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10 disclaimer examples.

What is a Disclaimer Statement?

They can also be used to limit an individual’s liability when sharing tips or opinions. Some disclaimers are required by law, while others are just a good idea to prevent lawsuits or disputes. You can also create a funny email disclaimer if you don’t want to take yourself seriously.

How do I Write a Disclaimer?

Customizing your disclaimer.

Customizing Your Disclaimer is a critical step in ensuring that your disclaimer effectively addresses the specific risks and operations of your business. A one-size-fits-all approach is rarely sufficient. Tailor your disclaimer to reflect the unique aspects of your products, services, and customer interactions.

Types of Disclaimer

Legal considerations for disclaimers.

Legal Considerations for Disclaimers should not be overlooked. While disclaimers are a vital tool for mitigating liability, their legal effectiveness can vary. Courts will consider the clarity, visibility, and reasonableness of a disclaimer when determining its enforceability.

10 Disclaimer Statement Examples

1. testimonial disclaimer.

A testimonial disclaimer specifies that the experiences or results shared in a testimonial are not guaranteed. A disclaimer protects the business from unhappy clients who may believe they were promised certain results.

2. Affiliate Disclaimer

3. trademark disclaimer, 4. copyright disclaimer, 5. views expressed disclaimer.

A views expressed disclaimer is often used when an individual or group shares opinions within a forum associated with a business. Many organizations require or encourage employees to use these disclaimers when sharing views online.

6. Warranty Disclaimer

7. fair use disclaimer, 8. errors and omissions disclaimer, 9. past performance disclaimer, 10. legal disclaimer.

Sharing legal advice online can open you up to lawsuits. This disclaimer states that your content is for general informational purposes so you cannot be held responsible.

Disclaimer Template

Every business needs a disclaimer to protect itself from potential liabilities and to set clear expectations for its users. While each disclaimer should be tailored to the specific business and its offerings, using a template can serve as a helpful starting point. Here’s a more comprehensive outline you can customize to suit your needs:

Do I need a disclaimer?

Where do i put my disclaimer.

For a disclaimer to be legally viable, it must be visible to users. Many businesses put them in their website footer, a separate page, product pages, or in their terms and conditions agreement.

Updating Your Disclaimer

Far from being just simple statements, disclaimers serve as a crucial shield against legal liabilities and play a vital role in protecting your business’s interests.

While templates and generator tools offer a starting point, personalizing your disclaimer to fit your business’s unique context is key. This customization ensures that the disclaimer resonates with your specific operations and adequately addresses your liability concerns.

Sample Disclaimer Template and Examples

If you are visiting this page, you likely want to know how to legally protect yourself and your business from liability risks. To help you do so, we’ve come up with a generic disclaimer template to get you started, as well as some great examples of different types of commonly used disclaimers.

Table of Contents

PRO TIP: Take the hassle of writing your own disclaimer away with our disclaimer generator trusted by over 200,000 businesses. It’ll save you hours of work and possible costly legal mistakes.

Sample Disclaimer Template

A disclaimer is a notice that appears on a blog, website, document, or product to provide a warning to your users and to limit your liability when it comes to specific aspects of your business.

This generic disclaimer template will help you understand how to form a legal agreement. Keep in mind that this is just an example disclaimer template and does not cover many of the important topics.

Disclaimer Examples

Here are 15 disclaimer examples from different industries and website types to give give you a better idea of what kind of clauses your own disclaimer has to include.

Fair Use Disclaimer

The law has made it acceptable, under very specific circumstances and for very specific purposes only, for one to use someone else’s copyrighted work without first requiring their consent.

The following purposes are explicitly considered to be “fair use” under Title 17, Section 107 of the United States Code and thus should not be considered copyright infringement:

• News reporting
• Scholarship

Fair use is not limited to the above and is to be considered on a case-by-case basis.

Here is an example of a fair use disclaimer from  CUInsight , a website for the credit union community, that notably has a news section and a blog:

CUInsight’s website fair use policy specifies that the copyrighted material made available is in the effort of advancing the understanding of the credit union industry and issues.

If you are summarizing or quoting someone else’s work,  including a fair use disclaimer  on your website could protect you from being accused of copyright infringement, as you are recognizing and informing your readers that the text quoted is not your own words and that you consider said use to be fair.

Copyright Disclaimer Notice

Conversely, a  copyright disclaimer  is used to protect the ownership of your work; you would include it on your website to warn users that the content materials are your property and should not be reproduced without your authorization.

Your copyright notice doesn’t have to be very long, as long as it contains:

• The copyright symbol
• The name of your company/owner of the copyrighted work
• The year of publication
• The mention “All Rights Reserved” or “Some Rights Reserved”, depending on which rights you wish to retain

For example, here is a screenshot of  Hootsuite ’s copyright disclaimer notice:

This is the simple copyright statement that appears on the social media management platform Hootsuite’s homepage.

While having such a disclaimer is generally not essential for your work to be protected by copyright, it is an easy step to take to put everyone on notice that the content of your website is proprietary and should not be used without your permission.

Affiliate Disclaimer

It is essential that you let your website visitors know that you may receive financial compensation if they choose to use one of your affiliate links; it is actually legally required by the  Federal Trade Commission (FTC)  in the United States.

An affiliate disclosure statement should clearly indicate the nature of your relationship with the brand/product that you are promoting or endorsing and it should stand out to your readers.

Here is a short but easy-to-understand affiliate disclaimer example from a  DigitalMarketer  blog post:

DigitalMarketer’s affiliate disclosure statement appears at the top of their blog post, which recommends must-read books for marketers.

And here is a longer sample affiliate disclaimer from popular blog  WellnessMama , which appears on a dedicated page on the website and specifically mentions the FTC and Amazon:

In addition to the above statement, WellnessMama also discloses her affiliate relationship in each one of her blog posts.

In addition to the above, you should always check the requirements of the affiliate program that you are working with as some, such as the  Amazon Associates program ,  have stricter requirements  and  preferred wording  that should be used by their affiliates.

Financial and Investment Disclaimer

If you are sharing any kind of financial information on your website, you should consider having a financial and investment disclaimer.

Indeed, this will warn your website visitors that you cannot be held liable for the financial or investment decisions that they make as a result of consuming your content. It also warns them that the information that you are sharing does not constitute financial advice and is for educational or informational purposes only.

Here is an example from advisory firm  Harrington Investments, Inc. :

This “no investment advice” disclaimer specifies that the content provided on Harrington Investment’s website does not constitute financial or professional advice.

And from cryptocurrency tracking tool  CoinMarketCap :

CoinMarketCap’s disclaimer addresses the accuracy of the information provided and encourages website users to do their own research before making any investment decisions.

Considering the volatility of the stock market and the financial industry as a whole, this type of disclaimer is a must to avoid being held liable should one of your website users make poor investment decisions based on an article that they read on your blog.

Health and Medical Disclaimer

Similar to the financial and investment disclaimer above, a health and medical disclaimer is used to warn your readers that the information provided on your website is not to be taken as professional medical advice and is for educational purposes only.

With most of us now looking up our symptoms online before seeking medical advice, having such a disclaimer should be standard on any website sharing medical information. After all, even if the information provided is correct, it cannot replace a doctor as every person has a unique health history that should be taken into account.

Online publishers of medical information, such as the ever-popular WebMD, have them, as do hospitals that have an online presence such as  St. Joseph’s Healthcare Hamilton :

St. Joseph’s Healthcare Hamilton’s disclaimer specifies that the information provided does not create a doctor-patient relationship.

This also goes for anyone offering health-related advice, such as fitness or lifestyle professionals. Motivational speaker  Tony Robbins  has a health disclaimer on his website:

Tony Robbins shares information regarding mental health, such as how to deal with anxiety and depression, on his website, which is why it is wise for him to have such a disclaimer.

And  MelissaWoodHealth , who offers online pilates training through her website, includes the following fitness disclaimer:

MelissaWoodHealth’s disclaimer encourages users to seek professional advice before starting a new fitness program and emphasizes that by doing her workouts, you are doing so at your own risk.

Legal Disclaimer

Any website sharing legal-related news, content, or advice should have a legal disclaimer in place that specifies that the information provided is for informational purposes only and does not create a lawyer-client relationship.

Here is a sample legal disclaimer from  Dentons , one of the world’s largest law firms:

This is part of Denton’s terms of use, which also include various other disclaimers and limitations of liability.

Video and YouTube Disclaimer

A YouTube channel, like a blog, is a great way for a business to share information with potential customers. However, the fact that it’s in video format doesn’t protect you from a lawsuit: you still need to include the  proper disclaimers in your videos  and on your channel as your words do carry weight.

You need to assume that people could act upon the information contained in your videos so, depending on what you are sharing with your viewers, you may want to add one of the following disclaimers (this list is non-exhaustive, these are just common examples):

• Use at your own risk
• Affiliate disclosure
• Professional liability (medical, legal, health and fitness)
• No responsibility disclaimer
• Copyright disclaimer

You could include these disclaimers in the first few seconds of your video or in its description.

Here is a screenshot from  ClearValue Tax  Preparation’s YouTube Channel – their accountant, Brian Kim, is particularly active on the platform and their channel now has over 815K subscribers:

This is the disclaimer that appears on their YouTube channel’s “About” page, which they also include in part in each one of their video descriptions.

Views Expressed Disclaimer

A “views expressed” disclaimer is used to notify your readers that the views expressed on your website are yours, and yours only, and not those of any employer or organization that you are affiliated to.

This type of disclaimer is also frequently used on social media, especially on LinkedIn, when an employee wants to make it clear that the comments that they make or the posts that they share are not endorsed by their employer, even though it may be on a topic that is related to their professional field of expertise.

Here is a “views expressed” disclaimer from the  American Bar Association  (ABA), as multiple lawyers and members contribute to their website content:

This “views expressed” disclaimer on the ABA’s website makes it clear that the lawyers that contribute to the platform do so in their individual capacity, and not as employees of the law firms that employ them.

Having such a disclaimer is also essential if you own a website on which readers or other third parties share their opinions on a subject or review products.

For example, here is a “views expressed” disclaimer for user-generated content that can be found in  The Guardian ’s terms of service:

The Guardian’s terms and conditions of use make it clear that they do not necessarily endorse the views and opinions expressed by its readers.

While this does not make it acceptable to write just anything online, at least your opinions will not be wrongly attributed to someone else, which could have devastating consequences.

No Responsibility Disclaimer

A “no responsibility” disclaimer (also known as a “liability disclaimer”) serves to protect your business from  being held liable or responsible  for damages that could arise from someone consuming content on your website or following links to third-party websites that you share.

Here is an example of a disclaimer of liability from  Nanyang Technical University  in Singapore:

Nanyang Technical University’s liability disclaimer addresses content on their website as well as to websites that they link to.

No Guarantee Disclaimer

A no guarantee disclaimer serves to warn your website visitors that, while you are doing your best to ensure the accuracy of the content that you publish, you cannot provide a guarantee for it and, thus, cannot be held responsible for incorrect information and the consequences that could arise from acting upon it.

By way of example, here is a no guarantee disclaimer that appears on the  Tennessee Department of Environment and Conservation  website:

While the department makes this list available to its constituents to make financial assurance requirements more intelligible, it does not guarantee the validity of the information.

This type of disclaimer can often be found on websites owned by an organization or people who share their expertise or knowledge on a specific subject, especially if the topic is complex or ever-evolving.

Trademark Disclaimer

A trademark disclaimer should be displayed on your website if you are using another company’s registered trademark. This could be the case if you are talking about a brand in a blog post and include their trademarked logo, for example. Or if you are selling products from various brands and include their company logo on the product description page.

Native Instruments , a leader in digital music production, display the following disclaimer on its website:

This disclaimer is followed by a list of all the registered trademarks used on their website as well as the names of the companies that own them, which clears up any confusion for their users.

By including a trademark disclaimer, you will be making it clear to your website visitors that you are referring to a registered trademark that is not yours, which could help protect you against a trademark infringement complaint.

Confidentiality Disclaimer

Confidentiality disclaimers often appear in the footer of an email, after the signature block. They are used by most companies that exchange sensitive or confidential information over email with the goal of limiting their liability should the email end up in the wrong hands.

Here is a very detailed email disclaimer used by  Sevocomm , a global telecommunication company,

This confidentiality disclaimer by Sevocomm is displayed on their website; one can imagine that the disclaimer in their employees’ email signatures is a condensed version of the above.

Confidentiality disclaimers can be general or more specific, depending on the nature of your business.

Past Performance Disclaimer

Past performance disclaimers are notably used by financial institutions, investment firms, and trading platforms to warn potential and current clients that past performance does not guarantee any future results: this is due to the volatile nature of the financial markets.

It serves to protect them from lawsuits brought on by disappointed clients that were expecting a good return on investment or specific results.

Here is the past performance disclaimer that appears on  Wealthsimple ’s website:

Wealthsimple’s past performance disclaimer refers to its investment risk disclosure, which summarizes the risks of investing in various financial products.

Zero commission stock-trading platform  Robinhood  includes this text in their website footer:

This past performance disclaimer addresses the risk inherent to investing in securities and encourages investors to think about their objectives before getting started.

Testimonial Disclaimer

Having raving customer reviews and testimonials on your website or social media profiles can be a great way to attract new business however, you must ensure that you have the proper disclaimer.

IdealShape is a company that sells meal replacement shakes, bars, and supplements that promote weight loss; it uses testimonials and success stories on its websites to promote its products. Here is its testimonial disclaimer:

IdealShape’s testimonial disclaimer mentions that some people may have received compensation in exchange for their testimonials, in the form of free products or discounts.

A testimonial disclaimer is essential if you want to comply with applicable laws. It should mention that your previous customers’ experience does not guarantee that any future user will have the same results and, if the individual received any kind of compensation for the review, it should be clearly disclosed.

“As Is” and No Warranty Disclaimer

Frequently included in website terms and conditions, an “as is” or no warranty disclaimer warns users that by choosing to use your website, software, or product, they are assuming the inherent risks. It also underlines that you are not making any guarantees other than what is expressly provided for.

Kayako  is a customer service and help desk software provider. Here is the disclaimer of warranties that is part of their terms and conditions:

Kayako’s disclaimer of warranties specifically mentions the risks inherent to Internet connectivity, which could potentially have consequences for which they disclaim liability.

Twitter ’s terms of service also include an “as-is” disclaimer:

Twitter’s no warranty disclaimer is detailed and specifically mentions the situations or events in which they disclaim liability.

Your no warranty disclaimer should be hard to miss for your users, as they have to be made aware that such a clause exists before choosing to do business with you or use your software or website.

How do I Write a Disclaimer?

A disclaimer is an important piece of the puzzle when you are assembling a website. Will a good disclaimer completely protect you against any possible legal action? No, there is nothing you can do to prevent possible legal action.

However, a valid disclaimer is a great way to protect yourself against many different claims of liability. As long as your disclaimer is well-written and relevant to your site, it will play an important role in the legal side of your business.

Simply copying and pasting a disclaimer from another website is not a good idea, you need to have one that is tailored to the needs and requirements of your business.

Use our  online generator  to come up with an attorney-drafted disclaimer based on your specific needs and requirements. It’s fast, simple, and reliable.

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10 Disclaimer Examples to Help You Stay on the Right Side of the Law (Updated 2023)

By Jimmy Marshall

Last updated on February 24, 2023

One of the best ways of getting to grips with the functions and applications of disclaimers is to consult a variety of disclaimer examples. Particularly if you plan on publishing any disclaimers personally, consulting approved disclaimer examples beforehand is the way to go.

But what is a disclaimer and where should disclaimers be used? Is it ever advisable to use an automated disclaimer generator, or is it better to learn how to write a disclaimer manually?

While disclaimers exist in a wide variety of forms, their basic purpose is usually the same. Whether it’s an important legal disclaimer or an everyday website/blog disclaimer, its purpose is to deny something and/or deny responsibility for something.

Protecting yourself and your interests from potential legal repercussions means knowing when, where, and how to use disclaimers appropriately.

What is a Disclaimer?

A disclaimer is a statement that limits your liability and is usually found on websites or apps. It can be used to protect you from any legal action that a visitor may take against you, by outlining the limits of what they can expect from using your website or app.

If you need a disclaimer, it’s important to make sure it covers all the potential liabilities of your business. This could include anything from giving advice to selling products, and even disclaiming warranties. Having a disclaimer in place will help protect you and your business if any legal issues arise.

It’s always best practice to use a disclaimer on any website or app that deals with sensitive information, as it helps to limit your liability should something go wrong.

Why is it Important to Have a Disclaimer?

It is important for small businesses to have a disclaimer in order to protect themselves from errors and omissions. A disclaimer helps inform users of any potential risks or liabilities associated with the product or service being provided by the business.

Having a disclaimer ensures that the business is not held liable for any damages resulting from products or services provided by them. Without a disclaimer, businesses could face costly legal action if something goes wrong, so it’s essential to create one as soon as possible.

Disclaimers also protect businesses from copyright infringement, so it’s important to ensure that your website or product has proper permission to use any images or content taken from other sources.

In conclusion, having a disclaimer is an important step in protecting your small business and informing users of potential risks associated with their purchase.

Free Disclaimer Generator?

Generate a disclaimer to comply with any legal or third-party requirements using this free disclaimer generator.

10 Popular Disclaimer Examples to Inspire You

The exact content and coverage of any given disclaimer will usually be 100% unique. However, the vast majority of disclaimers fall within one of the following categories:

Affiliate Disclaimer

Copyright disclaimer, fair use disclaimer.

• Confidentiality Disclaimer (for Emails)

Warranty Disclaimer

• No Responsibility Disclaimer (Liability Disclaimer)

Views Expressed Disclaimer

Investment disclaimer, no guarantee disclaimer, past performance disclaimer.

While it’s perfectly possible for there to be a degree of overlap between one or more disclaimer types, it is vital to understand how each type of disclaimer works and which meets your requirements. In addition, ensuring the content of the disclaimer is clear, concise, and unambiguous is also essential.

Let’s take a closer look at some of the most common types of disclaimers in a little more detail:

The FTC (and most good affiliate programs) requires that anyone taking part in an affiliate scheme publishes an acceptable affiliate disclaimer. At its core, an affiliate disclaimer is simply used to inform people that you are taking part in an affiliate program and stand to earn money by doing so.

An affiliate disclaimer will typically indicate that while the information and advice provided by the entity in question are predominantly objective, there may be a degree of bias due to their money-making intent.

Here’s an example of a concise affiliate statement from Amazon to illustrate the content you’re looking for:

Typically the most concise of all disclaimers, a copyright disclaimer – aka a copyright notice – simply lets others know that the material they are accessing belongs to you. A copyright notice will typically include the name of the author, the year of the copyright, the internationally recognized copyright symbol and an indication of reservation of rights.

All such information will usually be presented in a concise ‘bar’ at the bottom of the page, though must be prominent enough to be visible. Here’s an example of a copyright disclaimer:

Anyone who intends to use the work of someone else without their direct permission may need to include a fair use disclaimer, which can prevent legal action from being taken against them.

‘Fair use’ refers to the use, citation, or incorporation of another author’s work to an extent that doesn’t contribute to copyright infringement or plagiarism. For example, the content may have been used by a third party for commentary purposes, teaching, researching, news reporting, and so on.

A common example of ‘fair use’ in practice is a movie review that includes clips from the film, or the use of extracts from a copyrighted book during an English language lesson.

Here’s a fair use disclaimer used by several YouTube Channel:

Confidentiality Disclaimer

Confidentiality disclaimers are usually part of the signature line in an email, which subsequently ensures that it appears in every email communication. These email disclaimers are used to inform the recipient that the content of the email is confidential in nature and must not be shared in full or in part with anyone else.

In addition, email disclaimers can sometimes be used to warn recipients of potential computer viruses and other security risks, thus limiting the liability of the sender in the case of such scenarios.

A typical confidentiality disclaimer used in an e-mail signature line is as follows (from Fasanara Capital):

As the name suggests, a warranty disclaimer is effectively the opposite of a conventional warranty. Where issued, a warranty disclaimer informs the receiver of the product or service the provider does not offer any promises or guarantees, typically in relation to the quality, dissatisfaction, and so on.

However, all sellers and service providers are bound by certain national and international rules regarding minimum quality and safety levels for products and services offered. Therefore, a warranty disclaimer cannot be used to sidestep all responsibility on the part of the seller or service provider.

This is how Amazon words its warranty disclaimer:

No Responsibility Disclaimer

Also referred to as a disclaimer of liability, a no-responsibility disclaimer offers protection from potential repercussions in a variety of scenarios. In simple terms, to take a position of ‘no responsibility’ is to accept no liability for the consequences that may occur, due to the use of the information or resources provided on your website (as an example).

This kind of disclaimer is used to inform people that if they take any given action, they take full responsibility for the potential consequences. Most websites feature one or more no-responsibility disclaimers, as online information and resources can be interpreted and acted upon in an infinite variety of ways.

Here’s the current no-responsibility disclaimer from BCS:

One of the most important disclaimers for use in forums, blogs, and other online and offline publications, a ‘views expressed’ disclaimer distances the author or business from the content published.

The disclaimer informs readers that the content published (which may include guest posts, comments, replies, third-party entries etc.) in no way conveys the thoughts, sentiments or intents of the author, the website, or the business. This ensures that in the event any questionable or controversial content is published, the author/website is not held liable for the consequences.

Here’s a simple yet effective example of a views-expressed disclaimer:

Specifically, it is used to inform the reader that the author is not a qualified financial adviser, investment specialist, dealer, or broker and that they cannot and will not guarantee the accuracy or completeness of the information they provide.

As a result, the reader accepts complete liability for the consequences that may arise, due to their use or interpretation of the information published.

A good example of an effective investment disclaimer from SilverBarter:

Again, this means that irrespective of the outcome, the author or website accepts no liability or responsibility for the consequences. It is implied that the information/content is provided simply for reference purposes, rather than viable or valid advice to be followed.

Wikipedia has a simple yet effective no-guarantee disclaimer in place, which reads as follows:

Last up, the ‘past performance’ disclaimer is used to advise readers that future results can in no way be attributed to past performance. Hence, irrespective of the strong and successful past performance of any activity or entity, this doesn’t guarantee similar results in the future.

Past performance disclaimers are used to inform readers that in the event that they make decisions based on past performance alone, they accept full responsibility for the outcome. They are warned that such assumptions are neither advisable nor condoned by the author, therefore should be avoided.

Here’s how Maple Leaf Funds issues its past performance disclaimer:

What to Include in an Effective Disclaimer

An effective disclaimer should include a description of the limitations of the product or service being offered, as well as any potential liabilities that may arise from its use.

It should also provide a statement of warranty, and explain any disclaimers related to performance, availability, accuracy, and merchantability.

Additionally, it should list any conditions that must be met before using the product or service in question. Lastly, the disclaimer should set out the rights of all parties involved in using and accessing the product or service.

A good disclaimer will help protect both parties and ensure that their rights are respected. To help you, check out this list of important clauses to add to your disclaimer.

Limitation of Liability

A disclaimer that states that your business is not responsible or liable for any damage or loss caused by the use of your website content are a must.

This is a key component to protecting your business. You should include a disclaimer on your disclaimer page that limits your liability in case you are sued for something that occurred from the use of your website content.

Indemnification Clause

You should also include an indemnification clause in your disclaimer. This clause should state that your business is not responsible for any claims, costs, or damages that arise from the use of your website content.

It should provide protection for you in the event that a customer or other third party files a lawsuit against your business because of something related to the use of your website content.

Exclusion of Warranties

You should also include an exclusion of warranties in your disclaimer. This means that your business is not responsible for any warranties, expressed or implied, regarding the use of your website content.

This serves to protect you in the event that a customer or other third party makes a claim against your business due to a malfunction or error in the use of your website content.

Choice of Law

You should also include a choice of law clause in your disclaimer. This clause should state which jurisdiction’s laws will be used to settle any disputes that arise from the use of your website content. This is important to protecting your business from being sued in a jurisdiction that does not have the same laws as your business. 

Severability Clause

Lastly, you should include a severability clause in your disclaimer. This clause should state that if any part of your disclaimer is found to be unenforceable, the remaining parts of the disclaimer shall remain in effect.

This is important to protect your business from having the whole disclaimer ruled invalid if one part of it is found to be unenforceable.

When deciding which type of disclaimer you need, it is important to consider these components and make sure that you have all of them included in order to effectively protect your business.

By understanding the content of each component and how it applies to your business, you can create a disclaimer that will help protect your business from any legal issues that may arise.

How to Write an Effective Disclaimer 

A website disclaimer is one of the most important legal documents for any online business or website. It can help protect the site and its owners from potential legal issues arising from the content or activities on their website.

To write an effective disclaimer, it should be written in plain language so that anyone visiting the site can understand it, include a clear statement on the limits of liability, mention any applicable laws that may govern the site’s activities, and clearly identify who owns or is responsible for the website.

Additionally, disclaimers should be visible on every page of a website in order to maximize their effectiveness. By following these steps and making sure to keep your disclaimers up-to-date with any changes that occur in your business, you can ensure that your website has an effective disclaimer.

Understand Your Business

Before you can begin writing an effective disclaimer, it is important to understand your business and the types of risks it may face. Consider the products or services that you offer and the potential liabilities that they may create. Research common disclaimers in your industry to get a better understanding of what types of risks should be addressed in your disclaimer.

Consult with a Lawyer

Legal disclaimers can be complex, so it is important to consult with a lawyer to make sure that your disclaimer is accurate and legally binding. A lawyer can help you create a disclaimer that meets the legal requirements in your jurisdiction and is tailored to the needs of your business. 

Consider Your Audience

When writing your disclaimer, consider the needs of your audience. Your disclaimer should be easy to understand and written in plain language. Avoid using technical legal terms so that they can be understood by all readers. 

Write in Plain Language

When writing your disclaimer, it is important to use plain language. This means avoiding technical legal terms and using straightforward language that is easy to understand. Use simple words and sentences and avoid making assumptions about the reader’s knowledge. 

Use Clear Formatting

The formatting of your disclaimer is just as important as the content. Use clear formattings such as headings, bullet points, and white space to make the disclaimer easier to read and understand. Place a disclaimer statement at the beginning of the document so that readers can quickly identify it. 

Your disclaimer should state that the information contained in your product or service is for informational purposes only and should not be interpreted as legal advice.

It should also state that you do not assume any responsibility for any omissions or errors in the information you provide. Furthermore, you should include a disclaimer to protect yourself from any potential liabilities that may arise from the use of your product or service.

Additionally, you should include a disclaimer to limit your liability for any damages that may arise from the use of your product or service. Finally, you should disclaim all warranties, including implied warranties, regarding the accuracy and reliability of the information contained in your product or service.

It should also be noted that the information contained in your product or service may also be used for other purposes without your consent.

Final Thoughts

As a business owner, having a disclaimer on your website is essential to protect yourself from potential legal issues. The disclaimer should include information on the privacy policy and terms and conditions of using the content on your website.

It is important to update this information regularly as laws change and new risks arise. Additionally, it should be easily accessible for visitors to understand what they are agreeing to when accessing your website.

Overall, having a clear and updated disclaimer is an important part of protecting both you and your customers from any potential legal issues that could arise from the use of your website’s content.

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AI Generator

A disclaimer is a crucial component of any project , providing clarity and mitigating legal risks. It serves as a preemptive shield, clarifying the scope and limitations of information or services offered. In the context of positive feedback or reviews, disclaimers underscore transparency by acknowledging that individual experiences may vary. They ensure that accolades or testimonials don’t imply guaranteed outcomes for all users. Through disclaimers, projects uphold integrity, encourage honest discourse, and foster trust by setting realistic expectations amidst the landscape of positivity.

What is Disclaimer?

A disclaimer is a statement intended to limit or exclude legal liability or responsibility for certain actions, situations, or information provided, often used to mitigate risks or clarify terms.

Disclaimer Examples

1. general website disclaimer.

“The information provided on this website is for general informational purposes only. All information on the site is provided in good faith; however, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on the site.”

2. Medical Disclaimer

“This website does not provide medical advice. The information, including but not limited to text, graphics, images, and other material contained on this site, is for informational purposes only. No material on this site is intended to be a substitute for professional medical advice, diagnosis, or treatment.”

3. Financial Disclaimer

“All information provided on this website is for educational purposes only and does not constitute financial advice. You should consult with a qualified financial advisor before making any investment decisions.”

4. Affiliate Disclaimer

“Some of the links on this website are affiliate links, meaning, at no additional cost to you, we will earn a commission if you click through and make a purchase. Our recommendations are based on our research and experience.”

5. Product Disclaimer

“The products and services sold on this website are provided ‘as is’ without any warranties or guarantees. We do not warrant that the products will meet your requirements or that the performance of the products will be uninterrupted or error-free.”

6. Legal Disclaimer

“The information provided on this website is not intended to be legal advice and does not create an attorney-client relationship. For legal advice, please consult a qualified attorney.”

7. Earnings Disclaimer

“Any earnings or income statements, or examples of earnings or income, are only estimates of what we think you could earn. There is no assurance you will do as well as stated in any examples.”

8. Testimonial Disclaimer

“Testimonials appearing on this site are received via text, a, or video submission. They are individual experiences, reflecting real-life experiences of those who have used our products and/or services in some way. However, they are individual results and results do vary.”

9. Copyright Disclaimer

“All content on this website, including text, graphics, logos, icons, and images, is the property of [Company Name] or its content suppliers and is protected by international copyright laws. Unauthorized use of any materials on this site is prohibited.”

10. Content Disclaimer

“The views and opinions expressed on this website are those of the authors and do not necessarily reflect the official policy or position of any other agency, organization, employer, or company.”

11. External Links Disclaimer

“This website may contain links to external websites that are not provided or maintained by or in any way affiliated with [Company Name]. Please note that we do not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites.”

12. Social Media Disclaimer

“The opinions expressed by our employees or agents on social media are their own and do not reflect the opinions of [Company Name]. We are not responsible for the accuracy or completeness of any content posted by our employees or agents on social media.”

13. Blog Disclaimer

“The content of this blog is for informational purposes only and does not constitute professional advice. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.”

14. Service Disclaimer

“We strive to ensure that our services are reliable and of high quality. However, we do not guarantee that our services will always be available or uninterrupted, or that they will meet your requirements or expectations.”

15. Educational Disclaimer

“The information contained in our courses and educational materials is for educational purposes only and should not be construed as professional advice. Participants are encouraged to consult with professionals for specific advice.”

16. Health and Fitness Disclaimer

“This website offers health, fitness, and nutritional information and is designed for educational purposes only. You should not rely on this information as a substitute for professional medical advice, diagnosis, or treatment.”

17. Opinion Disclaimer

“The opinions expressed on this website are those of the authors. They do not purport to reflect the opinions or views of [Company Name] or its members.”

18. Software Disclaimer

“The software provided on this site is distributed ‘as is’ and without warranties of any kind, either express or implied. Use of the software is at your own risk.”

19. Environmental Disclaimer

“While we strive to provide accurate and up-to-date information on environmental issues, we cannot guarantee the accuracy or completeness of the information provided. Users are encouraged to verify information through independent sources.”

20. Event Disclaimer

“Event details are subject to change. We are not responsible for any cancellations or changes to events, including but not limited to venue changes, date changes, or program modifications.”

When Do You Need a Disclaimer?

• Products or Services: If you sell products or offer services, a disclaimer can limit your liability for any damages or injuries resulting from the use of those products or services.
• Websites and Blogs: Websites and blogs often use disclaimers to clarify the purpose of the content, such as stating that information provided is for informational purposes only and not intended as professional advice.
• Health and Fitness: If you provide health or fitness advice, a disclaimer can inform users that the information provided is not a substitute for professional medical advice and encourage them to consult a healthcare professional.
• Financial Advice: For financial blogs, newsletters, or services, disclaimers can clarify that the information provided is for educational purposes only and should not be considered financial advice.
• Affiliate Marketing: If you use affiliate links on your website or blog, a disclaimer can disclose your participation in affiliate programs and clarify that you may earn commissions from purchases made through those links.
• External Links: When linking to external websites, a disclaimer can clarify that you are not responsible for the content or actions of those websites.
• User-Generated Content: If you allow users to contribute content to your platform, a disclaimer can clarify that you are not responsible for the accuracy or legality of user-generated content.

Benefits of Disclaimers

Disclaimers offer various benefits by clearly communicating the limitations and boundaries of provided information, products, or services. Here are some key benefits:

• Legal Protection : Safeguards against legal liability by clarifying limitations.
• Risk Management : Informs users of potential limitations and uncertainties.
• User Awareness : Ensures users understand terms and conditions.
• Trust Building : Builds trust through transparent communication.
• Compliance : Helps meet legal and regulatory requirements.
• Clarification of Responsibility : Sets realistic expectations for users.
• Intellectual Property Protection : Deters unauthorized use of content.
• Liability Limitation : Reduces liability for misuse or unmet expectations.
• Professional Boundaries : Maintains boundaries in medical, legal, and financial advice.
• Privacy Assurance : Reassures users about data handling.
• Clear Communication : Simplifies complex legal and professional boundaries.
• Customer Expectations : Sets appropriate expectations to reduce disputes.
• Prevention of Misuse : Discourages improper use of information or services.
• Third-Party Content Protection : Shields from liability related to external links or user-generated content.
• Financial Protection : Limits scope of guarantees and warranties to prevent financial loss.
• Enhanced Credibility : Shows commitment to transparency and user protection.
• Complaint Reduction : Manages expectations, reducing complaints.
• Adaptability : Easily updated to stay compliant with changing laws and practices.
• Professional Integrity : Upholds integrity by clarifying service limitations.
• Global Compliance : Addresses legal requirements across jurisdictions.

How To Write a Disclaimer

• Identify Purpose and Scope: Define the purpose of your disclaimer. Determine what aspects of your project, service, or content you want to address. Consider potential liabilities and areas where clarification is necessary.
• Understand Legal Requirements: Research relevant laws and regulations pertaining to your industry or jurisdiction. Understand what information must be included in your disclaimer to comply with legal standards.
• Start with a Clear Statement: Begin your disclaimer with a clear and concise statement that sets the tone. For example, “This disclaimer applies to all users of [project/service].”
• Acknowledge Limitations: Acknowledge the limitations of your project, service, or content. Use terms such as observation to convey that your information is based on observation rather than absolute certainty.
• Address Feedback and Reviews: Include a section addressing feedback and reviews. Acknowledge that individual experiences may vary and that positive feedback does not guarantee similar outcomes for all users.
• Provide Guidance: Offer guidance on how users should interpret the information provided. Encourage them to use their discretion and seek professional advice when necessary.
• Clarify Liability: In the legal document , clarify your liability or lack thereof concerning the use of your project, service, or content. Utilize language similar to: “This legal document asserts that we bear no responsibility for any damages resulting from [actions taken].”
• Be Transparent: Be transparent about any affiliations, conflicts of interest, or biases that may influence your project, service, or content.
• Review and Revise: Review your disclaimer for clarity, accuracy, and completeness. Revise as needed to ensure it effectively communicates the intended message and complies with legal requirements.
• Seek Legal Advice if Necessary: If you have any doubts about any aspect of your copyright disclaimer statement or its legal implications, consider consulting a legal professional specializing in copyright law or intellectual property rights.

Artificial Intelligence (AI) Disclaimer

Types of Disclaimer

• Liability Disclaimer: Limits the legal liability of the provider for any damages or losses incurred by users of a product or service.
• Endorsement Disclaimer: Clarifies that opinions expressed or products mentioned do not imply endorsement by the provider.
• Medical Disclaimer: Indicates that information provided does not constitute medical advice and encourages users to consult with healthcare professionals.
• Financial Disclaimer: Warns users that financial information provided is for informational purposes only and should not be considered professional advice.
• Privacy Disclaimer: Outlines how personal information collected from users will be handled and protected.
• Accuracy Disclaimer: States that while efforts are made to ensure accuracy, information provided may not be complete or reliable.
• External Links Disclaimer: Disclaims responsibility for the content of external websites linked from the provider’s platform.
• Legal Disclaimer: Clarifies that information provided does not constitute legal advice and recommends consulting a qualified legal professional for specific legal matters.

Can a disclaimer protect against all risks?

No, a disclaimer cannot protect against all risks, especially those arising from negligence or intentional harm.

Are there standard disclaimer templates available?

Yes, there are templates available, but it’s important to customize them to fit your specific needs.

Can a disclaimer be waived?

In some cases, users may be asked to agree to waive certain rights or claims by accepting the disclaimer.

What happens if a user doesn’t agree to the disclaimer?

Users who don’t agree to the disclaimer may be denied access to the project or service.

Do disclaimers apply to all users?

Disclaimers typically apply to all users unless specifically exempted by separate agreements.

Can disclaimers be enforced retroactively?

Disclaimers are generally enforceable from the moment they are agreed upon by users.

Can disclaimers protect against fraudulent claims?

Disclaimers may provide some protection against fraudulent claims but cannot prevent them entirely.

Are disclaimers required for personal blogs or websites?

While not always required by law, disclaimers can provide protection and clarity for personal blogs or websites.

Can disclaimers be revoked?

Disclaimers can be updated or revoked, but changes should be communicated clearly to users.

How detailed should a disclaimer be?

A disclaimer should be detailed enough to cover relevant risks and limitations without being overly burdensome.

Where should a disclaimer be displayed?

Disclaimers should be prominently displayed where users can easily access and review them, such as on a website’s footer or terms of use page.

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How to Write a Legal Disclaimer for Your Business

Last Updated: August 31, 2023 Fact Checked

This article was co-authored by Jennifer Mueller, JD . Jennifer Mueller is an in-house legal expert at wikiHow. Jennifer reviews, fact-checks, and evaluates wikiHow's legal content to ensure thoroughness and accuracy. She received her JD from Indiana University Maurer School of Law in 2006. There are 14 references cited in this article, which can be found at the bottom of the page. This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources. This article has been viewed 491,132 times.

Getting a legal disclaimer drafted for you can be expensive, especially for a small business owner or freelance worker. Luckily, you can learn how to write a legal disclaimer for your business on your own. A legal disclaimer is a statement intended to protect the services, information, and property (both physical and intellectual) of your business or organization. It limits the legal liability of the entity presenting the disclaimer and also protects the entity’s legal rights in its work. A disclaimer is typically a short paragraph. If you are not sure whether you have drafted a solid disclaimer, consult with an attorney.

Identifying Your Need for a Disclaimer

• Also the good provided may be both tangible and intangible. For example, you might sell paintings. A painting is both a tangible good (the canvas and paint) and an intangible good (the likeness depicted). If you created it, it also represents a service.

• Alternately, someone may rely on information you provide to their detriment. They might then want to turn around and sue you for “causing” their injury.
• Some people may also claim injury from words alone. If you write about people, those people could claim that you harmed them because the information was false and malicious. [2] X Research source Although defamation cases require the false statement to be untruthfully or negligently presented as a statement of fact, you don't want to give anyone even the possibility of a reason to try to bring a case against you. [3] X Research source
• You should also write a disclaimer if you run a social media page or website where others can leave comments, so that you cannot be held responsible for someone else's words.

• If you write, or create images or music, then you will want to assert your rights to that intellectual property. Although your copyright exists from the moment you create your intellectual property, you still want to bring that information to the attention of consumers. Registering your work creates a "paper trail" so that it is easier to prove that your property is yours. [6] X Trustworthy Source United States Copyright Office Part of the Library of Congress, responsible for maintaining copyright records Go to source

• Nevertheless, to protect yourself as much as possible you should still write a broad disclaimer. A customer reading a disclaimer may assume that he cannot sue you and therefore not pursue a case.

Writing the Disclaimer

• You should warn consumers of any dangers or hazards posed by your product. You should list specific risks while at the same time acknowledging that the list is not exhaustive. For example, you could write, “NOTICE OF RISK. This product [or service] can at times involve substantial risk of injury, property damage, and other dangers. Dangers peculiar to such activities include, but are not limited to, [list the dangers].” [8] X Research source
• You may want to limit the time period in which someone can return a product or seek a refund to avoid being held liable, for example, for normal wear-and-tear to the item. Be as specific as possible. For example, you might state, “We do not accept returns or exchanges after 30 days unless the item you purchased is defective. If you received a defective item, please contact us at [inset contact information] with details of the defect. You can send the item you consider defective to: [insert address].”

• You can attempt to protect yourself from liability for defamation by stating, “The information provided herein is the author’s opinion and provided for entertainment purposes only.” The key to protecting yourself is to make the reader aware that the post is opinion, not provable fact.
• If you are providing information, you might want to include a disclaimer as to its accuracy. Here is a disclaimer from the U.S. Department of the Interior: "While the Department of the Interior strives to make the information on this website as timely and accurate as possible, the department makes no claims, promises, or guarantees about the accuracy, completeness, or adequacy of the contents of this site, and expressly disclaims liability for errors and omissions in the contents of this site." [9] X Research source
• You may also want to warn others against relying on the information. If you publish information about health and medicine, for example, you may want to include a long disclaimer, stating that you are not providing medical advice and encouraging readers to seek professional medical assistance.

• For example, if you own a gym, you would include in your disclaimer language that the customer acknowledges there are certain risks inherent in using exercise equipment and that the customer assumes all responsibility for her use of the equipment. [11] X Research source
• However, you should note that a disclaimer is not likely to protect you from liability if the injury is caused to your own negligence or your failure to maintain your equipment properly.

• For example, if you provide original content created by you, you might want to state: "All content is subject to copyright and may not be reproduced in any form without express written consent of the author."
• You should note that copyright in the US is a complex legal concept and is not unlimited. For example, the "fair use" doctrine allows others to use your content in certain circumstances and under certain conditions. [12] X Trustworthy Source United States Copyright Office Part of the Library of Congress, responsible for maintaining copyright records Go to source ]

• For example, if you run a wedding planning business, you could include in your disclaimer that you cannot be held responsible for the failure of contractors (decorators, musicians, etc.) to perform their duties.
• Your liability disclaimer can extend to include third parties such as subcontractors, if you desire.

• For example, if you sell computers, you could include in your terms and conditions that you are not responsible for damage to the computer if the customer does not use it appropriately.
• If you own a coffee shop with wi-fi, you could include that you do not collect personal information over wi-fi, but that others could possibly do so. By agreeing to those terms and conditions, the customer agrees to be responsible for any information sharing if she uses your wi-fi.

• Contact information also helps generate business. If someone wants to license your image, song, poetry, or essay, then providing contact information helps facilitate that. Include language about requesting permission to use material: “The contents of all material available on this website are copyrighted unless otherwise indicated. All rights are reserved and content may not be reproduced, downloaded, disseminated, published, or transferred in any form or by any means, except with the prior written permission of [insert your name]. Requests for permission to reuse copyrighted content should be submitted to [your address].” [13] X Research source

• Cover all of your bases. Have your legal disclaimer on any paperwork that your customer might come across to guarantee that they see it.

Sample Disclaimer

Expert Q&A

• If desired, have customers agree to your terms of service before proceeding. Thanks Helpful 5 Not Helpful 0
• Have a lawyer proof your disclaimer if you are unsure of its content or completeness. Thanks Helpful 3 Not Helpful 0
• If you have no idea what possible rights you want to protect or lawsuits you want to avoid, then search online. Thanks Helpful 2 Not Helpful 1

• If your business or service has the potential for injury to your customers (such as skydiving), a disclaimer is not adequate. Binding liability contracts should be drafted by a legal professional. Thanks Helpful 3 Not Helpful 1
• If you are unsure about the legal liability of something that you want to write, consider not writing it. Thanks Helpful 1 Not Helpful 2
• A disclaimer does not guarantee your protection from liability in the case of legal action. A disclaimer, however, does provide notice. If the consumer then decides to assume the risk, you could be protected from liability. [15] X Research source Thanks Helpful 0 Not Helpful 0

You Might Also Like

• ↑ http://www.entrepreneur.com/article/191778
• ↑ http://articles.latimes.com/2010/aug/23/nation/la-na-blogger-suits-20100823
• ↑ http://www.nolo.com/legal-encyclopedia/defamation-libel-slander-key-elements-claim.html
• ↑ http://copyright.gov/help/faq/faq-general.html#what
• ↑ http://www.uspto.gov/trademarks-getting-started/trademark-basics
• ↑ http://www.legalmatch.com/law-library/article/automobile-mechanic-liability.html
• ↑ https://www.lawinsider.com/clause/risk-warning-notice
• ↑ http://www.doi.gov/disclaimer.cfm
• ↑ http://www.wisegeek.com/what-is-a-disclaimer-of-liability.htm
• ↑ http://disclaimertemplate.com/free-gym-disclaimer-example/
• ↑ http://copyright.gov/circs/circ01.pdf
• ↑ http://www.asha.org/sitehelp/copyright/
• ↑ http://www.adamsdrafting.com/all-capitals/
• ↑ http://www.bakerdonelson.com/the-sky-is-not-the-limit-limitation-of-liability-clauses-may-be-the-solution-to-cap-your-contractual-liability-05-10-2007/

About This Article

A legal disclaimer is a short paragraph that describes any possible risks your business or products could pose to customers. It’s meant to protect you and your business from any liabilities if things don’t go as planned. Before you write one, figure out what potential liabilities you have. For example, if you sell gym equipment, you could be held liable for a customer’s injury while using one of your products. Alternatively, if you sell vacation packages, you could be held liable if a customer gets lost or injured during the trip. Once you understand your liabilities, write your disclaimer by listing the potential risks of your product or service. You might say, “Notice of risk: This product can at times involve risk of injury, property damage, and other dangers.” Additionally, if your business involves third party contractors, you could say, “We cannot be held responsible for the failure of contractors to perform duties.” To read more sample legal disclaimers from our Lawyer co-author, scroll down! Did this summary help you? Yes No

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Disclaimer Template

by Masha Komnenic CIPP/E, CIPM, CIPT, FIP

May 10, 2023

Having a website disclaimer is vital to protect your business from liability if you conduct business online. A disclaimer can be your defense against legal claims from your content or product users.

We’ve put together this guide to help you create a comprehensive disclaimer on your own, using our free disclaimer generator or with our disclaimer template .

What Is a Disclaimer?

Types of disclaimers, are you legally required to have a disclaimer, do you need a disclaimer on your website.

• What’s Usually Included in a Disclaimer

What Makes a Good Disclaimer?

Where to post your disclaimer, good website disclaimer examples, sample disclaimer template [free download], disclaimer faqs.

A disclaimer is a legal statement that can help reduce a business’s legal liability. For example, they may protect a business from legal claims arising from users and third-party risk.

Your disclaimer serves as a warning notice when people visit your blog or website. It informs readers that following your advice, purchasing your products, or using your services may harm them and that you are not liable.

Depending on the nature of your business and the information you share on your website, you may need one or more of these types of disclaimer:

Affiliate Disclaimer

An affiliate disclaimer lets your website users know you may earn affiliate commissions from products you recommend. If you have affiliate links in any part of your website, the 2009 Federal Trade Commission (FTC) 2009 Guides Concerning the Use of Endorsements and Testimonials in Advertising mandates that you inform your site visitors.

A good example of this type of disclaimer is the Amazon affiliate disclosure , which is required by the Amazon Associates program, one of the most popular affiliate programs on the internet.

Testimonial Disclaimer

A testimonial disclaimer is a statement that informs readers that the experience they’ll have when using your products or services may differ from what they see in your testimonials or reviews. See our testimonial disclaimer examples if you’re unsure what kinds of testimonials need to be disclosed.

Legal Disclaimers

If you run a legal website, you may need to include some important legal disclaimers to comply with various professional rules and ethics and protect yourself from liabilities or misconceptions.

• No Attorney–Client Privilege : This disclaimer states that when a client contacts you through your blog, it does not create an attorney–client privilege. In other words, it tells clients that any emails, contact forms, or chats submitted through your site are not confidential.
• Attorney Advertising : You also need to include the phrase “Attorney Advertising” on a prominent page on your legal site. Some jurisdictions have different requirements — to make sure your site complies with the law, you should check your state’s regulations.
• Misleading Information : Your attorney advertising cannot contain false or misleading information that would deceive clients. Advertising must be based in fact, and shouldn’t promise specific results or make claims that would lead a client to have unreasonable expectations concerning a case’s outcome.
• Specializations : Don’t claim or suggest you’re an expert in any areas of the law on your legal site unless you’re aptly certified. Using the correct legal disclaimer language is critical so you don’t mislead your users.
• Identify Attorneys : Most states require you to identify which attorneys are responsible for your site. This implies that you should also include your firm’s name and address.
• Liability for Costs : Are your clients responsible for costs, no matter the outcome of their case? Whether payment depends on a case’s outcome is up to you, but you need to clarify on your website what your policy is.

Medical Advice Disclaimer

If you run an online business or app that offers medical advice — such as a health website — you need to inform users that the information on the site is only meant to educate and is not intended to replace medical advice from a healthcare provider. This is known as a medical advice disclaimer .

You may also include that using your site or application does not establish a doctor-patient relationship.

Professional Blog / Services Disclaimer

If you run a professional blog or have a professional service platform, you need to state that the content on your site is strictly for educational purposes and does not amount to professional advice.

Product Disclaimer

A product disclaimer helps you protect your business against any liability that may come from the use of your product. For example, product disclaimers often state that the seller does not offer any warranty for the products.

You can also use it to protect your business from claims that arise from injuries sustained by misusing your products.

Copyright Disclaimer

A  copyright disclaimer  informs your site users that the site’s content — text, images, and video — are subject to copyright protection. In addition, you can state the rules guiding the use of your content. 

On the other hand, if you use any copyrighted content on your website without permission, identify it clearly, and include that you’re using it lawfully under the  principle of fair use .

Views Expressed Disclaimer

A views expressed disclaimer asserts that the opinions expressed in an article or any written material are those of the author and not the opinion of the website. Publishers usually use this to protect themselves from liability. Also, persons belonging to an organization use this disclaimer to clarify that anything they say is their individual opinion, not their organization’s official stance.

Past Performance Disclaimer

A past performance disclaimer informs users that any past performance they know about does not guarantee future results. So you’re letting them know that what happened previously won’t necessarily happen again.

This disclaimer statement is popular among investment advisers or consultants that offer investment or financial advice to the public.

Use at Your Own Risk Disclaimer

If you have a site where you share tips on how people can achieve results in specific areas, you may want to include this disclaimer. For instance, if you run a website that shares recipes or skincare advice, a user may have an allergic reaction from following your recommendation. This disclaimer may protect you from any claim they may bring against you.

Warranty Disclaimers

Warranty disclaimers can help you protect your business from liability if your any of your goods or services don’t meet the expectations of your customers or if your products are misused.

Confidentiality Disclaimers

A confidentiality disclaimer is commonly used in email to inform the recipient that the information in the email is for their eyes only and should not be shared with others.

Confidentiality is an especially important principle in education, law, and healthcare, which are industries that transfer lots of sensitive information via email.

The Health Insurance Portability and Accountability Act (HIPAA) requires persons sending protected health information to US medical patients to include a confidentiality disclaimer. So, you’ll need a confidentiality disclaimer statement if you do this.

No-responsibility Disclaimers

A no-responsibility disclaimer, otherwise known as a no-liability disclaimer , is a statement that helps you prevent claims of civil liability by your customers.

While some disclaimers are not mandated by law, others, like affiliate disclaimers , are legally required. The FTC requires you to include an affiliate disclosure if you receive any compensation, whether in cash or in-kind, from a company for reviewing or recommending their product.

You should have a disclaimer on your website and any online platform you use.

Even if all you have is a platform where you share content for free, a website disclaimer helps you protect yourself from liability claims from people who get injured from using your content. A disclaimer can help protect your business.

Some affiliate programs, such as the Amazon Associates Program, require their affiliate partners to have an affiliate disclosure on their sites. So, having an affiliate disclaimer is both legally mandated and a best business practice.

An earnings disclaimer is another type of disclaimer that the FTC mandates for websites offering investment advice, financial advice, or money-making opportunities. 

If you have a website where you share information on any of the above — especially if you use reviews or testimonials to promote your offerings — the FTC requires you to let users know that results are neither typical nor guaranteed.

In some professions, such as law, professional rules and ethics mandate the use of certain disclaimers. For instance, in some states, you must be clear that your legal site is used for advertisement. For example, according to Rule 7.1(f) of the New York Rules of Professional Conduct , lawyers in New York must include the words “Attorney Advertising” on their website’s home page.

Does a Disclaimer Legally Protect You?

Yes, a disclaimer legally protects you in some instances. You should include disclaimers in different parts of your online platform because, when done well, they can protect you from liability claims.

Having a disclaimer on your website warns users of the risk involved with using your products, services, or content , which will help set your website users’ expectations. A disclaimer may discourage them from bringing a civil action if they are injured by or dissatisfied with the information or products you offer.

However, it’s important to note that you can’t use a disclaimer to protect yourself from your own inappropriate behavior . For example, if you make false claims in your advertising or intentionally share misleading information, a disclaimer won’t save you from the repercussions.

You also can’t use a disclaimer to shield yourself from liability for defaulting on your legal obligation to your website users or customers.

While the laws governing the use of disclaimers may not be as clear cut as the use of a privacy policy — which is compulsory in many countries — or the use of terms and conditions , you can take certain steps — which we will discuss later in this guide — to give your disclaimers a stronger chance of being enforceable.

Most likely, yes, you need a disclaimer on your website. However, you also need one on any online platform you use in your business — such as your mobile apps or emails.

You’ll see disclaimers everywhere. For example, your gym informs you in the membership form that you’re responsible for any injury you sustain while working out in their facility. You can also see disclaimer statements on your TV screen and in your favorite novels, informing you that all the characters are fictitious and any resemblance is a coincidence.

Having a website disclaimer may not be one of the exciting parts of doing business, but it is one of the crucial things that may save your time, money, and business reputation down the line.

So, why exactly should you have a disclaimer on your website?

Reasons To Have a Disclaimer

Here are some reasons you should have a disclaimer:

Safeguard Your Rights

Having a disclaimer can help protect your rights. For example, a  copyright disclaimer on your website will notify users that all the materials on your site are subject to copyright laws. So, it’ll protect your copyright and discourage others from infringing on your intellectual property.

If you have a website where you use other people’s copyrighted material under the law, a  fair use disclaimer can help protect your right to do so.

By stating clearly your rights to use copyrighted materials without permission, you’re notifying users and the owners of the materials that you’re aware that the law protects your actions. This will help prevent you from being barraged with legal actions like cease-and-desist letters and litigation.

Limit Your Liabilities

Every business comes with risk, but a disclaimer can help you significantly reduce your risk exposure. Specific disclaimers like  medical disclaimers and  use at your risk disclaimers can protect you from liability claims from persons who may claim to have suffered injuries from following your suggestions.

Imagine a situation where anyone can visit your website, act on the information you share, and sue you if they suffer any harm because of it. Without these disclaimers, it would be challenging to run an online business successfully without being drowned by liability claims.

Disclaim Third-Party Liability

Disclaimers help ensure you are not responsible for the actions of others. By informing users that you work with third parties and you don’t make any guarantee as to the effectiveness or accuracy of their content, services, or products, you can ensure you won’t be liable for other people’s failings.

Having a disclaimer on your website can prevent you from being held responsible for people’s comments on your site or social media platforms. 

Also, if you allow advertising on your website and social media pages, a disclaimer can shield you from being held responsible for any liability.

Protect Your Organization’s Reputation

With disclaimers, you can prevent your actions from affecting the interest of any organization you’re affiliated with. For example, if you own a blog where you share your opinions on issues, a disclaimer can help you clarify that your views are yours and not your organization’s.

Similarly, if you publish guest posts or allow comments on your website, a disclaimer can help detach your business from other people’s opinions on your website or blog. This can save your business from any backlash or liability that may come from such opinions.

Shift Legal Responsibility to Employees

Employers are often liable for their employees’ actions because it is assumed that they’re acting on their employer’s directive. However, as a business owner, you can help protect yourself from liability for your employees’ actions with a disclaimer.

For instance, you can include an email disclaimer stating that the views and opinions expressed in the email are those of the author and do not necessarily reflect the company’s views and opinions. You can further state that employees are not authorized to make defamatory statements and that the company will not be responsible for such statements can save you from trouble.

So, if an employee defames a customer, you can rely on that disclaimer to shift the responsibility to the employee.

Build Trust with Site Visitors

Consumers appreciate it when a business is transparent in its dealings with them. Having website disclaimers helps show website visitors that the company is transparent. 

In addition, disclaimers help to set the expectations of your users, which means you’ll be less likely to disappoint them.

What’s Usually Included in a Disclaimer

The content of your disclaimer depends on the nature of your business and the liability you want to protect it from.

The following are the most common disclaimer clauses you’re likely to find in a disclaimer.

State that your business does not take responsibility for any inaccuracy in any information shared on your website. This clause is crucial because the information you believed was correct may actually be — or become — false.

This clause ensures that anyone who relies on the information stated on your website and suffers harm due to it cannot hold you liable for their losses or injuries. By including this clause, you place the responsibility on your site users to verify any information they see on your site before relying on it.

Liability for Tangible Goods

If you sell physical products, whether you are the manufacturer or not, warn users that they can’t hold you responsible for any injury they suffer from using your product.

If you are a seller, be sure to include that you’re not responsible for any product warranties or warranty-related claims.

You may also include that the product specifications on your site were provided by the manufacturer. This protects you from any defects or inaccuracies in the product specifications.

It’s common to include the phrase “as is” to let customers know that the product they will receive is exactly as they saw it on your online store. This helps protect you from any misconceptions a customer has about your products.

Liability for Services

This clause is important if your business provides a service or an opportunity for your clients to use certain equipment, such as a gym. Your disclaimer should state that using your equipment carries inherent risks, and you won’t be responsible for any injury clients suffer while using your equipment.

A copyright notice informs users that materials shared on your website are protected by copyright law. And so, they can’t use your content in a way that infringes on your copyright without your permission.

If you used other people’s copyrighted content without their consent, acknowledge the use and state that the use of the content is under law.

Third-Party Liability

Explain that you don’t take responsibility for information contained on third-party websites your website links to. If you allow other people’s advertisements on your site, clarify that you don’t endorse any advertisement. You can also include that your site reserves the right to remove any comment you deem offensive, and you’re not liable for any opinion shared.

Multiple Content Providers

If your website publishes articles, guest posts, featured pieces, or opinions, state that the thoughts and opinions expressed are those of the authors. Specify that you’re not responsible for any such opinion or thought. Having this clause may protect you from a libel suit.

If you also share your opinions on your site, you should state that the information you share is not a fact but your opinion on different issues.

Compensation Limitations

You can have a clause limiting the amount of money anybody can claim for any injury or loss they sustain from using your site, services, or product. Make sure you state the specific amount in simple terms.

If you use other people’s registered trademarks on your website, a disclaimer statement disavowing your business of any affiliation with them is proper. For instance, if you sell products from different manufacturers on your site, you may have their logos displayed on your website. State that there is no special relationship between you and them (if there is none).

Having a good disclaimer is vital to help protect your business from liability. Follow these tips to create a good disclaimer.

Don’t Copy a Disclaimer from Another Website

Your business is distinct from other businesses. So, what you need to include in your website disclaimer may differ from what another business needs.

For instance, if you have a website where you share health and fitness tips, and you recommend health and fitness products, you’ll probably need, among others, a medical advice disclaimer informing people that information shared does not amount to medical advice.

You’ll also need an affiliate disclaimer to notify users that you earn a commission if they purchase the recommended products with your link.

In contrast, a website selling health and fitness products may not need to include a medical advice disclaimer or an affiliate disclaimer, but they’ll definitely need a product disclaimer.

If you copy another website’s disclaimer, you will have a disclaimer that doesn’t cater to your needs.

It’s also not advisable to copy the legal disclaimer of a website offering similar services or products as your business because you’re not sure that their disclaimer offers all the protection you need. At most, they can inspire you in creating your legal disclaimer template.

Write in Clear Language and Avoid Legalese

Unless you have a business that caters only to lawyers, most of your website users are normal, average human beings to whom legal jargon won’t make much sense. So, in all cases, avoid  legalese  and write your disclaimers in simple, everyday words that a person of average intelligence can understand.

Seek Legal Advice from an Attorney

You may hire a lawyer to write or review your website disclaimers or advise you on the disclaimers you need to have on your website. However, you should consult with a lawyer with some level of experience in your industry, not just any lawyer. An attorney with industry experience understands your business and knows what liability you most need to protect yourself from.

Use a Disclaimer Generator

Disclaimer templates may give you an idea of what you are aiming for, but they are a one-size-fits-all approach, which rarely works. Your business is unique and has particular needs. Therefore, something as important as a disclaimer deserves to be given the appropriate attention.

A disclaimer generator is a better alternative to a disclaimer template. A disclaimer generator helps you create a disclaimer tailored for your business.

Termly’s disclaimer generator can help you create a legal disclaimer for your blog, website, mobile app, Facebook app, Google AdSense, or SaaS business. We designed our tool to be fully customizable. You can choose a style that matches your business’s overall look.

You can put your website disclaimer in a few parts of your website. Often, the type of disclaimer determines the appropriate place to post it.

A common practice with disclaimers is to post them where they are conspicuous. Some of the most common places you can post your website disclaimer include:

Inside Current Legal Policies

Websites need to have various policies intended to protect both the site owner and the visitors. You can include your disclaimer inside your relevant legal policies.

For example, you can include a third-party disclaimer in your terms and conditions and a product disclaimer in your refund policy.

Informational Menu or Section

You can include disclaimers as part of your menu. For example, you can build a webpage, state your disclaimers on the page, and make it accessible from your menu.

Website Footer

Many websites display a link to their disclaimer in the website footer alongside other key website pages, such as terms and conditions and privacy policy. Having your disclaimer as part of your footer gives every web user ample opportunity to read your disclaimers.

Banners and Pop-Ups

You can post your website disclaimers as banners or pop-ups. Displaying your disclaimers in one of these ways gives them more chance of being seen and read.

Since a website user often has to click to close a pop-up, when your disclaimers are displayed as pop-ups, it will be harder for your visitors to claim that they didn’t see it.

End of Content/Articles

Some disclaimers, like an opinions expressed disclaimer, can be added at the end of the article. After they read the article, you can immediately let the user know that the views expressed are not necessarily yours, so they know who to look for if they want to sue.

You can display your disclaimers where users will encounter them while signing up to use your website. For instance, you can add a link to your disclaimers on your sign-up page so every user has the opportunity to view them before they go ahead.

During Checkout

You can post your disclaimers at the checkout point when users are about to purchase a product. Disclaimers like product liability may be especially effective at this point.

Advertisement

If you run advertisements on your site, the best time to show your third-party disclaimer may be before or after the visitor watches or reads the ad.

We rounded up some examples of disclaimers that we think are great and explain why.

Rich, Intelisano, and Katz

This law firm’s website complies with the New York requirement of including the phrase “attorney advertising” on their home page.

They have this phrase plus their disclaimer in their website footer, which means both the phrase and their disclaimer policy are visible on any page.

Their disclaimer explains to the reader that the information contained does not amount to legal advice and strongly urges the reader not to rely on any information contained on the site without legal advice.

The disclaimer goes further to protect them in case anyone from a state with more stringent rules than New York’s visits their website.

Their disclaimer is short but quite extensive and uses clear easy-to-understand words. It also includes a copyright disclaimer, states that there is no attorney-client relationship, and informs readers their communication via the site is not confidential or privileged.

This disclaimer is a great example of covering your bases without being wordy.

Bites of Wellness

Every article on this website states clearly that the site owner is an Amazon Associate and may earn a commission for every purchase via the link. This affiliate disclaimer is placed in a way that all site readers will see it.

Another thing we like is that the affiliate disclosure includes a link that leads to their privacy policy, which is where they have their other disclaimers, such as advertising disclaimers and third-party disclaimers.

The BCS website’s disclaimer of liability is wide and covers lots of disclaimer types. The organization, among other things:

• States that information on their site should not be construed as advice and should not be relied on
• Disclaims liability for any inaccurate statement on their website
• Specifies that they won’t bear responsibility if anyone suffers damage because their site is temporarily unavailable
• States that they link to third-party websites and are not liable for any information contained on those websites

Maple Leaf Funds

Maple Leaf Funds’ past performance disclaimer is straightforward and advises visitors not to rely on past performance as a guarantee of future earnings. It also provides reasons that visitors should not have that expectation.

You can download our free disclaimer template below in Word Doc, PDF, or Google Doc format. You can also just copy & paste the HTML directly to your website.

Before using it, read through the entire disclaimer template – fill in all of the [brackets], remove any sections that do not apply to your app, and tweak any language as needed.

Generic Disclaimer for a Website [Text Format]

Last updated [Date]

INTRODUCTION

The information provided by [business entity name] (“we,” “us” or “our”) on [website name] (the “Site”) [and our mobile application] is for general informational purposes only. All information on the Site [and our mobile application] is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site [or our mobile application] .

Under no circumstance shall we have any liability to you for any

Disclaimer Template HTML

You can copy our disclaimer template HTML code or download it using the options below.

Under no circumstance shall we have any liability to you for any loss or damage of any kind incurred as a result of the use of the site [or our mobile application] or reliance on any information provided on the site [and our mobile application] . Your use of the site [and our mobile application] and your reliance on any information on the site [and our mobile application] is solely at your own risk.

This disclaimer was created using Termly's Disclaimer Generator .

EXTERNAL LINKS DISCLAIMER FOR WEBSITE

The Site [and our mobile application] may contain (or you may be sent through the Site [or our mobile application] links to other websites or content belonging to or originating from third parties or links to websites and features in banners or other advertising. Such external links are not investigated, monitored, or checked for accuracy, adequacy, validity, reliability, availability or completeness by us.

We do not warrant, endorse, guarantee, or assume responsibility for the accuracy or reliability of any information offered by third-party websites linked through the site or any website or feature linked in any banner or other advertising. We will not be a party to or in any way be responsible for monitoring any transaction between you and third-party providers of products or services.

PROFESSIONAL DISCLAIMER FOR WEBSITE

The Site cannot and does not contain [medical/legal/fitness/health/other] advice. The [legal/medical/fitness/health/other] information is provided for general informational and educational purposes only and is not a substitute for professional advice.

Accordingly, before taking any actions based upon such information, we encourage you to consult with the appropriate professionals. We do not provide any kind of [medical/legal/fitness/health/other] advice. The use or reliance of any information contained on this site [or our mobile application] is solely at your own risk.

AFFILIATES DISCLAIMER FOR WEBSITE

The Site [and our mobile application] may contain links to affiliate websites, and we receive an affiliate commission for any purchases made by you on the affiliate website using such links. Our affiliates include [_________________] .

We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn advertising fees by linking to Amazon.com and affiliated websites.

TESTIMONIALS DISCLAIMER FOR WEBSITE

The Site may contain testimonials by users of our products and/or services. These testimonials reflect the real-life experiences and opinions of such users. However, the experiences are personal to those particular users, and may not necessarily be representative of all users of our products and/or services. We do not claim, and you should not assume, that all users will have the same experiences. Your individual results may vary.

The testimonials on the Site are submitted in various forms such as text, audio and/or video, and are reviewed by us before being posted. They appear on the Site verbatim as given by the users, except for the correction of grammar or typing errors. Some testimonials may have been shortened for the sake of brevity where the full testimonial contained extraneous information not relevant to the general public.

The views and opinions contained in the testimonials belong solely to the individual user and do not reflect our views and opinions. [We are not affiliated with users who provide testimonials, and users are not paid or otherwise compensated for their testimonials.]

The testimonials on the Site are not intended, nor should they be construed, as claims that our products and/or services can be used to diagnose, treat, mitigate, cure, prevent or otherwise be used for any disease or medical condition. No testimonials have been clinically proven or evaluated.

Additional Template Download Options

This disclaimer was created using Termly’s Disclaimer Generator .

Our disclaimer templates are designed to offer legal protection for websites in the US and Canada, as well as those globally — from the UK, all the way to Australia and South Africa.

Generate a Legal Disclaimer Instead

Here’s how you can use Termly’s generator to create a comprehensive and compliant legal disclaimer for your website or app.

Step 1: Go to Termly’s disclaimer generator .

Step 2: Answer a few simple prompts and questions, and go through all of the steps until you reach “ Final Details .”

Step 3: Once you’ve filled in everything and you are satisfied with the preview, click “ Publish .” You will then be prompted to create an account on Termly so you can save and edit your legal disclaimer further.

• Do you need a disclaimer on a blog?
• Do I need a disclaimer on my website?
• Why is a disclaimer important?
• Can I copy someone else’s disclaimer?
• How do I add a disclaimer to my website?
• Do I need an email disclaimer?
• Does a disclaimer protect you?
• Why do you need a disclaimer?
• How do you write a product disclaimer?

Disclaimers help businesses minimize their risk exposure and enable site visitors to have the right expectations. You may not be able to control who visits your website, but you can influence how they use your content, services, and products, or at least what they can hold you responsible for.

Having the proper disclaimers on your website and online platforms is not optional but a must-have if you want to protect your business interest adequately. Our disclaimer generator can help you create your disclaimers without hassle.

More about the author

Written by masha komnenic cipp/e, cipm, cipt, fip.

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Disclaimer: Definition, Types, Examples

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Disclaimers are legal texts that offer businesses protection from legal liability. While disclaimers can provide some level of protection, they do not completely shield a company from legal claims. Disclaimers are just one factor that may be considered by a court in determining liability. They shield a company from legal claims associated with user and third-party risk. In general, customers must usually agree to all terms and conditions before using a product or service. While it is common for businesses to require customers to agree to terms and conditions, it is not always a legal requirement. Whether or not a customer is required to agree to terms and conditions depends on various factors, such as the jurisdiction and the nature of the transaction.

In this article, we’ve shared what business owners should know about disclaimers in general:

What is a Disclaimer?

Disclaimers are legal texts that offer businesses protection from legal liability. They shield a company from legal claims associated with user and third-party risk. In general, customers must agree to all terms and conditions before using a product or service.

Here is an article which also defines disclaimers.

What is a Disclaimer Used For?

A disclaimer is used to protect your company from claims. You can utilize a disclaimer to limit the scope of your rights and responsibilities. Both parties can exercise and enforce these terms in a contractual relationship.

A disclaimer is also vital to protect you from third-party claims. They’ll let your users know that you’re not responsible for any damages related to the use of your website, services, products, and those with whom you affiliate.

What a Disclaimer Doesn’t Cover

If a consumer files a legal claim against your company, your disclaimers will provide you with the legal lifeline you need. However, disclaimers don’t shield you from acts of gross negligence . The level of negligence required to overcome a disclaimer may vary depending on the jurisdiction.

For example, if you’re a SaaS provider, you must ensure that you’re working in good faith to guarantee system uptime. This guarantee means that you’re upgrading equipment, conducting routine maintenance, and more. Customers can hold you liable for their associated losses when the system goes down too frequently due to carelessness.

Types of Disclaimers

Contract law offers flexibility when it comes to using disclaimers. As such, there are several types of disclaimers that a business might want to know about and use.

Below, we’ve described ten different types of disclaimers:

Type 1. Third-Party Disclaimers

Most websites include links to other websites or services. It’s a way for the website to earn credibility, increase traffic, or build a brand.

These “third-party services” usually sponsor affiliate links strategically to generate revenue. This disclaimer informs users that your site contains third-party links, and users click them at their own risk.

Type 2. Warranty Disclaimers

Websites most often use warranty disclaimers. These disclaimers state what the website does and does not promise to users. They also acknowledge that you aren’t responsible for claims arising from service unavailability.

Type 3. Limitation of Liability Disclaimers

A limitation of liability specifies the extent of your responsibilities and obligations. This disclaimer is essential for safeguarding your website if a user encounters issues while using your site. Limitation of liability disclaimers make it clear that subsequent damages are not your fault.

Type 4. Industry-Specific Disclaimers

General liability disclaimers do not apply to all websites. Think about including industry-specific disclaimers if you have a website or blog that offers tips, advice, or sells products in certain types of industries that have industry-specific rules, regulations, or laws governing professional services:

Governing bodies and associations generally determine which disclaimers are necessary. Check with their offices if you have questions about your requirements.

Type 5. Shipping Disclaimers

Shipping disclaimers are for eCommerce websites that ship their products to customers. A shipping disclaimer limits your liability when something goes wrong, such as damage and delays, beyond your control.

Type 6. Product Return Disclaimers

Product return disclaimers, like shipping disclaimers, outline restrictions that apply to customer returns and exchanges. For eCommerce stores, it’s a must-have.

They’re usually found in a Return Policy. Some stores have many restrictions, while others have few. Others, such as final sale items, allow returns, and others don’t.

Type 7. Expressed Opinions Disclaimer

Expressed opinions disclaimers inform users that the author’s views and opinions are solely their own. They generally release a publisher from claims. Otherwise, readers might reasonably assume the opposite.

Type 8. Past Performance Disclaimer

Past performance disclaimers protect a company from former outcomes. For example, diet supplements may describe an average weight loss for a control group but don’t guarantee the same results for every customer. While the product or service works as intended, a company cannot become liable for every failure.

Type 9. Professional Advice Disclaimers

Advice from authors, doctors, lawyers, accountants, and business owners use disclaimers to protect themselves from specific legal actions. Professional advice disclaimers are helpful if users misinterpret published materials as guidance for their unique situation.

Many businesses purchase general or professional liability insurance to protect them after being hired. Your insurance company may require your customers to sign a release of liability with a release clause for enforceability purposes.

Type 10. Errors & Omissions (E&O) Disclaimers

Another major issue that many unwitting website owners face is accuracy. It’s common to publish factual errors and misleading content, but it exposes you to liability even when it’s unintentional. Use an errors & omissions disclaimer to protect you from these types of claims.

Image via Pexels by Karolina

What’s Typically Included in Disclaimer Language?

Disclaimer language typically includes terms and conditions that limit company liability. However, it’s hard to imagine what that looks like if it’s your first time drafting one.

Every disclaimer is unique, which means that the language in each one is different. As such, the best approach understands what type of disclaimer you need and shaping it based on the principles below:

Relevant Terms and Conditions

Disclaimer language typically includes information that is suitable for the specific situation. It should also be relevant to the end-user or customer.

Clear Legal Language

It’s wise to make your disclaimer clauses unambiguous. There’s an ongoing misnomer that complicated agreements are better. This assertion isn’t true.

Transparent terms and conditions help users quickly find information that they need. This simple feature alone can avoid many future problems.

Application Matters

It would help if you also prioritized a full review of your disclaimers before publishing. Analyze the text to ensure that words cannot be misapplied or misunderstood.

People often misinterpret information, which isn’t your fault, but you can lessen the chance of dealing with a complaint in the first place.

Fact-Based Wording

Ensure that your disclaimers are factual. You also can’t apply disclaimers to non-legitimate business purposes and still expect them to achieve enforceability. Write your disclaimers so that they are accurate, honest, and fact-based.

Disclaimer Examples

Knowing which type of disclaimer to use is one of the most challenging aspects of using one. How would you know if you have the right kind? We recommend, at a minimum, reviewing real-life disclaimer examples to help you solidify your understanding, especially for more complicated situations.

Here’s an example of how a lawyer would apply a disclaimer to their website:

• Marc is a lawyer in New Mexico
• He is building a website for his law firm
• Marc plans to share legal information that attracts website visitors
• He’s concerned about visitors interpreting his website as legal advice
• Marc limits his liability by placing a disclaimer in the footer of his website
• He decides to use an industry-specific disclaimer for lawyers
• The legal industry uses professional advice disclaimers in general
• Visitors understand that they may not sue Marc for his website content when he applies a professional advice disclaimer to his website

Take the guesswork out of creating a disclaimer. Hire business lawyers or contract lawyers to help you draft your to help you prepare a myriad of liability waivers .

They’ll not only help you work through crucial legal issues, but they’ll also help you handle the process entirely. From offering thoughts on a consent form to the contract signing, speak with a legal professional for the best result.

Get Help with a Disclaimer

Do you need help creating or implementing a disclaimer?

Post a project in ContractsCounsel’s marketplace to get bids from lawyers for the work. All lawyers are vetted by our team and peer reviewed by customers for you to explore before hiring.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

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Meet some of our disclaimer lawyers.

Jeremiah C.

Creative, results driven business & technology executive with 24 years of experience (15+ as a business/corporate lawyer). A problem solver with a passion for business, technology, and law. I bring a thorough understanding of the intersection of the law and business needs to any endeavor, having founded multiple startups myself with successful exits. I provide professional business and legal consulting. Throughout my career I've represented a number large corporations (including some of the top Fortune 500 companies) but the vast majority of my clients these days are startups and small businesses. Having represented hundreds of successful crowdfunded startups, I'm one of the most well known attorneys for startups seeking CF funds. I hold a Juris Doctor degree with a focus on Business/Corporate Law, a Master of Business Administration degree in Entrepreneurship, A Master of Education degree and dual Bachelor of Science degrees. I look forward to working with any parties that have a need for my skill sets.

Hi, I'm Umar from CounselX. I started off doing domestic and international corporate law work at the world's largest law firm Dentons and then moved in-house as Head of Legal of an investment bank before starting my own firm in 2012. We have been a trusted legal resource for founders since our inception. My team has helped over 1,000 startups launch, grow and thrive. When it comes to corporate and commercial law matters, you need an attorney that not only has a deep understanding of the law, but is passionate about your companys continued success. Whether it's helping to get your business off the ground or handling tough negotiations in a pivotal transaction, I'm available to provide insightful legal counsel and trustworthy guidance. To learn if I'm the right fit, schedule a free 15-minute introductory call with me.

Scott graduated from Cardozo Law School and also has an English degree from Penn. His practice focuses on business law and contracts, with an emphasis on commercial transactions and negotiations, document drafting and review, employment, business formation, e-commerce, technology, healthcare, privacy, data security and compliance. While he's worked with large, established companies, he particularly enjoys collaborating with startups. Prior to starting his own practice in 2011, Scott worked in-house for over 5 years with businesses large and small. He also handles real estate leases, website and app Terms of Service and privacy policies, and pre- and post-nup agreements.

A lawyer for small businesses throughout NY. Obtain affordable legal assistance for your business & personal needs without having to pay inflated hourly rates or retain costly, full-time legal counsel. Helps with licensing, contracts, corporate formation, problems with employees, litigation management/avoidance, regulatory compliance, and intellectual property, among other things.

I have been practicing law for 28 years. I have extensive legal experience in contract disputes and drafting demand letters. I have handled hundreds of depositions, drafted and responded to written discovery, demand letters, and handled pretrial matters, motions and memoranda. I am licensed to practice law in five states (FL, MA, GA, CA, CO). I believe I have extensive knowledge and experience that would be beneficial to your clients.

I have been practising law for over 30 years. I have extensive legal experience in contract disputes and drafting demand letters. I have been lead counsel in over 100 civil and criminal jury trials and have extensive litigation stradegy knowledge. I belive my experience would be of great benefit to any prospective client.

I am an attorney with 10 years of experience providing legal services in U.S. immigration. My comprehensive understanding of immigration regulations has achieved favorable outcomes and helped clients reach their goals. I handle a wide variety of immigration matters including family-based and employment-based non-immigrant and immigrant visas, with a specialization in business visas and particularly EB-5 investor visas, marriage-based petitions, and naturalizations among other immigration services. I am skilled in guiding companies and individuals through the complexities of U.S. immigration policies. Separately, I am licensed as a Florida Real Estate Sales Associate and have over 2 decades of experience with residential leasing, property management, contract work, and Homeowners Associations. I am adept at handling and resolving conflicts as well as facilitating real estate contracts and other transactions.

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How to write your business plan cover page

When you think of putting together your business plan , the business plan cover page may not be the first thing that comes to mind. While it’s traditionally one of the last sections you create in a business plan, it’s one of the most important.

Definition: What is a business plan cover page?

The cover page of a business plan is used to give an overview of all the key information of your business. This includes your company name, logo, address, and any other information that may define your business. It's the first page of your plan, so it should look professional, visually pleasing, and informative.

When potential investors or banks read a business plan, their first impression is the cover page—but don’t overthink it. A business plan cover page is meant to be simple and straightforward, with some important contact information and, more importantly, your logo.

Use this breakdown to find out what the purpose of your cover page is, which elements you need to include, and how to structure it to maximize your impact:

What is the purpose of a cover page?

Your cover page exists to communicate what the enclosed document is and to provide the necessary information for a reader to contact you about your business.

The appearance and quality of a business plan cover page will set the tone for your business plan’s content, so make sure it’s visually appealing, free of errors, and concise.“ Simple, clean and powerful are the three goals of a strong business plan cover,” suggest the experts at Growthink . Don’t clutter your cover page with details about how your business will operate—save those important details for the executive summary .

What should you include on a business plan cover page?

To keep it simple, your business plan cover page should include:

Company logo

• Document title
• Business name
• Business address and contact information
• Business plan completion date
• Confidentiality statement

How should you format a business plan cover page?

Once you know what information belongs in this section, all that remains now is to organize it. If you need some further guidance, these downloadable templates can streamline the process of drafting a cover page—and the rest of your business plan, too.

1. Company logo

Add a high-resolution thumbnail of your logo at the top of the cover page. This will help establish a brand identity and allow readers to connect visually to the business right from the start.

Hot tip: people are 89% more likely to remember your logo if you put it in the top left corner.

Give the logo some space and then include the words “Business Plan” in a large, bold font. You can also frame the title as “Three–” or “Five–Year Business Plan,” if you intend to make those kinds of financial projections in the document.

3. Business name

Beneath the title, write your company name in a bold font. This should be the most noticeable and prominent feature on the page, so choose a large typeface.

4. Tagline (optional)

This part is optional, but you can also include a catchy slogan or motto that describes your company and what you do.

5. Address and contact information

Under the company name, include your business’s physical address and website if you have one. Provide the details necessary for interested parties to contact you, such as a phone number and email address.

It’s also helpful to include your name as the business owner and the names of any partners or executive officers so that potential investors know where to direct their inquiries.

6. Date of completion

Below the contact information, write the year (or year and month) in which this business plan was finalized and issued. If you’re including the month, it’s a good idea to update it throughout the year as you send out your business plan so readers don’t assume it’s outdated.

7. Confidentiality Statement

At the bottom of the page, include a sentence to the effect of:

“This document contains confidential and proprietary information created by [business name]. This document is issued exclusively for informational purposes and should not be reproduced without the consent of [business name].”

Adding this confidentiality statement offers a protective measure against the disclosure of your business idea , according to this cover page guide .

Send invoices, estimates, and other docs:

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Cover page design

Now it’s time for the finishing touches: the actual design of your cover page. Your business plan’s cover page gives the first impression of your business, so your company logo, fonts, and brand colors should all work together to make people want to read more.

Brand colors

90% of a customer’s impression of your business comes from the brand colors you choose, so it’s important to choose colors that represent your business’s personality and elicit the right emotions from your readers.

Don’t know where to start? Grab a pen and paperand write down three emotions you want your customers to feel when they think of your brand. Now you can brainstorm some colors that represent those emotions. For example, you might choose blue if your product is associated with reliability, or yellow if your product is supposed to make your clients feel happy. It’s safer to only choose 2-3 colors , including black, for your color scheme.

You can also analyze the competition and choose colors that help you stand out. Canva has more detailed instructions on how to create your brand color palette .

When it comes to fonts, it’s best practice to stick to one type of typeface, such as serif or sans serif . It’s also important to choose fonts that are simple, easy to read, and represent your brand.

Serif fonts give off the impression that your brand is trustworthy and dependable, and work great for more traditional businesses, like law practices. “Serif fonts have been widely used in books, newspapers, and magazines, which is why they remind us of more classical, formal and sophisticated themes—think of Old English and Roman scripture,” Robyn Young, founder of branding agency robyn young & co, told Canva .

But if you’re going for a more contemporary and youthful feel, then sans serif is the way to go. “Brands that want a modern aesthetic that scales well at different sizes and is easy to read on screens are going to choose sans serif for their main branding elements,” said Young .

When it comes to choosing a logo, simplicity is key. Try to create something that represents your brand and speaks to your audience without being too busy (in other words: white space is your friend).

It’s also important to remember to be practical: your logo should look good in any medium, size, color, and even time period. Beyond your business plan cover page, you’ll need it for your social media, marketing material, or labels.

Business plan cover page examples

To further illustrate the structure and format of a business plan cover page, we’ve compiled a few cover page template examples. The first example from officetemplatesonline is simple but attractive and effectively emphasizes pertinent information. The next cover page example is from a fictional clothing store . They usea pop of color to instantly tell you about their brand personality.

Keep your business plan cover page simple

As you prepare to write your business plan , remember to keep your cover page simple and concise. With your logo, business name, and contact information, you’ll introduce the reader into your business plan quickly and easily—and set yourself up for success as a result.

Just don’t forget to proofread and keep an eye out for typos!

Business plan cover page FAQs

How can businesses make sure their business plan cover pages stand out to investors or lenders.

You can spice up your business plan cover page by including elements that’ll grab the attention of investors or lenders. Beyond basic contact information and a logo, you could include compelling visuals, like graphics or images that represent your business or industry. You could also highlight key achievements or milestones to showcase your potential for success

Are there any specific rules or tips for designing a business plan cover page that make sure it matches a business’s brand?

When designing a business plan cover page, it's key to align it with your business's brand identity. This means choosing colors, fonts, and imagery that reflect your brand's personality and values. Following industry standards for design and layout can help ensure professionalism while still allowing for creativity that helps your business stand out.

How can a business use their cover page to show their business strategy?

Your cover page can serve as an opportunity to convey important aspects of your business strategy or unique value proposition. Beyond listing basic details, you could include a brief mission statement or tagline that summarizes your business’s purpose or competitive advantage. Additionally, incorporating visual elements or a brief narrative about your business's story can help show off its identity and vision.

Related Posts

Let our How to Start a Business Playbook guide the way.

The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. While a good place to start, these articles should not take the place of personalized advice from professionals. As our lawyers would say: “All content on Wave’s blog is intended for informational purposes only. It should not be considered legal or financial advice.” Additionally, Wave is the legal copyright holder of all materials on the blog, and others cannot re-use or publish it without our written consent.

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Pallet Manufacturer Business Plan

Start your own pallet manufacturer business plan

Advanced Technology Pallets

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The scrap tire recycling industry has been around for many years, but uses for recycled scrap tire rubber are in the initial stage, as less than 20% of scrap tires are processed. Approximately 10% are incinerated, generally for power generation, although air quality issues are always a concern as scrap tires, like coal, are dirty fuel. Approximately 4% of our scrap tires are exported to other countries where the casings are used in retread plants or the used tires are sold as is. Currently about 2% are processed into crumb rubber and used in molded products and for modified rubberized asphalt applications, which provides a longer lasting and more durable asphalt surface.

Stockpiles of scrap tires create health problems as they become breeding grounds for rodents, snakes, and mosquitoes, and also are serious fire hazards. With approximately 250 million scrap tires being generated annually in the United States and the existing piles estimated at between 2-3 billion, this represents a serious problem.

ATP-Advanced Technology Pallets a Nevada Corporation (ATP), is proud to present its unique and patented product the RST-PAL Pallet, a new pallet made from recycled scrap tire rubber. The “RST-PAL Pallet” is strong, durable and reusable, providing an alternative to wooden pallets and the expense associated with replacing, repairing and discarding wooden pallets. RST-PAL Pallets might be serial numbered and bar-coded to insure tracking and retrieval so that they can be used over and over again for many years.

The inventor, Dan Radke, has assigned to ATP all patent rights (to the approved and issued patent USPTO # 08/680,476) to manufacture and market the RST-PAL pallets worldwide, in perpetuity.

OUR MISSION

To provide cost effective and durable pallets to all industries and manufacturing.

THE EXISTING PROBLEM

• Wood and plastic pallet life cycle is short and the cost is very high.
• Wood pallets break and need repair or replacement every one or two trips.
• Wood absorbs liquids, gains weight, breaks and splinters, and is difficult to clean.
• Industries demand more durable and long lasting pallets.
• Scrap tire stockpiles are an environmental hazard.
• Current pallets made of wood, are consuming over 3.5 million trees annually.

THE SOLUTION

• RST-PAL pallets are less costly to buy and maintain.
• RST-PAL pallets are more durable and indestructible.
• RST-PAL pallets can support 15 times the load of a similar wooden pallet.
• RST-PAL pallets are rackable, stackable, more durable and longer lasting.
• RST-PAL pallets are unique, made from recycled scrap tire rubber using a newly patented process that includes rubber, recycled plastics and a binder system.
• RST-PAL pallets are guaranteed for years.
• RST-PAL pallets have no competition worldwide.

TECHNOLOGY AND PROCESS

• The materials process and the manufacturing of pallets are based on an approved and issued patent (USPTO # 08/680,476).
• International (PCT) patent protection filed.
• Production line machinery is available and has been sourced.
• Raw materials are readily available and have been sourced.
• Flexible production line allows for building various pallet sizes, with high yield and quality.
• Product is production “ready”. All R&D and qualification complete.
• Process based on modular capacity that allows for quick manufacturing expansion.
• Factory is environmentally “clean” with no waste stream.
• Prototypes have been built, tested, and qualified.
• U.S. consumption of pallets is 800 million a year (National Wooden Pallet and Container Association, NWPCA).
• RST-PAL pallets have the lowest life cycle cost compared to wood, aluminum, and plastic.
• Global Pallets-leasing options available.
• Marketing to focus on both closed and open loop distribution systems.
• Worldwide markets and licensing opportunities (Internationally protected patents).
• U.S. Government Agencies and Contractors markets.
• U.S. government has mandated product replacement with recycled products first.

MARKET QUOTATIONS

• “Quality, reusable multi-trip pallets instead of poorly constructed single user pallets” is needed ASAP. (Reference: NWPCA)
• Contractors doing business with the government are required to purchase “environmentally friendly” and “recycled products” products first. (Reference: President Clinton Executive order)
• Prototypes were evaluated by different industries, including military and government agencies with positive feedback.
• Potential sales pending investment and production ramp up.
• Environmental incentives to certain markets (Government sub-contractors).
• All licenses, permits, governmental agencies acquired and in support of project.

PALLET COST COMPARISON – OVER FIVE YEARS

• Use of RST-PAL pallets demonstrates substantial savings, $22 for RST-PAL pallet vs. $133 for total cost for wooden pallet, over 5 years. (See Topic 4.2 and 4.3.1).

INVESTMENT REQUIRED AND USE OF FUNDS

• $6M investment for 35% ownership estimated to reach profitability within 12-18 months.
• From the second year forward, 50% of the net profit after tax will be distributed as dividends to the shareholders (as long as it will not affect the planned expansion). The other 50% will be dedicated to growth.
• Funds raised will be used for plant setup, operations, equipment, marketing and sales.

First year operation with two production lines is expected to produce 1,137,000 units, with a projected net profit of over $8 million.

INVESTOR DISCUSSION

• Projections reflect the return of the original investment in less than two years.
• Approximately six times valuation, based on discounting of five years of net earnings to present value.
• Present Value of five years of projected net earnings at a 25% discount (incl. risk factor) is $98 million.
• Reaching less than 1% of the market share with five plants within five years.
• Projected revenue of approximately $402 million.
• Projected net profit (before taxes) of approximately $178 million.
• Management Team – Strong and professional with highly specialized consultants.
• Exit Strategy alternatives:  (a) IPO after two years;  (b) Acquisition;  (c) Private ownership with a long horizon of profits.

RST-PAL Pallets  —  MANUFACTURED FROM RECYCLED SCRAP TIRE RUBBER

HELPING TO CLEAN UP AMERICA’S SCRAP TIRES

1.1 Mission

ATP is a manufacturing and marketing company dedicated to providing to all industries cost effective and durable pallets made from recycled scrap tires. The manufacturing process and the product are patent protected worldwide with no existing competition.

Pallet users, both manufacturers of commodities and industries that use pallets for their main distribution, demand a more durable and longer lasting pallet to replace wooden pallets that require constant repairing, replacing and discarding. The National Wooden Pallet and Container Association states that a wooden pallet gives service for only one to two trips before having to be repaired or replaced. Because of the short life cycle of wood (and plastic) pallets, pallet users are forced to purchase pallets more often.

Scrap tire stockpiles throughout the United States represent dangerous environmental hazards as they are breeding grounds for mosquitoes, rodents, and snakes, and create potential hazards for fires, which are extremely dangerous and expensive to extinguish.

ATP will reduce scrap tire stockpiles hazards and will help to conserve some of the 3.5 million trees harvested each year to manufacture wooden pallets. ATP will locate its manufacturing plants in rural towns, near large metropolitan areas, where employment is needed the most.

ATP will earn profits and provide excellent return to its investors while at the same time financing an aggressive growth of the company to increase production each year. ATP will also maintain a friendly, fair, and creative work environment, which respects diversity, product improvement, and hard work.

1.2 Objectives

• To establish two production lines at the first plant in Stamford, Texas in order to produce 1.2 million pallets annually, with projected net income (before taxes) in excess of $8 million.
• To expand production annually by opening a plant with two additional lines of production each year for years two through five.
• Achieve targeted market share of 0.15% in the first production year to 0.75% by the end of year five. (800 million pallets are manufactured and sold annually in the U.S.)
• First year projected market share of 0.15% is expected to bring net profits of $8 million (before taxes), and 0.75% of the market share in year five is projected to bring net profits of $66 million. Accumulated profits (before taxes) are projected to be $173 million for the first five years of production.
• ATP will take advantage of the acute need for solutions to America’s scrap tire problems, and establish plants in different locations where scrap tires are abundantly available, while taking advantage of benefits and subsidies offered by different State Government programs for the remediation of scrap tires.
• Develop foreign markets, through licensing agreements, especially in Europe and the Far East, where similar acute problems of scrap tires exist.

1.3 Keys to Success

• An existing pallet market in the U.S. of over 800 million pallets sold annually. It is estimated that approximately 60% are hardwood pallets; these users are ATP’s targeted customers.
• RST-PAL pallets have the lowest life cycle costs compared to wooden or plastic pallets.
• RST-PAL pallets are patent protected, are durable and virtually indestructible, and can carry in excess of 15 times the load of wooden pallets.
• Pallets are a well-known, necessary and established product; therefore there is no need to penetrate the market with a totally new product. In fact, RST-PAL pallets are not a new product at all, but are far superior, durable and longer lasting than anything comparable in the market place. The advertising and marketing costs will remain low as the RST-PAL pallets are introduced to pallet users through trade shows and conventions, with ATP’s sales representatives located in targeted marketing regions. The first targeted marketing region is Dallas/Fort Worth, Texas, near the first plant in Stamford, Texas.
• The U.S. government has mandated, through an executive order, a “buy recycled first” for all government agencies and contractors, including the Department of Defense and Department of Transportation. ATP will target federal and state agencies to market RST-PAL pallets.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

A.T.P.-Advanced Technology Pallets (ATP) a Nevada Corporation was formed to create a joint venture with the participation of the new investors and the current owners: RST Manufacturing LLC and Elie Banensohn, ATP’s Vice President.

ATP will manufacture and market worldwide the RST-PAL Pallet, made from a patent protected new material that includes the use of recycled scrap tire rubber. The pallet will be an affordable alternative to the high cost of purchasing, repairing, replacing, and discarding wooden pallets. Pallet users purchasing RST-PAL pallets will realize substantial savings in their pallet costs.

ATP is a new entity with RST Manufacturing LLC, becoming a shareholder. RST Manufacturing has invested in excess of $1 million to date, to complete research and development, prototypes, and pre-production marketing of the pallets. Plant property in Stamford, Texas, initial machinery, materials and supplies were purchased to bring the project to where it is today so that we can move into production and marketing of the RST-PAL Pallets through ATP. RST will transfer all assets to ATP. These efforts include the issuance of USPTO #08/680,476 in July 2002, a Utility Patent that will protect the unique material, and the product, RST-PAL Pallets.

All patent rights to manufacture and market the RST-PAL Pallets worldwide, are assigned in perpetuity to ATP by the inventor and ATP’s president, Dan Radke.

The Company’s was formed as a Standard C Corporation under the laws of the State of Nevada. The principal offices are presently located in Las Vegas, NV.

2.1 Company Ownership

Upon completion of the offering ATP a Nevada Corporation, will be owned by:

• The new investors (up to) – 35%

ATP is offering 35% of its shares to raise $6 million as additional capital needed for starting the first plant (with two production lines), in Stamford, Texas. ATP National Headquarters is in Las Vegas, Nevada and sales representatives will be positioned in targeted marketing areas.

The majority owner of RST Manufacturing LLC, is the inventor of the new material and the RST-PAL pallet, Mr. Dan R. Radke,  the President of ATP.

The inventor, Dan Radke, has assigned all patent rights to ATP to manufacture and market the RST-PAL pallets worldwide in perpetuity.

2.2 Start-up Summary

The following summary table shows the projected start-up costs during the seven months needed to get into production. It includes the supply of specific machinery and equipment needed for the production lines. The start-up costs are to be financed by the money raised through this Private Placement Memorandum Offer.

The funds sought for opening the plant with two production lines is $6 million with projected net profits, in the first year of over $7 million. Alternatively, as a minimum plan, we could open with one line of production with funds of $4 million. In this case, the projected net profit, in the first year is over $3 million. In either case, about $750,000 will be available as working capital for the first six months of operations (after the plant is in production).

Management expects to begin production in approximately 180-200 days from funding as detailed in the Start-Up table.

ATP’s product – the RST-PAL pallet is a unique and revolutionary pallet made from a new, patent protected, material of recycled scrap tires, a small amount of recycled plastic and a bonding process. The function specifications of our pallets are identical to the existing wooden pallets (e.g. sizes, four ways entry, upper deck coverage etc.) except that RST-PAL pallets are much more durable and longer lasting which makes penetration into the existing markets less difficult. The patented process and product gives our RST-PAL pallets the following advantages over the existing pallets:

• RST-PAL pallets carry 15 times the load of a similar wood pallet.
• RST-PAL pallets are rackable, stackable, and longer lasting than wooden pallets.
• RST-PAL pallets do not absorb liquids and are easy to clean.
• RST-PAL pallets have NO competition.
• RST-PAL pallets are environmentally friendly and are, themselves, a recyclable product.
• RST-PAL pallets are made of recycled scrap tire rubber material using a newly patented process which includes rubber, recycled plastics, and a binder system.

It is a rare occasion when a company can make a significant contribution to our environment as well as create an important long awaited product that will provide substantial cost savings for its users and allow them the opportunity to use and promote environmentally friendly, recycled products.

According to the National Wooden Pallet Container Association (NWPCA), its Strategic Planning Committee suggests that its members educate pallet users toward using higher quality, reusable multi-trip pallets instead of cheaper single use pallets. From a list of 62 potential threats to the wooden pallet industry, the committee chose lumber supply/raw material availability as the top threat. Other top threats identified by the committee include frozen thinking on the part of the industry, demonstrated by an unwillingness to recognize or adapt to the new realities of the marketplace, and environmentalists, a threat recently demonstrated by the draft Executive Order which would have banned wood pallets from use by the Federal Government.

A Clinton Administration Executive Order entitled “Federal Recycling, Acquisition and Use of Environmentally Preferable Products and Services” requires government agencies and those doing business under government contract to begin using “environmentally preferable” products made from recycled materials.

Paul Evanko, principal and vice president, St. Orge Company, York, PA, stated, “Pallets must adhere to a high quality standard”. “Poor quality pallets carry a hidden cost beyond the price paid and customers should be encouraged to purchase the best quality they can”. “Alternative materials including plastic, recycled and composite materials will emerge and pallet users will seek these pallets because of limited storage space, efficient handling weight and full four-way entry,” Evanko contends. “Wood will still be predominant,” Evanko said, “but there is a niche for alternative materials in the distribution flows”.

The Earth Works Group, Berkeley, CA states; “U.S. companies could be spending up to $1.75 billion dollars a year just to throw wooden pallets into landfills”. The Pallet Container Research Laboratory at Virginia Polytechnic Institute and State University, Blacksburg, VA states “calculations show the annual wooden pallet production in the U.S. is using in excess of 3.5 million trees”.

3.1 Innovative Technology

Background  (*) A major technological obstacle, which the recycled rubber market must overcome, is the nature of the rubber itself. Rubber used in the manufacturing of tires is vulcanized (rubber + sulfur) combined in the presence of heat and thermo set (formed into shape by steam and pressure – also referred to as a “cured” product). To date, no technology has been able to devulcanize rubber (break the carbon-sulfur bonds).

As such, thermo set rubber cannot chemically bond with any other polymer (rubber or plastic) to a degree anywhere approaching the uncured rubber. If, however current research is able to remove this obstacle, a very significant market will be opened.

 (*) Scrap Tire Management Council, 1400 K Street, Washington, D.C.

Current usage Today’s usage of scrap tire rubber reaches about 7% of the annually accumulated scrap tires. Each year, about 250 million scrap tires accumulate throughout the U.S. This quantity of tires represents 3.75 billion pounds of crumb rubber from which only 262 million pounds (7%) are recycled and another 187 million pounds (5%) are used as tire derived fuel (TDF), which is a dirty fuel like coal, and requires strict EPA controls, is only being burned in a few states.

According to the Scrap Tire Management Council there were seven markets listed for recycled scrap tire rubber. These markets without exception utilize crumb rubber with all of the steel, wire, and textile removed, as an additive to rubber-modified asphalt (25%); pneumatic tires (25%); athletic fields (20%); bound rubber products (15%); friction material (5%); molded rubber products (5%); and molded rubber/plastic products (5%).

The new technology and the patent Mr. Dan Radke has overcome the obstacle mentioned in the article, (para.1) above. Mr. Radke’s invention of this “unique new material” through formulation and different particle sized recycled scrap tire rubber has created a tough, durable, hard and rigid material from which RST-PAL pallets are manufactured. The process is absolutely unique as proven by the issue of the utility patent protecting the pallet and process of making thereof. This unique and strong material and the usage of it for making pallets will save pallet users throughout the world millions of dollars annually in costs associated with purchasing, repairing, replacing and discarding broken wooden pallets.

Market Analysis Summary how to do a market analysis for your business plan.">

U.S. yearly consumption of pallets is 800 million a year, costing over $10 billion (according to National Wooden Pallet and Container Association). Our first market will be a 200 miles radius area around Dallas/Fort Worth in which the yearly consumption is 60 million pallets. Our markets for the RST-PAL pallets are all industries and users of pallets. About 300 interested users for our RST-PAL pallets (each of them buying over 100,000 pallets/yr) were contacted.

• RST-PAL pallets have the lowest life cycle cost compared to hard wood and plastic.
• Global Pallets leasing.
• Closed and open loop systems.
• Worldwide markets and licensing opportunities (Internationally patent protection filed).
• U.S. Defense and Transportation Departments market. U.S. government has mandated product replacement with recycled products.

ATP’s target in the first year is to produce 1.14 million pallets with two lines of production (constitutes 0.15% of the market), reach sales of $22 million, and ATP projects to earn profits of over $8 million (before tax).

The growth projection for the next five years is to add a new plant with two lines each year, reaching production in excess of six million pallets by the fifth year, (0.75% of the market), with sales projected at $143 million and profits before taxes of over $66 million.

4.1 Market Segmentation

Due to the fact that ATP’s projected plan is to open a new plant each year over the next five years, and to capture 0.15% to 0.75% of the U.S. pallet market, our main growth problem will be the limited abilities to supply the potential demand. Although we segmented the market into six groups we cannot indicate the percentage of growth for each segment, as the growth is not linear. The percentage represents our relative emphasis of this segment.

Yearly Pallet Users – Potential Customers

Total: Five year production =18,410,112. % of the pallet market =0.46

4.2 Target Market Segment Strategy

The following table demonstrates the cost savings that will be realized when a company converts its wooden pallet inventory to RST-PAL pallets.

Currently new hardwood pallets, (example: 40″x48″, four-way entry, 80% top deck coverage) are sold from $12 to $24 per pallet depending on the geographical area where you are purchasing your pallets, and the always fluctuating cost of hardwood. For the purpose of this chart we show the lowest price for large quantities of hardwood pallets at $10.

CHEP Pallet, Inc., the largest pallet leasing company in the world currently pays $23.50 to construct its pallets. 

A pallet user of 100,000 new pallets per year will be saving over $3 million within 5 years using our RST-PAL pallets.

The table demonstrates that big users will realize huge savings. For example, one poultry processing plant that purchases one million pallets per year (about the production of one ATP plant) will realize savings of over $31 million within five years which will encourage them to convert their wooden pallet inventory to RST-PAL pallets.

4.2.1 Sample of Advertisment Content

RST-PAL PALLETS

COMING SOON

THE NEW SOLUTION TO COSTLY

REPAIRS AND REPLACEMENT OF

WOODEN PALLETS

RST-PAL pallets are not affected by heat or cold. Won’t rot, split or mildew STRONG & IMPACT RESISTANT, No more rusty nails, splinters, broken boards and runners RST-PAL PALLETS are 100% Recyclable, made from post consumer waste. No disposal costs

RST-PAL pallets, offering a new solution to an old problem

• RST-PAL pallets made from new tough materials = virtually indestructible.
• RST-PAL pallets are tougher, longer lasting pallets.
• Many years of repeated usage make RST-PAL pallets the best buy.
• Close your pallet repair facilities, our pallets don’t break.
• Stronger and more durable than wood or plastic.
• Easily trackable with bar coding or electronic chip.

RECYCLE / RE-USE of RST-PAL pallets represents a great innovation to the pallet industry with a major cost savings.

RST-PAL pallets address important environmental issues; help clean up America’s growing scrap tire problem and conserve valuable timber resources by using old tires to transport America’s commodities to consumers.

4.3 Industry Analysis

The pallet industry’s computation of the cost of a pallet includes the costs of production, maintenance and repairs, and discarding of the broken pallet. In the last decade, materials other than wood were introduced to the pallet industry like plastic, metal and corrugated cardboard, but still over 90% remain wood.

More than eight hundred million wooden pallets are constructed each year in the U.S., according to the National Wooden Pallet and Container Association (NWPCA). Most wooden pallets must be replaced or repaired after only one to two trips. It is estimated that over 3.5 million trees are used each year for pallet production, and most of these pallets end up in landfills, burned, or composted.

For years pallet users have been asking NWPCA members to build stronger and more durable pallets that would last longer, but nothing has changed. Pallet manufacturers favor the ongoing replacement prevalent in the industry.  

The Recycled Scrap Tire industry generates more than two hundred fifty million scrap tires annually in the United States, one scrap tire for every American. These scrap tires are piling up, adding to the existing stockpile of an estimated two to three billion scrap tires located across the nation causing dangerous environmental hazards. Most states have adopted emergency scrap tire programs to help solve the growing problem of accumulations of scrap tires. The state of Texas has a scrap tire program; collecting and processing more than two hundred thousand tons of scrap tire rubber annually. Currently Texas has more than three million tons of shredded scrap tire rubber on the ground, available to end-users.

ATP with its RST-PAL pallet product will utilize Texas’ scrap tires to manufacture pallets at its first plant in Stamford, TX. The RST-PAL pallets will provide tough and durable pallets to pallet users while helping clean up the scrap tire problem.

ATP’s patented material and the manufacturing process to make pallets from scrap tires is the ultimate solution to the problems presented above:  a) stronger and more durable pallets;  b) reducing scrap tire stockpiles;  c) saving trees. The use of  RST-PAL pallets provides an excellent cost effective price, competitive to hardwood pallet prices.

The table in Topic 4.2 demonstrates the savings for a pallet user that purchases 100,000 pallets annually, when converting from wood to RST-PAL pallets. It shows savings over a five year period of more than $3 million. This saving comes on top of other benefits of using the RST-PAL pallets including: more durable and indestructible, carries 15 times the load of wooden pallets, rackable and stackable, will not absorb liquids (can be stored outside), and guaranteed for years. ATP’s first plant is located in Stamford, Texas, a rural community that is badly in need of economic development and new jobs. Stamford is approximately 150 miles from our first targeted marketing area the Dallas/Ft.Worth Metroplex.

4.3.1 Competition and Buying Patterns

There is NO direct competition to RST-PAL pallets and no similar pallets exist today. The inventor, Dan Radke, has granted, in perpetuity, to ATP Corp the sole rights of utilizing the patent worldwide. This patent (USPTO # 08/680,476) gives very wide protection to the revolutionary invention of special material and to the process of making pallets.

The “competition” comes from pallets made of other materials like wood and plastic. Pallet users that use hardwood pallets do not use pallets made of corrugated cardboard. The table below demonstrates the cost comparison among the different pallets:

PALLET COST COMPARISONS – OVER 5 YEARS (in USD)

(*) Six repairs per year costing $4 each x 5 years.

The table clearly shows that costs over five years of the hardwood pallet is almost ten times that of RST-PAL pallets. In addition to the savings, there are other advantages such as the guarantee, no need to repair, can be stored outside (no liquids are absorbed), washable (important in the food industry), rackable and stackable, strong and indestructible. Bar-coding and electronic chips can be molded into the pallet to allow for specific inventory information regarding what is loaded on the pallet and for tracking.

There is no competition to RST-PAL pallets. There is no competitor making pallets from recycled rubber. ATP anticipates that our limited production will cause our five years expansion plan to be revised in order to meet the demand. Our first plant is expected to produce approximately 1.14 million pallets in the first year and 1.23 million from the second year forward. While the market for pallets is in excess of 800 million annually, ATP expects to capture about 0.15% of the market in the first year, and 0.75% after five years to meet our projections. This takes a great part of the risk out of the project.

ATP has already explored opening a subsidiary company that will lease or lease to own pallets to companies. This will enable ATP to compete with CHEP Pallet Corporation, which leases wooden pallets. CHEP has about 300 branches in the U.S. and also operates in foreign countries. Leasing RST-PAL pallets would be very profitable, as our pallets do not require repairs.

Strategy and Implementation Summary

Due to the increased lifecycle and interchangeability of the RST-PAL pallets with existing wooden pallets, ATP’s customers derive value from utilizing these innovative products in a number of ways. First and foremost, using and replacing the user’s wooden pallet inventory with RST-PAL pallets eliminates ongoing maintenance and replacement costs.

Another value is the longevity RST-PAL pallets offer. RST-PAL pallets have the longest life-cycle regardless of hot, cold, or wet climates or in environments where maintenance is difficult. RST-PAL Pallets will not rot, which is a common problem for wooden pallets.

RST-PAL pallets are manufactured from recycled materials mainly scrap automotive tires. Each 1,000 pallets use 25 tons of scrap tires from landfills, (31,000 tons or 62,000 pounds per plant per year).

RST-PAL pallets will help save hardwood forests currently used to manufacture wooden pallets, reduce greenhouse gases, use significant amounts of waste plastics and scrap tires from landfills and storage facilities, and reduce pallet users costs while increasing profits.

5.1 Competitive Edge

ATP’s most important competitive edge is based on the unique and patented material used to manufacture the RST-PAL pallets. The process, the unique material, and the use of the material to manufacture pallets are protected by the issued utility patent that will prevent duplication or “copycat” competition.

RST-PAL pallets are manufactured from recycled scrap tires. Federal law and most State Governments require agencies and contractors to purchase recycled products first, as mandated by “buy recycled products first”. ATP has already presented RST-PAL pallets to the Army, Air Force Exchange System, (AAFES) located in Texas and throughout the Pacific Rim, and AAFES is interested in purchasing pallets, which will increase their pallet lifecycle, which in the long run is less costly than wooden pallets. We will focus on different government agencies including the Department of Defense and Department of Transportation to introduce and market RST-PAL pallets.

RST-PAL pallets can be power washed or steam cleaned which is a critical factor in the food industry, such as in poultry and meat processing plants, which must maintain sanitized production areas. RST-PAL pallets do not absorb liquids as wooden pallets and they can be stored outside without occupying expensive indoor space.

The RST-PAL pallets are a “triple green” product. They are manufactured from recycled materials, and can be recycled in the event they ever wear out, and they will help conserve our nation’s forests while helping clean up America’s scrap tire problems.

The RST-PAL pallets will be the best cost/performance pallets in the market. The summary of advantages that our pallets have in comparison to existing material pallets such as hardwood, plastic, corrugated cardboard, and aluminum, are:

• An electronic chip for pallet identification and load identification will be available with RST-PAL pallets, and this can be done because of the strength and rigidity of the pallet, which is practically indestructible.

5.2 Marketing Strategy

The RST-PAL pallet is positioned uniquely as all industries and manufacturers use pallets to transport everything from commodities to equipment and parts. The main segmentation among the users is found in how they use pallets. The Power industry uses in excess of twenty million pallets annually, government owned poultry processing plants use more than ten million pallets annually, 3M Corporation purchased seven million pallets in one year alone, and the beverage industry uses in excess of fifty million pallets annually. There are also thousands of companies using anywhere from hundreds of thousands to millions of pallets annually including, chemical companies, bag cement, building materials, grocery, paint companies, and many others.

Our first targeted customers are those that use a “closed loop” distribution system, where they manufacture and/or distribute products using their own fleet, where loaded pallets can be dropped and returned when unloaded, to be utilized over and over again. We also will target government entities, agencies, and contractors both Federal and State.

Our marketing strategy is based on informing and introducing the RST-PAL pallet to pallet buyers across the country and in different industries. We can accomplish this at a rapid pace by showcasing the pallets at selected trade shows and conventions. Samples will be available as well as brochures and videotapes explaining the benefits of the RST-PAL pallet. Our first targeted marketing territory will be the Dallas/Ft.Worth Metroplex, concentrating on those companies using a “closed loop” system for distribution.

The marketing will convey the advantages, benefits and the quality of our product in every picture, every promotion, and every publication. Pallet users have been screaming for years for the wooden pallet industry to make a longer lasting more durable pallet, but their request has fallen on deaf ears, as the pallet builders would rather build a less sturdy pallet so that it will fail after only a few trips, requiring the customer to purchase more pallets. The RST-PAL pallet is a solution to the high cost of purchasing, maintaining and discarding wooden pallets. Our marketing efforts will not only focus on educating purchasing agents of companies, but also in making presentations to company board of directors, demonstrating the cost savings and benefits of using RST-PAL pallets. As was shown in a previous example, a company purchasing 100,000 pallets per year when converting to RST-PAL pallets will save in excess of $3 million over five years. With such convincing statistics, we anticipate universal acceptance of RST-PAL pallets.

5.3 Sales Strategy

As stated, ATP will sell pallets as they are manufactured. Pre-production marketing efforts have been on going for the last year. We have established a sales plan, however our production will dictate how quickly our sales team will expand. One company we have contacted expects to purchase 22 million pallets during the next two years. If we were to capture a large contract, our production schedule would be sold out for a number of years. Another sales company that markets products exclusively to the power industry, would like to have an exclusive to sell our pallets to power companies, and they estimate they can sell a minimum of 1.2 million pallets annually. We have approached many companies on the benefits of using RST-PAL pallets, including; 3-M Corporation, Coca-Cola, Pepsi, Snapple, Anhauser Busch, Hunts Wesson, Kraft Foods, S.E. Rycoff, Albertsons, Kroger Foods, Associated Foods, H.E.B. Foods, Purina Pet Foods, manufacturers of charcoal briquettes, flour and cereal mills, salt processors, building materials, including bagged sand and cement, plaster and even chemical companies.

Our concept is to introduce the RST-PAL pallets to many industries, and ATP will do that from our National Marketing Headquarters in Las Vegas, Nevada. The Las Vegas Visitors and Convention Authority will provide a great arena in which to showcase and demonstrate the RST-PAL pallets, as virtually every important convention and trade show now meets in Las Vegas.

This business plan calls for the company to grow itself. The Texas plant will be the first, and we expect new plants to be opened in years two, three, four and five. Some future plant site work has been completed, however we will locate the plants in States with positive scrap tire programs, some of which may provide subsidies for using scrap tire rubber to manufacture new products. In addition, our company policy will be to establish plants near massive scrap tire piles, and in rural communities where a good labor force exists but jobs are not plentiful and economic development will benefit the community.

ATP Corp. is the worldwide licensee to manufacture and market pallets. We have already had several foreign entities show interest in either becoming distributors or manufacturers through a foreign license arrangement. We have held discussions with a group from China, Japan, Taiwan and South Africa and are in contact with a group in Spain that is interested in our technology.

It is our intent to move our Stamford, TX plant into full production, and utilize the same team of key employees and consultants to open new plants over the next five years. Whereas our Business Plan provides for future plants being financed internally from company profits, additional capital can be raised through the licensing of foreign companies wishing to manufacture and market pallets in those countries.

5.3.1 Sales Forecast

Our sales forecast is based on the following assumptions. We expect our production will be sold as soon as it is ready, as the forecasted production is much less than the anticipated demand. Our product is not seasonal and will be continually manufactured throughout the year. We will operate in three shifts (except during training in first two months).

Our sales force will start taking orders sixty days prior to production. The initial selling price is low in order to introduce the pallets to many different manufacturers and industries. However we expect to raise prices at the rate of 5% per year (which is less than the rate of increase of the wooden pallets).

Regarding the “direct cost of sales” (COG), we assume the costs of materials will remain the same for us, due to discounts we will receive for the quantities of materials that we consume which should offset rising costs. We can also reduce our costs by doing some manufacturing processes ourselves, such as mixing and batching the binders at our plant, and by cutting the scrap tire rubber from chips to our required specifications.

We’ve calculated production labor costs, including salaries, taxes, and benefits to be $1.31 per pallet. The break down of production personnel is presented in the Personnel table, Production Personnel category, and the resultant figures appear in the Profit and Loss table under Sales, Production Payroll.

The Sales Forecast table for the first 12 months appears in the appendix.

5.3.2 Pallet Users

PALLET USERS, Dallas / FT. Worth Area ANNUAL PALLET USAGE.   The following list of pallet users was contacted and the new  RST-PAL Pallet was introduced to each user, receiving excellent interest. Another 22 users were also visited. The Total yearly estimated usage of pallets in the DFW area is 60 million.

PALLET USERS, HOUSTON Area

5.4 Milestones

The following table lists important project milestones during the pre-production start-up period, with dates and managers in charge, and budgets for each milestone. The milestone schedule indicates our emphasis on planning for implementation.

The production schedule is based on three shifts. During the first month only one shift will be in operation, in the second month, two shifts, and from the third month, a full three shifts of production. During the start-up period, the employees will be located and trained.

The municipality of Stamford, Texas will assist us in recruiting about seventy employees. There is an adequate work force within the surrounding communities, which will enable us to choose quality people.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

THE MANAGEMENT TEAM ATP’s management team and its consultants are qualified professionals with vast experience with plant installation and operations, purchasing and marketing. ATP’s consultants will be employed during the start-up period (see Start-up table). ATP welcomes any additional person from our investor’s group that can contribute to the success of the company.

Dan R. Radke, President:    SUMMARY OF QUALIFICATIONS

• Dan Radke, the inventor of the unique material for making the RST-PAL Pallets, has been involved in scrap tire recycling issues for ten years by offering his expertise to government agencies, municipalities, individuals and companies wishing to enter the emerging scrap tire recycling industry, Radke has earned a reputation for his knowledge of the scrap tire industry. Assisted States, Counties and Municipalities to remediate scrap tire problems. Contributed to California Integrated Waste Management Board to develop rules, regulations and guidelines for the States scrap tire program.
• Process, technology inventor, business owner and manager, sales, marketing, production line machinery and equipment, business operations, training and management
• More than 30 years owning and operating start-up companies.
• Three years, international business transactions, as a consultant bringing American Companies to Eastern Europe, primarily Hungary to form U.S./Hungarian Joint Ventures.
• Authored the Hungarian Small Business Foundation to establish loan guarantees for privatization and start up Hungarian Small Businesses, working directly with the Hungarian Banks and Government.

Eliezer Banensohn, Vice President:     SUMMARY OF QUALIFICATIONS

• Aeronautical Engineer – B.Sc. degree. Experience in R & D for new products.
• 12 years extensive experience as an expert in marketing of new and revolutionary products in new markets.
• Eight years experience as a specialist in putting up new franchise organizations and licensing operations.
• Won prizes for best business in South-Africa and Argentina (as VP Marketing & Engineering).
• Participated, in engineering capacity, in the development and marketing of revolutionary advanced building system – “Domecrete” in many countries worldwide.
• Participated, in engineering capacity, in the development of Hi-Tech product (Baby-Sense S.I.D.S. detector, medical industry).
• Plant design and Manufacturing experience in plastic, rubber, and metal products, injection molds and machinery. Inventor and patent owner for the product “non-electrical hand operated washing machine”.
• 25 years experience as computer software and hardware analyst.
• 15 years experience in marketing software and hardware computer systems.
• Owned several computer service bureaus using IBM mainframe

Shayne Del Cohen, (Consultant) Public Relations, Government Affairs

• Business and economic development, government relations, grant writing, bid preparation, business trade representations, lobbying, employee relations, training and staff planning.

Gene Pitzer, (Consultant) Machinery & Equipment Acquisitions

• Contract acquisition for machinery and equipment for Stamford, Texas plant, 25 years experience, retired No.1 tool and die manager for General Motors, Owner; Tool Consulting Corporation, developed tire recycling machinery.

Steven Garbukas, (Consultant) Chemical, Epoxy Binder Systems Acquisitions

• Contract acquisition for all special binder systems developed by Dan Radke and Steven Garbukas, source and supply plants with materials at best possible price, provide all injection and delivery systems to material during batching.

Richard Turner, (Consultant) Machinery and Equipment Line Standup, Plant Engineer

• Supervise and install all production line machinery and equipment at the first plant, in Stamford, Texas and all subsequent plants. Initial plant manager, over production and safety, will train employees, including plant manager.

Layne T. Rushforth, (Attorney)

Richard Dickinson, (CPA)

* (Resumes of any of the above people are available on request.)

6.1 Personnel Plan

Our first plant will be located in Stamford, Texas, a rural area close to a large metropolitan city, where large scrap tire stockpiles are located within less than one mile of our plant. The area has a large workforce in desperate need of jobs, which will help ATP recruit qualified and devoted workers, that will be paid more than the average wages for this area, which are less than in more populated areas. The direct labor cost shows that each plant will require approximately 70 workers in three shifts.

The team for the first manufacturing plant is currently being interviewed with the help of Stamford’s Mayor and City Manager. The Personnel table shows the position and salary of the 68 employees that will work in three shifts of eight hours each. Production is based on seven working hours with one hour budgeted for maintenance and crew change. To facilitate training, during the first month one shift will be in operation, in the second month, two shifts and from the third month forward the plant will operate at full production capacity with three shifts.

The Profit & Loss table shows the payroll burden as 23% of the salary, which covers the taxes and benefits for the employees. No increase in wages and salaries have been forecasted, however, it is assumed that as the company grows, employees will receive increases in their wages, salaries and benefits.

The Personnel table shows the direct and active involvement of the company President (the inventor) and the V.P. in all stages of the start up, purchasing of the machinery and running the business. The team includes highly qualified professionals as consultants in different areas that will enable a smooth and efficient entry to production. As the projected expansion takes place, ATP will begin a search for highly qualified management candidates that will manage the company in the future.

ATP will also investigate foreign licensing that will bring additional revenue streams to the company. ATP’s V.P. has already made contacts with foreign entities and has found great interest from foreign companies. Elie (VP) spearheads negotiations for foreign licensing and manufacturing.

The Personnel table for the first 12 months appears in the appendix.

Financial Plan investor-ready personnel plan .">

The projected financial plan is very sound. The one-time investment gives ATP the ability to take 50% of the profits (after tax) as dividends at the end of year two and to self fund expansion by one additional plant per year. The projected cash flow is outstanding and will enable ATP to be even more aggressive in our expansion plans.

As mentioned throughout this Business Plan, each plant will produce a maximum of 100,000 pallets per month, which is very low in comparison to the demand for pallets. (800 million pallets divide by 12 gives approximately an average of 67 million pallets per month sold in the U.S.)

In addition to the expansion within the U.S., overseas licensing projects will be developed, from which we will create additional revenue streams through licensing fees, royalties, and other contractual payments.

ATP may also enter into other joint ventures or partnerships to license other entities to manufacture and market RST-PAL pallets not only in the U.S. but also worldwide.

The last two sources of income are not included in the financial forecast and do not appear in the tables.

7.1 Important Assumptions

The financial plan based on important assumptions, detailed in the following statements:

• Due to the initial limited production in comparison to the market size, ATP assumes that even a slow-growth economy, will not affect our plan for the next five years.
• ATP forecasts that there would be no unforeseen changes in technology to make our products obsolete. Pallet buyers are looking for cost effective solutions for replacing the high cost of purchasing, repairing, and discarding wooden pallets and RST-PAL pallets offer the solution by providing a longer lasting more durable pallet.
• Cash flow is not expected to be a problem, with most pallets being paid for on delivery. There will be exceptions for specific customers, as an example, the U.S. Government, based on the quantity of pallets that are ordered, but generally, payments for pallets will be paid in full upon delivery.
• ATP’s growth is based on internal financial resources. ATP will budget 50% for growth and 50% from the profits as dividends after taxes (from year two forward and as long as it does not affect the planned growth of the company).
• The source of raw material (scrap tires) is virtually endless as long as cars continue to roll on tires. Presently, 250 million tires are added each year to  scrap tire stockpiles all over the country.
• ATP assumes a short holding of inventory beyond the curing time of the pallets and transportation arrangements.
• ATP assumes a 5% annual raise in our selling price, which is comparable to the wooden pallet industry and fluctuating lumber costs. 
• ATP assumes no raise in our material costs, because the quantities we purchase will increase, and ATP anticipates discounts to offset any increased costs.
• ATP assumes an average sales price per pallet in the first year of production to be $18.50, which is significantly less costly than hardwood pallets whose entire cost includes purchase, repair, maintenance, and discard/disposal.

7.2 Break-even Analysis

This break-even analysis shows that ATP has budgeted fixed costs and projects sufficient sales to maintain good cash flow balances. This projection is based on two production lines.

The essential insight here is that ATP’s projected sales levels will be running comfortably above the break-even point.

7.3 Projected Profit and Loss

NOTES TO PROJECTED FINANCIAL STATEMENTS

NOTE 1 – MATERIALS COST The raw materials, recycled scrap tire rubber, will be provided on an as needed basis. No large stockpiles of material or inventories of recycled rubber shall be stored at the manufacturing site.

The main ingredient of an RST-PAL pallet is recycled scrap tire rubber that has been processed to specific dimensions. There is three million tons of scrap tire shredded rubber on the ground in Texas with ten permitted processors or tire shredders, which want to provide material to ATP.

ATP will purchase scrap tire rubber from a Stamford, Texas processor, and has estimated the cost of material at $1.25/pallet ($50 per ton). It should be noted that ATP is working closely with the Texas Natural Resource and Conservation Commission and ATP may even have an opportunity to acquire surplus scrap tire rubber for less costs. Texas now produces approximately 200,000 tons of scrap tire rubber annually. In addition, the current Texas Legislature is considering paying manufacturers of products using recycled scrap tire rubber, $0.75 per pallet ($30 per ton) as an incentive to increase production of products using scrap tire rubber.

A small amount of recycled plastic is utilized in the formula and its cost is estimated at $0.90 per pallet. In addition a secret formulated binder, developed by the inventor Dan Radke, is used in the manufacture of the pallets, estimated to cost $6.50 per pallet.

NOTE 2 – DIRECT LABOR (Production Payroll) and PAYROLL BURDEN Projected Direct Labor includes the salary and wages for those employees directly involved in the pallet production process in the plant and is reflected in Topic 6.1. Payroll burden is estimated at 23% (FICA 6.20%; Medicare 1.45%; FUTA .80%; State Unemployment 3.00%; Workers Compensation and Employee Health Benefits 11.55%).

The total Direct Labor cost includes payroll burden and other direct costs such as utilities, building repairs and maintenance, plus plant supplies estimated at 5%. The total for direct labor cost and payroll burden per pallet is estimated at $1.31.

NOTE 3 – ROYALTIES The Licensing Agreement requires payment of 5% of gross sales to Mr. Radke, the inventor, as royalties. This may be paid quarterly or monthly (5% has been used throughout these projections). There will be no royalties for the first six months of production to help the cash flow of the company.

NOTE 4 -GENERAL & ADMINISTRATIVE WAGES AND PAYROLL BURDEN The company will employ Management and clerical staff as appears in the Personnel table, Topic 6.1. Additional management members and marketing representatives will be added as needed throughout the growth of the company. Payroll burden estimated at 23% including taxes, W/C, health and employee benefits. During the six-month start-up phase and thereafter, the company will employ experts in the industry as consultants.

NOTE 5 – DEPRECIATION Machinery and equipment is being depreciated over 10 years, property over 30 years.

NOTE 6 – OFFICE EXPENSES Provision has been made for estimated general office expenses. Computers and office equipment costing $15,000 is included in the initial start-up budget and Expensed Equipment. The amount budgeted for Year One is $12,000, which will increase at the rate of $12,000 per year with each additional plant.

NOTE 7 – MARKETING and SALES Management anticipates strong demand for the RST-PAL pallets creating a real challenge for production to keep up with the demand. Back orders are expected and sales on advanced production should drive expansion. With many potential pallet users identified, who currently use from 100,000 to 7 million pallets annually, we will approach the expansion of our national sales force, carefully. ATP does not want a large sales force with production sold out for months in advance. A budget in this category will be used for sales representatives or commissions on sales and is budgeted at $73,000 during year one. Based on attendance at conventions and trade shows it is anticipated that our targeted Dallas – Fort Worth Metropolis, Houston, San Antonio and the rest of Texas will absorb all our production for many years.

A Marketing Director shall develop goals and strategies with the board of directors. ATP plans to hire a qualified director in year one. Sales representatives will be hired and it is anticipated they will receive a base salary with commissions of ten cents per pallet sold. The budget takes these assumptions into consideration.

NOTE 8 – MACHINERY MAINTENANCE The initial production line machinery will be in good working order, nevertheless, ATP will plan for parts maintenance and replacement. This budget grows as more machinery and plants are established.

NOTE 9 – TAXES The “taxes incurred” appearing in the P&L represents State of Texas Franchise taxes and Federal Income Taxes for a total of 34%.

The Profit and Loss table for the first 12 months appears in the appendix.

7.4 Projected Cash Flow

The table presents our projected cash flow balances. The critical first year reflects positive cash flow. Monthly cash flow is positive and more important the balances are positive, which indicates adequate financial reserves and correct planning of the required working capital. The estimated results permit a margin of error and still appear strong, even though the numbers remain conservative.

ATP intends to distribute dividends to its shareholders in a way that will enable the continuation of the expansion of the company according to this Business Plan. ATP estimates that from year two forward 50% of the profit (after tax) will be distributed to the shareholders. The Board of Directors will determine any other distributions to be made on an annual basis.

The following chart shows the cash availability for the next 12 months. The bar labeled “Cash Balance” shows our projected cash balance for the first 12 months of the project and it is adequate (above zero). The second set of bars, labeled “Net Cash Flow”, indicates the change in the Cash Balance for each month.

7.5 Projected Balance Sheet

The Projected annual financial balances are shown in the following table. The balances for the first 12 months are presented in the appendix.

7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 2448, Wood Pallets and Skids, are the closest available and are shown for comparison. ATP’s patented technologies are so new, that there is no SIC code that directly applies.

7.7 Long-term Plan

In addition to the enclosed financial information contained in this Business Plan, ATP would like to make the following observations that were not emphasized in this Business Plan:

The Business Plan covers five years of activities. We consider the financial projections in the Business Plan as conservative. As an example; since July 2002, (the date the patent was issued), ATP’s Vice President, Elie Banensohn has traveled to several European countries and has met with representatives of companies from the Far East. These companies recognize the value of RST-PAL pallets and have shown an interest in licensing the technology in order to manufacture and market the pallets in their countries (in some cases with our participation). The Business Plan does not include any income from licensing fees or royalties from foreign entities. Scrap tire problems exists everywhere and is even more acute in Europe and the Far East as they have less space for storage and less scrap tire processing technology than the U.S.

Revenues include some benefits from State or Federal level subsidies or grants for helping to clean up scrap tire problems, which are available. There are States that are offering participation in funding new companies using scrap tire rubber. ATP and its Board of Directors believe that demand for RST-PAL pallets may cause expansion plans to be reviewed and changed, assuming demand will be high. After initial exposure of RST-PAL pallets to the market, additional plants may need to be installed sooner than the company growth plan calls for.

As previously mentioned, a division or subsidiary of ATP will be proposed to manage the pallet leasing aspect of sales, which will afford pallet users the option to change over their entire inventories of wooden pallets to RST pallets on a “lease to purchase” plan. ATP anticipates substantial revenues and success in the pallet leasing market.

1. Why did you choose Stamford, Texas as your first location?

• One of the largest piles of shredded scrap tires in Texas is located in Stamford. The quantities of raw material in this pile are enough for ten years of full production.
• The state of Texas pays for making final products from the scrapped tires about $30 per ton (approximately $0.75 per pallet).
• In the area of DFW (about a radius of 150 miles around) the yearly consumption of new pallets is about sixty million.
• The local municipality is very helpful. Rural America has unemployment problems. Therefore the local authorities have offered to subsidize the plant for our production lines, by enabling us to use a new existing building of 60,000 sq.ft. with all the facilities including: offices, rest rooms, electricity, air conditioning, boiler system etc. and the property is located on seven acres with the building which can be used for storing and loading pallets and employee parking, all offered with great terms and conditions.
• The location of this plant is less than one mile from the scrap tire pile.

2. If your plant is in Texas why is your headquarters is in Las Vegas? As can be seen from our Business Plan, ATP expects to open four plants in the next five years. These plants will be in different states. Las Vegas was chosen as our corporate headquarters because of the following reasons:

• Las Vegas is also a popular tourist destination for business people throughout the world. Vegas has excellent airline connections, which offers a real opportunity to bring executives to visit and learn more about RST-PAL pallets and how it will positively affect their company profits.

3. Is there any financial help from the State administration in putting up the plant in their State? There are several States, among them Louisiana and New Jersey that are giving up to 80% of the capital cost of putting up a plant that will utilize scrap tires. The problem of scrap tires is enormous and exists in most states. Most states have scrap tire programs to deal with the remediation of scrap tires.

4. Are there any federal laws regarding the use of recycled products? Yes, all Federal Agencies, including the Department of Defense and Department of Transportation are mandated to use “recycled products first”. Our product is made from recycled materials and is very strong and durable and is acceptable for Government use due to its life cycle being much longer than a traditional wooden pallet, and the price of a RST-PAL pallets is very competitive.

5. How does the production of pallets made from scrap tires helps the ecology? The RST-PAL pallet is an environmentally correct product made from recycled materials that can be recycled itself, making it a “triple green product”. First, according to statistics published by NWPCA (National Wooden Pallet and Container Association) the U.S. consumption of pallets is 800 million per year. To make this huge quantity of pallets, 3.5 million trees are cut every year. Every RST-PAL pallet sold will help to save our forests, allowing hardwoods to be used for more important and valuable uses other than pallets.

Second, getting rid of the scrap tire piles is a worldwide problem. This problem is even more acute in Europe and the Far East. Each year in the U.S. 250-280 million tires are added to the existing stockpiles of scrap tires. These piles are environmental hazards as they can become disastrous tire fires and are breeding grounds for mosquitoes (which bring diseases such as the West Nile Virus), rodents, snakes, and other vermin.

6. Are the projections in ATP’s Business Plan “Too good to be true”? ATP believes that the projections, although they are very positive, are conservative. We also believe our biggest challenge will be keeping up with the production needed to meet the demand for our pallets. When a company evaluates the annual cost of their wooden pallets, including; purchase, repair, replacement, and discarding costs versus the one time purchase price of RST-PAL pallets, they will see tremendous savings in buying and using RST-PAL pallets.

Regarding the financial forecasts, ATP has purposely left out several positive issues. For example, the cost of recycled rubber (cut and prepared for our use) is $1.25/pallet. This cost can be reduced drastically by purchasing a special machine (Grizli) and cutting the tire shreds to our specific dimensions. The price of the machine can be recovered within one year of production. Additionally, the most expensive cost in making our pallets is the binder system, $6.50/pallet. Our projections do not take into consideration the savings of using even less binder per pallet which will be achieved by utilizing the new production line machinery, with a different delivery system. We estimate a minimum saving of 25% on our projected costs when we will buy the raw material and batch it ourselves.

Additional savings will be achieved by getting larger discounts as the volume of materials purchased increases.

Other potential revenue streams that are not projected include licensing ATP technology to foreign countries to manufacture and market RST-PAL pallets. In addition ATP anticipates opening a subsidiary company to provide pallet leasing or a lease to purchase program for our customers to enable them the opportunity to convert their wooden pallet inventory to RST-PAL pallets at an accelerated pace.

7. How are the scrap tires used today? Only a small portion of scrap tires are recycled or used today. The main use (about 30%) is adding crumb rubber to asphalt for making roads. Other products that are made of scrap tires are: car floor mats, playground filler, floor tiles and some other soft products which do not need strength or rigidity of the final material. Scrap tire piles continue to accumulate all over the country and constitute dangerous environmental hazards.

8.What is the real market potential and what is the risk if the users do not accept the pallets? As previously stated, of the 800 million pallets manufactured each year, about 60% are made from hardwood. Our product replaces the hardwood pallets, and if you look at our 5-year projection, we will produce approximately 19 million pallets while in the same 5 years the pallets industry will produce 2.4 billion hardwood pallets, which means we will capture, within 5 years, about 0.8% (less than 1%) of the total pallet market.

ATP surveyed the acceptance of RST-PAL pallets through pre-production marketing efforts and it was excellent. We visited 62 pallet users in the DFW area. All of the companies were impressed with the RST-PAL pallets made from this unique and patented “new material” from recycled scrap tires. Many stated that they would use the pallets once we had a production facility. They were especially impressed that our pallets were stronger and more durable than wooden pallets and would perform much longer than wooden pallets. NWPCA states, “wooden pallets last from 1.5 to 2 trips before having to be repaired or replaced.” We also visited with the buyer of pallets for 3M company in Minneapolis, and the buyer was very eager to use RST-PAL pallets. 3M purchases more than 7 million pallets in just one year. ATP also contacted, through the Department of Defense, the Army, Air Force PX and Exchange, AAFAS. They actually wanted us to deliver 50,000 pallets as an initial order but unfortunately we were not in production.

9.Can you show us orders from companies that were interested in using your pallet? No. As we have not begun production, we cannot guarantee that ATP will be able to deliver pallets on a specific date, and so we have not accepted any orders. As the projected calculation shows tremendous savings to the user, and as RST-PAL pallets have so many advantages in comparison to wooden pallets and at a competitive price, ATP believes that when production commences, pallets will be immediately accepted. Some of the users we visited were surprised that the price was so low in relation to the performances of RST-PAL pallets.

10. What are the technical properties of the pallets and which tests have already done? The technical data and the tests results are as follows:

• RST-PAL pallets are both rackable and stackable, and pass ISO standards.    
• The RST-PAL pallets have the same parameters as hardwood pallets, including two or four way entry, and meet GMA pallet standards.
• Weight: 40″x48″, four way GMA pallet, hardwood=65 lbs; RST-PAL=71 lbs. The difference in weight disappears after the wood starts absorbing water/liquids.
• The deflection of a pallet with our material, according to ISO when R=1500KG, is about zero (actually equal to the deflection of metal under the same load). 
• A test was conducted with 3 concrete beams weighing 25 tons (51,000 lbs), which were loaded and lifted onto an RST-PAL pallet. In comparison, wooden pallets have a static weight load of 2,500 pounds.

In conclusion, this is not a high precision, high tech product — it is a strong and durable pallet with excellent material qualities and is offered to pallet users at a very competitive price, which will save pallet buyers bottom line profits.

11. Usually, as production increases, the price normally decreases (mainly because of competition). In your B.P. the price is increased. Please explain? Actually, part of the answer is in the question. There is no competition. Hardwood is a commodity and its price changes constantly with lumber prices (which continue to increase annually). Our increase in price takes this fact into account. The raise in prices, as appears in our projections, of 25% during the next five years is probably less than the increase in the cost of hardwood. Another reason is that our initial price is very low, designed so that ATP can penetrate different markets rapidly.

Most key pallet purchasers that we talk with, think we are vastly under priced for a pallet that is so durable and lasts so long. Some believe RST-PAL pallets should be in the $39.00-$59.00 price range (similar to plastic pallets), and not just a few dollars more than hardwood pallets. ATP assumes that for many years (due to patent protection) RST-PAL pallets will not have competitors, which can often drive the price down. The assumption is that the advantages of RST-PAL pallets over hardwood pallets will cause pallet users to purchase RST-PAL pallets to lower their pallet costs. Following RST-PAL pallets becoming established in the market place, the advantages and the savings will be widely recognized and there will be justification for further price increases.

The opening price of $18.50 is an average price and not applicable to all sizes nor to all customers. Certainly, a customer purchasing 500,000 pallets per year will be given a discount different from a customer purchasing 1,000 pallets.

The Board of Directors will re-visit the $18.50 price as sales develop. Our projected low price is intended to introduce the pallet to many different manufacturers and industries that use pallets, targeting those companies with a closed loop system that can use, retrieve and use over and over again the same durable pallets.

12. Everything seems so good, what is the down side to this project? ATP believes that according to the projections, the only downside is our start-up production capacity. ATP knows that it will capture the small percentage of less than 1% of the total market demand. The projection shows that this 1% of the market will enable both growth from profits to fund expansion and a good return in the form of dividends for its investors.

RST-PAL pallets are heavier, by about 8 lbs, than the equivalent size pallet made of hardwood. This is true only at the beginning of the lifecycle of a wooden pallet as wood absorbs water and other liquids and can become even heavier than RST-PAL pallets. An average 40′ truck trailer carries about 22 loaded pallets, and by using RST-PAL pallets the total added weight is less than 200 lbs, which is not significant.

13. Is your patent defendable and what does it actually protect? The patent was approved and issued in July 2002. It took about five years to perfect and to reach the utmost protection possible. It protects any product made from recycled scrap tire rubber using a plurality of sizes with or without other materials like plastic, adhesives etc.

14. Who has the exclusivity to utilize this patent? The total and irrevocable exclusivity was granted to ATP Corporation, which consists of the new investors and the existing partners. This exclusivity includes licensing to other parties worldwide for the manufacturing and marketing of RST-PAL pallets.

15. It appears that you are looking for investment of $4M to $6M. Elaborate. These two numbers express the difference between starting with one line of production vs. two lines. The basic set of machines needed for production can be extended to two lines with addition of some machines. By starting with two lines, the production capacity is doubled to 1.2M pallets per year with net profit projected of over $8M versus $3.2M if ATP opens with a single line.

16. How will the investor’s capital be used? A detailed start-up expenses and funding table can be found in Topic 2.2. The main expense item is for machinery and in both cases about $750,000 remains as working capital.

17. What equity percentage are you offering for the investment? The calculation of the present value of the company based on the projections appears in the business plan. The present value of five years of net earnings at 25% discount is over $100 million. We deliberately took an unreasonably high discount rate to avoid any disputes.

We value our company at “present value” of just over $17M. Hence, for the $6 million investment; we offer 35% of the company with all its rights.

18. Is there any other way of financing the project? Yes. We would accept a loan, secured by the assets and rights of ATP, which will carry interest of 5% for a period of ten years starting (the repayment) at the beginning of the second year. The return can be accelerated.

In addition to the secured note, the lender will be offered 17.5% equity interest for a loan of $6 million.

19. Who is ATP’s management team? See Chapter 6.0 of the Business Plan. Each member of the team along with our consultants, are highly qualified professionals with vast and proven experience in their fields (e.g. plant installation and operations, purchasing and marketing). ATP is also open to investor participation both in the company and on the Board of Directors.

The financial projections that appear in this Business Plan are estimated revenues, expenses, and cash flow, which are based on research and the assumptions discussed throughout this Business Plan. They represent the best of management’s knowledge and belief and also are based on actual operations in the pilot plant in Stamford, Texas. The Company’s expected revenues, expenses, and cash flow for the projected periods are subject to the Company’s ability to develop sales and production levels at the price and costs estimated by management. Accordingly, these projections reflect management’s estimates as of January-June  2003, and its expected course of action if such sales and production levels are attained at the price and costs anticipated.

These projected financial statements are for the purpose of providing updated information to existing and new investors. These projected financial statements should not be considered to be a presentation to forecast future results. Accordingly, these projections may not be useful for other purposes.

The assumptions disclosed herein are those that management believes are significant to the projections. Furthermore, even if the sales and production levels as well as the projected price and costs are attained, there will usually be differences between projected and actual results because events and circumstances frequently do not occur as expected, and those differences may be material.

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

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

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

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

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

Let’s get started.

What Do You Need A Business Plan For?

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

1. Secure Funds

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

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

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

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

2. Monitor Business Growth

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

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

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

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

3. Measure Business Success

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

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

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

4. Document Your Marketing Strategies

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

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

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

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

How to Write a Business Plan Step-by-Step

1. create your executive summary.

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

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

A good executive summary should do the following:

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

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

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

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

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

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

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

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

2. Add Your Company Overview

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

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

Your company overview should contain the following:

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

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

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

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

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

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

• Mission Statement

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

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

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

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

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

Business Objectives

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

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

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

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

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

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

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

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

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

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

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

Market Analysis

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

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

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

• Market Research

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

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

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

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

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

How to Quantify Your Target Market

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

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

What Does a Good Market Analysis Entail?

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

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

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

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

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

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

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

Competitive Analysis

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

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

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

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

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

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

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

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

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

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

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

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

Direct vs Indirect Competition

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

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

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

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

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

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

Factors that Differentiate Your Business from the Competition

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

1. Cost Leadership

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

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

2. Product Differentiation

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

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

3. Market Segmentation

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

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

4. Define Your Business and Management Structure

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

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

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

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

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

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

Management Team

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

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

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

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

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

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

Key Questions to Answer When Structuring Your Management Team

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

Additional Tips for Writing the Management Structure Section

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

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

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

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

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

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

Organizational Chart

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

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

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

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

5. Describe Your Product and Service Offering

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Avoid Technical Descriptions and Industry Buzzwords

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

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

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

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

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

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

3. Long or Short Products or Services Section

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

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

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

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

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

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

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

4. Describe Your Relationships with Vendors or Suppliers

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

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

5. Your Primary Goal Is to Convince Your Readers

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

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

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

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

Key Questions to Answer When Writing your Products and Services Section

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

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

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

6. Show and Explain Your Marketing and Sales Plan

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

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

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

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

Outline Your Business’ Unique Selling Proposition (USP)

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

Target Market and Target Audience

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

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

Creating a Smart Marketing and Sales Plan

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

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

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

Your Positioning Statement

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

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

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

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

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

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

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

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

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

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

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

After writing your positioning statement, the next step is the pricing of your offerings. The overall positioning strategy you set in your positioning statement will often determine how you price your products or services.

Pricing is a powerful tool that sends a strong message to your customers. Failure to get your pricing strategy right can make or mar your business. If you are targeting a low-income audience, setting a premium price can result in low sales.

You can use pricing to communicate your positioning to your customers. For example, if you are offering a product at a premium price, you are sending a message to your customers that the product belongs to the premium category.

Basic Rules to Follow When Pricing Your Offering

Setting a price for your offering involves more than just putting a price tag on it. Deciding on the right pricing for your offering requires following some basic rules. They include covering your costs, primary and secondary profit center pricing, and matching the market rate.

• Covering Your Costs: The price you set for your products or service should be more than it costs you to produce and deliver them. Every business has the same goal, to make a profit. Depending on the strategy you want to use, there are exceptions to this rule. However, the vast majority of businesses follow this rule.
• Primary and Secondary Profit Center Pricing: When a company sets its price above the cost of production, it is making that product its primary profit center. A company can also decide not to make its initial price its primary profit center by selling below or at even with its production cost. It rather depends on the support product or even maintenance that is associated with the initial purchase to make its profit. The initial price thus became its secondary profit center.
• Matching the Market Rate: A good rule to follow when pricing your products or services is to match your pricing with consumer demand and expectations. If you price your products or services beyond the price your customer perceives as the ideal price range, you may end up with no customers. Pricing your products too low below what your customer perceives as the ideal price range may lead to them undervaluing your offering.

Pricing Strategy

Your pricing strategy influences the price of your offering. There are several pricing strategies available for you to choose from when examining the right pricing strategy for your business. They include cost-plus pricing, market-based pricing, value pricing, and more.

• Cost-plus Pricing: This strategy is one of the simplest and oldest pricing strategies. Here you consider the cost of producing a unit of your product and then add a profit to it to arrive at your market price. It is an effective pricing strategy for manufacturers because it helps them cover their initial costs. Another name for the cost-plus pricing strategy is the markup pricing strategy.
• Market-based Pricing: This pricing strategy analyses the market including competitors’ pricing and then sets a price based on what the market is expecting. With this pricing strategy, you can either set your price at the low-end or high-end of the market.
• Value Pricing: This pricing strategy involves setting a price based on the value you are providing to your customer. When adopting a value-based pricing strategy, you have to set a price that your customers are willing to pay. Service-based businesses such as small business insurance providers , luxury goods sellers, and the fashion industry use this pricing strategy.

After carefully sorting out your positioning statement and pricing, the next item to look at is your promotional strategy. Your promotional strategy explains how you plan on communicating with your customers and prospects.

As a business, you must measure all your costs, including the cost of your promotions. You also want to measure how much sales your promotions bring for your business to determine its usefulness. Promotional strategies or programs that do not lead to profit need to be removed.

There are different types of promotional strategies you can adopt for your business, they include advertising, public relations, and content marketing.

Advertising

Your business plan should include your advertising plan which can be found in the marketing and sales plan section. You need to include an overview of your advertising plans such as the areas you plan to spend money on to advertise your business and offers.

Ensure that you make it clear in this section if your business will be advertising online or using the more traditional offline media, or the combination of both online and offline media. You can also include the advertising medium you want to use to raise awareness about your business and offers.

Some common online advertising mediums you can use include social media ads, landing pages, sales pages, SEO, Pay-Per-Click, emails, Google Ads, and others. Some common traditional and offline advertising mediums include word of mouth, radios, direct mail, televisions, flyers, billboards, posters, and others.

A key component of your advertising strategy is how you plan to measure the effectiveness and success of your advertising campaign. There is no point in sticking with an advertising plan or medium that does not produce results for your business in the long run.

Public Relations

A great way to reach your customers is to get the media to cover your business or product. Publicity, especially good ones, should be a part of your marketing and sales plan. In this section, show your plans for getting prominent reviews of your product from reputable publications and sources.

Your business needs that exposure to grow. If public relations is a crucial part of your promotional strategy, provide details about your public relations plan here.

Content Marketing

Content marketing is a popular promotional strategy used by businesses to inform and attract their customers. It is about teaching and educating your prospects on various topics of interest in your niche, it does not just involve informing them about the benefits and features of the products and services you have,

Businesses publish content usually for free where they provide useful information, tips, and advice so that their target market can be made aware of the importance of their products and services. Content marketing strategies seek to nurture prospects into buyers over time by simply providing value.

Your company can create a blog where it will be publishing content for its target market. You will need to use the best website builder such as Wix and Squarespace and the best web hosting services such as Bluehost, Hostinger, and other Bluehost alternatives to create a functional blog or website.

If content marketing is a crucial part of your promotional strategy (as it should be), detail your plans under promotions.

Including high-quality images of the packaging of your product in your business plan is a lovely idea. You can add the images of the packaging of that product in the marketing and sales plan section. If you are not selling a product, then you do not need to include any worry about the physical packaging of your product.

When organizing the packaging section of your business plan, you can answer the following questions to make maximum use of this section.

• Is your choice of packaging consistent with your positioning strategy?
• What key value proposition does your packaging communicate? (It should reflect the key value proposition of your business)
• How does your packaging compare to that of your competitors?

Social Media

Your 21st-century business needs to have a good social media presence. Not having one is leaving out opportunities for growth and reaching out to your prospect.

You do not have to join the thousands of social media platforms out there. What you need to do is join the ones that your customers are active on and be active there.

Businesses use social media to provide information about their products such as promotions, discounts, the benefits of their products, and content on their blogs.

Social media is also a platform for engaging with your customers and getting feedback about your products or services. Make no mistake, more and more of your prospects are using social media channels to find more information about companies.

You need to consider the social media channels you want to prioritize your business (prioritize the ones your customers are active in) and your branding plans in this section.

Strategic Alliances

If your company plans to work closely with other companies as part of your sales and marketing plan, include it in this section. Prove details about those partnerships in your business plan if you have already established them.

Strategic alliances can be beneficial for all parties involved including your company. Working closely with another company in the form of a partnership can provide access to a different target market segment for your company.

The company you are partnering with may also gain access to your target market or simply offer a new product or service (that of your company) to its customers.

Mutually beneficial partnerships can cover the weaknesses of one company with the strength of another. You should consider strategic alliances with companies that sell complimentary products to yours. For example, if you provide printers, you can partner with a company that produces ink since the customers that buy printers from you will also need inks for printing.

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

Identify who your customers are, the market you want to target. Then determine the best ways to get your products or services to your potential customers.

2. Evaluate Your Competition

One of the goals of having a marketing plan is to distinguish yourself from your competition. You cannot stand out from them without first knowing them in and out.

You can know your competitors by gathering information about their products, pricing, service, and advertising campaigns.

These questions can help you know your competition.

• What makes your competition successful?
• What are their weaknesses?
• What are customers saying about your competition?

3. Consider Your Brand

Customers' perception of your brand has a strong impact on your sales. Your marketing and sales plan should seek to bolster the image of your brand. Before you start marketing your business, think about the message you want to pass across about your business and your products and services.

4. Focus on Benefits

The majority of your customers do not view your product in terms of features, what they want to know is the benefits and solutions your product offers. Think about the problems your product solves and the benefits it delivers, and use it to create the right sales and marketing message.

Your marketing plan should focus on what you want your customer to get instead of what you provide. Identify those benefits in your marketing and sales plan.

5. Focus on Differentiation

Your marketing and sales plan should look for a unique angle they can take that differentiates your business from the competition, even if the products offered are similar. Some good areas of differentiation you can use are your benefits, pricing, and features.

Key Questions to Answer When Writing Your Marketing and Sales Plan

• What is your company’s budget for sales and marketing campaigns?
• What key metrics will you use to determine if your marketing plans are successful?
• What are your alternatives if your initial marketing efforts do not succeed?
• Who are the sales representatives you need to promote your products or services?
• What are the marketing and sales channels you plan to use? How do you plan to get your products in front of your ideal customers?
• Where will you sell your products?

You may want to include samples of marketing materials you plan to use such as print ads, website descriptions, and social media ads. While it is not compulsory to include these samples, it can help you better communicate your marketing and sales plan and objectives.

The purpose of the marketing and sales section is to answer this question “How will you reach your customers?” If you cannot convincingly provide an answer to this question, you need to rework your marketing and sales section.

7. Clearly Show Your Funding Request

If you are writing your business plan to ask for funding from investors or financial institutions, the funding request section is where you will outline your funding requirements. The funding request section should answer the question ‘How much money will your business need in the near future (3 to 5 years)?’

A good funding request section will clearly outline and explain the amount of funding your business needs over the next five years. You need to know the amount of money your business needs to make an accurate funding request.

Also, when writing your funding request, provide details of how the funds will be used over the period. Specify if you want to use the funds to buy raw materials or machinery, pay salaries, pay for advertisements, and cover specific bills such as rent and electricity.

In addition to explaining what you want to use the funds requested for, you need to clearly state the projected return on investment (ROI) . Investors and creditors want to know if your business can generate profit for them if they put funds into it.

Ensure you do not inflate the figures and stay as realistic as possible. Investors and financial institutions you are seeking funds from will do their research before investing money in your business.

If you are not sure of an exact number to request from, you can use some range of numbers as rough estimates. Add a best-case scenario and a work-case scenario to your funding request. Also, include a description of your strategic future financial plans such as selling your business or paying off debts.

Funding Request: Debt or Equity?

When making your funding request, specify the type of funding you want. Do you want debt or equity? Draw out the terms that will be applicable for the funding, and the length of time the funding request will cover.

Case for Equity

If your new business has not yet started generating profits, you are most likely preparing to sell equity in your business to raise capital at the early stage. Equity here refers to ownership. In this case, you are selling a portion of your company to raise capital.

Although this method of raising capital for your business does not put your business in debt, keep in mind that an equity owner may expect to play a key role in company decisions even if he does not hold a major stake in the company.

Most equity sales for startups are usually private transactions . If you are making a funding request by offering equity in exchange for funding, let the investor know that they will be paid a dividend (a share of the company’s profit). Also, let the investor know the process for selling their equity in your business.

Case for Debt

You may decide not to offer equity in exchange for funds, instead, you make a funding request with the promise to pay back the money borrowed at the agreed time frame.

When making a funding request with an agreement to pay back, note that you will have to repay your creditors both the principal amount borrowed and the interest on it. Financial institutions offer this type of funding for businesses.

Large companies combine both equity and debt in their capital structure. When drafting your business plan, decide if you want to offer both or one over the other.

Before you sell equity in exchange for funding in your business, consider if you are willing to accept not being in total control of your business. Also, before you seek loans in your funding request section, ensure that the terms of repayment are favorable.

You should set a clear timeline in your funding request so that potential investors and creditors can know what you are expecting. Some investors and creditors may agree to your funding request and then delay payment for longer than 30 days, meanwhile, your business needs an immediate cash injection to operate efficiently.

Additional Tips for Writing the Funding Request Section of your Business Plan

The funding request section is not necessary for every business, it is only needed by businesses who plan to use their business plan to secure funding.

If you are adding the funding request section to your business plan, provide an itemized summary of how you plan to use the funds requested. Hiring a lawyer, accountant, or other professionals may be necessary for the proper development of this section.

You should also gather and use financial statements that add credibility and support to your funding requests. Ensure that the financial statements you use should include your projected financial data such as projected cash flows, forecast statements, and expenditure budgets.

If you are an existing business, include all historical financial statements such as cash flow statements, balance sheets and income statements .

Provide monthly and quarterly financial statements for a year. If your business has records that date back beyond the one-year mark, add the yearly statements of those years. These documents are for the appendix section of your business plan.

8. Detail Your Financial Plan, Metrics, and Projections

If you used the funding request section in your business plan, supplement it with a financial plan, metrics, and projections. This section paints a picture of the past performance of your business and then goes ahead to make an informed projection about its future.

The goal of this section is to convince readers that your business is going to be a financial success. It outlines your business plan to generate enough profit to repay the loan (with interest if applicable) and to generate a decent return on investment for investors.

If you have an existing business already in operation, use this section to demonstrate stability through finance. This section should include your cash flow statements, balance sheets, and income statements covering the last three to five years. If your business has some acceptable collateral that you can use to acquire loans, list it in the financial plan, metrics, and projection section.

Apart from current financial statements, this section should also contain a prospective financial outlook that spans the next five years. Include forecasted income statements, cash flow statements, balance sheets, and capital expenditure budget.

If your business is new and is not yet generating profit, use clear and realistic projections to show the potentials of your business.

When drafting this section, research industry norms and the performance of comparable businesses. Your financial projections should cover at least five years. State the logic behind your financial projections. Remember you can always make adjustments to this section as the variables change.

The financial plan, metrics, and projection section create a baseline which your business can either exceed or fail to reach. If your business fails to reach your projections in this section, you need to understand why it failed.

Investors and loan managers spend a lot of time going through the financial plan, metrics, and projection section compared to other parts of the business plan. Ensure you spend time creating credible financial analyses for your business in this section.

Many entrepreneurs find this section daunting to write. You do not need a business degree to create a solid financial forecast for your business. Business finances, especially for startups, are not as complicated as they seem. There are several online tools and templates that make writing this section so much easier.

Use Graphs and Charts

The financial plan, metrics, and projection section is a great place to use graphs and charts to tell the financial story of your business. Charts and images make it easier to communicate your finances.

Accuracy in this section is key, ensure you carefully analyze your past financial statements properly before making financial projects.

Address the Risk Factors and Show Realistic Financial Projections

Keep your financial plan, metrics, and projection realistic. It is okay to be optimistic in your financial projection, however, you have to justify it.

You should also address the various risk factors associated with your business in this section. Investors want to know the potential risks involved, show them. You should also show your plans for mitigating those risks.

What You Should In The Financial Plan, Metrics, and Projection Section of Your Business Plan

The financial plan, metrics, and projection section of your business plan should have monthly sales and revenue forecasts for the first year. It should also include annual projections that cover 3 to 5 years.

A three-year projection is a basic requirement to have in your business plan. However, some investors may request a five-year forecast.

Your business plan should include the following financial statements: sales forecast, personnel plan, income statement, income statement, cash flow statement, balance sheet, and an exit strategy.

1. Sales Forecast

Sales forecast refers to your projections about the number of sales your business is going to record over the next few years. It is typically broken into several rows, with each row assigned to a core product or service that your business is offering.

One common mistake people make in their business plan is to break down the sales forecast section into long details. A sales forecast should forecast the high-level details.

For example, if you are forecasting sales for a payroll software provider, you could break down your forecast into target market segments or subscription categories.

Your sales forecast section should also have a corresponding row for each sales row to cover the direct cost or Cost of Goods Sold (COGS). The objective of these rows is to show the expenses that your business incurs in making and delivering your product or service.

Note that your Cost of Goods Sold (COGS) should only cover those direct costs incurred when making your products. Other indirect expenses such as insurance, salaries, payroll tax, and rent should not be included.

For example, the Cost of Goods Sold (COGS) for a restaurant is the cost of ingredients while for a consulting company it will be the cost of paper and other presentation materials.

2. Personnel Plan

The personnel plan section is where you provide details about the payment plan for your employees. For a small business, you can easily list every position in your company and how much you plan to pay in the personnel plan.

However, for larger businesses, you have to break the personnel plan into functional groups such as sales and marketing.

The personnel plan will also include the cost of an employee beyond salary, commonly referred to as the employee burden. These costs include insurance, payroll taxes , and other essential costs incurred monthly as a result of having employees on your payroll.

3. Income Statement

The income statement section shows if your business is making a profit or taking a loss. Another name for the income statement is the profit and loss (P&L). It takes data from your sales forecast and personnel plan and adds other ongoing expenses you incur while running your business.

Every business plan should have an income statement. It subtracts your business expenses from its earnings to show if your business is generating profit or incurring losses.

The income statement has the following items: sales, Cost of Goods Sold (COGS), gross margin, operating expenses, total operating expenses, operating income , total expenses, and net profit.

• Sales refer to the revenue your business generates from selling its products or services. Other names for sales are income or revenue.
• Cost of Goods Sold (COGS) refers to the total cost of selling your products. Other names for COGS are direct costs or cost of sales. Manufacturing businesses use the Costs of Goods Manufactured (COGM) .
• Gross Margin is the figure you get when you subtract your COGS from your sales. In your income statement, you can express it as a percentage of total sales (Gross margin / Sales = Gross Margin Percent).
• Operating Expenses refer to all the expenses you incur from running your business. It exempts the COGS because it stands alone as a core part of your income statement. You also have to exclude taxes, depreciation, and amortization. Your operating expenses include salaries, marketing expenses, research and development (R&D) expenses, and other expenses.
• Total Operating Expenses refers to the sum of all your operating expenses including those exemptions named above under operating expenses.
• Operating Income refers to earnings before interest, taxes, depreciation, and amortization. It is simply known as the acronym EBITDA (earnings before interest, taxes, depreciation, and amortization). Calculating your operating income is simple, all you need to do is to subtract your COGS and total operating expenses from your sales.
• Total Expenses refer to the sum of your operating expenses and your business’ interest, taxes, depreciation, and amortization.
• Net profit shows whether your business has made a profit or taken a loss during a given timeframe.

4. Cash Flow Statement

The cash flow statement tracks the money you have in the bank at any given point. It is often confused with the income statement or the profit and loss statement. They are both different types of financial statements. The income statement calculates your profits and losses while the cash flow statement shows you how much you have in the bank.

5. Balance Sheet

The balance sheet is a financial statement that provides an overview of the financial health of your business. It contains information about the assets and liabilities of your company, and owner’s or shareholders’ equity.

You can get the net worth of your company by subtracting your company’s liabilities from its assets.

6. Exit Strategy

The exit strategy refers to a probable plan for selling your business either to the public in an IPO or to another company. It is the last thing you include in the financial plan, metrics, and projection section.

You can choose to omit the exit strategy from your business plan if you plan to maintain full ownership of your business and do not plan on seeking angel investment or virtual capitalist (VC) funding.

Investors may want to know what your exit plan is. They invest in your business to get a good return on investment.

Your exit strategy does not have to include long and boring details. Ensure you identify some interested parties who may be interested in buying the company if it becomes a success.

Key Questions to Answer with Your Financial Plan, Metrics, and Projection

Your financial plan, metrics, and projection section helps investors, creditors, or your internal managers to understand what your expenses are, the amount of cash you need, and what it takes to make your company profitable. It also shows what you will be doing with any funding.

You do not need to show actual financial data if you do not have one. Adding forecasts and projections to your financial statements is added proof that your strategy is feasible and shows investors you have planned properly.

Here are some key questions to answer to help you develop this section.

• What is your sales forecast for the next year?
• When will your company achieve a positive cash flow?
• What are the core expenses you need to operate?
• How much money do you need upfront to operate or grow your company?
• How will you use the loans or investments?

9. Add an Appendix to Your Business Plan

Adding an appendix to your business plan is optional. It is a useful place to put any charts, tables, legal notes, definitions, permits, résumés, and other critical information that do not fit into other sections of your business plan.

The appendix section is where you would want to include details of a patent or patent-pending if you have one. You can always add illustrations or images of your products here. It is the last section of your business plan.

When writing your business plan, there are details you cut short or remove to prevent the entire section from becoming too lengthy. There are also details you want to include in the business plan but are not a good fit for any of the previous sections. You can add that additional information to the appendix section.

Businesses also use the appendix section to include supporting documents or other materials specially requested by investors or lenders.

You can include just about any information that supports the assumptions and statements you made in the business plan under the appendix. It is the one place in the business plan where unrelated data and information can coexist amicably.

If your appendix section is lengthy, try organizing it by adding a table of contents at the beginning of the appendix section. It is also advisable to group similar information to make it easier for the reader to access them.

A well-organized appendix section makes it easier to share your information clearly and concisely. Add footnotes throughout the rest of the business plan or make references in the plan to the documents in the appendix.

The appendix section is usually only necessary if you are seeking funding from investors or lenders, or hoping to attract partners.

People reading business plans do not want to spend time going through a heap of backup information, numbers, and charts. Keep these documents or information in the Appendix section in case the reader wants to dig deeper.

Common Items to Include in the Appendix Section of Your Business Plan

The appendix section includes documents that supplement or support the information or claims given in other sections of the business plans. Common items you can include in the appendix section include:

• Additional data about the process of manufacturing or creation
• Additional description of products or services such as product schematics
• Additional financial documents or projections
• Articles of incorporation and status
• Backup for market research or competitive analysis
• Bank statements
• Business registries
• Client testimonials (if your business is already running)
• Copies of insurances
• Credit histories (personal or/and business)
• Deeds and permits
• Equipment leases
• Examples of marketing and advertising collateral
• Industry associations and memberships
• Images of product
• Intellectual property
• Key customer contracts
• Legal documents and other contracts
• Letters of reference
• Links to references
• Market research data
• Organizational charts
• Photographs of potential facilities
• Professional licenses pertaining to your legal structure or type of business
• Purchase orders
• Resumes of the founder(s) and key managers
• State and federal identification numbers or codes
• Trademarks or patents’ registrations

Avoid using the appendix section as a place to dump any document or information you feel like adding. Only add documents or information that you support or increase the credibility of your business plan.

Tips and Strategies for Writing a Convincing Business Plan

To achieve a perfect business plan, you need to consider some key tips and strategies. These tips will raise the efficiency of your business plan above average.

1. Know Your Audience

When writing a business plan, you need to know your audience . Business owners write business plans for different reasons. Your business plan has to be specific. For example, you can write business plans to potential investors, banks, and even fellow board members of the company.

The audience you are writing to determines the structure of the business plan. As a business owner, you have to know your audience. Not everyone will be your audience. Knowing your audience will help you to narrow the scope of your business plan.

Consider what your audience wants to see in your projects, the likely questions they might ask, and what interests them.

• A business plan used to address a company's board members will center on its employment schemes, internal affairs, projects, stakeholders, etc.
• A business plan for financial institutions will talk about the size of your market and the chances for you to pay back any loans you demand.
• A business plan for investors will show proof that you can return the investment capital within a specific time. In addition, it discusses your financial projections, tractions, and market size.

2. Get Inspiration from People

Writing a business plan from scratch as an entrepreneur can be daunting. That is why you need the right inspiration to push you to write one. You can gain inspiration from the successful business plans of other businesses. Look at their business plans, the style they use, the structure of the project, etc.

To make your business plan easier to create, search companies related to your business to get an exact copy of what you need to create an effective business plan. You can also make references while citing examples in your business plans.

When drafting your business plan, get as much help from others as you possibly can. By getting inspiration from people, you can create something better than what they have.

3. Avoid Being Over Optimistic

Many business owners make use of strong adjectives to qualify their content. One of the big mistakes entrepreneurs make when preparing a business plan is promising too much.

The use of superlatives and over-optimistic claims can prepare the audience for more than you can offer. In the end, you disappoint the confidence they have in you.

In most cases, the best option is to be realistic with your claims and statistics. Most of the investors can sense a bit of incompetency from the overuse of superlatives. As a new entrepreneur, do not be tempted to over-promise to get the interests of investors.

The concept of entrepreneurship centers on risks, nothing is certain when you make future analyses. What separates the best is the ability to do careful research and work towards achieving that, not promising more than you can achieve.

To make an excellent first impression as an entrepreneur, replace superlatives with compelling data-driven content. In this way, you are more specific than someone promising a huge ROI from an investment.

4. Keep it Simple and Short

When writing business plans, ensure you keep them simple throughout. Irrespective of the purpose of the business plan, your goal is to convince the audience.

One way to achieve this goal is to make them understand your proposal. Therefore, it would be best if you avoid the use of complex grammar to express yourself. It would be a huge turn-off if the people you want to convince are not familiar with your use of words.

Another thing to note is the length of your business plan. It would be best if you made it as brief as possible.

You hardly see investors or agencies that read through an extremely long document. In that case, if your first few pages can’t convince them, then you have lost it. The more pages you write, the higher the chances of you derailing from the essential contents.

To ensure your business plan has a high conversion rate, you need to dispose of every unnecessary information. For example, if you have a strategy that you are not sure of, it would be best to leave it out of the plan.

5. Make an Outline and Follow Through

A perfect business plan must have touched every part needed to convince the audience. Business owners get easily tempted to concentrate more on their products than on other sections. Doing this can be detrimental to the efficiency of the business plan.

For example, imagine you talking about a product but omitting or providing very little information about the target audience. You will leave your clients confused.

To ensure that your business plan communicates your full business model to readers, you have to input all the necessary information in it. One of the best ways to achieve this is to design a structure and stick to it.

This structure is what guides you throughout the writing. To make your work easier, you can assign an estimated word count or page limit to every section to avoid making it too bulky for easy reading. As a guide, the necessary things your business plan must contain are:

• Table of contents
• Introduction
• Product or service description
• Target audience
• Market size
• Competition analysis
• Financial projections

Some specific businesses can include some other essential sections, but these are the key sections that must be in every business plan.

6. Ask a Professional to Proofread

When writing a business plan, you must tie all loose ends to get a perfect result. When you are done with writing, call a professional to go through the document for you. You are bound to make mistakes, and the way to correct them is to get external help.

You should get a professional in your field who can relate to every section of your business plan. It would be easier for the professional to notice the inner flaws in the document than an editor with no knowledge of your business.

In addition to getting a professional to proofread, get an editor to proofread and edit your document. The editor will help you identify grammatical errors, spelling mistakes, and inappropriate writing styles.

Writing a business plan can be daunting, but you can surmount that obstacle and get the best out of it with these tips.

Business Plan Examples and Templates That’ll Save You Tons of Time

1. hubspot's one-page business plan.

The one-page business plan template by HubSpot is the perfect guide for businesses of any size, irrespective of their business strategy. Although the template is condensed into a page, your final business plan should not be a page long! The template is designed to ask helpful questions that can help you develop your business plan.

Hubspot’s one-page business plan template is divided into nine fields:

• Business opportunity
• Company description
• Industry analysis
• Target market
• Implementation timeline
• Marketing plan
• Financial summary
• Funding required

2. Bplan’s Free Business Plan Template

Bplans' free business plan template is investor-approved. It is a rich template used by prestigious educational institutions such as Babson College and Princeton University to teach entrepreneurs how to create a business plan.

The template has six sections: the executive summary, opportunity, execution, company, financial plan, and appendix. There is a step-by-step guide for writing every little detail in the business plan. Follow the instructions each step of the way and you will create a business plan that impresses investors or lenders easily.

3. HubSpot's Downloadable Business Plan Template

HubSpot’s downloadable business plan template is a more comprehensive option compared to the one-page business template by HubSpot. This free and downloadable business plan template is designed for entrepreneurs.

The template is a comprehensive guide and checklist for business owners just starting their businesses. It tells you everything you need to fill in each section of the business plan and how to do it.

There are nine sections in this business plan template: an executive summary, company and business description, product and services line, market analysis, marketing plan, sales plan, legal notes, financial considerations, and appendix.

4. Business Plan by My Own Business Institute

My Own Business Institute (MOBI) which is a part of Santa Clara University's Center for Innovation and Entrepreneurship offers a free business plan template. You can either copy the free business template from the link provided above or download it as a Word document.

The comprehensive template consists of a whopping 15 sections.

• The Business Profile
• The Vision and the People
• Home-Based Business and Freelance Business Opportunities
• Organization
• Licenses and Permits
• Business Insurance
• Communication Tools
• Acquisitions
• Location and Leasing
• Accounting and Cash Flow
• Opening and Marketing
• Managing Employees
• Expanding and Handling Problems

There are lots of helpful tips on how to fill each section in the free business plan template by MOBI.

5. Score's Business Plan Template for Startups

Score is an American nonprofit organization that helps entrepreneurs build successful companies. This business plan template for startups by Score is available for free download. The business plan template asks a whooping 150 generic questions that help entrepreneurs from different fields to set up the perfect business plan.

The business plan template for startups contains clear instructions and worksheets, all you have to do is answer the questions and fill the worksheets.

There are nine sections in the business plan template: executive summary, company description, products and services, marketing plan, operational plan, management and organization, startup expenses and capitalization, financial plan, and appendices.

The ‘refining the plan’ resource contains instructions that help you modify your business plan to suit your specific needs, industry, and target audience. After you have completed Score’s business plan template, you can work with a SCORE mentor for expert advice in business planning.

6. Minimalist Architecture Business Plan Template by Venngage

The minimalist architecture business plan template is a simple template by Venngage that you can customize to suit your business needs .

There are five sections in the template: an executive summary, statement of problem, approach and methodology, qualifications, and schedule and benchmark. The business plan template has instructions that guide users on what to fill in each section.

7. Small Business Administration Free Business Plan Template

The Small Business Administration (SBA) offers two free business plan templates, filled with practical real-life examples that you can model to create your business plan. Both free business plan templates are written by fictional business owners: Rebecca who owns a consulting firm, and Andrew who owns a toy company.

There are five sections in the two SBA’s free business plan templates.

• Executive Summary
• Company Description
• Service Line
• Marketing and Sales

8. The $100 Startup's One-Page Business Plan

The one-page business plan by the $100 startup is a simple business plan template for entrepreneurs who do not want to create a long and complicated plan . You can include more details in the appendices for funders who want more information beyond what you can put in the one-page business plan.

There are five sections in the one-page business plan such as overview, ka-ching, hustling, success, and obstacles or challenges or open questions. You can answer all the questions using one or two sentences.

9. PandaDoc’s Free Business Plan Template

The free business plan template by PandaDoc is a comprehensive 15-page document that describes the information you should include in every section.

There are 11 sections in PandaDoc’s free business plan template.

• Executive summary
• Business description
• Products and services
• Operations plan
• Management organization
• Financial plan
• Conclusion / Call to action
• Confidentiality statement

You have to sign up for its 14-day free trial to access the template. You will find different business plan templates on PandaDoc once you sign up (including templates for general businesses and specific businesses such as bakeries, startups, restaurants, salons, hotels, and coffee shops)

PandaDoc allows you to customize its business plan templates to fit the needs of your business. After editing the template, you can send it to interested parties and track opens and views through PandaDoc.

10. Invoiceberry Templates for Word, Open Office, Excel, or PPT

InvoiceBerry is a U.K based online invoicing and tracking platform that offers free business plan templates in .docx, .odt, .xlsx, and .pptx formats for freelancers and small businesses.

Before you can download the free business plan template, it will ask you to give it your email address. After you complete the little task, it will send the download link to your inbox for you to download. It also provides a business plan checklist in .xlsx file format that ensures you add the right information to the business plan.

Alternatives to the Traditional Business Plan

A business plan is very important in mapping out how one expects their business to grow over a set number of years, particularly when they need external investment in their business. However, many investors do not have the time to watch you present your business plan. It is a long and boring read.

Luckily, there are three alternatives to the traditional business plan (the Business Model Canvas, Lean Canvas, and Startup Pitch Deck). These alternatives are less laborious and easier and quicker to present to investors.

Business Model Canvas (BMC)

The business model canvas is a business tool used to present all the important components of setting up a business, such as customers, route to market, value proposition, and finance in a single sheet. It provides a very focused blueprint that defines your business initially which you can later expand on if needed.

The sheet is divided mainly into company, industry, and consumer models that are interconnected in how they find problems and proffer solutions.

Segments of the Business Model Canvas

The business model canvas was developed by founder Alexander Osterwalder to answer important business questions. It contains nine segments.

• Key Partners: Who will be occupying important executive positions in your business? What do they bring to the table? Will there be a third party involved with the company?
• Key Activities: What important activities will production entail? What activities will be carried out to ensure the smooth running of the company?
• The Product’s Value Propositions: What does your product do? How will it be different from other products?
• Customer Segments: What demography of consumers are you targeting? What are the habits of these consumers? Who are the MVPs of your target consumers?
• Customer Relationships: How will the team support and work with its customer base? How do you intend to build and maintain trust with the customer?
• Key Resources: What type of personnel and tools will be needed? What size of the budget will they need access to?
• Channels: How do you plan to create awareness of your products? How do you intend to transport your product to the customer?
• Cost Structure: What is the estimated cost of production? How much will distribution cost?
• Revenue Streams: For what value are customers willing to pay? How do they prefer to pay for the product? Are there any external revenues attached apart from the main source? How do the revenue streams contribute to the overall revenue?

Lean Canvas

The lean canvas is a problem-oriented alternative to the standard business model canvas. It was proposed by Ash Maurya, creator of Lean Stack as a development of the business model generation. It uses a more problem-focused approach and it majorly targets entrepreneurs and startup businesses.

Lean Canvas uses the same 9 blocks concept as the business model canvas, however, they have been modified slightly to suit the needs and purpose of a small startup. The key partners, key activities, customer relationships, and key resources are replaced by new segments which are:

• Problem: Simple and straightforward number of problems you have identified, ideally three.
• Solution: The solutions to each problem.
• Unfair Advantage: Something you possess that can't be easily bought or replicated.
• Key Metrics: Important numbers that will tell how your business is doing.

Startup Pitch Deck

While the business model canvas compresses into a factual sheet, startup pitch decks expand flamboyantly.

Pitch decks, through slides, convey your business plan, often through graphs and images used to emphasize estimations and observations in your presentation. Entrepreneurs often use pitch decks to fully convince their target audience of their plans before discussing funding arrangements.

Considering the likelihood of it being used in a small time frame, a good startup pitch deck should ideally contain 20 slides or less to have enough time to answer questions from the audience.

Unlike the standard and lean business model canvases, a pitch deck doesn't have a set template on how to present your business plan but there are still important components to it. These components often mirror those of the business model canvas except that they are in slide form and contain more details.

Using Airbnb (one of the most successful start-ups in recent history) for reference, the important components of a good slide are listed below.

• Cover/Introduction Slide: Here, you should include your company's name and mission statement. Your mission statement should be a very catchy tagline. Also, include personal information and contact details to provide an easy link for potential investors.
• Problem Slide: This slide requires you to create a connection with the audience or the investor that you are pitching. For example in their pitch, Airbnb summarized the most important problems it would solve in three brief points – pricing of hotels, disconnection from city culture, and connection problems for local bookings.
• Solution Slide: This slide includes your core value proposition. List simple and direct solutions to the problems you have mentioned
• Customer Analysis: Here you will provide information on the customers you will be offering your service to. The identity of your customers plays an important part in fundraising as well as the long-run viability of the business.
• Market Validation: Use competitive analysis to show numbers that prove the presence of a market for your product, industry behavior in the present and the long run, as well as the percentage of the market you aim to attract. It shows that you understand your competitors and customers and convinces investors of the opportunities presented in the market.
• Business Model: Your business model is the hook of your presentation. It may vary in complexity but it should generally include a pricing system informed by your market analysis. The goal of the slide is to confirm your business model is easy to implement.
• Marketing Strategy: This slide should summarize a few customer acquisition methods that you plan to use to grow the business.
• Competitive Advantage: What this slide will do is provide information on what will set you apart and make you a more attractive option to customers. It could be the possession of technology that is not widely known in the market.
• Team Slide: Here you will give a brief description of your team. Include your key management personnel here and their specific roles in the company. Include their educational background, job history, and skillsets. Also, talk about their accomplishments in their careers so far to build investors' confidence in members of your team.
• Traction Slide: This validates the company’s business model by showing growth through early sales and support. The slide aims to reduce any lingering fears in potential investors by showing realistic periodic milestones and profit margins. It can include current sales, growth, valuable customers, pre-orders, or data from surveys outlining current consumer interest.
• Funding Slide: This slide is popularly referred to as ‘the ask'. Here you will include important details like how much is needed to get your business off the ground and how the funding will be spent to help the company reach its goals.
• Appendix Slides: Your pitch deck appendix should always be included alongside a standard pitch presentation. It consists of additional slides you could not show in the pitch deck but you need to complement your presentation.

It is important to support your calculations with pictorial renditions. Infographics, such as pie charts or bar graphs, will be more effective in presenting the information than just listing numbers. For example, a six-month graph that shows rising profit margins will easily look more impressive than merely writing it.

Lastly, since a pitch deck is primarily used to secure meetings and you may be sharing your pitch with several investors, it is advisable to keep a separate public version that doesn't include financials. Only disclose the one with projections once you have secured a link with an investor.

Advantages of the Business Model Canvas, Lean Canvas, and Startup Pitch Deck over the Traditional Business Plan

• Time-Saving: Writing a detailed traditional business plan could take weeks or months. On the other hand, all three alternatives can be done in a few days or even one night of brainstorming if you have a comprehensive understanding of your business.
• Easier to Understand: Since the information presented is almost entirely factual, it puts focus on what is most important in running the business. They cut away the excess pages of fillers in a traditional business plan and allow investors to see what is driving the business and what is getting in the way.
• Easy to Update: Businesses typically present their business plans to many potential investors before they secure funding. What this means is that you may regularly have to amend your presentation to update statistics or adjust to audience-specific needs. For a traditional business plan, this could mean rewriting a whole section of your plan. For the three alternatives, updating is much easier because they are not voluminous.
• Guide for a More In-depth Business Plan: All three alternatives have the added benefit of being able to double as a sketch of your business plan if the need to create one arises in the future.

Business Plan FAQ

Business plans are important for any entrepreneur who is looking for a framework to run their company over some time or seeking external support. Although they are essential for new businesses, every company should ideally have a business plan to track their growth from time to time.  They can be used by startups seeking investments or loans to convey their business ideas or an employee to convince his boss of the feasibility of starting a new project. They can also be used by companies seeking to recruit high-profile employee targets into key positions or trying to secure partnerships with other firms.

Business plans often vary depending on your target audience, the scope, and the goals for the plan. Startup plans are the most common among the different types of business plans.  A start-up plan is used by a new business to present all the necessary information to help get the business up and running. They are usually used by entrepreneurs who are seeking funding from investors or bank loans. The established company alternative to a start-up plan is a feasibility plan. A feasibility plan is often used by an established company looking for new business opportunities. They are used to show the upsides of creating a new product for a consumer base. Because the audience is usually company people, it requires less company analysis. The third type of business plan is the lean business plan. A lean business plan is a brief, straight-to-the-point breakdown of your ideas and analysis for your business. It does not contain details of your proposal and can be written on one page. Finally, you have the what-if plan. As it implies, a what-if plan is a preparation for the worst-case scenario. You must always be prepared for the possibility of your original plan being rejected. A good what-if plan will serve as a good plan B to the original.

A good business plan has 10 key components. They include an executive plan, product analysis, desired customer base, company analysis, industry analysis, marketing strategy, sales strategy, financial projection, funding, and appendix. Executive Plan Your business should begin with your executive plan. An executive plan will provide early insight into what you are planning to achieve with your business. It should include your mission statement and highlight some of the important points which you will explain later. Product Analysis The next component of your business plan is your product analysis. A key part of this section is explaining the type of item or service you are going to offer as well as the market problems your product will solve. Desired Consumer Base Your product analysis should be supplemented with a detailed breakdown of your desired consumer base. Investors are always interested in knowing the economic power of your market as well as potential MVP customers. Company Analysis The next component of your business plan is your company analysis. Here, you explain how you want to run your business. It will include your operational strategy, an insight into the workforce needed to keep the company running, and important executive positions. It will also provide a calculation of expected operational costs.  Industry Analysis A good business plan should also contain well laid out industry analysis. It is important to convince potential investors you know the companies you will be competing with, as well as your plans to gain an edge on the competition. Marketing Strategy Your business plan should also include your marketing strategy. This is how you intend to spread awareness of your product. It should include a detailed explanation of the company brand as well as your advertising methods. Sales Strategy Your sales strategy comes after the market strategy. Here you give an overview of your company's pricing strategy and how you aim to maximize profits. You can also explain how your prices will adapt to market behaviors. Financial Projection The financial projection is the next component of your business plan. It explains your company's expected running cost and revenue earned during the tenure of the business plan. Financial projection gives a clear idea of how your company will develop in the future. Funding The next component of your business plan is funding. You have to detail how much external investment you need to get your business idea off the ground here. Appendix The last component of your plan is the appendix. This is where you put licenses, graphs, or key information that does not fit in any of the other components.

The business model canvas is a business management tool used to quickly define your business idea and model. It is often used when investors need you to pitch your business idea during a brief window.

A pitch deck is similar to a business model canvas except that it makes use of slides in its presentation. A pitch is not primarily used to secure funding, rather its main purpose is to entice potential investors by selling a very optimistic outlook on the business.

Business plan competitions help you evaluate the strength of your business plan. By participating in business plan competitions, you are improving your experience. The experience provides you with a degree of validation while practicing important skills. The main motivation for entering into the competitions is often to secure funding by finishing in podium positions. There is also the chance that you may catch the eye of a casual observer outside of the competition. These competitions also provide good networking opportunities. You could meet mentors who will take a keen interest in guiding you in your business journey. You also have the opportunity to meet other entrepreneurs whose ideas can complement yours.

Exlore Further

• 12 Key Elements of a Business Plan (Top Components Explained)
• 13 Sources of Business Finance For Companies & Sole Traders
• 5 Common Types of Business Structures (+ Pros & Cons)
• How to Buy a Business in 8 Steps (+ Due Diligence Checklist)

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Martin luenendonk.

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

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Writing a Business Plan Confidentiality Statement

Business Startup Checklist

• December 12, 2023

Ev ery company has a unique identity that sets it apart from its rival companies in the industry. It’s a combination of various aspects: The way you set your goals, marketing strategy, manufacturing process, or entire business plan.

As crucial as it is to create a business plan that helps you stand out, it’s perhaps just as crucial to protect your plan from any potential intellectual property theft. This is where a confidentiality statement for your business plan helps you safeguard your valuable assets.

A business plan confidentiality statement is a document that states that the information disclosed to the recipient can’t be disclosed to anyone outside the agreement. It’s an agreement made between two parties before they enter a deal or exchange any sensitive and confidential information.

Why do you need a confidentiality statement?

Even though trust is essential between partners or investors, there’s always a need to stay cautious while handing over your business plans. Even though the organization you plan to work with values confidentiality, everyone involved in it may not.

Your business plan is one of the most elaborate and classified documents. Before disclosing any information, the first and foremost thing is to sign a confidentiality statement. This will avoid the misuse of any information disclosed between the two parties.

How does a confidentiality statement protect you?

When a confidentiality statement is signed, it’s agreed upon by both parties that they won’t expose any of the information that’s discussed or presented in the business plans. Additionally, the document should also mention the penalties in case of a violation of the agreement.

If the other party violates the statement of confidentiality, you can take legal action and receive compensation for the damages you had to bear because of the violation. As per the contract, the compensation is paid.

The absence of a confidentiality statement is an invitation for others to use parts of your business plan. Although copyright laws can help you claim most of your information, some, still, stay unprotected.

Creating a Confidentiality Statement for the Business Plan

Most companies include a brief confidential statement on their business plan cover page. Although it’s not a requirement, it delivers a quick message that the document is highly classified. Furthermore, it’s essential to create an exclusive document.

After you write your business plan , create a stringent confidentiality statement and ensure that it includes the following key elements.

1. Date of Effect