business plans a level business

Business Plans

Definition and importance.

• A business plan is a written document that outlines a company’s objectives and how it plans to achieve them. It serves as a roadmap for strategic planning and implementation.
• Business planning plays a pivotal role in setting the direction and establishing targets for a business. It helps minimise risk and provides a sense of direction.
• A good business plan can attract investment, secure loans, and establish partnerships.

Key Elements

• Executive Summary : A concise overview summarising the main points of the business plan.
• Business Description : Detailed information about the business, its missions, visions, and objectives.
• Market Analysis : A comprehensive analysis of the market in which the business will operate. This includes an examination of the competition, market trends and customer behaviour.
• Organization and Management : Structure of the business (e.g., partnership, limited company), roles and responsibilities of key personnel.
• Products and Services : Thorough information on the products or services the business plans to offer.
• Marketing and Sales Strategy : A detailed outline on how the business plans to attract and retain customers.
• Financial Projections : Future predictions, such as revenue and expenses for the next three to five years.

Implementation of Business Plans

• Communication : The business plan should be communicated to all employees to ensure everyone is working towards the same goal.
• Monitoring : Regular check-ups are essential to measure progress against the plan.
• Review and Update : The business plan must be reviewed and updated regularly to adapt to unforeseen changes in the business environment.
• Flexibility : The business plan must be flexible enough to accommodate changes in market conditions, customer preferences, or competitive actions.

Potential Pitfalls

• Business plans that are too vague, unrealistic or lack market research could fail to inspire confidence in potential investors or lenders.
• The overemphasis on planning can result in paralysis by analysis, where excessive time spent on planning impedes action.
• Business plans that fail to take into account potential risks or market changes could lead to strategic failure.

Connection to Strategic Implementation

• A well-written business plan should guide the strategic implementation process, providing the business with a clear strategy and defined objectives.
• The plan outlines the steps necessary to achieve strategic goals, making it easier to align resources and actions.
• It also offers a framework for measuring progress and adjusting the strategy as necessary.

Remember, while a business plan can guide strategy implementation, successful execution requires strong leadership, effective communication, and an ability to adapt to change.

How to Write a Business Plan for a Small Business

Noah Parsons

24 min. read

Updated September 2, 2024

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

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

• The basics of writing a business plan

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

You understand that writing a business plan helps you: 

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

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

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

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

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

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

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

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

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

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

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

• What to include in your business plan

Executive summary

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

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

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

Your executive summary should include:

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

Dig Deeper: How to write an effective executive summary

Products and services description

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

This is usually called a problem and solution statement .

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

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

Market analysis

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

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

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

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

Related: Target market examples

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

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

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

Dig Deeper: Learn how to write a market analysis

Competitive analysis

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

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

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

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

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

Marketing and sales plan

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

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

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

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

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

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

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

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

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

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

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

Business operations

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

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

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

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

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

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

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

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

Key milestones and metrics

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

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

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

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

Possible milestones might be:

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

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

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

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

Dig Deeper: How to use milestones in your business plan

Organization and management team

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

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

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

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

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

• Sole proprietor
• Partnership

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

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

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

Financial plan

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

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

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

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

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

Dig Deeper: How to create financial forecasts and budgets

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

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

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

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

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

Your cover page should be simple and include:

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

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

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

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

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

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

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

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

• Writing tips and strategies

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

Determine why you are writing a business plan

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

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

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

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

Keep things concise

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

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

Have someone review your business plan

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

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

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

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

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

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

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

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

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

Common pitfalls and how to avoid them

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

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

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

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

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

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

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

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

Use your business plan to manage your business

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

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

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

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

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

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

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

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

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

Learn More: How to run a regular plan review

How to write a business plan FAQ

What is a business plan?

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

What are the benefits of writing a business plan?

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

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

What are the 7 steps of writing a business plan?

The seven steps to writing a business plan include:

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

What are the 5 most common business plan mistakes?

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

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

What questions should be answered in a business plan?

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

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

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

How long should a business plan be?

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

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

What are the different types of business plans?

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

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

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

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

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

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

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

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

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

Table of Contents

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

Related Articles

3 Min. Read

What to Include in Your Business Plan Appendix

7 Min. Read

How to Write a Bakery Business Plan + Sample

5 Min. Read

How To Write a Business Plan for a Life Coaching Business + Free Example

1 Min. Read

How to Calculate Return on Investment (ROI)

The LivePlan Newsletter

Become a smarter, more strategic entrepreneur.

Your first monthly newsetter will be delivered soon..

Unsubscribe anytime. 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

GCSE & A level Business

Do you need help getting the exam grade you ' ve been dreaming o f.

Welcome to TakingTheBiz

A Level Business or IB Business Management can feel like hard work.

Perhaps you have a folder overflowing with half-completed class notes that you wish you'd organised months ago.

Or maybe you have a pristine textbook that feels so heavy, the prospect of reading it seems daunting.

You desperately want to do well in your Business examinations  but you just don't know where to start.  Sometimes , the grade you desire feels a long way away.

YouTube Videos Online Tuition Seminars Revision Resources

Here's how takingthebiz can help....

Ensure that you understand all of the topics on your syllabus using the TakingTheBiz YouTube channel.

You will find a comprehensive range of topic tutorials and exam skills guides  to help you improve your grades and prepare for your examinations.

You can now have TakingTheBiz as your teacher by registering for 1:1 online tuition.

Each week, we will focus on the A level Business topics that you are finding the most challenging as well as develop the examination technique you need to achieve the highest grades.

EXAM WORKSHOPS

You can now book TakingTheBiz to visit  your school or college to deliver an in-person session focused on preparing students for their A level course.

The session will be packed with all of the hints, tips and exam know-how to help students flourish.

We have a range of written resources to support A level Business students, many of which are available to download.

From revision guides and work books to essay marking, check out the revision materials available in the TakingTheBiz  store.

Table of Contents

How to make a business plan

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

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

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

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

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

What is a business plan?

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

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

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

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

Business plan vs. business model canvas

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

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

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

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

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

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

Why is a business plan important?

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

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

Helps to define the business goals and objectives

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

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

Guides decision-making

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

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

Attracts investors and secures funding

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

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

Identifies potential challenges and risks

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

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

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

Provides a basis for measuring success

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

Are we where we want to be at this point?

Did we achieve our goals?

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

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

How to make a business plan step by step

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

1. Create an executive summary

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

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

2. Write your company description

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

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

3. Conduct a market analysis

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

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

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

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

4. Describe your products and services

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

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

5. Design a marketing and sales strategy

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

Pricing strategy

Advertising and promotional tactics

Sales channels

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

6. Determine budget and financial projections

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

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

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

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

8. Make an action plan

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

Types of business plans

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

Startup business plan

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

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

Strategic business plan

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

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

Operational business plan

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

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

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

Growth-business plan

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

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

One-page business plan

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

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

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

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

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

Be practical

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

Be specific

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

Be thorough with your research

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

Get input from others

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

Review and revise regularly

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

Create a winning business plan to chart your path to success

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

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

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

Get on board in seconds

Plans and pricing.

How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

Featured Partners

ZenBusiness

$0 + State Fees

Varies By State & Package

On ZenBusiness' Website

Northwest Registered Agent

$39 + State Fees

On Northwest Registered Agent's Website

Tailor Brands

$0 + state fee + up to $50 Amazon gift card

Free expedited filing (within 48 hours)

On Tailor Brands' Website

$0 + State Fee

On Formations' Website

Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

• Best VPN Services
• Best Project Management Software
• Best Web Hosting Services
• Best Antivirus Software
• Best LLC Services
• Best POS Systems
• Best Business VOIP Services
• Best Credit Card Processing Companies
• Best CRM Software for Small Business
• Best Fleet Management Software
• Best Business Credit Cards
• Best Business Loans
• Best Business Software
• Best Business Apps
• Best Free Software For Business
• How to Start a Business
• How To Make A Small Business Website
• How To Trademark A Name
• What Is An LLC?
• How To Set Up An LLC In 7 Steps
• What is Project Management?
• How To Write An Effective Business Proposal

Best Pennsylvania LLC Services In 2024

Best Florida LLC Services In 2024

Best Maryland LLC Services In 2024

Best Texas LLC Services In 2024

Best Arizona LLC Services In 2024

Best California LLC Services In 2024

Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry.

Programmes & Qualifications

Cambridge international as & a level business (9609).

• Syllabus overview

The syllabus enables students to understand and appreciate the nature and scope of business, and the role it plays in society. It encourages students to examine the process of decision-making in a dynamic and changing business environment and to develop critical understanding of business organisations. They learn about business and its environment, human resource management, marketing, operations management and finance and accounting. At Cambridge International A Level, students also learn how to develop a business strategy.

The syllabus year refers to the year in which the examination will be taken.

• -->2023-2025 Syllabus (PDF, 403KB)
• -->2026 - 2028 Syllabus (PDF, 763KB)

Syllabus updates

We revise our qualifications regularly to make sure that they continue to meet the needs of learners, schools and higher education institutions around the world and reflect current thinking. We have consulted and worked with subject experts to review the syllabus, so that the breadth and depth is clearer. Please see the 2023–2025 syllabus document for full details on the changes.

What are the main changes to the syllabus?

• clarified the assessment objectives and made small changes to their weightings
• five topics now at Cambridge International A Level
• embedded business strategy within the five main topics at Cambridge International A Level. Students are now encouraged to learn this within context
• included formulae for ratios to support the analysis of published accounts
• included a list of command words and their meanings.

What are the main changes to the assessment?

• There are now two papers at Cambridge International A Level, Paper 3 and Paper 4. We have reduced the duration for Paper 3.
• We have retitled all papers to better describe the focus of each one.
• We have revised the levels-based marking criteria for all papers to maintain validity and reliability of assessment.

When do these changes take place?

The updated syllabus is for examination from June 2023 onwards. Examinations are available in March 2023 for India only. Please see the 2023-2025 syllabus above for full details.

We are developing a comprehensive range of materials to help you teach the updated syllabus. These resources will be available from June 2021 onwards (before first teaching) through our  School Support Hub and include:

• Scheme of work
• Learner guide
• Example Candidate Responses (after first examination).

Face-to-face and online training will be available. For up-to-date information, visit our Events and training calendar .

Endorsed resources

View the latest resources that are being developed by our Endorsement Partners for the Cambridge International AS & A Level Business syllabus (9609).

Business for Cambridge International AS & A Level (Fourth edition) (Cambridge University Press)

From studying real-life business scenarios, to ESL support with language worksheets, the new edition of this series gives students the support they need to study this course effectively, and helps prepare them for assessment.

Read more on the Cambridge University Press website

Cambridge International AS & A Level Business (Second edition) (Hodder Education)

Build strong subject knowledge and skills and an international outlook with expert author guidance and in-depth coverage of the revised Cambridge International AS & A Level Business syllabus (9609).

Read more on the Hodder Education website

Important notices

For some subjects, we publish grade descriptions to help understand the level of performance candidates’ grades represent.

We paused the publication of grade descriptions in response to the Covid-19 pandemic and the temporary changes to the awarding standard in 2020, 2021 and 2022.

As the awarding standard has now returned to the pre-pandemic standard, we are working to produce up-to-date grade descriptions for most of our general qualifications. These will be based on the awarding standards in place from June 2023 onwards.

School Support Hub

Teachers at registered Cambridge schools can unlock over 30 000 teaching and learning resources to help plan and deliver Cambridge programmes and qualifications, including Schemes of work, Example candidate responses, Past papers, Specimen paper answers, as well as digital and multimedia resources.

Schemes of work

Example responses, past papers, specimen paper answers.

Register your interest in becoming a Cambridge School

Stay up to date

Sign up for updates about changes to the syllabuses you teach

• Past papers, examiner reports and specimen papers
• Published resources

CIE A-Level Business Studies Notes

6.2.1 developing business strategy, introduction to business strategy.

Business strategy is the plan of action designed to achieve specific long-term aims. It forms the core of how a business plans to succeed, focusing on understanding and adapting to the ever-changing business environment. Effective strategic management encompasses not just the formulation of strategy but also its analysis, choice, and implementation.

Strategic Management

Strategic management is a systematic approach to aligning a company with its objectives. It consists of several key steps:

• Internal Analysis: Involves assessing the company's resources, capabilities, and competencies.
• External Analysis: Focuses on understanding market trends, customer needs, and competitor strategies.
• Strategy Formulation: Developing various strategic options based on the analysis.
• Decision-Making: Selecting the most suitable strategy considering the company's strengths and market opportunities.

Implementation

• Execution: Applying the chosen strategy in a coordinated manner.
• Monitoring: Continuously assessing the strategy's effectiveness and making adjustments as needed.

Image courtesy of springer

Approaches to Business Strategy

Different strategies and analytical tools are employed to develop and implement business strategies:

Blue Ocean Strategy

• Seeks to create new market space ('blue oceans') rather than competing in existing markets ('red oceans').
• Encourages innovation to offer unique value propositions.

Image courtesy of blueoceanstrategy

Scenario Planning

• Involves creating detailed, imagined scenarios of possible future states.
• Assists in preparing for various potential future challenges and opportunities.

Image courtesy of educba

SWOT Analysis

• Strengths: Identifies what an organisation does best internally.
• Weaknesses: Recognises internal areas that need improvement.
• Opportunities: External factors that the organisation can capitalise on.
• Threats: External challenges that the organisation needs to be prepared for.

Image courtesy of wordstream

PEST Analysis

• Examines external factors in four categories: P olitical, E conomic, S ocial, and T echnological.
• Helps in understanding broader market trends and influences.

Image courtesy of lisagoller

Porter's Five Forces

• 1. Competitive Rivalry: The intensity of competition among existing competitors.
• 2. Supplier Power: The bargaining power of suppliers.
• 3. Buyer Power: The influence of customers.
• 4. Threat of Substitution: The likelihood of customers finding alternative solutions.
• 5. Threat of New Entry: The ease with which new competitors can enter the market.

Image courtesy of thecimastudent

Core Competence Framework

• Focuses on identifying and leveraging a company’s key strengths.
• Helps in differentiating from competitors by building on unique capabilities.

Image courtesy of wallstreetmojo

Ansoff Matrix

• Market Penetration: Increasing market share in existing markets.
• Market Development: Entering new markets with existing products.
• Product Development: Introducing new products to existing markets.
• Diversification: Entering new markets with new products.

Image courtesy of heartofcodes

Force Field Analysis

• Evaluates the forces driving and restraining change.
• Useful for understanding the dynamics of organisational change.

Image courtesy of certaintysoftware

Decision Trees

• A decision support tool that uses a tree-like graph of decisions and their possible consequences.
• Helps in evaluating the potential outcomes of a decision, factoring in risks, costs, and benefits.

Image courtesy of AQA

Importance of Business Strategy

A well-crafted business strategy is essential for several reasons:

• 1. Direction and Focus: Provides a clear roadmap for the future.
• 2. Resource Allocation: Ensures efficient use of resources.
• 3. Competitive Advantage: Helps in identifying unique value propositions.
• 4. Risk Management: Aids in anticipating and preparing for potential threats.
• 5. Performance Measurement: Establishes benchmarks for assessing progress.

In summary, developing a business strategy is a multifaceted process that requires a deep understanding of both the internal workings of the organisation and the external business environment. By employing various strategic tools and approaches, businesses can create a roadmap for success, adapting to changes and seizing opportunities in the market. This strategic planning is not just about making decisions but about envisioning the future and positioning the organisation to thrive in the face of challenges and competition.

SWOT Analysis is effectively utilised in strategic planning by providing a structured approach to evaluate a company's internal strengths and weaknesses, and external opportunities and threats. This analysis helps in aligning the company’s resources and capabilities with the external environment. Effective use of SWOT involves not just listing these factors but also critically analysing how they interact. For example, a company might leverage its strengths (like a strong brand) to capitalise on external opportunities (like a growing market), or it might use its strengths to counteract external threats (like new regulations). Similarly, understanding weaknesses helps in developing strategies to improve them or to mitigate their impact. The key to effective SWOT Analysis lies in integrating its findings into strategic decision-making, ensuring that strategies are both realistic and ambitious.

Understanding Porter's Five Forces is crucial for business strategists as it provides a comprehensive framework for analysing industry structure and competitive forces. The five forces – competitive rivalry, threat of new entrants, threat of substitute products, bargaining power of buyers, and bargaining power of suppliers – determine the intensity of competition and profitability within an industry. By analysing these forces, strategists can identify the strengths and weaknesses of their business in the context of the wider industry. This understanding helps in crafting strategies that exploit favourable forces and mitigate adverse ones. For instance, if the threat of new entrants is high, a business might focus on building strong brand loyalty or achieving economies of scale to raise barriers to entry. Porter’s Five Forces model is thus integral to strategic planning as it helps businesses anticipate and respond effectively to competitive pressures.

Force Field Analysis is a tool used in strategic planning to understand what factors are driving or restraining a change. The key components of this tool are identifying the 'driving forces' that are encouraging change and the 'restraining forces' that are hindering it. For effective use, a business must first clearly define the change or goal in question. Then, the team identifies and lists all the forces for and against the change. This includes internal factors like employee attitudes or resource limitations, and external factors like market trends or regulatory changes. By analysing these forces, a company can develop strategies to strengthen the driving forces and weaken or remove the restraining forces. This tool helps in visualising the complexity of change management and aids in developing more effective strategies for implementing change.

The Ansoff Matrix is significant in strategic planning as it provides a clear framework for businesses to consider their growth strategies. This matrix outlines four different growth strategies: Market Penetration, Market Development, Product Development, and Diversification. Each strategy varies in risk and potential reward. For example, Market Penetration focuses on increasing sales of existing products in existing markets, which is generally lower risk. Market Development and Product Development involve either new markets or new products, carrying moderate risk. Diversification, which involves new products in new markets, is the riskiest strategy. The Ansoff Matrix helps businesses evaluate these options in the context of their resources, market conditions, and overall objectives. It aids in identifying the most appropriate growth strategy, whether it is building on existing strengths or exploring new opportunities.

Scenario planning is a strategic planning tool that assists businesses in preparing for possible future scenarios. This process involves creating detailed, plausible visions of different futures based on various influences like economic trends, technological advancements, or social changes. By envisioning these diverse scenarios, a company can develop flexible strategies that are resilient to various future states. For example, a company might create scenarios based on differing levels of market growth, regulatory changes, or competitive actions. These scenarios help in identifying potential opportunities and risks, allowing the company to devise contingency plans. This approach ensures that the company is not caught off guard by unforeseen developments, but rather, is prepared with adaptable strategies. It also encourages innovative thinking by challenging the status quo and exploring alternative futures, leading to more robust strategic decision-making.

Practice Questions

A company can use the Core Competence Framework to identify and leverage its unique strengths and capabilities, which are difficult for competitors to imitate. By focusing on these core competences, the company can develop a distinctive competitive advantage. For instance, a tech company might possess a core competence in innovative software design. By continuously investing in and developing this area, the company can offer advanced and unique software solutions that stand out in the market. This not only attracts a loyal customer base but also establishes the company as a leader in innovation within its industry. This approach ensures long-term competitive advantage by continually evolving and strengthening the core competences that define the company's uniqueness in the market.

Blue Ocean Strategy is about creating new market spaces or "blue oceans," rather than competing in existing markets, known as "red oceans." Traditional competitive strategies focus on battling competitors in established markets, often leading to price wars and decreased profit margins. In contrast, Blue Ocean Strategy encourages innovation and value creation, aiming to make competition irrelevant. Instead of fighting over existing demand, it focuses on creating new demand and tapping into uncharted markets. This strategy involves redefining market boundaries, which allows a company to break free from intense competition and enjoy high growth and profits in a new, uncontested market space.

Dave is a Cambridge Economics graduate with over 8 years of tutoring expertise in Economics & Business Studies. He crafts resources for A-Level, IB, & GCSE and excels at enhancing students' understanding & confidence in these subjects.

Hire a tutor

Please fill out the form and we'll find a tutor for you.

Professional Development

Exams admin, qualifications.

Centre Services

Art and Design

Computer Science

Design and Technology

Food preparation and Nutrition

Mathematics

Media Studies

Physical Education

Religious Studies

All subjects

Biology (8461)

Chemistry (8462)

Combined Science: Trilogy (8464)

English Language (8700)

English Literature (8702)

Geography (8035)

History (8145)

Mathematics (8300)

See all GCSEs

AS and A-levels

Biology (7401)

Business (7131)

Chemistry (7404)

Geography (7037)

History (7041)

Physics (7407)

Psychology (7181)

Sociology (7191)

See all AS and A-Levels

Other qualifications

Applied Generals

AQA Certificate Mathematics

Entry Level Certificates

Project Qualifications

Unit Award Scheme

All qualifications

Our training

Course finder

About our training

Online training

Face-to-face training

Inside assessment

Courses by theme

Effective exam prep

Exams officers

Getting started with AQA

Virtual communities

Courses by subject

All Professional Development

Dates and timetables

Non-exam assessment (NEA)

NEA, coursework and controlled assessment

Deadlines for non-exam assessment

Record forms

Submit marks

Exams guidance

Question papers and stationery

Access arrangements

Special consideration

Results days

Results slips

Grade boundaries

Results statistics

Post-results services

Exam certificates

All Exams Admin

Assessment Services

Associate Extranet

Become an associate

All About Maths

Stride Maths

News and Insights

AQI research and insight

Inside exams podcast

A-level Business 7132

AS and A-level Business Specifications for first teaching in 2023

PDF | 782.2 KB

1.0 Introduction

1.1 why choose aqa for a-level business, dynamic and engaging content.

We have a long history and proven track record of providing high quality, successful Business qualifications that we have continued to improve through teacher feedback, operational experience and by working closely with universities and the wider academic community. By taking a holistic approach to the subject, we demonstrate the interrelated nature of business using business models, theories and techniques to support analysis of contemporary business issues and situations to provide a dynamic specification. Our content is designed to engage students through topics and issues that are relevant in today’s society – they will study key contemporary developments such as digital technology and business ethics, and globalisation is covered throughout the topics.

Real life skills

Students will develop the knowledge and skills needed to analyse data, think critically about issues and make informed decisions – all skills that are needed for further study and employment.

Assessment success

Our question papers use a variety of assessment styles including multiple choice, short answer, data response, essay and case studies so that students feel more confident and engage with the questions. Real life case studies will be used wherever possible to make it easier for students to relate to and apply their knowledge and skills developed throughout the course.

Teach AS and A-level together

Our AS is fully co-teachable with the first year of A-level, helping you with resourcing and timetabling and providing students with the option to continue studying the full A-level.

Comprehensive support

We offer a comprehensive range of support and resources to support your planning, teaching and assessment of our specification through direct contact with our business subject team, our website, teacher CPD courses and work with publishers. At AQA, we help your students get the results they deserve, from the exam board you can trust. Learn more about all our Business qualifications at aqa.org.uk/business

1.2 Support and resources to help you teach

We know that support and resources are vital for your teaching and that you have limited time to find or develop good quality materials. So we’ve worked with experienced teachers to provide you with a range of resources that will help you confidently plan, teach and prepare for exams.

Teaching resources

We have too many Business resources to list here so visit aqa.org.uk/7132 to see them all. They include:

• flexible sample schemes of work to help you plan for course delivery in your own way
• individual lesson plans on specific topic areas to assist you in providing continuity and progression in teaching
• student textbooks and e-learning materials that have been scrutinised by AQA
• training courses to help you deliver AQA Business qualifications
• subject expertise courses for all teachers, from newly-qualified teachers who are just getting started to experienced teachers looking for fresh inspiration.

Preparing for exams

Visit aqa.org.uk/7707 for everything you need to prepare for our exams, including:

• past papers, mark schemes and examiners’ reports
• sample papers and mark schemes for new courses
• example student answers with examiner commentaries.

Analyse your students' results with Enhanced Results Analysis (ERA)

Find out which questions were the most challenging, how the results compare to previous years and where your students need to improve. ERA, our free online results analysis tool, will help you see where to focus your teaching. Register at aqa.org.uk/era

For information about results, including maintaining standards over time, grade boundaries and our post-results services, visit aqa.org.uk/results

Keep your skills up to date with professional development

Wherever you are in your career, there’s always something new to learn. As well as subject-specific training, we offer a range of courses to help boost your skills:

• improve your teaching skills in areas including differentiation, teaching literacy and meeting Ofsted requirements
• help you prepare for a new role with our leadership and management courses.

You can attend a course at venues around the country, in your school or online – whatever suits your needs and availability. Find out more at coursesandevents.aqa.org.uk

Get help and support

Visit our website for information, guidance, support and resources. aqa.org.uk/7201

You can talk directly to the Business subject team:

E: [email protected]

T: 01483 477 862

Budgets ( Edexcel A Level Business )

Revision note.

The Purpose of Budgets

• The budget is usually closely aligned with the business objectives  

The Reasons for Using Budgets

Types of Budgets

• Budgets are usually set annually and then monitored on a monthly basis
• Businesses may set budgets to monitor the financial performance of any aspect of the business

Historical figure budgets

• Zero based budgeting  
• Budgets are usually based on historical data (e.g sales and costs data from previous years) and allow for factors such as Inflation and other relevant economic indicators (e.g. e xchange rate variations)

Zero based budgeting

• This is particularly useful where a business needs to control costs closely (e.g. to improve profitability)
• It can be time-consuming as evidence to support spending decisions needs to be collected and presented
• Zero budgeting also requires skilled and confident employees to make a persuasive case to convince those making purchasing decisions

Variance Analysis

• A budget variance is a difference between a figure budgeted and the actual figure achieved by the end of the budgetary period (e.g. twelve months)
• Variance analysis seeks to determine the reasons for the differences in the actual figures and budgeted figures
• A favourable variance in a revenue or profit budget is where the actual figure is higher than the budgeted figure
• A favourable variance in a costs budget is where the actual figure is lower than the budgeted figure
• An adverse variance in a revenue or profit budget is where the actual figure is lower than the budgeted figure
• An adverse variance in a costs budget is where the actual figure is higher than the budgeted figure

Worked example

Selected financial information for Bunsens PLC 2022

Using the data, calculate the total profit variance for Bunsen PLC in 2022. You are advised to show your working (4)

Step 1 - Calculate the budgeted profit for 2022

￡12,460 - ￡8,420

= £ 4,040                             (1 mark)

Step 2 - Calculate the actual profit for 2022

￡13,718 - ￡10,627

= ￡3,091                             (1 mark)

Step 3 - Subtract the budgeted profit from the actual profit for 2022

￡3,091 - ￡4,040

= ￡949                             (1 mark)

Step 4 - Identify the nature of the variance

In this case, the variance is adverse because the actual profit for 2022 is lower than the budgeted profit for 2022

The correct answer is ￡949 A                             (1 mark)

Examiner Tip

Although the Bunsen Plc example shows an adverse profit variance, it is worth noting that the company’s actual sales revenue was higher than budgeted. There could be some sales executives in the business that deserve some sincere congratulation!

You may recommend that the business should investigate the reasons for the adverse profit variance. The focus of the examination must be on the higher than budgeted costs rather than this seemingly positive sales performance. You may recommend that Bunsen reviews its supply agreements or that it adopts a zero budgeting approach.

• Where adverse cost variances are identified a business may seek alternative suppliers or investigate ways to improve efficiency
• Where adverse sales variances are identified a business may review its marketing activities to improve their effectiveness
• Where favourable cost variances are identified a business may review key quality indicators such as the volume of returns or wastage levels to ensure that output standards are being met
• Where favourable sales variances occur a business may reward client-facing staff with performance based incentives

Difficulties of Budgeting

• Budgeting requires significant expertise to be of genuine use to a business and there are several difficulties associated with their construction   

The difficulties of budgeting  

• Sources of data must be selected carefully and used with care to ensure the most appropriate assumptions are made
• Those constructing budgets will require skills and relevant experience to do so effectively
• This may involve training or the recruitment of specialist staff
• Unrealistic budgets (over or under) can lead to a lack of motivation amongst those tasked to achieve the financial plan  
• The conflict between budget holders may arise, reducing the effectiveness of the business as a whole

You've read 0 of your 10 free revision notes

Unlock more, it's free, join the 100,000 + students that ❤️ save my exams.

the (exam) results speak for themselves:

Did this page help you?

• Financial Planning
• Managing Finance
• Resource Management
• External Influences
• Business Objectives & Strategy
• Business Growth
• Decision-making Techniques
• Influences on Business Decisions
• Assessing Competitiveness
• Managing Change

Author: Lisa Eades

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Reference Library

Collections

• See what's new
• All Resources
• Student Resources
• Assessment Resources
• Teaching Resources
• CPD Courses
• Livestreams

Study notes, videos, interactive activities and more!

Business news, insights and enrichment

Currated collections of free resources

Browse resources by topic

• All Business Resources

Resource Selections

Currated lists of resources

AQA A Level Business Study Resources for 3.1 - What is Business?

Last updated 16 Oct 2019

• Share on Facebook
• Share on Twitter
• Share by Email

This collection of study resources is designed to support students exploring Section 3.1 (What is Business ) of the AQA A Level Business specification.

MCQ Revision Questions

Paper 1 section a practice mcqs: 3.1 what is business.

Practice Exam Questions

Key Topic Videos

Business objectives (introduction).

Topic Videos

Mission Statements

Business costs, revenue and demand, different forms of business (introduction), limited and unlimited liability, private and public sector organisations, shares, share prices and market capitalisation, pestle analysis, interactive learning activities, 3.1 what is business - clear the deck key term knowledge activity.

Quizzes & Activities

3.1 What is Business - Connection Wall Revision Activity

3.1 what is business - 60 second challenge (knowledge retrieval activity), 3.1 what is business - 3-2-1 challenge (knowledge retrieval activity), 3.1 what is business - key word chop revision activity.

Study Notes

Why Businesses Exist

Business objectives - introduction, mission statements and business objectives, smart objectives, corporate objectives, functional objectives, measurement & importance of profit, different forms of business (overview), unincorporated businesses - sole traders, shareholders and incorporated businesses, shares and shareholdings, not-for-profit organisations, market conditions, real incomes, interest rates, demographic factors, our subjects.

• › Criminology
• › Economics
• › Geography
• › Health & Social Care
• › Psychology
• › Sociology
• › Teaching & learning resources
• › Student revision workshops
• › Online student courses
• › CPD for teachers
• › Livestreams
• › Teaching jobs

Boston House, 214 High Street, Boston Spa, West Yorkshire, LS23 6AD Tel: 01937 848885

• › Contact us
• › Terms of use
• › Privacy & cookies

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.

Skip to content

Get Revising

Join get revising, already a member.

• Business Plans
• Created by: Katherine
• Created on: 07-01-13 14:16

• Business Studies

No comments have yet been made

Similar Business Studies resources:

Business Plans 1.0 / 5 based on 1 rating

BUSS1 - Developing Business Plans 0.0 / 5

Business plan 0.0 / 5

Budgeting 2.0 / 5 based on 1 rating

AS AQA BUSINESS STUDIES UNIT 1>>Business Plans 2.0 / 5 based on 4 ratings

Business key terms 0.0 / 5

Devloping a business plan 0.0 / 5

Business studies - Unit 1 0.0 / 5

Enterprise 0.0 / 5

Budgets 3.0 / 5 based on 1 rating

• Share full article

Advertisement

Supported by

Walgreens Says It Will Close 1,200 Stores

The pharmacy giant said it would close the stores over the next three years and plans to “redeploy” the majority of the workers at the closed stores.

By Amanda Holpuch

Walgreens plans to close about 1,200 stores over the next three years, its parent company said on Tuesday, in an effort by the struggling pharmacy giant to cut costs and change focus.

The chain, which is owned by Walgreens Boots Alliance, announced the closures in its latest quarterly earnings report, released on Tuesday.

The closures will allow Walgreens to “respond more dynamically to shifts in consumer behavior and buying preferences,” Tim Wentworth, the chief executive of Walgreens Boots Alliance, told investors during an earnings call on Tuesday.

There are more than 8,000 Walgreens stores in the United States, Mr. Wentworth said, and about 6,000 of those stores were profitable.

“While the decision to close the store is never an easy one, we feel confident in our ability to continue to serve our customers,” Mr. Wentworth said, “and we intend to follow our historic practice to redeploy the majority of the work force in those stores that we closed.”

About 500 of the closures will take place in the current fiscal year, which runs through September 2025, but the company did not say where they would occur.

The company reported an operating loss of nearly $1 billion in the three months through August, roughly twice as much as the loss in the same period last year. Its stock price jumped more than 10 percent in early trading on Tuesday, as the results were slightly better than analysts had expected.

Walgreens said in June that it would most likely close a significant amount of stores as part of a plan to turn around its business in the United States. At the time, Walgreens said spending by lower-income consumers in particular was lagging, driven by high inflation and depleted savings. The closures announced on Tuesday include 300 stores that had previously been approved to shut under that plan.

Mr. Wentworth said that the company was also making changes to how it stocks its stores, by being “more selective” with the brands it carries, as well as expanding its own brands. This, he said, would enable the company to be “a destination for categories for which we believe we are uniquely positioned to lead, like health and wellness and, specifically, women’s health .”

Amanda Holpuch covers breaking news and other topics. More about Amanda Holpuch

I'm on track to retire at 45. I started my career earning only $26,000 and followed this 4-phase plan.

• Annie Cole left her VP role to focus on family and launch a financial coaching business.
• Cole transitioned from a $26,000 salary to planning to retire at 45 through four phases.
• Her strategy includes mindset shifts, providing value, investing, and diversifying income sources.

This as-told-to essay is based on a conversation with Annie Cole, the 35-year-old founder of Money Essentials for Women in Vancouver, Washington. It has been edited for length and clarity.

In 2012, I got my first job out of college as a social worker , earning $26,000. After two years of emotionally hard work, I pivoted into education.

I started working in a university's student academic resource center, helping first-year and at-risk students navigate the college experience. Two years later, I was promoted into an academic advising role.

Next, I worked as a research coordinator until I finished my EdD program and got a research analyst job with a global ed-tech nonprofit. I loved and excelled at my work, and I received two executive promotions and several raises.

Still, this year felt like the perfect time to step away from my VP role and make two big moves: spend more time with my family and launch my own business. It was scary, but I knew I was ready.

I moved into a part-time consulting role for my old company and went all-in on building out my financial coaching business, Money Essentials for Women .

I've set myself up to retire at age 45 in 10 years, but transitioning from a $26,000 salary to an early retirement plan came in phases.

Phase 1: Changing my money mindset

When I was about to finish my EdD program, I started searching for jobs, and something clicked. I was only making $32,000. I opened up Indeed and set my filters for jobs that paid $40,000, which seemed like a reasonable salary increase.

Then I had this thought pop into my mind: What if you just went for something bigger? What about $60,000? I only applied for higher-paying jobs, and within a few months, I got a research analyst job with a $60,000 salary.

I got nearly a $30,000 salary jump just because I changed my mind about my worth.

Related stories

Phase 2: learning how to provide massive value.

Getting promoted isn't just handed to you — it's truly earned. Sometimes, I just wanted a clear job description, to show up to do that job, then go home and not think about work. I received my promotions because I didn't just show up and want to be told what to do.

I showed up daily and asked myself, How can I help this company reach its biggest strategic goals quicker and more efficiently? How can I directly contribute to those goals every day?

It takes grit, forward-thinking, and hard work to help a new company grow, and I was up for the challenge. The more value I provided to the company, the more I was rewarded with promotions and raises.

Phase 3: Investing

I always invested in my retirement account, even when making $26,000. Once I started making more money, I became aggressive with my investment goals.

I started reading personal finance books and following financial influencers online, and I slowly learned everything from how the stock market worked to different retirement and investment accounts.

I invested in my traditional retirement account, a Roth IRA , and a brokerage account. I kept my budget as minimal as possible to focus on front-loading my investment accounts while I was young.

My husband and I also added our first real-estate investment in 2023, which simultaneously gives us rental income and home market value growth.

Phase 4: Thinking beyond the 9-to-5

Trading my time for money is great, but it will always be limited. I'm setting up additional income sources to make money when I'm not actively working on them.

I just launched a two-week online program for my financial coaching business that women can go through asynchronously. I also recently wrote an ebook I sell for $24.99 that captures all of my best tips in one place.

This year, I'll make about $60,000 from real estate rental income, $130,000 from consulting and coaching work, and about $30,000 in investment account growth.

I have $345,000 invested right now

I'll focus heavily on investing over the next 10 years (about $45,000 annually) and expect a 10% annual growth rate. When I turn 45, I'll have over $1.6 million.

Using the 4% rule would give me just under $65,000 to live on annually when I retire, which is higher than my budget now.

The above is based on my investment portfolio, which doesn't consider my real-estate investment property, the equity in my primary residence, and continued income from my business's online courses and books that will still pay me after I'm 45.

Here's what I'm doing to ensure the plan works

The traditional definition of retirement is when you quit working for good and live off your investments and savings. Most recently, though, the FIRE movement (Financial Independence, Retire Early) has expanded this definition.

Now, you might "retire" from your full-time job in your 50s but keep a 10-hour-per-week job at Starbucks to supplement your income (this is called Barista FIRE, where you work part-time into retirement).

I aim for a traditional retirement when I reach 45. I'm open to the possibility that I might want to keep running my own business by then. For me, it's all about having options.

I do these three things consistently to make sure I stay on track:

• I use a personal financial tracker every single month to track my spending, income, and investments. I built my tracker years ago because I couldn't find one that met my needs online.
• I know exactly how much I need to save, spend, and invest to reach my goals, and I stay on track with my commitments. I used to think investing so much would feel depriving, but I don't miss that money. I fill my days with things that are fulfilling and free or low-cost.
• I'm not afraid to adjust as life happens. If a trip or a chance to throw a party for my best friend's engagement comes up, I will go for it. Life is too precious not to take advantage of those special moments.

You don't have to make a lot of money to invest enough to retire early

Setting aside even the tiniest amount of money can seem like a waste of time when the alternative is to spend it now on a new shirt, better groceries, or toys for your kids.

If you start making more money, it's just as hard. Lifestyle creep is real, and you'll probably find other things to spend your money on, no matter how much you make.

The best way to invest more is to envision how that will benefit you and your loved ones. Every time I invest, I know I'm giving my future self a gift. I'm multiplying every single dollar I worked so hard to earn.

Even in my 30s, I'm already reaping the rewards and seeing my account grow beyond six figures. Every investment is worth it, no matter how small.

Want to share your early retirement story? Email Lauryn Haas at [email protected].

Watch: 6 simple investing tips for beginners

• Main content