canvas Explained

12 Min. Read

Do You Need a Business Plan? Scientific Research Says Yes

When Should You Write a Business Plan?

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

The quickest way to turn a business idea into a business plan

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

Money latest: The age when the average Briton pays off their mortgage revealed

The average Briton is 61 when they pay off their mortgage - a drop of two years. Meanwhile, Spotify is raising prices again. Read about this and the rest of today's consumer and personal finance news in the Money blog, and leave a comment in the form below.

Thursday 11 April 2024 22:26, UK

Please use Chrome browser for a more accessible video player

• Spotify to hike subscription price by up to £24 a year
• Minimum income for family visa rises by £10,000
• Italy mourns 'end of Italian waiters in London' as visa rule brought in
• Wendy's creating 400 jobs as part of UK expansion
• The age when the average Briton pays off their mortgage
• 'WTF is going on with the price of olive oil?'
• Could I build a home gym for less than my gym membership?
• Basically...  Tax codes
• Cheap Eats : Great British Menu legend shares ultimate toastie recipe

Ask a question or make a comment

Fake flights and caravans are the two most common items being sold by fraudsters in relation to travel, Lloyds Bank's research has found.

As Britons head online to book deals for the upcoming bank holidays and summer, they have been urged to "remain vigilant", with the average holiday scam victim being conned out of £765.

Amid rising flight costs post-COVID, people have been flocking to social media and other lesser-known websites to secure cheaper deals.

A food delivery company claims to have created an  "unshakeable bag" to avoid spillage in transit.

Bolt, which owns the Bolt Food delivery platform, said its design is based on gyroscope technology and will keep food stable "during the most abrupt movements".

In a post to its website, the firm said it would make the design available to its competitors as it is "too powerful to be owned by any one company".

"We believe everyone should enjoy a perfect meal, regardless of which app they order it from," it said.

Assaulting a shopworker is to be made a separate criminal offence after a government U-turn following pressure from campaigners.

The government previously said "more legislative change" was not needed to tackle the "intolerable violence and abuse" faced by shopworkers, arguing it did not think it was "required or will be most effective".

But Rishi Sunak is now set to announce his government will be amending the Criminal Justice Bill to bring in the new offence.

The drugmaker was on its knees when Sir Pascal Soriot took over in 2012. 

But under his leadership it now does just about everything the UK wants from a business - creating high value-added jobs and developing products that improve people's lives.

The FTSE 100's performance has lagged that of many of its peers, both in the United States and Europe, more or less since the Brexit vote in 2016.

That poor performance has reflected the poor valuation of many UK-listed companies - resulting in numerous foreign takeovers of UK businesses in recent months and years.

It has also led to a scarcity in the number of companies floating on the London Stock Exchange, most notably the  Cambridge-based chip designer ARM Holdings , which last year opted to list in the US instead.

The situation has alarmed the government, which has announced a number of reforms  aimed at raising the UK's attractiveness .

An imminent shareholder vote on Sir Pascal's pay makes a particularly interesting test case because few would dispute that he has been the most outstanding FTSE 100 chief executive of his generation.

This rise could take his potential earnings to £18.5m this year - which critics say is excessive.

Read my full piece here ...

England's average house price has risen by £103,000 over the last decade, while the average annual wage has risen by £7,734.

But some areas have seen homeownership affordability decline more than others... 

The London borough of Barking and Dagenham has seen the most significant fall, according to moving platform Getamover. 

The platform found the area has seen house prices more than double to £380,000 in the last 10 years - but wages have only risen by £2,182. 

Hillingdon in West London took the second spot, with the average property shooting up by £230,000 to £495,000, while the average income increased by just £143. 

While London remains the most unaffordable region, the East Midlands has also seen a notable fall. 

Oadby and Wigston in Leicestershire ranked fifth in the table, with the average house price increasing by £129,000 and the median annual income growing by £2,644.   

Gedling ranks sixth among the areas of England where the affordability of buying a home has declined most. 

The Nottinghamshire region has seen house prices soar by 84.8% to £231,000, while the average income has risen by just 13.11% to £33,454. 

You can see how other areas fared in the table below...

Rishi Sunak's post-Brexit rules for foreign workers are getting tough press in Italy this week - with claims they could mark the end of Italian waiters in London.

April saw the minimum salary requirement for a skilled worker visa increase from £26,200 to £38,700 - a near 50% rise as the government tries to reduce immigration.

Italian daily newspaper La Repubblica published an article on its site headlined "Italians in London, the long goodbye" after the new rule was brought in this month.

There were an estimated 342,000 Italians living in the UK in 2021, according to the latest Office for National Statistics census data.

La Repubblica said the new rule change would lead to the "end of the story" of Italy's "ancient roots" in the capital, which was founded by the Romans in 43 AD.

Separately, Italian journalist Antonio Polito wrote in the Corriere della Sera newspaper that the new salary for skilled workers was "an amount that no young novice can realistically earn".

"Thus London gives up one of its great assets, the fact of being an offshore and cosmopolitan city," he said.

Mr Sunak's post-Brexit rule change has worried hospitality bosses who are still struggling to get to grips with a post-COVID reality and rising costs. 

Conor Sheridan, founder of Nory and Mad Egg restaurant chain, previously told the Money blog that roughly 14% of his 15,000 UK employee base were on working visas that could be affected.

Trade body UKHospitality also said the changes would "further shrink the talent pool that the entire economy will be recruiting from".

As the migration law came in, Home Secretary James Cleverly said it was "time to turn off the taps and end the flow of cheap workers from abroad".

"We are refocusing our immigration system to prioritise the brightest and best who have the skills our economy needs, while reducing overall numbers," he said.

Several of the UK's biggest supermarkets closed their gender pay gap in the last year - while Morrisons saw the biggest rise, figures show.

Ocado and Lidl reduced their gap by the largest amounts in 2023-24 compared to the previous year, while Tesco, Asda, Aldi, Co-op, Iceland and Waitrose owner John Lewis also saw a reduction.

The data comes from the government's gender pay gap service and states the difference in hourly rates of pay. 

In contrast to other big-name brands, Morrisons saw its mean pay gap widen to 12.5% from 7.6%. M&S also saw a slight increase from 12.5% to 12.6%.

The mean figure gives the best overall view of the gender pay gap but includes extreme values which could skew the average.

Of the 11 biggest UK supermarkets, Co-op has the largest pay gap with 13.2%, followed by M&S and Morrisons.

An M&S spokesperson said: "We're committed to driving equal opportunities and making M&S a great place to work for women. Encouragingly our median pay gap has decreased, and women now make up more than 50% of our UK store management population, but we know there is more to do. 

"We're making progress with the launch of new initiatives, talent programmes, and policies, including our flexible working offer – Worklife, a Job Share Finder, and our industry-leading family leave offer."

A spokesperson for Co-op said: "We are committed to treating our colleague member owners fairly, and this includes driving equitable outcomes for female colleagues. We've seen a significant reduction in our gender pay gap since we started to report data in 2017, and this year's data shows further progress towards closing it.

"It's important to reiterate that we don't pay people differently based on their gender at Co-op. The gender pay gap is caused by us having fewer females in leadership role, where salaries are higher.

"Our focus on improving representation remains, as we know this is one of the key drivers causing the gender pay gap. Today, 40% of our leadership population are female - this is not enough, which is why we’ve launched a series of development programmes and have a coaching and mentoring offer to support women with career progression.

"We know there’s still much to do in this space and will hold ourselves to account and continue to strive for gender equality."

Morrisons has also been contacted for comment.

Every Thursday we look at a different savings option, explain the pros and cons, and reveal the best deals on the market (see table below for that).  This week we're talking about the best notice accounts. Savings Champion founder Anna Bowes  says this...

As with the rest of the savings market, the top notice account rates have started to fall. However, there are stalwarts like the Investec 90-day notice account that are holding steady and as a result offering savers an opportunity to earn a little more, while not having to tie up their cash for too long.

A relatively unused aspect of the savings market, notice accounts offer a bit of a halfway house, with the best rates available generally paying more than the top easy access rates, but will more flexibility of access than a fixed term bond.

Just as it sounds, these savings accounts require you to give notice in order to access your money without a penalty. The usual notice period ranges from 30 to 120 days, although there are some accounts on the market that require six months or even a year's notice.

By Sarah Taaffe-Maguire , business reporter

Another record month for Heathrow. Last month was the busiest ever March for the UK's biggest airport, the second record-breaking month in a row. 

It was also the busiest Easter weekend as Good Friday became the busiest ever direct departure day, when 118,000 people began their journey at the airport. 

It shows, despite cost of living pressures, lots of Britons were going on holiday.

More good news for Heathrow came earlier this week as planned strike action by 600 border force officers was called off to allow for negotiations in its dispute over working patterns. 

Oil prices are still high, hanging around $90. A barrel of Brent crude oil, the benchmark for oil prices, costs $90.66. The last time prices were this high was in the wake of the 7 October attacks and fears of conflict spreading throughout the Middle East. 

On the currency front, £1 buys $1.2538 and €1.1678.

How old is the average Briton when they buy their first home, or finish paying their mortgage, or retire?

These are some of the questions answered in a "Journeying Through Life" data dump from the Office for National Statistics.

Here are some of the key takeaways...

Home ownership - including the one life event that's happening earlier

People are buying homes later in life, perhaps unsurprisingly given how house prices have risen in the last decade or so.

In 2022, more than half of people owned their own home (either with a mortgage or outright) by the age of 36. 

That's a significant increase on 2004's figures - which showed the average age for home ownership was 32. 

This graph shows what proportion of people own homes at what age.

It isn't all doom and gloom on the homes front, however, with the age at which people own their home outright (ie mortgage paid off) dropping from 63 (in 2004) to 61 in 2020. 

This is pretty much the only life event happening earlier, however.

Retiring later

Again, this probably won't come as a huge surprise, but people are retiring later. 

The age where more than half of people were retired increased from 64 in 2011 to 66 in 2021. ​

There has been a bigger increase in average retirement age for women (from 61 years in 2011, to 66 years in 2021) than for men (from 65 in 2011 to 66 in 2021). 

The ONS says this is because the state pension age for women was increased from 60 to 66 during this time to match men.

Gender pay gap shrinking but still present

The latest data shows that men are still, on the whole, being paid more than women - although the gender pay gap is shown to be shrinking. 

For all employees, the gender pay gap was 14% in 2023 - compared with 20% in 2013.

Despite the gap shrinking, this graph shows that men's hourly wages are higher than women's at nearly all ages. 

The grey shaded area represents the pay gap. 

Another part of the data shows that males start work a touch earlier than women - with half of males in full-time employment by the age of 23 (compared with females at 24) in 2021. 

That data could be explained by the fact that more women attend university - some 319,000 females compared with 285,000 males in 2022.  

Moving out, marrying and having children

The age at which young people move out of their family homes is increasing, too.

In 2011, half of people were not living with their parents at the age of 21 - compared with 24 in 2022. 

More men live with their parents than women, with 61% of adults living at home in 2021 were male.

When it comes to having children, the average age at which women have their first baby has risen to 29.

That's up from an average of just 23 in 1970. 

And finally, marriage.

The median age at first marriage has been steadily increasing since the 1960s. 

For opposite sex couples married in 2020, the median age was 32 years for men and 30 years for women. For those entering into same-sex marriage, the median age was older, at 36 years for men and 32 years for women.

As well as getting married older, fewer people are getting married. In 2019, marriage rates had fallen to their lowest on record. For men, there were 18.6 marriages per 1,000 never-married men; for women, there were 17.2 marriages per 1,000 never-married women.

Spotify has announced it is hiking its subscription prices by up to £24 a year.

It is the second time in less than a year that the music streaming giant has increased its prices.

Here's how the prices will change...

Individual: £11.99 a month (up from £10.99 a month)  

Duo: £16.99 a month (up from £14.99 a month)  

Family: £19.99 a month (up from £17.99 a month) 

When will the change kick in?

The subscription price will change from May and if you are an existing customer Spotify will email you and give you one-month's notice of the change.

If you are on a free trial you will pay the old price for one month once your trial ends.

A Spotify spokesperson told Sky News: "So that we can keep innovating and delivering value to fans, the music industry, and creators on our platform, we occasionally update our prices. 

"We've begun communicating with existing subscribers in the UK to explain what this means for their account."

American burger chain Wendy's will be recruiting for over 400 job roles as part of its expansion across the UK.

The chain returned to the UK in 2021 after a 20-year break and has since opened just over 30 sites, including drive-throughs in Colchester, Peterborough, Derby and Brampton Hut.

But the chain, which was founded in Columbus, Ohio, in 1969, plans to open a further nine sites this year in Liverpool, Middlesbrough, and a second location in Sheffield.

New locations will include Liverpool, Middlesbrough and a second site in Sheffield.

Wendy's franchisee GH Burgers will open a first restaurant in Wood Green, London, this year.

There will also be restaurants in Southend-on-Sea, Colchester, Cambridge and Newcastle.

Michael Clarke, UK managing director for the Wendy's Company, told The Caterer : "We've seen great momentum in building Wendy's fandom in the UK, and the love and excitement for this iconic brand grows stronger with each new restaurant opening."

Be the first to get Breaking News

Install the Sky News app for free

When and where the solar eclipse will be crossing the U.S.

A total solar eclipse will grace the skies over North America on Monday, one of the most hotly anticipated sky-watching events in recent years.

Weather permitting , millions of people in Mexico, 15 U.S. states and eastern Canada will have the chance to see the moon slip between Earth and sun, temporarily blocking the sun’s light .

The total solar eclipse will be visible along a “path of totality” that measures more than 100 miles wide and extends across the continent. Along that path, the moon will fully obscure the sun, causing afternoon skies to darken for a few minutes.

Follow live updates on the solar eclipse

In all other parts of the continental U.S., a partial solar eclipse will be visible, with the moon appearing to take a bite out of the sun. Exactly how big a bite depends on the location.

The first spot in North America that will experience totality on Monday is on Mexico’s Pacific coast at around 11:07 a.m. PT, according to NASA .

After moving northeast across Mexico, the eclipse’s path travels through Texas, Oklahoma, Arkansas, Missouri, Illinois, Kentucky, Indiana, Ohio, Pennsylvania, New York, Vermont, New Hampshire and Maine. Slivers of Michigan and Tennessee will also be able to witness totality if conditions are clear.

In Canada, the eclipse will be visible in parts of southern Ontario, Quebec, New Brunswick, Prince Edward Island and Cape Breton, at the eastern end of Nova Scotia.

The timing of the eclipse and the duration of totality varies by location. Most places will experience around 2 minutes of darkness, but the longest periods of totality are typically in the center of the eclipse’s path.

This year, the longest stretch of totality will last 4 minutes and 28 seconds in an area northwest of Torreón, Mexico.

Below is a list of timings for some U.S. cities along the path of totality, according to NASA .

• Dallas: Partial eclipse begins at 12:23 p.m. CT and totality at 1:40 p.m. CT.
• Idabel, Oklahoma: Partial eclipse begins at 12:28 p.m. CT and totality at 1:45 p.m. CT.
• Little Rock, Arkansas: Partial eclipse begins at 12:33 p.m. CT and totality at 1:51 p.m. CT.
• Poplar Bluff, Missouri: Partial eclipse begins at 12:39 p.m. CT and totality at 1:56 p.m. CT.
• Paducah, Kentucky: Partial eclipse begins at 12:42 p.m. CT and totality at 2:00 p.m. CT.
• Carbondale, Illinois: Partial eclipse begins at 12:42 p.m. CT and totality at 1:59 p.m. CT.
• Evansville, Indiana: Partial eclipse begins at 12:45 p.m. CT and totality at 2:02 p.m. CT.
• Cleveland: Partial eclipse begins at 1:59 p.m. ET and totality at 3:13 p.m.
• Erie, Pennsylvania: Partial eclipse begins at 2:02 p.m. ET and totality at 3:16 p.m. ET.
• Buffalo, New York: Partial eclipse begins at 2:04 p.m. ET and totality at 3:18 p.m.
• Burlington, Vermont: Partial eclipse begins at 2:14 p.m. ET and totality at 3:26 p.m. ET.
• Lancaster, New Hampshire: Partial eclipse begins at 2:16 p.m. ET and totality at 3:27 p.m.
• Caribou, Maine: Partial eclipse begins at 2:22 p.m. ET and totality at 3:32 p.m. ET.

Other resources can also help you figure out when the various phases of the eclipse will be visible where you live, including NationalEclipse.com and TimeandDate.com .

If you plan to watch the celestial event, remember that it’s never safe to look directly at the sun, including through binoculars, telescopes or camera lenses. Special eclipse glasses are required to safely view solar eclipses and prevent permanent eye damage.

Denise Chow is a reporter for NBC News Science focused on general science and climate change.

An employment lawyer explains the 3 things you should do the moment you're put on a PIP

• Craig Levey is an employment law attorney of over 12 years.
• He says that PIPs are often used by companies to "paper the file"  once they've already decided to fire the employee. 
• If put on a PIP, you should read it carefully, consider if it's reasonable, and decide how to respond.

This as-told-to essay is based on a conversation with Craig Levey, an employment law attorney and partner at Bennett & Belfort, P.C., a law firm based in Cambridge, Massachusetts. The following has been edited for length and clarity.

In my experience as an employment law attorney of 12 years, performance-improvement plans, or PIPs, result in termination in most cases. While there are circumstances where an employee survives the PIP and keeps working there, those situations are rare.

Many companies use PIPs to paper the file; they document the areas in which this employee is deficient, and then once the PIP is over — or sometimes even sooner — they terminate the employee and say, "As we outlined in the PIP, things weren't going well in certain areas. We don't feel like you've improved, so we're going to part ways with you."

PIPs are a tool for companies to prevent litigation, too, because then they can argue that they didn't terminate the employee because of discrimination, retaliation, or sexual harassment but rather because of performance.

When an employee receives a PIP , there are three steps that I suggest that they follow.

1. Read the PIP very carefully

Many people are so shocked that they receive a PIP that they don't actually take the time to take a deep breath, sit down, and read it.

You want to fully understand the language that's in the PIP and what the expectations are. If you need clarification because there's not enough information, you should go back and ask your company your questions and see if they offer support, such as one-on-one meetings with your supervisor.

2. Decide if the PIP is reasonable

Once you've read the PIP, ask yourself, is this PIP designed for me to fail, or is it reasonable?

A good PIP should be very clear about the areas where the employee is supposedly deficient. In a reasonable timeframe, it should spell out how that employee will get better and offer support such as regular meetings with their supervisor.

A bad PIP is very short and doesn't articulate the areas in which the employee needs to get better, so the employee is left confused and doesn't know what is being asked of them. There either isn't a timeframe given, or the timeframe is unreasonable, and no support is offered to help the employee improve.

Related stories

After receiving a bad PIP, the employee walks away confused or feeling unreasonable. Typically, when an employee receives a bad PIP, it means the company doesn't want them to improve. It's just a tool to pave the way for the termination.

3. Decide whether to respond

If, after reading your PIP, you feel it's actually pretty reasonable and you can satisfy the requirements in the time allotted, you don't need to respond. Just move on and focus on working on what's needed and satisfying the requirements laid out.

But sometimes, there are unfair PIPs with requirements that even the best employee in the world could never satisfy. If the PIP is unrealistic or unreasonable, then you need to respond.

If you decide to respond, email your supervisor or HR and spell out why it is unreasonable. Perhaps the timeframe is not long enough, or the expectations are unattainable, or the company isn't offering any support.

By spelling out the ways the PIP is unreasonable, it can protect your interests a bit in the event that you are later terminated.

Is the PIP retaliatory?

You should also think about whether the PIP is retaliatory. A lot of companies will issue a PIP in retaliation for the employee complaining about something illegal going on in the workplace or taking leave for disabilities or pregnancy, which is protected under the Family and Medical Leave Act (FMLA) .

Leave is there for a reason. If you have a disability, if you have mental health issues, or if you're pregnant, then you need to use your leave options because that's precisely what they're there for.

Unfortunately, I see all the time that companies perceive employees who take leave to be a burden. Companies don't like when they have somebody out of work and they have to satisfy those duties, either by hiring somebody to fill in or asking somebody else to take on those duties.

This happens far too often across the US. When you look at other countries around the world — how they value leave and how much time off they give people — there's more emphasis on quality of life rather than the American way, which is focused on the "grind." American companies put so much more emphasis on the bottom line and making money and less on employee well-being.

If you believe your PIP is due to your company retaliating against you, then you can respond in writing; articulate what you believe the PIP is in retaliation for, and spell out the illegal conduct. Keep a copy of that email so that in the event that you do get terminated in the future, you're preserving the record for purposes of litigation.

When I'm speaking with clients, I look at the full picture because, in many cases, I see a situation where an employee was a strong performer for many years and received good performance evaluations, but then they complained about something illegal or took protected medical leave and all of a sudden they received the PIP.

To me, that doesn't add up. You don't just suddenly become a bad performer when you have a documented history of strong performance reviews.

It's better for companies to work with employees rather than use PIPs

My philosophy is that it's better for supervisors to sit down, talk to the employee, and sort of nip issues in the bud as soon as they recognize potential areas of deficiencies and deal with them right away rather than letting things fester.

Most companies have already decided to terminate the employee by the time they get to a PIP. If I were running a business, I wouldn't issue a PIP. I would just sit down with the employee once or twice and genuinely explain how I wanted them to get better. You can still have a paper trail by sending a follow-up email outlining what was discussed and areas for improvement.

The mindset around PIPs should change. Companies should want their employees to improve, and they should deal with problems early on rather than just issuing PIPs at the end of the employment and then terminating.

If companies are issuing PIPs , they should be implemented or issued only once the supervisors have already spoken to the employees about these issues. PIPs should be genuine, clear, and articulate what they want the employee to improve upon. They should give employees the opportunity to improve. I don't think companies should use PIPs for the sake of trying to protect themselves from potential future issues.

If you've been put on a PIP or put someone on a PIP and would like to share your story, email Jane Zhang at [email protected] .

Watch: Jill Kramer, CMO of Accenture, says disability inclusion should be baked into creative briefs

• Main content

• Share full article

For more audio journalism and storytelling, download New York Times Audio , a new iOS app available for news subscribers.

How Tesla Planted the Seeds for Its Own Potential Downfall

Elon musk’s factory in china saved his company and made him ultrarich. now, it may backfire..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

From “The New York Times,” I’m Katrin Bennhold. This is “The Daily.”

[MUSIC PLAYING]

Today, the story of how China gave Tesla a lifeline that saved the company — and how that lifeline has now given China the tools to beat Tesla at its own game. My colleague, Mara Hvistendahl, explains.

It’s Tuesday, April 9.

So, Mara, you’ve spent the past four months investigating Elon Musk and his ties to China through his company, Tesla. Tell us why.

Well, a lot of American companies are heavily invested in China, but Tesla’s kind of special. As my colleagues and I started talking to sources, we realized that many people felt that China played a crucial role in rescuing the company at a critical moment when it was on the brink of failure and that China helps account for Tesla’s success, for making it the most valuable car company in the world today, and for making Elon Musk ultra rich.

That’s super intriguing. So maybe take us back to the beginning. When does the story start?

So the story starts in the mid 2010s. Tesla had been this company that had all this hype around it. But —

A lot of people were shocked by Tesla’s earnings report. Not only did they make a lot less money than expected, they’re also making a lot less cars.

Tesla was struggling.

The delivery of the Model 3 has been delayed yet again.

Tesla engineers are saying 40 percent of the parts made at the Fremont factory need reworking.

At the time, they made their cars in Fremont, California, and they were facing production delays.

Tesla is confirming that Cal/OSHA is investigating the company over concerns over workplace safety.

Elon Musk has instituted a kind of famously grueling work culture at the factory, and that did not go over well with California labor law.

The federal government now has four active investigations involving Tesla.

They were clashing with regulators.

The National Transportation Safety Board will investigate a second crash involving Tesla’s autopilot system.

Billionaire entrepreneur Elon Musk — friends are really concerned about him. That’s what Musk told “The New York Times.”

And by 2018, he was having all of these crises.

According to “The Times,” Musk choked up multiple times and struggled to maintain his composure during an hour-long interview about turmoil at his electric car company, Tesla.

So all of this kind of converged to put immense pressure on him to do something.

And where does China come in?

Well, setting up a factory in China, in a way, would solve some of these problems for Musk. Labor costs were lower. Workers couldn’t unionize there. China provided access to this steady supply of cheaper parts. So Elon Musk was set on going to China. But first, Tesla and Musk wanted to change a key policy in China.

Hmm, what kind of policy?

So they wanted China to adopt a policy that was aimed at lowering car emissions. And the idea was that it would be modeled after a similar policy in California that had benefited Tesla there.

OK, so explain what that policy actually did. And how did it benefit Tesla?

So California had this system called the Zero-Emission Vehicle program. And that was designed to encourage companies to make cleaner cars, including electric vehicles. And they did that by setting pollution targets. So companies that made a lot of clean cars got credits. And then companies that failed to meet those targets, that produced too many gas-guzzling cars, would have to buy credits from the cleaner companies.

So California is trying to incentivize companies to make cleaner cars by forcing the traditional carmakers to pay cleaner car makers, which basically means dirtier car makers are effectively subsidizing cleaner cars.

Yes, that’s right. And Tesla, as a company that came along just making EVs, profited immensely from this system. And in its early years, when Tesla was really struggling to stay afloat, the money that it earned from selling credits in California to polluting car companies were absolutely crucial, so much so that the company structured a lot of its lobbying efforts around this system, around preserving these credits. And we talked to a former regulator who said as much.

How much money are we talking about here?

So from 2008, when Tesla unveiled its first car, up until the end of last year, Tesla made almost $4 billion by selling credits in California.

Wow. So Musk basically wants China to recreate this California-style program, which was incredibly lucrative for Tesla, there. And they’re basically holding that up as a condition to their building a factory in China.

Right. And at this point in the story, an interesting alliance emerges. Because it wasn’t just Tesla that wanted this emissions program in China. It was also environmentalists from California who had seen the success of the program up close in their own state.

If you go back to that period, to the early 2010s, I was living in China at the time in Beijing and Shanghai. And it was incredibly polluted. We called it airpocalypse at times. I had my first child in China at that point. And as soon as it was safe to put a baby mask on her, we put a little baby mask on her. There were days where people just would try to avoid going outside because it was so polluted. And some of the pollution was actually wafting across the Pacific Ocean to California.

Wow, so California is experiencing that Chinese air pollution firsthand and, in a way, has a direct stake in lowering it.

That’s right. So Governor Jerry Brown, for example — this became kind of his signature issue, was working with China to clean up the environment, in part by exporting this emission scheme. It was also an era of a lot more US-China cooperation. China was seen as absolutely crucial to combating climate change.

So you had all these groups working to get this California emissions scheme exported to China — and the governor’s office and environmental groups and Tesla. And it worked. In 2017, China did adopt a system that was modeled after California’s.

It’s pretty incredible. So California basically exports its emissions-trading system to China, which I imagine at the time was a big win for Californian environmentalists. But it was also a big win for Tesla.

It was definitely a big win for Tesla. And we know that in just a few years Tesla, made almost $1 billion from the emissions-trading program he helped lobby for in China.

So Elon Musk goes on, builds a factory in China. And he does so in Shanghai, where he builds a close relationship with the top official in the city, who actually is now the number-two official in all of China, Li Qiang.

So according to Chinese state media, Elon Musk actually proposed building the factory in two years, which would be fast. And Li came back and proposed that they do it in one year, which — things go up really quickly in China. But even for China, this is incredibly fast. And they broke ground on the factory in January 2019. And by the end of the year, cars were rolling off the line. So then in January 2020, Musk was able to get up on stage in Shanghai and unveil the first Chinese-made Teslas.

Really want to thank the Tesla team and the government officials that have been really helpful in making this happen.

Next to him on stage is Tesla’s top lobbyist who helped push through some of these changes.

Thank you. Yeah, everybody can tell Elon’s super, super happy today.

[SPEAKING CHINESE]

And she says —

Music, please.

Cue the music. [UPBEAT MUSIC]

And he actually broke into dance. He was so happy, a kind of awkward dance.

[UPBEAT MUSIC]

And what is the factory like?

The Shanghai factory is huge. 20,000 people work there. Tesla’s factories around the world tend to be pretty large, but the Shanghai workers work more shifts. And when Tesla set up in China, Chinese banks ended up offering Tesla $1.5 billion in low-interest loans. They got a preferential tax rate in Shanghai.

This deal was so generous that one auto industry official we talked to said that a government minister had actually lamented that they were giving Tesla too much. And it is an incredibly productive factory. It’s now the flagship export factory for Tesla.

So it opens in late 2019. And that’s, of course, the time when the pandemic hits.

Yes. I mean, you might think that this is really poor timing for Elon Musk. But it didn’t quite turn out that way. In fact, Tesla’s factory in Shanghai was closed for only around two weeks, whereas the factory in Fremont was closed for around two months.

That’s a big difference.

Yes, and it really, really mattered to Elon Musk. If you can think back to 2020, you might recall that he was railing against California politicians for closing his factory. In China, the factory stayed open. Workers were working around the clock. And Elon Musk said on a podcast —

China rocks, in my opinion.

— China rocks.

There’s a lot of smart, hardworking people. And they’re not entitled. They’re not complacent, whereas I see —

We’ve seen a lot of momentum and enthusiasm for electric vehicles, stocks, and Tesla certainly leading the charge.

Tesla’s stock price kept going up.

Tesla has become just the fifth company to reach a trillion-dollar valuation. The massive valuation happened after Tesla’s stock price hit an all-time high of more than $1,000.

So this company that had just a few years earlier been on the brink of failure, looking to China for a lifeline, was suddenly riding high. And —

Tesla is now the most valuable car company in the world. It’s worth more than General Motors, Ford, Fiat, Chrysler.

By the summer, it had become the most valuable car company in the world.

Guess what? Elon Musk is now the world’s richest man.

“Forbes” says he’s worth more than $255 billion.

And Elon Musk’s wealth is tied up in Tesla stock. And in the following year, he became the wealthiest man in the world.

So you have this emission trading system, which we discussed and which, in part, thanks to Tesla, is now established in China. It’s bringing in money to Tesla. And now this Shanghai factory is continuing to produce cars for Tesla in the middle of the pandemic. So China really paid off for Tesla. But what was in it for China?

Well, China wasn’t doing this for charity.

What Chinese leaders really wanted was to turn their fledgling electric vehicle industry into a global powerhouse. And they figured that Tesla was the ticket to get there. And that’s precisely what happened.

We’ll be right back.

So, Mara, you’ve just told us the story of how Elon Musk used China to turn Tesla into the biggest car maker in the world and himself — at one point — into the richest man in the world. Now I want to understand the other side of this story. How did China use Tesla?

Well, Tesla basically became a catfish for China’s EV industry.

A catfish, what do you mean by that?

It’s a term from the business world. And, essentially, it means a super aggressive fish that makes the other fish in the pond swim faster. And by bringing in this super competitive, aggressive foreign company into China, which at that point had these fledgling EV companies, Chinese leaders hoped to spur the upstart Chinese EV makers to up their game.

So you’re saying that at this point, China actually already had a number of smaller EV companies, which many people in the West may not even be aware of, these smaller fish in the pond that you were referring to.

Yes, there were a lot of them. They were often locally based. Like, one would be strong in one city, and one would be strong in another city. And Chinese leaders saw that they needed to become more competitive in order to thrive.

And China had tried for decades to build up this traditional car industry by bringing in foreign companies to set up joint ventures. They had really had their sights set on building a strong car industry, and it didn’t really work. I mean, how many traditional Chinese car company brands can you name?

Exactly none.

Yeah, right. So going back to the aughts and the 2010s, they had this advantage that many Chinese hadn’t yet been hooked on gas-guzzling cars. There were still many people who were buying their first car ever. So officials had all these levers they could pull to try to encourage or try to push people’s behavior in a certain direction.

And their idea was to try to ensure that when people went to buy their first car, it would be an EV — and not just an EV but, hopefully, a Chinese EV. So they did things like — at the time, just a license plate for your car could cost an exorbitant amount of money and be difficult to get. And so they made license plates for electric vehicles free. So there were all these preferential policies that were unveiled to nudge people toward buying EVs.

So that’s fascinating. So China is incentivizing consumers to buy EV cars and incentivizing also the whole industry to get its act together by chucking this big American company in the mix and hoping that it will increase competitiveness. What I’m particularly struck by, Mara, in what you said is the concept of leapfrogging over the conventional combustion engine phase, which took us decades to live through. We’re still living in it, in many ways, in the West.

But listening to you, it sounds a little bit like China wasn’t really thinking about this transition to EVs as an environmental policy. It sounds like they were doing this more from an industrial-policy perspective.

Right. The environment and the horrible era at the time was a factor, but it was a pretty minor factor, according to people who were privy to the policy discussions. The more significant factor was industrial policy and an interest in building up a competitive sphere.

So China now wants to become a leader in the global EV sector, and it wants to use Tesla to get there. What does that actually look like?

Well, you need sophisticated suppliers to make the component parts of electric vehicles. And just by being in China, Tesla helped spur the development of several suppliers. Like, for example, the battery is a crucial piece of any EV.

And Tesla, with a fair amount of encouragement — and also various levers from the Chinese government — became a customer of a battery maker called CATL, a homegrown Chinese battery maker. And they have become very close to Tesla and have even set up a factory near Teslas in Shanghai. And today, with Tesla’s business — and, of course, with the business of some other companies — CATL is the biggest battery maker in the world.

But beyond just stimulating the growth of suppliers, Tesla also made these other fish in the pond swim faster. And the biggest Chinese EV company to come out of that period is one called BYD. It’s short for Build Your Dreams.

We are BYD. You’ve probably never heard of us.

From battery maker to the biggest electric vehicle or EV manufacturer in China.

They’ve got a lot of models. They’ve got a lot of discounts. They’ve got a lot of market growth.

China’s biggest EV maker just overtook Tesla in terms of worldwide sales.

BYD 10, Chinese automobile redefined.

I’ve actually started seeing that brand on the streets here in Europe recently, especially in Germany, where my brother actually used to lease a Tesla and now leases a BYD.

Does he like it?

He does. Although he did, to be fair, say that he misses the luxury of the Tesla, but it just became too expensive, really.

The price point is a huge reason that BYD is increasingly giving Tesla a run for its money. Years ago, back in 2011 —

Although there’s competitors now ramping up. And, as you’re familiar with, BYD, which is also —

— Elon Musk actually mocked their cars.

— electric vehicles, here he is trying to compete. Why do you laugh?

He asked an interviewer —

Have you seen their car?

I have seen their car, yes.

— have you seen their cars? Sort of suggesting, like, they’re no competition for us.

You don’t see them at all as a competitor?

Why is that? I mean, they offer a lower price point.

I don’t think they have a great product. I think their focus is — and rightly should be — on making sure they don’t die in China.

But they have been steadily improving. They’ve been in the EV space for a while, but they really started improving a few years ago, once Tesla came on the scene. That was due to a number of factors, not entirely because of Tesla. But Tesla played a role in helping train up talent in China. One former Tesla employee who worked at the company as they were getting set up in China told me that most of the employees who were at the company at the time now work for Chinese competitors.

So they have really played this important role in the EV ecosystem.

And you mentioned the price advantage. So just for comparison, what does an average BYD sell for compared to a more affordable Tesla car?

So BYD has an ultra-cheap model called the Seagull that sells for around $10,000 now in China, whereas Tesla Model 3s and Model Ys in China sell for more than twice that.

Wow. How’s BYD able to sell EVs at these much lower prices?

Well, the Seagull is really just a simpler car. It has less range than a Tesla. It lacks some safety measures. But BYD has this other crucial advantage, which is that they’re vertically integrated. Like, they control many aspects of the supply chain, up and down the supply chain. When you look at the battery level, they make batteries. But they even own the mines where lithium is mined for the batteries.

And they recently launched a fleet of ships. So they actually operate the boats that are sending their cars to Europe or other parts of the world.

So BYD is basically cutting out the middleman on all these aspects of the supply chain, and that’s how they can undercut other car makers on price.

Yeah. They’ve cut out the middleman, and they’ve cut out the shipping company and almost everything else.

So how is BYD doing now as a company compared to Tesla?

In terms of market cap, they’re still much smaller than Tesla. But, crucially, they overtook Tesla in sales in the last quarter of last year.

Yeah, that was a huge milestone. Tesla still dominates in the European market, which is a very important market for EVs. But BYD is starting to export there. And Europe traditionally is kind of automotive powerhouse, and the companies and government officials there are very, very concerned. I interviewed the French finance minister, and he told me that China has a five - to seven-year head start on Europe when it comes to EVs.

Wow. And what has Elon Musk said about this incredible rise of BYD in recent years? Do you think he anticipated that Tesla’s entry into the Chinese market could end up building up its own competition?

Well, I can’t get inside his head, and he did not respond to our questions. But —

The Chinese car companies are the most competitive car companies in the world.

— he has certainly changed his tune. So, remember, he was joking about BYD some years ago.

Yeah, he’s not joking anymore.

I think they will have significant success.

He had dismissed Chinese EV makers. He now appears increasingly concerned about these new competitors —

Frankly, I think if there are not trade barriers established, they will pretty much demolish most other car companies in the world.

— to the point that on an earnings call in January, he all but endorsed the use of trade barriers against them.

They’re extremely good.

I think it’s so interesting, in a way — of course, with perfect hindsight — the kind of maybe complacency or naivete with which he may not have anticipated this turn of events. And in some ways, he’s not alone, right? It speaks to something larger. Like, China, for a long time, was seen as kind of the sweatshop or the manufacturer of the world — or perhaps as an export market for a lot of these Western companies. It certainly wasn’t putting out its own big brand names. It was making stuff for the brand names.

But recently, they have quite a lot of their own brand names. Everybody talks about TikTok. There’s Huawei. There’s WeChat, Lenovo. And now there is BYD. So China is becoming a leader in technology in certain areas. And I think that shift in some ways has happened. And a lot of Western companies — perhaps like Tesla — were kind of late to waking up to that.

Right. Tesla is looking fragile now. Their stock price dropped 30 percent in the first quarter of this year. And to a large degree, that is because of the threat of companies like BYD from China and the perception that Tesla’s position as number one in the market is no longer guaranteed.

So, Mara, all this raises a much bigger question for me, which is, who is going to own the future of EVs? And based on everything you’ve said so far, it seems like China owns the future of EVs. Is that right?

Well, possibly, but the jury is still out. Tesla is still far bigger for now. But there is this increasing fear that China owns the future of EVs. If you look at the US, there are already 25 percent tariffs on EVs from China. There’s talk of increasing them. The Commerce Department recently launched an investigation into data collection by electric vehicles from China.

So all of these factors are creating uncertainty around what could happen. And the European Union may also add new tariffs against Chinese-made cars. And China is an economic rival and a security rival and, in many ways, our main adversary. So this whole issue is intertwined with national security. And Tesla is really in the middle of it.

Right. So the sort of new Cold War that people are talking about between the US and China is, in a sense, the backdrop to this story. But on one level, what we’ve been talking about, it’s really a corporate story, an economic story that has this geopolitical backdrop. But it’s also very much an environmental story. So, regardless of how Elon Musk and Tesla fare in the end, is BYD’s rise and its ability to create high-quality and — perhaps more importantly — affordable EVs ultimately a good thing for the world?

If I think back on those years I spent living in Shanghai and Beijing when it was extremely polluted and there were days when you couldn’t go outside — I don’t think anyone wants to go back to that.

So it’s clear that EVs are the future and that they’re crucial to the green energy transition that we have to make. How exactly we get there is still unclear. But what is true is that China did just make that transition easier.

Mara, thank you so much.

Thank you, Katrin.

Here’s what else you need to know today.

[CROWD CHEERING]

Millions of people across North America were waiting for their turn to experience a rare event on Monday. From Mexico —

Cuatro, tres, dos, uno.

— to Texas.

Awesome, just awesome.

We can see the corona really well. Oh, you can see —

[BACKGROUND CHATTER]

Oh, and we are falling into darkness right now. What an incredible sensation. And you are hearing and seeing the crowd of 15,000 gathered here in south Illinois.

Including “Daily” producers in New York.

It’s like the sky is almost —

— like a deep blue under the clouds.

Wait, look. It’s just —

Oh my god. The sun is disappearing. And it’s gone. Oh. Whoa.

All the way up to Canada.

Yeah, that’s what I’m talking about. That’s what I’m talking about.

The moon glided in front of the sun and obscured it entirely in a total solar eclipse, momentarily plunging the day into darkness.

It’s super exciting. It’s so amazing to see science in action like this.

Today’s episode was produced by Rikki Novetsky and Mooj Zadie with help from Rachelle Bonja. It was edited by Lisa Chow with help from Alexandra Leigh Young, fact checked by Susan Lee, contains original music by Marion Lozano, Diane Wong, Elisheba Ittoop, and Sophia Lanman and was engineered by Chris Wood.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for “The Daily.” I’m catching Katrin Bennhold. See you tomorrow.

• April 11, 2024   •   28:39 The Staggering Success of Trump’s Trial Delay Tactics
• April 10, 2024   •   22:49 Trump’s Abortion Dilemma
• April 9, 2024   •   30:48 How Tesla Planted the Seeds for Its Own Potential Downfall
• April 8, 2024   •   30:28 The Eclipse Chaser
• April 7, 2024 The Sunday Read: ‘What Deathbed Visions Teach Us About Living’
• April 5, 2024   •   29:11 An Engineering Experiment to Cool the Earth
• April 4, 2024   •   32:37 Israel’s Deadly Airstrike on the World Central Kitchen
• April 3, 2024   •   27:42 The Accidental Tax Cutter in Chief
• April 2, 2024   •   29:32 Kids Are Missing School at an Alarming Rate
• April 1, 2024   •   36:14 Ronna McDaniel, TV News and the Trump Problem
• March 29, 2024   •   48:42 Hamas Took Her, and Still Has Her Husband
• March 28, 2024   •   33:40 The Newest Tech Start-Up Billionaire? Donald Trump.

Hosted by Katrin Bennhold

Featuring Mara Hvistendahl

Produced by Rikki Novetsky and Mooj Zadie

With Rachelle Bonja

Edited by Lisa Chow and Alexandra Leigh Young

Original music by Marion Lozano ,  Diane Wong ,  Elisheba Ittoop and Sophia Lanman

Engineered by Chris Wood

Listen and follow The Daily Apple Podcasts | Spotify | Amazon Music

When Elon Musk set up Tesla’s factory in China, he made a bet that brought him cheap parts and capable workers — a bet that made him ultrarich and saved his company.

Mara Hvistendahl, an investigative reporter for The Times, explains why, now, that lifeline may have given China the tools to beat Tesla at its own game.

On today’s episode

Mara Hvistendahl , an investigative reporter for The New York Times.

Background reading

A pivot to China saved Elon Musk. It also bound him to Beijing .

Mr. Musk helped create the Chinese electric vehicle industry. But he is now facing challenges there as well as scrutiny in the West over his reliance on China.

There are a lot of ways to listen to The Daily. Here’s how.

We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.

Fact-checking by Susan Lee .

The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Renan Borelli, Maddy Masiello, Isabella Anderson and Nina Lassam.

Katrin Bennhold is the Berlin bureau chief. A former Nieman fellow at Harvard University, she previously reported from London and Paris, covering a range of topics from the rise of populism to gender. More about Katrin Bennhold

Mara Hvistendahl is an investigative reporter for The Times focused on Asia. More about Mara Hvistendahl

Advertisement

25 Questions (and Answers!) About the Great North American Eclipse

The McDonald Observatory’s guide to one of nature’s most beautiful and astounding events: What you might see, how to view it safely, how astronomers will study it, how animals might react, and some of the mythology and superstitions about the Sun’s great disappearing act.

1. What’s happening?

The Moon will cross directly between Earth and the Sun, temporarily blocking the Sun from view along a narrow path across Mexico, the United States, and Canada. Viewers across the rest of the United States will see a partial eclipse, with the Moon covering only part of the Sun’s disk.

2. When will it happen?

The eclipse takes place on April 8. It will get underway at 10:42 a.m. CDT, when the Moon’s shadow first touches Earth’s surface, creating a partial eclipse. The Big Show—totality—begins at about 11:39 a.m., over the south-central Pacific Ocean. The shadow will first touch North America an hour and a half later, on the Pacific coast of Mexico. Moving at more than 1,600 miles (2,575 km) per hour, the path of totality will enter the United States at Eagle Pass, Texas, at 1:27 p.m. CDT. The lunar shadow will exit the United States and enter the Canadian province of New Brunswick near Houlton, Maine, at 2:35 p.m. (3:35 p.m. EDT).

3. How long will totality last?

The exact timing depends on your location. The maximum length is 4 minutes, 27 seconds near Torreon, Mexico. In the United States, several towns in southwestern Texas will see 4 minutes, 24 seconds of totality. The closer a location is to the centerline of the path of totality, the longer the eclipse will last.

4. What will it look like?

Eclipse veterans say there’s nothing quite like a total solar eclipse. In the last moments before the Sun disappears behind the Moon, bits of sunlight filter through the lunar mountains and canyons, forming bright points of light known as Baily’s beads. The last of the beads provides a brief blaze known as a diamond ring effect. When it fades away, the sky turns dark and the corona comes into view— million-degree plasma expelled from the Sun’s surface. It forms silvery filaments that radiate away from the Sun. Solar prominences, which are fountains of gas from the surface, form smaller, redder streamers on the rim of the Sun’s disk.

5. What safety precautions do I need to take?

It’s perfectly safe to look at the total phase of the eclipse with your eyes alone. In fact, experts say it’s the best way to enjoy the spectacle. The corona, which surrounds the intervening Moon with silvery tendrils of light, is only about as bright as a full Moon.

During the partial phases of the eclipse, however, including the final moments before and first moments after totality, your eyes need protection from the Sun’s blinding light. Even a 99-percent-eclipsed Sun is thousands of times brighter than a full Moon, so even a tiny sliver of direct sunlight can be dangerous!

To stay safe, use commercially available eclipse viewers, which can look like eyeglasses or can be embedded in a flat sheet that you hold in front of your face. Make sure your viewer meets the proper safety standards, and inspect it before you use it to make sure there are no scratches to let in unfiltered sunlight.

You also can view the eclipse through a piece of welder’s glass (No. 14 or darker), or stand under a leafy tree and look at the ground; the gaps between leaves act as lenses, projecting a view of the eclipse on the ground. With an especially leafy tree you can see hundreds of images of the eclipse at once. (You can also use a colander or similar piece of gear to create the same effect.)

One final mode of eclipse watching is with a pinhole camera. You can make one by poking a small hole in an index card, file folder, or piece of stiff cardboard. Let the Sun shine through the hole onto the ground or a piece of paper, but don’t look at the Sun through the hole! The hole projects an image of the eclipsed Sun, allowing you to follow the entire sequence, from the moment of first contact through the Moon’s disappearance hours later.

6. Where can I see the eclipse?

In the United States, the path of totality will extend from Eagle Pass, Texas, to Houlton, Maine. It will cross 15 states: Texas, Oklahoma, Arkansas, Missouri, Illinois, Indiana, Kentucky, Ohio, Pennsylvania, New York, Vermont, New Hampshire, Maine, Tennessee, and Michigan (although it barely nicks the last two).

In Texas, the eclipse will darken the sky over Austin, Waco, and Dallas—the most populous city in the path, where totality (the period when the Sun is totally eclipsed) will last 3 minutes, 51 seconds.

Other large cities along the path include Little Rock; Indianapolis; Dayton, Toledo, and Cleveland, Ohio; Erie, Pennsylvania; Buffalo and Rochester, New York; and Burlington, Vermont.

Outside the path of totality, American skywatchers will see a partial eclipse, in which the Sun covers only part of the Sun’s disk. The sky will grow dusky and the air will get cooler, but the partially eclipsed Sun is still too bright to look at without proper eye protection. The closer to the path of totality, the greater the extent of the eclipse. From Memphis and Nashville, for example, the Moon will cover more than 95 percent of the Sun’s disk. From Denver and Phoenix, it’s about 65 percent. And for the unlucky skywatchers in Seattle, far to the northwest of the eclipse centerline, it’s a meager 20 percent.

The total eclipse path also crosses Mexico, from the Pacific coast, at Mazatlán, to the Texas border. It also crosses a small portion of Canada, barely including Hamilton, Ontario. Eclipse Details for Locations Around the United States • aa.usno.navy.mil/data/Eclipse2024 • eclipse.aas.org • GreatAmericanEclipse.com

7. What causes solar eclipses?

These awe-inspiring spectacles are the result of a pleasant celestial coincidence: The Sun and Moon appear almost exactly the same size in Earth’s sky. The Sun is actually about 400 times wider than the Moon but it’s also about 400 times farther, so when the new Moon passes directly between Earth and the Sun—an alignment known as syzygy—it can cover the Sun’s disk, blocking it from view.

8. Why don’t we see an eclipse at every new Moon?

The Moon’s orbit around Earth is tilted a bit with respect to the Sun’s path across the sky, known as the ecliptic. Because of that angle, the Moon passes north or south of the Sun most months, so there’s no eclipse. When the geometry is just right, however, the Moon casts its shadow on Earth’s surface, creating a solar eclipse. Not all eclipses are total. The Moon’s distance from Earth varies a bit, as does Earth’s distance from the Sun. If the Moon passes directly between Earth and the Sun when the Moon is at its farthest, we see an annular eclipse, in which a ring of sunlight encircles the Moon. Regardless of the distance, if the SunMoon-Earth alignment is off by a small amount, the Moon can cover only a portion of the Sun’s disk, creating a partial eclipse.

9. How often do solar eclipses happen?

Earth sees as least two solar eclipses per year, and, rarely, as many as five. Only three eclipses per two years are total. In addition, total eclipses are visible only along narrow paths. According to Belgian astronomer Jean Meuss, who specializes in calculating such things, any given place on Earth will see a total solar eclipse, on average, once every 375 years. That number is averaged over many centuries, so the exact gap varies. It might be centuries between succeeding eclipses, or it might be only a few years. A small region of Illinois, Missouri, and Kentucky, close to the southeast of St. Louis, for example, saw the total eclipse of 2017 and will experience this year’s eclipse as well. Overall, though, you don’t want to wait for a total eclipse to come to you. If you have a chance to travel to an eclipse path, take it!

10. What is the limit for the length of totality?

Astronomers have calculated the length of totality for eclipses thousands of years into the future. Their calculations show that the greatest extent of totality will come during the eclipse of July 16, 2186, at 7 minutes, 29 seconds, in the Atlantic Ocean, near the coast of South America. The eclipse will occur when the Moon is near its closest point to Earth, so it appears largest in the sky, and Earth is near its farthest point from the Sun, so the Sun appears smaller than average. That eclipse, by the way, belongs to the same Saros cycle as this year’s.

11. When will the next total eclipse be seen from the United States?

The next total eclipse visible from anywhere in the United States will take place on March 30, 2033, across Alaska. On August 22, 2044, a total eclipse will be visible across parts of Montana, North Dakota, and South Dakota. The next eclipse to cross the entire country will take place on August 12, 2045, streaking from northern California to southern Florida. Here are the other total solar eclipses visible from the contiguous U.S. this century:

March 30, 2052 Florida, Georgia, tip of South Carolina May 11, 2078 From Louisiana to North Carolina May 1, 2079 From Philadelphia up the Atlantic coast to Maine September 14, 2099 From North Dakota to the Virginia-North Carolina border

12. What is the origin of the word ‘eclipse?’

The word first appeared in English writings in the late 13th century. It traces its roots, however, to the Greek words “ecleipsis” or “ekleipein.” According to various sources, the meaning was “to leave out, fail to appear,” “a failing, forsaking,” or “abandon, cease, die.”

13. Do solar eclipses follow any kind of pattern?

The Moon goes through several cycles. The best known is its 29.5-day cycle of phases, from new through full and back again. Other cycles include its distance from Earth (which varies by about 30,000 miles (50,000 km) over 27.5 days) and its relationship to the Sun’s path across the sky, known as the ecliptic (27.2 days), among others. These three cycles overlap every 6,585.3 days, which is 18 years, 11 days, and 8 hours.

This cycle of cycles is known as a Saros (a word created by Babylonians). The circumstances for each succeeding eclipse in a Saros are similar—the Moon is about the same distance from Earth, for example, and they occur at the same time of year. Each eclipse occurs one-third of the way around Earth from the previous one, however; the next eclipse in this Saros, for example, will be visible from parts of the Pacific Ocean.

Each Saros begins with a partial eclipse. A portion of the Moon just nips the northern edge of the Sun, for example, blocking only a fraction of the Sun’s light. With each succeeding eclipse in the cycle, the Moon covers a larger fraction of the solar disk, eventually creating dozens of total eclipses. The Moon then slides out of alignment again, this time in the opposite direction, creating more partial eclipses. The series ends with a grazing partial eclipse on the opposite hemisphere (the southern tip, for example).

Several Saros cycles churn along simultaneously (40 are active now), so Earth doesn’t have to wait 18 years between eclipses. They can occur at intervals of one, five, six, or seven months.

The April 8 eclipse is the 30th of Saros 139, a series of 71 events that began with a partial eclipse, in the far north, and will end with another partial eclipse, this time in the far southern hemisphere. The next eclipse in this Saros, also total, will take place on April 20, 2042.

First eclipse May 17, 1501

First total eclipse December 21, 1843

Final total eclipse March 26, 2601

Longest total eclipse July 16, 2186,  7 minutes, 29 seconds

Final partial eclipse July 3, 2763

All eclipses 71 (43 total, 16 partial, 12 hybrid)

Source: NASA Catalog of Solar Eclipses: eclipse.gsfc.nasa.gov/SEsaros/SEsaros139.html

14. What about eclipse seasons?

Eclipses occur in “seasons,” with two or three eclipses (lunar and solar) in a period of about five weeks. Individual eclipses are separated by two weeks: a lunar eclipse at full Moon, a solar eclipse at new Moon (the sequence can occur in either order). If the first eclipse in a season occurs during the first few days of the window, then the season will have three eclipses. When one eclipse in the season is poor, the other usually is much better.

That’s certainly the case with the season that includes the April 8 eclipse. It begins with a penumbral lunar eclipse on the night of March 24, in which the Moon will pass through Earth’s outer shadow. The eclipse will cover the Americas, although the shadow is so faint that most skywatchers won’t notice it.

This article was previously published in the March/April 2024 issue of StarDate  magazine, a publication of The University of Texas at Austin’s McDonald Observatory. Catch StarDate’s daily radio program on more than 300 stations nationwide or subscribe online at  stardate.org .

15. How can astronomers forecast eclipses so accurately?

They’ve been recording eclipses and the motions of the Moon for millennia. And over the past half century they’ve been bouncing laser beams off of special reflectors carried to the Moon by Apollo astronauts and Soviet rovers. Those observations reveal the Moon’s position to within a fraction of an inch. Using a combination of the Earth-Moon distance, the Moon’s precise shape, Earth’s rotation and its distance from the Sun, and other factors, astronomers can predict the timing of an eclipse to within a fraction of a second many centuries into the future.

Edmond Halley made the first confirmed solar eclipse prediction, using the laws of gravity devised only a few decades earlier by Isaac Newton. Halley forecast that an eclipse would cross England on May 3, 1715. He missed the timing by just four minutes and the path by 20 miles, so the eclipse is known as Halley’s Eclipse.

16. What are the types of solar eclipses?

Total : the Moon completely covers the Sun.

Annular : the Moon is too far away to completely cover the Sun, leaving a bright ring of sunlight around it.

Partial : the Moon covers only part of the Sun’s disk.

Hybrid : an eclipse that is annular at its beginning and end, but total at its peak.

17. What are Baily’s beads?

During the minute or two before or after totality, bits of the Sun shine through canyons and other features on the limb of the Moon, producing “beads” of sunlight. They were first recorded and explained by Edmond Halley, in 1715. During a presentation to the Royal Academy of Sciences more than a century later, however, astronomer Frances Baily first described them as “a string of beads,” so they’ve been known as Baily’s beads ever since. Please note that Baily’s beads are too bright to look at without eye protection!

18. Will Earth always see total solar eclipses?

No, it will not. The Moon is moving away from Earth at about 1.5 inches (3.8 cm) per year. Based on that rate of recession, in about 600 million years the Moon would have moved so far from Earth that it would no longer appear large enough to cover the Sun. The speed at which the Moon separates from Earth changes over the eons, however, so scientists aren’t sure just when Earth will see its final total solar eclipse.

19. How will the eclipse affect solar power?

If your solar-powered house is in or near the path of totality, the lights truly will go out, as they do at night. For large power grids, the eclipse will temporarily reduce the total amount of electricity contributed by solar generation. During the October 14, 2023, annular eclipse, available solar power plummeted in California and Texas. At the same time, demand increased as individual Sun-powered homes and other buildings began drawing electricity from the power grid. Both networks were able to compensate with stations powered by natural gas and other sources.

The power drop during this year’s eclipse could be more dramatic because there will be less sunlight at the peak of the eclipse.

20. What are some of the myths and superstitions associated with solar eclipses?

Most ancient cultures created stories to explain the Sun’s mysterious and terrifying disappearances.

In China and elsewhere, it was thought the Sun was being devoured by a dragon. Other cultures blamed a hungry frog (Vietnam), a giant wolf loosed by the god Loki (Scandinavia), or the severed head of a monster (India). Still others saw an eclipse as a quarrel (or a reunion) between Sun and Moon. Some peoples shot flaming arrows into the sky to scare away the monster or to rekindle the solar fire. One especially intriguing story, from Transylvania, said that an eclipse occurred when the Sun covered her face in disgust at bad human behavior.

Eclipses have been seen as omens of evil deeds to come. In August 1133, King Henry I left England for Normandy one day before a lengthy solar eclipse, bringing prophesies of doom. The country later was plunged into civil war, and Henry died before he could return home, strengthening the impression that solar eclipses were bad mojo.

Ancient superstitions claimed that eclipses could cause plague and other maladies. Modern superstitions say that food prepared during an eclipse is poison and that an eclipse will damage the babies of pregnant women who look at it. None of that is true, of course. There’s nothing at all to fear from this beautiful natural event.

21. How do animals react to solar eclipses?

Scientists haven’t studied the topic very thoroughly, but they do have some general conclusions. Many daytime animals start their evening rituals, while many nighttime animals wake up when the eclipse is over, perhaps cursing their alarm clocks for letting them sleep so late!

During the 2017 total eclipse, scientists observed 17 species at Riverbanks Zoo in Columbia, South Carolina. About three-quarters of the species showed some response as the sky darkened. Some animals acted nervous, while others simply headed for bed. A species of gibbon had the most unusual reaction, moving excitedly and chattering in ways the zookeepers hadn’t seen before.

Other studies have reported that bats and owls sometimes come out during totality, hippos move toward their nighttime feeding grounds, and spiders tear down their webs, only to rebuild them when the Sun returns. Bees have been seen to return to their hives during totality and not budge until the next day, crickets begin their evening chorus, and, unfortunately, mosquitoes emerge, ready to dine on unsuspecting eclipse watchers.

A NASA project, Eclipse Soundscapes, is using volunteers around the country to learn more about how animals react to the changes. The project collected audio recordings and observations by participants during the annular eclipse last year, and will repeat the observations this year. Volunteers can sign up at eclipsesoundscapes.org

22. How will scientists study this year’s eclipse?

Astronomers don’t pay quite as much professional attention to solar eclipses as they did in decades and centuries past. However, they still schedule special observations to add to their knowledge of the Sun and especially the inner edge of the corona.

Sun-watching satellites create artificial eclipses by placing a small disk across the face of the Sun, blocking the Sun’s disk and revealing the corona, solar prominences, and big explosions of charged particles known as coronal mass ejections.

Because of the way light travels around the edges of an eclipsing disk, however, it’s difficult to observe the region just above the Sun’s visible surface, which is where much of the action takes place. The corona is heated to millions of degrees there, and the constant flow of particles known as the solar wind is accelerated to a million miles per hour or faster, so solar astronomers really want to see that region in detail. The eclipsing Moon doesn’t create the same effects around the limb of the Sun, so a solar eclipse still provides the best way to look close to the Sun’s surface.

For this year’s eclipse, some scientists will repeat a series of experiments they conducted in 2017 using a pair of highaltitude WB-57 aircraft to “tag team” through the lunar shadow, providing several extra minutes of observations.

Other scientists will use the eclipse to study Earth’s ionosphere, an electrically charged layer of the atmosphere that “bends” radio waves, allowing them to travel thousands of miles around the planet. Sunlight rips apart atoms and molecules during the day, intensifying the charge. At night, the atoms and molecules recombine, reducing the charge.

Physicists want to understand how the ionosphere reacts to the temporary loss of sunlight during an eclipse. They will do so with the help of thousands of volunteer ham radio operators, who will exchange messages with others around the planet. During last October’s annular eclipse, when the Moon covered most but not all of the Sun, the experiment showed a large and immediate change in the ionosphere as the sunlight dimmed.

NASA also will launch three small “sounding” rockets, which loft instruments into space for a few minutes, to probe the ionosphere shortly before, during, and shortly after the eclipse.

Another project will use radar to study changes in the interactions between the solar wind and Earth’s atmosphere, while yet another will use a radio telescope to map sunspots and surrounding regions as the Moon passes across them.

One project will piece together images of the eclipse snapped through more than 40 identical telescopes spaced along the path of totality to create a one-hour movie of the eclipse. The telescopes will be equipped with instruments that see the three-dimensional structure of the corona, allowing solar scientists to plot how the corona changes.

23. What have astronomers learned from eclipses?

Solar eclipses have been powerful tools for studying the Sun, the layout of the solar system, and the physics of the universe.

Until the Space Age, astronomers could see the Sun’s corona only during eclipses, so they traveled around the world to catch these brief glimpses of it.

Eclipses also offered a chance to refine the scale of the solar system. Watching an eclipse from different spots on Earth and comparing the angles of the Moon and Sun helped reveal the relative sizes and distances of both bodies, which were important steps in understanding their true distances.

During an eclipse in 1868, two astronomers discovered a new element in the corona. It was named helium, after Helios, a Greek name for the Sun. The element wasn’t discovered on Earth until a quarter of a century later.

An eclipse in 1919 helped confirm General Relativity, which was Albert Einstein’s theory of gravity. The theory predicted that the gravity of a massive body should deflect the path of light rays flying near its surface. During the eclipse, astronomers found that the positions of background stars that appeared near the Sun were shifted by a tiny amount, which was in perfect agreement with Einstein’s equations.

Today, astronomers are using records of eclipses dating back thousands of years to measure changes in Earth’s rotation rate and the distance to the Moon.

24. How did astronomers study eclipses in the past?

With great effort! From the time they could accurately predict when and where solar eclipses would be visible, they organized expeditions that took them to every continent except Antarctica, on trips that lasted months and that sometimes were spoiled by clouds or problems both technical and human.

During the American Revolution, for example, a group of Harvard scientists led by Samuel Williams received safe passage from the British army to view an eclipse from Penobscot Bay, Maine, on October 21, 1780. Williams slightly miscalculated the eclipse path, though, so the group missed totality by a few miles. (The expedition did make some useful observations, however.)

In 1860, an expedition headed by Simon Newcomb, one of America’s top astronomers, journeyed up the Saskatchewan River, hundreds of miles from the nearest city, braving rapids, mosquitoes, and bad weather. After five grueling weeks, they had to stop short of their planned viewing site, although at a location still inside the eclipse path. Clouds covered the Sun until almost the end of totality, however, so the expedition came up empty.

King Mongkut of Siam invited a French expedition and hundreds of other dignitaries to view an eclipse from present-day Thailand in 1868. He built an observatory and a large compound to house his guests at a site Mongkut himself had selected as the best viewing spot. The eclipse came off perfectly, but many visitors contracted malaria. So did Mongkut, who died a few weeks later.

An expedition in 1914, to Russia, was plagued by both clouds and the start of World War I. The team abandoned its instruments at a Russian observatory and escaped through Scandinavia.

The eclipse of July 29, 1878, offered fewer impediments. In fact, it was a scientific and social extravaganza. The eclipse path stretched from Montana Territory to Texas. Teams of astronomers from the United States and Europe spread out along the path. Thomas Edison stationed his group in Wyoming, where he used a tasimeter, a device of his own creation, to try to measure the temperature of the corona. Samuel Pierpoint Langley, a future secretary of the Smithsonian, was atop Pikes Peak in Colorado. Maria Mitchell, perhaps America’s leading female scientist, decamped to Denver. And Asaph Hall, who had discovered the moons of Mars just the year before, journeyed to the flatlands of eastern Colorado.

Thousands of average Americans joined the festivities, paying outrageous prices for some of the best viewing spots. Some things, it seems, never change.

25. What about lunar eclipses?

While solar eclipses happen during new Moon, lunar eclipses occur when the Moon is full, so it aligns opposite the Sun in our sky. The Moon passes through Earth’s shadow. In a total eclipse, the entire lunar disk turns orange or red. In a partial eclipse, Earth’s inner shadow covers only a portion of the Moon. And during a penumbral eclipse, the Moon passes through the outer portion of Earth’s shadow, darkening the Moon so little that most people don’t even notice it.

Lunar eclipses happen as often as solar eclipses—at least twice per year. This is a poor year for lunar eclipses, however. There is a penumbral eclipse on the night of March 24, with the Moon slipping through Earth’s faint outer shadow, and a partial eclipse on the night of September 17, in which the Moon barely dips into the darker inner shadow. Both eclipses will be visible from most of the United States.

Explore Latest Articles

Apr 11, 2024

From Average to Individual: Transforming Cancer Care With Single-Subject Clinical Trials

Apr 10, 2024

Clint Dawson and Stephen Vladeck Honored With President’s Research Impact Award

Apr 09, 2024

UT’s Excellence and Impact On Display in Latest Graduate School Rankings