what is the difference between business case and business plan

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• The beginner’s guide to writing an effe ...

The beginner’s guide to writing an effective business case

Nearly every project needs to be approved—whether that means getting the simple go-ahead from your team or gaining the support of an executive stakeholder. You may be familiar with using a project plan or project charter to propose a new initiative and get the green light for a project. But if your proposed project represents a significant business investment, you may need to build a business case.

If you’ve never written a business case, we’re here to help. With a few resources and a little planning, you can write a business case that will help you get the resources and support you need to manage a successful project.

What is a business case?

A business case is a document that explains the value or benefits your company will gain if you pursue a significant business investment or initiative. This initiative can be anything from the messaging for a new product or feature launch, a proposal to increase spend on a current initiative, or a significant investment with a new agency or contractor—to name a few. A compelling business case will outline the expected benefits of this significant investment decision. Key stakeholders will use the business case you provide to determine whether or not to move forward with an initiative.

If you’ve never created a business case, it may sound similar to other early project planning documentation. Here’s how it stacks up:

The difference between a business case and business plan

A  business case  is a proposal for a new strategy or large initiative. It should outline the business needs and benefits your company will receive from pursuing this opportunity.

A  business plan , on the other hand, is an outline for a totally new business. Typically, you’d draft a business plan to map out your business strategy, your mission and vision statements, and how you’re planning on getting there. There may be a case where you create a business plan for an already-existing business, but you’d only do so if you’re trying to take your business in a significantly new direction.

Business case vs. executive summary

Business case vs. project charter.

If you need to create an elevator pitch for your project but you don’t quite need the full business case treatment, you might need a project charter. Much like a business case, a project charter outlines key details of an initiative. Specifically, a project charter will cover three main elements of your project: project objectives, project scope, and key project stakeholders. Your management team will then use the project charter to approve further project development.

Do you need a business case?

Not every project needs a business case—or even a project charter. Plan to build a business case only for initiatives or investments that will require significant business resources. If you’re working on a smaller initiative, consider creating a project charter to pitch your project idea to relevant stakeholders.

Even if you don’t need to pitch your project to any stakeholders, you should be ready to answer basic questions about your proposed project, like:

What is this project’s purpose?

Why are we working on this project?

How does this project connect to organizational goals and objectives?

Which metrics will we use to measure the success of the project ?

Who is working on this project?

When is this project going to be completed?

5 steps for creating and pitching a business case

Your business case shouldn’t just include key facts and figures—it should also tell a story of why pursuing a particular investment or initiative is a good idea for your business. When in doubt, avoid jargon and be brief—but always focus on communicating the value of the project. If this is your first time creating a business case, don’t worry. Follow these five steps to create a solid one.

1. Gather input

You don’t have to write a business case on your own. Instead, make sure appropriate team members and stakeholders are contributing to the relevant sections. For example, the IT team should be involved in any tooling and timeline decisions, while the finance team should review any budget and risk management sections. If you’re creating a business case to propose a new initiative, product line, or customer persona, make sure you also consult subject matter experts.

2. Plan to write your business case out of order

Some of the first things that appear in your business case—like your executive summary—should actually be drafted last, when you have all of the resources and information to make an informed suggestion. Your executive summary will present all of your findings and make a recommendation for the business based on a variety of factors. By gathering all of those details first—like project purpose, financial information, and project risk—you can ensure your executive summary has all of the relevant information.

3. Build your business case incrementally

A business case describes a significant investment for your company. Similarly, simply writing a business case is a significant investment of your time. Not every initiative is right for your business—so make sure you’re checking your work with stakeholders as you go. You don’t want to sink hours and weeks into this document only for it to be rejected by executive stakeholders right off the bat.

Consider doing a “soft launch” with an outline of your business case to your project sponsor or an executive stakeholder you have a good relationship with to confirm this initiative is something you should pursue. Then, as you build the different sections of your business case, check back in with your key stakeholders to confirm there are no deal-breakers.

4. Refine the document

As you create sections of your business case, you may need to go back and refine other sections. For example, once you’ve finished doing a cost-benefit analysis with your financial team, make sure you update any budget-related project risks.

Before presenting your business case, do a final read through with key stakeholders to look for any sections that can be further refined. At this stage, you’ll also want to write the executive summary that goes at the top of the document. Depending on the length of your business case, your executive summary should be one to two pages long.

5. Present the business case

The final step is to actually present your business case. Start with a quick elevator pitch that answers the what, why, and how of your proposal. Think of this presentation as your chance to explain the current business need, how your proposal addresses the need, and what the business benefits are. Make sure to address any risks or concerns you think your audience would have.

Don’t go through your business case page by page. Instead, share the document with stakeholders before the presentation so they have a chance to read through it ahead of time. Then, after your presentation, share the document again so stakeholders can dig into details.

A business case checklist

Start with the why.

The first section of the business case is your chance to make a compelling argument about the new project. Make sure you draft an argument that appeals to your audience’s interests and needs. Despite being the first section in your business case, this should be the last section you write. In addition to including the  traditional elements of an executive summary , make sure you answer:

What business problem is your project solving?  This is your chance to explain why your project is important and why executive stakeholders should consider pursuing this opportunity.

What is your business objective ?  What happens at the end of a successful project? How will you measure success—and what does a successful project mean for your business?

How does this business case fit into your overall company business strategy plan?  Make sure your proposed business case is connected to important  company goals . The initiative proposed in your business case should move the needle towards your company's  vision statement .

Outline financials and the return on investment

At this point in your business case, you should outline the project finance fundamentals. Don’t expect to create this section on your own—you should draft this in partnership with your company’s finance team. In particular, this section should answer:

How much will this project cost?  Even if the initiative is completely new to your company, do some research to estimate the project costs.

What does each individual component of the project cost?  In addition to estimating the total overall cost, break down the different project costs. For example, you might have project costs for new tools and resources, competitive intelligence resourcing, agency costs, etc.

What is the expected return on investment (ROI)?  You’ve talked about the costs—now talk about how your company will benefit from this initiative. Make sure to explain how you calculated the ROI, too.

How will this project impact cash flow?  Cash flow is the amount of money being transferred into and out of your business. Significant investments are going to cost a lot of money, so they’ll negatively impact cash flow—but you should also expect a high ROI, which will positively impact cash flow.

What is the sensitivity analysis?  Sensitivity analysis is a summary of how uncertain your numbers are. There will be a variety of variables that impact your business case. Make sure to explain what those variables are, and how that could impact your projections.

Preview project details

Your business case is proposing a new initiative. In addition to the financial risks, take some time to preview project details. For example, your business case should include:

Your  project objectives  and  key project deliverables .  What will happen at the end of the project? What are you expecting to create or deliver once the project is over?

Your  project plan .  A project plan is a blueprint of the key elements your team needs to accomplish in order to successfully achieve your project goals.

The  project scope .  What are the boundaries of your project? What exact goals, deliverables, and deadlines will you be working towards?

A list of relevant  project stakeholders .  Who are the important project stakeholders and key decision makers for this work? This can include the members of the project team that would be working on this initiative, executive stakeholders who would sponsor the project, and any external stakeholders who might be involved.

A general  project roadmap  in a Gantt-chart like view.  At this stage in the process, you don’t need to provide a detailed project timeline, but you should outline a general sense of when each project stage will happen in relation to the others. To do this, create a project roadmap in  Gantt-chart like software . Make sure to include any important  project milestones  in your roadmap as well.

Any important project dependencies.  Is there anything that would get in the way of this project getting started? Does this work rely on any other work that’s currently in flight?

Discuss project risks

Once you’ve outlined the financial impact and important project details, make sure you include any potential project risks. If you haven’t already, create a  project risk management plan  for your business case. Project risk management isn’t the process of eliminating risk—instead, it’s about identifying, analyzing, and proactively responding to any potential project risks. Clearly defining each project risk and how that risk might impact your project can best equip you and the project team to manage and avoid those risks.

In the risk section of your business case, include:

A risk analysis of any potential project risks.  What is the risk? How likely is it to happen? What is the priority level of this risk?

What, if any, assumptions you are making.  In project risk management, assumptions are anything you think will be true about the project, without those details being guaranteed facts. Basing project decisions around an assumption can open your project up to risk. Make sure you ratify every project assumption to avoid jeopardizing project success.

Any comparable alternatives in the market.  If you’re writing a business case to pitch a new product or angle in the market, evaluate anything that already exists. Could the alternative impact your financial assessment or project success?

Develop an action plan

In the final section of your business case, outline how you will turn this business case into an actionable project. This section should answer questions like:

How will decisions be made?  Who is responsible for the project? Who is the project sponsor? If you haven’t already, consider creating a  RACI chart  to outline project responsibilities.

How will progress be measured and reported?  Not every project stakeholder needs to be notified of every project change. Outline key parts of your project communication plan , as well as how you’ll communicate  project status updates .

What is the next course of action?  If the management team ratifies this business case, what next steps will you take to put this into action?

Bring your business case to life

You’ve built a solid business case and it’s been ratified—congratulations! The next step is to bring your business case to life. It can be intimidating to  initiate large-scale change , and implementing your business case is no exception.

If you haven’t already, make sure you have a  project management tool  in place to manage and organize your new initiative. With a central source of truth to track who’s doing what by when, share status updates, and keep project stakeholders in the loop, you can turn a great business case into a successful project.

Related resources

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How to use a feasibility study in project management

How to track utilization rate and drive team profitability

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Project Management

How to write a business case: the formula for getting project approval from stakeholders.

Praburam Srinivasan

Growth Marketing Manager

April 29, 2024

Do you feel you’ve found a solution to one of your company’s most pressing problems? Do you want to go straight to your seniors and tell them about your idea, basking in the glory of your eureka moment? 💡

Before you do that, take a deep breath and consider if your solution requires a significant financial commitment or a shift into critical business functions . If it does, you should learn how to write a business case to properly present your idea to the higher-ups.

Never done that before? No worries. In this article, we’ll explore:

• The concept of a business case
• The difference between a business case and a business plan
• The process of building a compelling business case
• Some real-life examples to understand how business cases help win project approval

Importance of a business case in project management

What is the difference between a business case and a business plan, 1. executive summary, 2. project definition, 3. financial appraisal, 4. project goals and success criteria , 5. project scope and schedule, 6. risks and mitigation strategies, step 1: problem identification, step 2: stakeholder identification, step 3: drafting background information and project definition, step 4: cost-benefit analysis and financial appraisal, step 5: evaluation of alternatives, step 6: describing the project scope and implementation approach, step 7: drafting the executive summary, step 8: putting it all together, lean startup example, venture capital funding example, outsourcing example, supply chain example, 1. drafting it alone, 2. not taking stakeholder feedback, 3. not reviewing or proofreading, create a compelling business case with clickup.

What Is a Business Case?

A business case explains how the rewards of investing in a business idea or initiative outweigh the risks and costs . 

It’s one of the many project management documents (like a project charter or a project plan ) you may have to create when seeking the green light to proceed with a project. A well-crafted business case can be crucial for obtaining approval from your client, management, or other stakeholders in the early stages of your project’s lifecycle . 🟢

The key role of a business case is to justify an investment . It plays other important roles that make project management more efficient . Some of them include:

• Providing clarity: Drafting a business case requires careful planning and research, which brings clarity of thought and improves your understanding of the initiative or project you’re going to propose
• Resource optimization: A business case helps ensure that the company’s resources are being used productively and contributing to its long-term strategic objectives
• Removing doubt: By comparing different solutions, the document eliminates any doubt that an alternative way to fix a business problem is better than what you’re proposing

Preparing a business case can take a lot of time and effort, so it only makes sense when a project or an initiative requires a significant financial commitment. For all other approvals, you can use the project charter. Some scenarios in which a business case can make sense include:

• A new project
• New product line
• Introduction of a new customer persona to your marketing strategy
• Major changes to the supply chain, like introducing new suppliers or distributors

While a business case may seem like a synonym for a business plan , based on its definition, content, and name, there are major differences between them. The most notable ones are:

• Use case: A business plan is made for an entirely new business, while a business case is created when asking for a substantial financial commitment within an existing business
• Purpose: A business plan aims to hammer out the complete business strategy, while a business case tries to explain the advantages of a specific initiative
• A company’s mission and vision
• Financial projections
• SWOT Analysis
• Market analysis
• Go-to-market strategy
• Team profile

A business case, on the other hand, includes only financial projections, risks, and costs of a project

• Level of detail: Given the scope of information they need to cover, business plans tend to be much more detailed than business cases

Key Elements of a Business Case

While the exact structure of a business case will vary based on a specific situation, here are some of the essential components: 

The executive summary provides a quick overview of the critical details covered in your business case. 

Given that managers and executives are usually strapped for time, the executive summary will often be the only part of the document they actually read. That’s why it’s crucial to get this part of the document right and leave a powerful first impression.

The project definition sets the context for your business case by explaining the problem you aim to solve. It highlights an unfulfilled business requirement, outlines why it’s not being met, and finally presents your solution for addressing the mentioned shortcomings.

This is the crux of the matter—the financial appraisal part outlines the ROI your proposed initiative or project will likely generate for the business. It also covers the expected cost of executing your project or implementing your solution.

This part of the business case defines all the objectives and key results (OKRs) you want to achieve through the proposed project or solution. It also explains how those goals align with the company’s short-term and long-term goals. Lastly, it establishes success criteria for your project in the form of KPIs and key metrics . 

The project scope sets limits and boundaries for your project by allocating resources and budgets and developing a schedule for completion.

A business case has to list all the risks associated with implementing the proposed solution and the mitigation strategies for dealing with them. It also weighs in on alternative approaches and their respective risks to explain why your initiative should be the preferred option.

How to Write a Business Case in 8 Steps

Writing a business case is an elaborate task that requires extensive research and numerous analyses, from SWOT and cost-benefit analysis to stakeholder analysis. It’s no walk in the park, but it becomes much easier with an exceptional project management platform like ClickUp .

ClickUp equips project managers and business professionals with all the tools they need to craft a business case that will win the hearts and minds of their superiors—from ready-made templates to AI-powered document management features. Let’s find out how to write a business case in eight steps with the help of ClickUp. 

Many business ventures fail because they create solutions to non-existing problems. To prevent this scenario, make sure you consider the following:

• Objective(s) your company wants to achieve. Examples include achieving a revenue target , meeting an unaddressed customer need, or achieving a competitive advantage
• Problem(s) holding your company from achieving its desired objectives. Examples include a lack of operational efficiency , incorrect customer targeting, and supply chain issues
• The solution you want to propose to solve the problem and meet the objectives
• Evidence and case studies to prove that your proposed solution can indeed solve the problem

A structured way to identify your business problems is to use the ClickUp Root Cause Analysis Template . Classify everything going wrong with your business into multiple “Why” columns and then add their root causes in the relevant color-coded blocks. Once you analyze the root causes, you can tailor your solution to target and fix them. 

After pinpointing the problem, the next step is identifying the stakeholders to whom you’ll pitch your business case. A stakeholder is anyone who has a say in approving your business case . Depending on the scope and complexity of your business case, one or all of the following stakeholders may play a role in its approval:

• The Chief Executive Officer (CEO) of the company
• The head of the finance department
• The head of business operations
• The head of the marketing and sales department
• The representative of a client

Discuss your initiative with the stakeholders to see whether they’re interested in it or not. It can also help you understand their perspective on the problem you’re aiming to solve. After all, you don’t want to put your efforts into a full business case only for the stakeholders to reject it. 🙅‍♂️

The easiest way to identify key stakeholders is to leverage the ClickUp Stakeholder Analysis Template . This framework can help you gauge the influence and support level of all stakeholders who will play a role in approving your business case. This information can also come in handy when you want to collect feedback from a stakeholder.

Once you’ve identified your problem and the involved stakeholders, it’s time to start drafting your business case. 

The first part is the project definition section, which sets the background for presenting your case before stakeholders . It covers the problem your business case proposes to solve and explains why solving the problem is important. The section should cover the following:

• The problem you identified and its impact on business functions
• How your project or solution can fix it
• The goals your project or initiative wants to achieve
• How project goals align with the company’s near-term objectives 
• The success criteria for your project or initiative 
• How its success will move the company towards its long-term strategic goals

The best tool for drafting this part of the document is ClickUp Docs —ClickUp’s built-in text editor and documentation management platform. 

With ClickUp Docs’ collaborative editing possibilities, you and your stakeholders can work on the business case document in real time, ensuring its speedy and accurate completion. Stakeholders can also comment on areas for improvement . Finally, you can add a cover image to make your business case look more appealing or use slash commands to quickly add compelling blocks of formatted text. 

After setting the background, the next step is the financial appraisal part. This section will be examined carefully during your pitch and serves to capture the stakeholders’ interest in your business case. For maximum accuracy, consult with a colleague from the finance department while drafting this part of the document. 

Some of the information you may want to cover here includes:

• Projections about financial gains
• Costs to be incurred by the project
• Cash flow forecast
• Cost-benefit analysis and return on investment (ROI)
• Sensitivity analysis to explain the margin of error in your numbers

Besides the financial aspects, this section also deals with risk analysis . Information on all potential risk factors identified through SWOT analysis, Monte Carlo analysis, and other risk identification strategies are outlined along with their respective mitigation strategies . It’ll be best to discuss the project risks with stakeholders identified in the first step—they can often share hidden insights and perspectives.

ClickUp provides a number of tools to help you conduct each of these analyses. For instance, you can use the ClickUp Cost Benefit Analysis Template to complete your cost-benefit analysis. 

Similarly, the ClickUp SWOT Analysis Template can save you from jotting down rows of data to identify your initiative’s strengths, weaknesses, opportunities, and threats. It is a visually rich template that lets you easily identify high-impact activities and functions.

In this section, you should evaluate the alternatives to your proposed solution in the business case. Highlight the pros and cons of each option so the stakeholders can have a complete overview of every possible solution. Make sure to include your proposed solution in the comparison as well to explain why it’s better than all the alternatives.

If you need help examining and comparing the alternatives, fall back on the ClickUp Comparison Matrix Template . Use it to record all the information about each possible alternative in different fields and then compare them on a Kanban board. Its visual format makes decision making easier, while its fully customizable fields allow you to record as many comparison parameters as you wish. 

After you detail all the financial aspects of your project and compare it to alternatives, define a project scope in your business case. This section sets boundaries for the pending work and limitations on resources needed to complete it. Crucial information covered in it includes:

• Budget and resource allocation: Financial and other resources, like team members, workspace, equipment, etc., that should be allocated to the project
• Deadlines: Time required to complete each part of the project
• Dependencies and relationships : Details of current business functions that may be affected by the project
• Deliverables: What you plan to deliver by the end of your project
• Exclusions: What’s not a part of your project

Once you define the project scope, outline the exact steps for implementing it. The easiest way to do this is to use the ClickUp Scope of Work Template . It allows you to record every aspect of the project scope in a well-organized manner to share with your stakeholders and get their opinions. 

Once all major sections of your business case have been completed, you need to draft an executive summary to digest the crucial details from each section. This summary should be concise, ideally no longer than two pages. It will appear as the first item in your business case, providing stakeholders with a quick overview of your proposed project.

If you need help drafting your executive summary, team up with ClickUp Brain , a neural network and AI writing assistant built into ClickUp Docs. In mere seconds, it can generate a pitch-perfect summary of any business case document prepared until now. 

Once you have your executive summary draft, use the ClickUp Executive Summary Template to format and organize it in a structured and presentable manner. 

Now, it’s time to put together and structure all the sections drafted to this point to finalize your business case. That’s where the ClickUp Business Case Analysis Template can be a lifesaver. 

The template includes dedicated sections to record each part of the business case. All sections are arranged in a structured manner to ensure that when you pitch your case, it makes a lasting impact on your stakeholders.

Real-Life Examples of Business Cases

Now that you know how to write a business case, let’s check out some real-life examples of how business cases allow companies to approve major projects and make strategic decisions:

A lean startup operating in the healthcare space is facing workforce issues, which are preventing it from launching its product on time. The head of the product development team wants to hire three more engineers to speed up the product development process . 

However, since it’s a lean startup with budget constraints , the team head needs approval from the startup founders before making the decision. So, the product team compiles a business case for hiring additional employees , and here are the main elements of their proposal:

• A brief overview of how insufficient staffing is delaying product development and pushing the product launch beyond the planned deadline
• Elaboration of how three new engineers can bring product development back on track
• Cost-benefit analysis of the move 
• Exploration of the involved risks
• Presentation of alternatives and their associated risks
• Scope of the change, like the nature of work the new engineers will perform

A venture capital-funded fintech startup decides to launch a new product line of credit cards . It will allow the startup to onboard a slew of new customers but will also require significant financial investment for marketing and lending purposes. So the company prepares a business case for this new product line in an effort to obtain funding for it. Here’s what they detail in their business case:

• The need for this new product line and how it complements the company’s other offerings
• The market opportunity with revenue projections and cost-benefit analysis
• Risks involved in the project, like competition, mass default, and regulatory scrutiny
• Alternatives available, like launching prepaid debit cards, which probably wouldn’t be as useful for customer acquisition
• Scope of the project, like team members working on it, the budget allocated, launch schedule, and timeline

A SaaS software vendor based out of Silicon Valley wants to reduce customer service spending without compromising service quality . The product manager of one of their leading products comes up with the idea of outsourcing customer service . So, they decide to prepare a business case before proposing the solution to the management. The business case outlines:

• The problem, which is a significant share of revenue going into customer service operations and how outsourcing can help bring it down
• Risks associated with outsourced customer service and mitigation strategies for them, like having an escalation mechanism for unresolved support tickets
• Alternatives and their risks, like using AI chatbots to automate customer service , which can be frustrating for customers who need human guidance
• Cost-benefit analysis of making the change
• Scope of change, like how many of the customer support employees will be laid off

A construction company in Virginia is facing raw material supply issues . The cement supplier they work with repeatedly fails to meet the demand, so the project supervisor decides to add some redundancy by onboarding a new vendor. 

This change can greatly influence the project, so the supervisor prepares a business case to propose the initiative to the management. The case addresses the following:

• How the new cement supplier can keep the project from being delayed
• The supplier’s reliability, as demonstrated by the years of industry presence, major companies for which they have supplied cement, etc.
• Alternative suppliers, their capacity, and reliability information
• Cost-benefit analysis of making the change, since the rates of this supplier are slightly higher than those of the existing vendor
• Scope of change, including how much of the supplies will be delivered by the new supplier, for how long, and at what price 

Potential Business Case Challenges and How to Overcome Them

There are a number of mistakes project managers make when drafting a business case, which can jeopardize the approval of the entire project or initiative. Now that we’ve covered the complete process of writing a compelling business case, let’s look at the most common pitfalls and explore ways to avoid them. 

The details of a business case require extensive research and knowledge of different business functions. No project manager can do it all alone without making mistakes or errors of judgment, so look for help from different departments in your company, whether it’s finance, marketing, or operations. 💁

Another crucial mistake when building a business case is presenting the document to stakeholders out of the blue. When you don’t involve relevant stakeholders at any stage in your business case development process, you increase the risk of it being rejected. That happens because:

• You don’t know their expectations
• They didn’t have any role in your business case, which keeps them detached from your work

To avoid this scenario, involve stakeholders at different stages of your business case drafting process and get your progress reviewed regularly.

The last thing you want when pitching your business case is a typo or a misrepresentation of facts. That can leave a bad impression on the stakeholders listening to your pitch. They may not take you seriously and ultimately reject your project proposal . 

To ensure a bulletproof document, you should always review and proofread your entire business case before submitting it . Pay special attention to numbers and facts and double-check that they’re correct. Then, go ahead with your pitch.

A solid business case is the first step to getting project approval from your stakeholders. However, building it requires careful planning and the right tools to streamline the entire process. Fortunately, ClickUp equips you with everything you need at each step of building your business case—from ready-made templates and documentation tools to AI-powered writing assistance.

Sign up for ClickUp today and write a business case that will earn support and trust for your project or initiative.

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How To Write Business Plans and Business Cases

Setting the scene

“What’s the difference between a business case and a business plan?”

Few people can produce a ready answer to that question. After all, both business plans and business cases make predictions about future outcomes, but there is a big difference between the two.

Business plans

are based on the business model or business line of an organisation. They explain how the business will achieve its operational and financial goals by capitalising on the capability of the organisation.

Business plans may be written to explain how a business may meet its growth targets over one or more years.

Business cases

are based on a cost model. Business cases comprise an argument to convince a decision maker to approve a specific course of action over another.

A business case may be produced to justify the purchase of capital equipment.

1. What is a business plan?

2. how do i prepare, 3. how do i start, 4. how long should a business plan be, 5. how should i clarify my ideas, 6. what should a business plan contain, a) executive summary, b) management profiles, c) vision statement, d) mission statement.

e) Your proposition – company, product or service

f) Market description, analysis, segmentation, targeting and positioning

G) explanation of how the product, service or idea is different, h) outline marketing plan, i) outline sales plan and forecast, j) resources.

k) Financials (to include ROI and cash flow)

l) How to make it happen

7. should i use images and colour, 8. how should i present charts, 9. what is a business case, 10. what is the first stage, 11. how do i test my ideas, 12. defining options, 13. structure of a business case, 14. how do i encourage a decision, 15. any winning tips.

16. One last thing…

Business Plan

A business plan is a written document which describes your business, your goals and how you intend to achieve them over a given period. It is a forecast. It describes your starting point and the strategy you need to reach your proposed end point in one, two or three years.

It details your aims, describes your products and services, analyses market demand, and details the resources you need, the capability you have, and the income you anticipate to generate over a period of time.

In essence, your plan should provide sufficient information for the reader to calculate the credibility of your strategy, your chance of success, and in some cases, the risk people may take by investing in your business.

Ensure that you can answer questions about your plan with logic, completeness and clear thinking. You need to be able to describe three things:

• The situation – opportunity or problem
• Your plan to address the situation
• The payback

Creating an effective business plan means converting an exciting idea in your head into a compelling story on paper. It means applying logic and reasoning to your thoughts and creating a credible plan of action. Above all, it requires clarity of thought.

Clarity is the connection of your idea – your business proposition – to a coherent set of words, sentences, and numbers. It details what you wish to achieve – the business benefits – the why and who and when and where and how you are going to achieve them.

You must be able to answer why people should buy your business, product, service, or idea, in preference to someone else’s. Your answer should include the financial reasons why people should buy from you, which then means that your answer is essentially your value proposition.

A value proposition is a statement of value which you propose to deliver to potential buyers. This should be your starting point for developing your business plan.

Think of your value proposition as your elevator pitch. It should be clear, concise and compelling. It is about how you can deliver greater value or offer a better deal to potential customers than the current market can offer.

A value proposition details how your business, product or service can offer higher quality, lower cost, or something else desired by your customers, that your competitors can neither offer nor replicate easily. A value proposition should comprise a simple set of statements which:

• Describe how your business, product, service, or idea addresses the situation – problem or opportunity.
• Detail why the situation should be addressed or needs to be addressed in terms of opportunity, difficulty, or cost.
• Explain the benefits of your business plan – your business, product, service, or idea over alternatives.
• State the cost advantages of your business, product, service, or idea over competitive alternatives.

A business plan should contain essential information and no more than essential information necessary for the plan. The plan should be as short and as concise as possible. But it must contain everything necessary. In other words, it must be complete and leave no obvious questions unanswered.

A business plan can be as short as a couple of pages to many pages long depending on the product, service, market, and complexity of the proposition.

You need to have clarity about all aspects of your business plan and the influences upon it. SWOT may help you to distinguish between unimportant and important aspects which you need to consider. A SWOT analysis is a way of focusing on factors which may influence your success.

In particular, you need to be clear about threats to your plan. Readers need to see that you are knowledgeable about the environment in which you will be trading. That means you should never skip over areas of potential difficulty. Instead, define, analyse and conclude how and why you can overcome them. Realism is desirable in all business plans.

The number of sections your plan needs depends on the focus, technology or complexity of the proposed offering and may include:

b) Management profiles (if relevant)

The executive summary is the most important part of the document because it is likely to be read by all stakeholders. But don’t think of it as purely a summary of your business plan.

Think of it as an opportunity to “sell” your business idea. Think impact, engagement, and appeal. From your first word to your last, your executive summary requires high energy.

Your first sentence should be a benefit-focused entrée into an appealing, scene setting, first paragraph.

It should detail your vision, mission, the situation, proposal, and payback. It needs to mirror your document in the precise order of your document – from the proposition, market description, considerations, resources required and return on investment to cash flow. It needs to be well-structured, appealing, and highly credible.

Sketch out your executive summary in draft before starting your document. It should represent the skeleton of your document. Produce it in rough before writing your document and complete it after writing your whole document.

An executive summary – over one or perhaps two pages – should have seven parts:

• Proposition summary and how it meets the customer/market needs
• Situation definition - problem or opportunity
• Approach and proposition
• Financials/costings/payback
• Benefits/rationale to approach
• How to make it happen

If the business plan is to secure funding, investors will want to know the capability, experience, and track record of the people who will be driving the business. Short biographies of key people should be detailed.

State where you see your business in the future. A vision statement is a high-level overview of the business, the characteristics the business will display, and the goals that it will have achieved by a specific time.

Summarise your company’s purpose, means of operation, market, and scope of activity.

e) Your proposition - company, product or service

This section should start with an outline of why you have developed your offering – the need for it – and how it fits within the market, competitively. You should position your company, product or service in the mind of the reader.

The main focus of this section is on what you will offer the market in terms of business, product or service, technically and operationally. You should include charts, diagrams, and images as necessary to enable the reader to understand your offering and its comparative capability.

Ensure that the information you give is complete, that your narrative explains essential details, and that no questions are begged.

You should describe your product or service in terms of what marketers call a marketing mix. It’s a means of structuring an offering from a marketing perspective. It comprises: Product, Price, Placement, and Promotion, otherwise known as the 4 Ps.

This is about describing your product range or service, and how you will adapt it to support your customers’ needs and desires.

You should also include guarantees, support, and maintenance. Also include product variation, differentiation, and innovation.

This is the process of setting product prices. It may include discounts which relate to what you think customers are prepared to pay, and how they may wish to pay.

This might involve distribution channels, direct sales, indirect sales or e-commerce. In essence, you need to detail how you will get your product to market. Don’t go into detail here – instead, give detail at the section on sales plan and forecast.

This is about how you will promote your product, product line or company.

Markets are divided into groups of buyers – or segments. You should describe your market in segments.

Tailoring an approach to one or more groups – or one or more segments – over others is the only way to promote your offering. That’s why airlines promote first class services differently from economy class services.

One other thing you need to be aware of is that the segment or segments you propose are valid. Provided that a segment can be identified, is of reasonable size and can be reached economically, then it is a valid marketing target. Here are some variables:

These relate to age, gender, income, race, and ethnicity for the purpose of creating a clear and complete picture of the characteristics.

There are often regional differences. Customer preferences differ depending on which part of the country they may live.

Some customers are brand loyal. Others are heavy users while others are identified as light users.

This is based on activities, interests and opinions.

Segmentation

Segments which should be attractive are those which complement your business’s strengths and where demand, profitability, and growth are favourable.

Identify the variables, and then:

• Group potential customers into segments
• Group products into categories
• Produce Market/Product grid/s

You should also detail market influences. Markets are influenced by a number of factors such as technology, economics, politics, geography, social views, and so on. Refer to your SWOT analysis. You need to identify market factors which may influence your business plan and link them to justify your approach to achieving your proposition.

Link your marketing mix to your target segment. To do so, you need to answer these questions:

• How well is our target segment served by existing suppliers?
• What would be the cost of reaching that segment?
• How compatible with our strengths is this new target segment?
• What is our competitive position?
• What is the market growth potential?

Positioning

You need to think about how you compare with competitive products and services. You then need to decide how you wish to position your product or service in the eyes of your market.

Positioning is the process by which you create an image or identity in the minds of your target market. It is the “relative competitive comparison” your product or service occupies in a given market – as perceived by the market.

It is about identifying the differential advantage of your business to your target segments. For example, a Rolls Royce Dawn is positioned differently from a Ford Fiesta even though both products are classified as cars.

Your business plan may be focused on an existing product or service or developing something completely new. Alternatively, you may wish to compare what you are offering with a competitive product or service.

Differentiation is about a product, service or idea which is perceived by the market – not purely by you – as being different. Differentiation is the aim of most businesses.

It may relate to lower cost, faster delivery, higher quality, greater adaptability and so on. The aim of differentiation is to match your offering to customer needs, attract your market and generate market advantage. You need to be clear about how you are going to achieve this.

At this point, you should also detail the uniqueness of your offering – your unique selling proposition (USP) – which distinguishes you from the competition.

Think through each element of your offering and link it to the process of getting your offering to market.

Produce an outline marketing plan – summarising essential points. Leave full detail to the marketing plan. Digital marketing is likely to play a role in promoting your business, product or service, so you need to detail how it will achieve your goals.

A typical marketing plan includes the following:

Detail the income the plan is to generate.

• Environment – Focus on every  external influence on getting your offering to market. It includes economics, social trends, political influences, legal and technological influences. Some factors may be advantageous to you, some not. Whatever they are, you need to detail them.
• Competitors – You need to detail the market positioning of all relevant competitors and their comparative strengths and weaknesses with specific reference to your market. 

Based on the above analysis.

Segmentation, targeting, and positioning.

The four Ps – Product, Price, Promotion, and Placement.

Activity is likely to include search engine optimisation (SEO), content marketing, paid advertising (PPC) and social media marketing. Whatever it is that you decide to do, you need to detail it. Produce a chart of proposed activity against forecast return, over time.

Link these through to the financial section of your business plan.

The outline sales plan and forecast should include essential sales information from your full sales plan, and nothing more. It should detail the tactics you intend to use to reach your sales goals. If B2B, you should specify the market segments you intend to target and the companies and people you intend to approach.

You need to provide a chart which specifies sales resourcing needs and timescales of the complete sales lifecycle. It should be designed so that it is understood at a glance.

If you have prospects stating an intent to buy, these statements should be included here. The sales plan is the sharp end of your business plan.

The purpose of this section is to give readers confidence by demonstrating realism about your market and credibility about your forecast.

You should detail the resources you need to achieve your business goals – people, time, equipment and money. Specify lead times – recruitment times if relevant – and whatever else you deem essential. Demonstrate how you will achieve what you propose to achieve with the resources you propose to have.

k) Financials

The primary purpose of business, any business, is to make a profit. There is no other primary purpose. For that reason, the methods by which profit will be made needs to be detailed, clear and understandable at a glance

It should be complete and presented simply and clearly, and include:

• Funding requirements, envisaged return on investment, and cashflow.
• Clear description attached to numbers and lines as appropriate.
• Tables and charts with a consistent style.
• Key messages highlighted from each table or chart.

Include a timeline of who has to agree on what and by when.

The answer is yes. Images are a good way of getting points across. If colour makes your proposal look more attractive to read, then use it. Ensure, however, that images and colour support your message and don’t get in the way of it.

Give your chart a figure number and provide a summary underneath explaining the message your chart conveys. Provide narrative. Never leave it to the reader to interpret what your image or chart might mean.

Business Case

A business case is a justification for a proposed project or plan of action on the basis of its expected commercial benefit. It is a business argument.

It reveals a situation which is either a problem or an opportunity and details how the situation could be addressed in terms of benefits and risks.

It needs to show a compelling case for change, value for money, commercial viability, affordability, and achievability.

The first stage is to produce a rough justification for addressing a problem or opportunity. It may start with your belief that you can improve a situation, save cost, make money, or achieve competitive advantage.

Whatever it is, you are unlikely to have complete information straight away, but you should have a rough idea.

For instance, you should have an approximate idea of feasibility factors. These may include situation knowledge, market size, competition, income opportunity, costs, funding, resourcing, and risk.

What you should be clear about are the drivers for addressing the situation and why your idea, product or service may have commercial traction. While you might not have complete information, you should have sufficient data to list your anticipated business benefits.

The result of this information is called your value proposition and is the basis of your business case. Refer to section 3 to remind yourself of what a value proposition should contain.

At this stage and at every stage of writing your business case, you need to probe and test your ideas. Great business narrative doesn’t beg questions but answers them, so every one of your statements needs to be supported and credible.

All options need to be defined, and your analysis needs to be non-controversial. Your analysis should be written in such a way that interested parties would agree with your analysis – even those who are likely to oppose your recommendations.

You should deal with researched facts and not show bias, or reveal recommendations. All reasonable options need to be considered including that of doing nothing (provided that is a reasonable option).

Options need to be detailed in precisely the same way – proposed option, implications, and payback – so that they can be compared equally. Consideration may be:

This relates to business synergy and strategic fit. It answers the question whether the option will be good for the overall business.

This aspect relates to whether it is good value for money.

This relates to how the business case will be structured financially and whether it can be considered to be a good deal.

This is primarily focused on whether the proposal can be funded and is affordable.

This aspect is concerned with whether the preferred option can be delivered successfully as outlined in the business case.

It should have 7 sections comprising:

Executive summary

Problem or opportunity definition, proposed business case, market analysis.

This is the most important section of your business case as it is likely to be read by all stakeholders. Produce a benefit-focused first sentence as an entrée into an appealing, scene setting, first paragraph. Your complete summary should be written so that it can be understood at a glance. It should be credible and highly persuasive.

You should draft your executive summary after you have drafted your value proposition but before writing your document. The draft will be approximate and should be finalised after the document has been written.

This section should mirror your document in the precise order of your document – from the proposition, market description, considerations, resources required to the return on investment.

From your first word to your last, your writing requires high energy. It should detail the purpose of your business case, the situation which it addresses, and above all, the benefits of your business case.

• Summary of proposed solution.
• Summary of the situation - problem or opportunity.
• Expected outcomes.
• Summary of benefits of proposal solution.

Detail the problem or opportunity so that it can be understood at a glance. Your writing should be jargon-free and easily understood by anyone not associated with your business idea.

Your analysis should be non-contentious and utterly factual of the problem or opportunity. It should provide a background and context to your business case and include research data both favourable and unfavourable to your proposition.

Identify all sources of information which contribute towards your proposition. These may include:

This is the main body of your business case. Your proposition and your approach to the problem or market should be detailed stage by stage. Start with a description of your offering in terms of benefits, features and advantages in that order.

Above all you must explain why your proposition is well-placed to address the situation and precisely how your approach complements your current business strategy.

Three questions your proposition needs to answer at every stage are: How does your idea compare against competitive ideas? How will you reach the market? Where’s the proof that you are likely to succeed?

Anticipate reader questions and answer them within your business case. Provide credibility and proof if possible at every stage.

As a conclusion to this section, you should detail your prospects – or likely users of your proposition or offering – along with their job titles. Readers will be looking for assurance that you really do know your market, can reach it, and are able to generate your forecast financial return.

• Explanation of how the solution addresses the problem or opportunity
• Cost savings
• Non-economic (perhaps relating to regulatory compliance)

If your business case is opportunity focused, then market analysis, competitor analysis and factors related to the selling environment need to be evaluated.

Show complete understanding of the market, and provide a detailed explanation of how you will reach the market.

Identify which organisational objectives the business case supports and explain how it will support them. (These may include policy, regulatory requirements or commercial governance.)

• List assumptions which drive the business case.
• Detail the environment (financial, operational, political or other) on which the solution is dependent.

Summarise competitive practices or competitor positioning. If helpful, produce a SWOT analysis.

List alternative solutions including “do nothing” provided it’s a realistic alternative.

• Timescales for agreement stages.
• Invite questions.
• Summarise and conclude with strong benefit statement.

This section should provide a cost-benefit analysis detailing the pros and cons of your case. Use facts, figures, and charts to get your messages across and use captions to emphasise them.

Readers need to assimilate critical points from your data at a glance.

• Detail funding requirements, envisaged return on investment, and cash flow.
• Make sure description is attached to numbers and lines as appropriate.
• Ensure every table and chart has a consistent style.
• Highlight key messages from each table or chart.

List the benefits in order of importance. These should relate to all considerations from the financial to the strategic.

Specify the critical path – a timeline – of all stages of approval necessary to proceed. Include the names of the people who need to give their approval.

Once you’ve checked the coherence of your argument and the completeness of your document, it is time to cast a critical eye. In addition to being complete, your document needs to look highly readable.

Make sure that your proposition is business-appealing, logical, strong, well-written and with all essential facts and figures.

Ensure your document is clear, complete, and looks good. Appearance is important. Something which looks good is likely to be read. Masses of text is unappealing. Short paragraphs and clear structure is appealing. Ensure that essential information can be read at a glance.

16. One last thing...

Mistakes in spelling, punctuation or grammar not only distract but reduce the credibility of your document. Ask others to proofread. Then check and recheck before submitting what will become your highly effective business case.

This blog was written by Richard Walker, a director of Walkerstone Limited.

He can be contacted at: [email protected]

Walkerstone comprises business case writers, proposal writers and professional trainers.

We delivery scheduled courses, in-company training and executive coaching to people and organisations throughout Europe.

Courses include:

Business Case Writing

Essential Business Writing Skills

Report Writing

If you would  like to know more, do contact us . We’d be delighted to hear from you.

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Business Plan vs Business Case: What is the Difference

Businesses use a variety of documents to plan and track their progress. Two common types of business documents are business plans and business cases. Both document the current state of the business, outline future goals and detail how those goals will be met. However, there is a key difference between these two types of documents: a business case focuses on strategy while a business plan focuses on investment and viability.

A business plan is a high-level overview of the entire company. It includes the company's mission statement, an analysis of the competitive landscape, market research, target audience definitions, objectives and strategies for achieving them as well as important financial projections and SWOT analysis. 

A business plan is often focused on gaining investment or deciding if a business will be viable going forward

What is a Business Case?

On the other hand, a business case is primarily used as an internal document to justify an action or strategy within an existing business.

A business case will often include a cost-benefit analysis which weighs the pros and cons of taking a particular course of action. This type of analysis is helpful in decision-making because it forces businesses to consider all potential outcomes before committing to anything. 

Project vs Overall Business Strategy

Often, the best way of deciding whether a business plan or a business case is needed is by considering the aims. 

If you or your business are looking at a specific project or strategy, a business case may be more suited to your needs. For example

• A new product launch
• An expansion into a new market
• The introduction of a new process or technology

On the other hand, if you are starting up a business or want to take a more holistic view of your company's direction, then a business plan may be what you need.

Scope & Aims of a Business Case

A business case cannot be considered a business plan for a particular project or strategy. A business plan is a high-level document that looks at the entire business and not a specific project or goal.

A business case is a more specific document that looks at a particular project or strategy. It includes a cost-benefit analysis which weighs the pros and cons of taking a particular course of action. This type of analysis is helpful in decision-making because it forces businesses to consider all potential outcomes before committing to anything.

The Key Differences: Business Plan vs Business Case

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What Is a Business Plan?

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

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

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

Key Takeaways

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

Investopedia / Ryan Oakley

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

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

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

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

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

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

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

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

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

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

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

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

2 Types of Business Plans

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

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

Why Do Business Plans Fail?

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

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

What Does a Lean Startup Business Plan Include?

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

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

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

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

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

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What Is a Business Case - Simply Explained

Have you ever wondered why a company or executive management decides to commit themselves to a particular project? After all, this type of investment isn't only about money, but time and effort. When making such a decision, many believe that a business plan determines overall objectives and strategies. But what's a business case, and how does it fit into this picture?

A business case zooms in on a specific problem and tells you how to solve it. This document is at the heart of any project and convinces key decision makers of the merits of a particular course of action by showing them the impacts, costs, and benefits. So, let's see how the business case works!

What Is a Business Case in Project Management?

At the beginning of every project, we face that infamous question, "why?"

Why should our organization start a new project? What do we expect to gain, and what are the costs involved? A business case is a document that tries to provide such answers. It identifies different aspects and argues why the project would be beneficial and the risks and costs involved.

In short, a business case will explain the benefits your company will gain if decision-makers decide to pursue a significant business investment. This project management document will show your stakeholders, customers, or clients that the project you pitch is a reasonable choice.

How Does the Business Case Relate to a Project?

You need a business case to convince decision-makers to accept the project idea. This document will also help your company prioritize projects that align with your business's overall goals.

Additionally, you can compare various ideas using the same criteria. This ensures transparency and an equal playing field for upcoming projects. If your organization chooses to proceed with the project, a project case will help you manage the scope during the initial stage .

When the project is completed, a business case can help you measure how well the company did the project planning and implementation.

Business Case vs. Business Plan

While these two terms are used interchangeably, they do have different concepts.

A business case examines a potential market opportunity at the product level. This market opportunity can be described as sizable, lasting, and lucrative. Business cases will assess whether an organization should make a product or offer a service that will try to solve a market problem.

Also, a business case proposes a comprehensive strategy or new initiative. It outlines the business benefits your company will receive by pursuing a business opportunity.

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On the other hand, a business plan examines a potential business opportunity at the company level. A business opportunity, in this case, is a void a company tries to fill by providing a specific product to the target market.

Moreover, a business plan can outline an entirely new business. Generally, you create a business plan to identify your vision statement, mission, business strategy, and how you will get there.

Business Case vs. Project Charter

A project charter is a document that clearly defines the project scope at a higher level. It explicitly states what needs to be done and establishes the project's schedule, time, and budget. The project charter is a document that appoints a project manager and authorizes the project.

It gives the project the green light, and it's the first document you will create when starting with the project.

The business case explains what effects the project will have on the business. We call it a business case for a reason. We imagine different scenarios: when the project will be finished and its results. Not all projects will be doable, so you will have to prepare numerous business cases and start a project only for some of them.

What Is the Purpose of a Business Case?

A business case's primary purpose is to justify an investment. It facilitates investment decisions at the project level. This document summarizes risks, benefits, and costs and helps an organization decide whether to fund or skip the project.

The organization will be able to make an informed decision based on real facts. Compared to PMP, a business case needs to be more detailed and written from a business point of view.

Components of a Business Case

A business case consists of four components:

• Costs: At this point, costs will be inevitably high, since you haven't completed the detailed work necessary to produce baseline costs. There is not enough information to make an effective investment decision.
• Benefits: They will define ROI, and this part is important because you will use it to evaluate costs and determine whether the business case is justified.
• Risks: Again, risks in the business case will be pretty high and will be linked to the project delivery. Nonetheless, risks will help you make the right decision.
• Timescales: These will define when the benefits will start and will be used as part of the cost-benefit for the project.

Don't forget that with the help of ActiveCollab project management software, you can successfully create a business case and turn an idea into reality.

Business Case Structure

A business case structure typically looks like this:

• Identify the problem: Projects are designed with a specific purpose, whether to solve a problem or create a business opportunity. Your first step is to figure out the problem, describe it, discover where it comes from, and then set a time frame to deal with it.
• Alternative solutions: How do you know the project you are undertaking is the best possible solution? Naturally, you don't; that's why you need an alternative for each solution and its benefits.
• Propose the best solution: Set criteria, and maybe decide on a scoring mechanism to help you choose the best solution. Whatever approach you apply, the best solution to your problem will be evident.
• Implementation approach: So, you've found the problem or opportunity; how will you reach it? Also, you need to convince your stakeholder that you are right and have found the best solution to achieve the company's goals.

Business Case Presentation

A business case presentation is a set of questions used to define all areas that need attention to make an informed decision: move forward or quit the project. Preferably, a business presentation should include costs and risks, which help decision-makers successfully make the right choice. Key stakeholders and sponsors are the ones who review business case presentations.

Business Case Evaluation

Business case evaluation is a process that evaluates a perceived need and determines the best ways to address this need while having in mind social, environmental, and financial impact. Its ultimate purpose is to help decision-makers make that business judgment: Do our customers require this project? Will this project solve real problems? How do you balance costs against expected benefits? What risks are involved, and how serious are they?

What Is a Business Case Analysis?

We use business case analysis to evaluate potential business decisions, mainly in the corporate world. A project manager is responsible for performing analysis and assessing the benefits, risks, and costs with the help of their specialist knowledge. Company stakeholders then review this analysis and decide whether to approve or not this decision.

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Difference between business model, business plan, business case

The business model

The business plan, the business case, the chronological order.

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Business Plan vs Business Model Canvas Explained

6 min. read

Updated May 10, 2024

It might be stating the obvious, but planning and preparation are keys to success in business.

After all, entrepreneurs put in hard work to develop their product, understand the market they plan to serve, assess their competitive landscape and funding needs, and much more.

Successful business owners also take time to document their strategies for guiding the growth of their companies. They use these strategies to take advantage of new opportunities and pivot away from threats.

Two common frameworks for documenting strategies – the business model canvas and the business plan – are also among the easiest to get confused.

Though they can complement each other, a business model canvas and a business plan are different in ways worth understanding for any entrepreneur who’s refining their business concept and strategy.

Let’s start by digging deeper into what a business model canvas is. 

• What is a business model canvas?

You may have heard the term “business model” before. Every company has one. 

Your business model is just a description of how your business will generate revenue. In other words, it’s a snapshot of the ways your business will be profitable.

Writing a business plan is one way of explaining a company’s business model. The business model canvas takes a different approach.

A business model canvas is a one-page template that explains your business model and provides an overview of your:

• Relationships with key partners
• Financial structure
• And more…

While the business model is a statement of fact, the business model canvas is a strategic process—a method for either documenting or determining your business model.

It’s meant to be quickly and easily updated as a business better understands what it needs to be successful over time. This makes it especially useful for startups and newer businesses that are still trying to determine their business model.

You can think of a business model canvas as a condensed, summarized, and simplified version of a business plan. It’s a great way to quickly document an idea and get started on the planning process.

The business plan is a way to expand on the ideas from the canvas and flesh out more details on strategy and implementation.

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Components of a Business Model Canvas

The simplest way to think about your business model canvas is to map it out visually. A business model canvas covers nine key areas:

• Value proposition : A company’s unique offering in the market and why it will be successful.
• Key activities: The actions that a company takes to achieve its value proposition.
• Customer segments : The types of people or businesses that are likely to want a company’s products or services.
• Channels : How a company reaches customers through marketing and distribution efforts.
• Customer relationships: How a company interacts with customers and maintains important relationships.
• Revenue streams: The ways in which a company makes money.
• Key resources: The assets such as property, equipment and staffing that a company needs to perform its key activities.
• Key partners: The relationships with suppliers, vendors, customers and other stakeholders a company must maintain in order to be successful.
• Cost structure: The major drivers of company expenses that will need to be tracked and managed.

[Want an even simpler alternative? Try downloading our free one-page plan template and start building your plan in less than 30 minutes.]

To get a better sense of how a business model canvas documents business strategy, consider a company like Netflix. The streaming company’s business model is based on generating subscription revenue through its content library and exclusive content.

If Netflix executives were to create a business model canvas, it would map out how the company leverages key resources, partnerships, and activities to achieve its value proposition and drive profitability. The business model is the destination.

The great thing about a business model canvas is that you can quickly document business ideas and see how a business might work at a high level. As you do more research, you’ll quickly refine your canvas until you have a business idea you think will work.

From there, you expand into a full business plan.

• What is a business plan?

If a business model canvas captures what a company looks like when it’s operating successfully, then a business plan is a more detailed version along with a company’s blueprint for getting there.

Think of your business plan as a process of laying out your goals and your strategies for achieving them.

The business plan is more detailed, and changes over time. It examines each aspect of your business, from operations to marketing and financials.

The plan often includes forward-looking forecasts of a company’s projected financial performance. These are always educated guesses. But these forecasts can also be used as a management tool for any growing business.

Comparing actual results to the forecast can be a valuable reality check, telling a business if they’re on track to meet their goals or if they need to adjust their plan.

A business plan is also a must for companies hoping to receive a bank loan , SBA loan , or other form of outside investment . Anyone putting up funds to help you grow will want to see you’ve done your homework.

So a business plan is how you not only prepare yourself, but also show your audience that you’re prepared.

Components of a business plan

While there are several different types of business plans meant for different uses, well-written plans will cover these common areas:

• Executive summary : A brief (1-2 pages) overview of your business.
• Products and services : Detailed descriptions of what you’re selling and how it fills a need in the market.
• Market analysis : Assessing the size of your market, and information about your customers such as demographics (age, income level) and psychographics (interests, values).
• Competitive analysis : Documenting existing businesses and solutions your target customers are finding in the market.
• Marketing and sales plan : Your strategies for positioning your product or service in the market, and developing a customer base.  
• Operations plan : Describing how you will run the business from day to day, including how you will manage inventory, equipment, and staff.
• Organization and management team: Detailing the legal structure of the business, as well as key members, their backgrounds and qualifications.
• Financial Plans : Business financials that measure a company’s performance and health, including profit & loss statements, cash flow statements and balance sheets. Effective financial plans also include forward-looking sales forecasts and expense budgets.

How a business plan and business model canvas inform business strategy

Avoid the trap of using the two terms interchangeably. As we’ve shown, the two have different focuses and purposes. 

The business model canvas (or our one-page plan template ) is a great starting point for mapping out your initial strategy. Both are easy to iterate on as you test ideas and determine what’s feasible.

Once you have a clearer sense of your idea, you can expand the canvas or one-page plan into a business plan that digs into details like your operations plan, marketing strategy, and financial forecast.

When you understand how – and when – to use each, you can speed up the entire planning process. That’s because the business model canvas lays out the foundation of your venture’s feasibility and potential, while the business plan provides a roadmap for getting there.

The work of business planning is about connecting the dots between the potential and the process.

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

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• How both inform your strategy

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Business Case vs. Business Plan

A business case is a business-related concept that is both practical and profitable; while a business plan gives the details and elucidates the financial steps necessary to create or grow a successful business. Its purpose is to examine the business dynamics of a proposed project as part of the evaluation and selection process. It shows how the project along with its lifecycle is a complete business venture that will contribute to its results. Thus it also shows how the project will align with and support the strategy of the organization. Finally, it demonstrates how the project will contribute to the company’s economic value.

For example, you could make a business case for investing in billboard advertising for your motel. You would cite the success stories other motels have had from such advertising.

A business plan will do two very important things for you and your new business. First, it will be your guide to creating or growing your business. It will address every major aspect, especially those related to expenses and income over a period of time. Second, it will show you and your stakeholders, such as probable investors, the value or profitability of your idea and your approach.

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Thank, useful distinction. Gary

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Understanding The Distinction Between a Business Plan & Business Planning

In the dynamic world of entrepreneurship, our choice of words matters. Our vocabulary can often become a veritable alphabet soup of jargon, acronyms, and those buzzwords (I'm looking at you, "disrupt").

And let's not get started on business cliches – "circle back," "synergy," “deep-dive,” etc.

Yet sometimes, it's worth pausing to consider the words we casually sprinkle around in our business conversations. In a previous article, we explored the differences between strategic and tactical business planning , two related but distinct approaches to guiding a business. Now, we're going to delve into another pair of terms that often get used interchangeably but have unique implications: "business plan" (the noun) and "business planning" (the verb).

The business plan, a noun, is a tactical document. It's typically created for a specific purpose, such as securing a Small Business Administration (SBA) loan . Think of it as a road map – it outlines the route and the destination (in this case, the coveted bank loan). But once you've reached your tactical goal (in this case, getting the loan), it often gets shoved in the glove compartment, forgotten as part of the organization's action plan until the next road trip (i.e., additional funding ).

Business planning is not a static concept, but rather a dynamic verb. It's an ongoing process that necessitates continual adjustments. It's about creating a holistic, interconnected value-creating strategic plan that benefits all stakeholders. This includes attracting top-tier employees, ensuring a return on lending or investment, and making a positive impact on the community, whether online or in real life.

That being said, the customer remains at the heart of this process. Without customers, there are no sales, no revenue, and no value. Everything else is contingent on this key element.

If we were to compare the business plan to a map, then business planning would be the journey. It's a continuous process of making strategic decisions, adapting to new paths, and steering the business towards its goals. Sometimes, it even involves redefining objectives midway.

So, let's do a "deep-dive" (I couldn't resist) into these two terms, examining their application in the real world. Along the way, we'll uncover some tools that can aid us in the ever-evolving process of strategic business planning and the more finite task of crafting a winning business plan.

The Business Plan is a Document

Alright, let's take a closer look at a phrase we've all tossed around: the business plan. Imagine it as the detailed blueprint of your organization's goals, strategies, and tactics. It's like the North Star for your entrepreneurial ship, shedding light on the key questions: what, why, how, and when (speaking of questions, here are some FAQs about the business plan ).

Writing a solid business plan isn't easy , especially if you're just dipping your toes into the world of business planning. But don’t worry; we'll get to that (eventually).

So, let's break it down. What does a business plan document consist of, exactly?

• Executive Summary: Just as it sounds, this is a quick overview of the nitty-gritty that's in the rest of your business plan. It's the introduction to your organization, highlighting your mission statement and serving up the essential details like ownership, location, and structure.
• Company Overview: This is where you will detail your products and/or services, their pricing, and the operational plan. If you're opening a restaurant, this section is where you present your menu, and it's also where you talk about your ingredient sourcing, the type of service you'll provide, and the ambiance you're aiming for. 
• Market Analysis Summary: This section demands a comprehensive analysis of your industry, target market, competitors, and your unique selling proposition. Without access to top-notch (and often not free) research tools, it can be challenging to find current industry data. Check out our  guide on the best market research tools to get started.
• Strategy and Implementation Summary: Here, you'll lay out your short-term and long-term objectives along with the strategies you'll implement to attract and retain customers. This is where you’ll talk about all the different marketing and sales strategies you'll use to charm your future customers.
• Management Summary: This is your chance to spotlight your company's key personnel. Detail the profiles of your key leaders, their roles, and why they're perfect for it. Don't shy away from acknowledging talent gaps that need to be filled, and do share how you plan to fill them!
• Pro Forma Financials: This is where you get down to the dollars and cents with a detailed five-year revenue forecast along with crucial financial statements like the balance sheet and the profit & loss statement.

A business plan is an essential instrument, not just for securing funding, but also for communicating long-term goals and objectives to key stakeholders. But, while a business plan is essential for many circumstances, it's important to understand its scope and limitations. It's a tactical tool, an important one, but it's not the be-all and end-all of business strategy. Which brings us to our next point of discussion: business planning.

Business Planning is a Process

If we view the business plan as a blueprint, then business planning is the architect. But let's be clear: we're not building just any old house here. We're building the  Winchester Mystery House of business. Just as the infamous Winchester House was  constantly under construction , with new rooms being added and old ones revamped, so too is your business in a state of perpetual evolution. It's a dynamic, ongoing process, not a one-and-done event.

In the realm of business planning, we're always adding 'rooms' and 'corridors' – new products, services, and market strategies – to our 'house'. And just as  Sarah Winchester reputedly consulted spirits in her Séance Room to guide her construction decisions, we consult our customers, market data, and strategic insights to guide our strategy. We're in a constant state of assessing, evolving, executing, and improving.

Business planning touches all corners of your venture. It includes areas such as product development, market research, and strategic management. It's not about predicting the future with absolute certainty – we’re planners, not fortune tellers. It's about setting a course and making calculated decisions, preparing to pivot when circumstances demand it (think global pandemics).

Business planning is not a 'set it and forget it' endeavor. It's akin to being your company's personal fitness coach, nudging it to continually strive for better. Much like physical fitness, if you stop the maintenance, you risk losing your hard-earned progress.

Business Planning Case Study: Solo Stove

Now that summer is here, my Solo Stove stands as a tangible testament to effective business planning.

For those unfamiliar, Solo Stove started with a simple yet innovative product – a smoke-limiting outdoor fire pit that garnered over $1.1 million on Kickstarter in 2016, far exceeding its original objective. Since then, it has expanded its portfolio with products tailored to outdoor enthusiasts. From flame screens and fire tools to color-changing flame additives, each product is designed to fit seamlessly into modern outdoor spaces, exuding a rugged elegance that resonates with their target audience.

This strategic product development, a cornerstone of business planning, has allowed Solo Stove to evolve from a product to a lifestyle brand. By continually listening to their customers, probing their desires and needs, and innovating to meet those needs, they've built a brand that extends beyond the products they sell.

Their strategy also includes a primary "Direct To Consumer" (DTC) revenue model, executed via their e-commerce website. This model, while challenging due to increased customer acquisition costs, offers significant benefits, including higher margins since revenue isn’t split with a retailer or distributor, and direct interaction with the customer.

Through its primary business model,  Solo Stove has amassed an email database of over 3.4 million customers . This competitive advantage allows for ongoing evaluation of customer needs, driving product innovation and improvement, and enabling effective marketing that strengthens their mission. The success of this approach is evident in the company's growth: from 2018 to 2020,  Solo Stove’s revenue grew from $16 million to $130 million , a 185% CAGR.

While  85% of their revenue comes from online DTC channels, Solo Stove has also enhanced their strategic objectives by partnering with select retailers that align with their reputation, demographic, and commitment to showcasing Solo Brands’ product portfolio and providing superior customer service.

Solo Stove's success underscores how comprehensive business planning fosters regular assessment, constant evolution, and continual improvement. It's more than setting goals – it's about ceaselessly uncovering ways to deliver value to your customers and grow your business.

However, even successful businesses like Solo Stove can explore additional strategic initiatives for growth and diversification, aligning with their strategic direction and operational planning. For instance, a subscription model could provide regular deliveries of products or a service warranty, creating a consistent revenue stream and increasing customer loyalty. Alternatively, a B2B model could involve partnerships with adventure tourism operators, who could purchase Solo Stove products in bulk.

These complementary business models, when integrated into the operational plan, could support the primary DTC model by driving customer acquisition, providing ongoing revenue streams and expanding the customer base. This strategic direction ensures that Solo Stove continues to thrive in a competitive market.

The Interplay between the Business Plan (Noun) and Business Planning (Verb)

In the realm of business strategy, there's an intriguing chicken-and-egg conundrum: which comes first, the business plan or business planning? The answer is both straightforward and complex: they're two sides of the same coin, each indispensable in its own right and yet inextricably linked.

The process of business planning informs and modifies the business plan, just as the business plan provides a strategic foundation for the planning process. This interplay embodies the concept of Model-Based Planning™, where the business model serves as a guide, yet remains flexible to the insights and adaptations borne out of proactive business planning.

Let's revisit the Solo Stove story to elucidate this concept. Their business model, primarily direct-to-consumer, laid the groundwork for their strategy. Yet, it was through continuous business planning  –  the assessment of customer feedback, market trends, and sales performance –  that they were able to refine their model, expand their product portfolio, and enhance their growth objectives. Their business plan wasn't a static document but a living entity, evolving through the insights gleaned from ongoing business planning.

So, how can you harness the power of both the tactical business plan and strategic business planning in your organization? Here are a few guiding principles:

• Embrace Model-Based Planning™: Start with a robust business model that outlines your strategic plan. But remember, this isn't set in stone—it's a guiding framework that will evolve over time as you gain insights from your strategic planning process.
• Make business planning a routine: Regularly review and update your business plan based on your findings from market research, customer feedback, and internal assessments. Use it as a living document that grows and adapts with your business.
• Foster open communication: Keep all stakeholders informed about updates to your business plan and the insights that informed these changes. This promotes alignment and ensures everyone is working towards the same goals.
• Be agile and adaptable: A key part of business planning is being ready to pivot when necessary . Whether it's a global pandemic or a shift in consumer preferences, your ability to respond swiftly and strategically to changing circumstances is crucial for long-term success.

Fanning the Flames: From Planning to Plan

The sparks truly ignite when you understand the symbiotic relationship between tactical business plans, strategic business planning, and the achievement of strategic goals. Crafting a tactical business plan (the noun) requires initial planning (the verb), but then you need to embark on continuous strategic planning (the verb) to review, refine, and realign your strategic business plan (the noun). It's a rhythm of planning, execution, review, and adjustment, all guided by key performance indicators.

Business planning, therefore, isn't a one-off event, but rather an active, ongoing process. A business plan needs constant nurturing and adjustment to stay relevant and guide your organization's path to success. This understanding frames your business plan not as a static document, but as a living, breathing entity, evolving with each step your business takes and each shift in the business landscape. It's a strategic roadmap, continually updated to reflect your organization's objectives and the ever-changing business environment.

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Business Plan vs. Business Model

Back to Business Plans

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 19, 2023 Updated on December 11, 2023

If you’re starting a business , you have a business model, whether you know it or not. A business model is the foundation of any business idea; it basically outlines how the concept offers value and potential for growth. Essentially, a solid business model ensures that the business will make money. 

A business plan , on the other hand, is the business owner’s plan to put that model into action. It’s much more detailed and includes financial projections, objectives, management decisions and further steps. 

Still unsure? Have no fear, this handy guide lays out the differences between a business plan and a business model so that you know exactly what you and your business need to succeed.  

• Business Model

In simple terms, a business model is how the business will make money. Selling ice to eskimos, for instance, is a bad business model. Selling team jerseys to rabbit sports fans, on the other hand, is a solid business model. 

The components of a business model are best illustrated by Swiss entrepreneur Alexander Osterwalder’s Business Model Canvas, which is a visual representation with nine sections. Four sections represent internal elements of a business that enable it to function and are related to costs. 

Four other sections represent external elements that enable the business to bring in revenue and are related to the customer. The ninth section is the business’ value proposition. 

Value Proposition

The value proposition is at the heart of your business model. Your value proposition, which should be no more than two sentences long, needs to answer the following questions:

• What are you offering
• Whose problem does it solve
• What problem does it solve
• What benefits does it provide
• How is it better than competitor products

Key Activities

Key activities are all the activities required to run the business and create the proposed value. These can include product development and distribution and any other necessary activities.  

Cost Structure

The cost structure is a sum of all you’ll need to spend to make the business function. It’s the costs you’ll incur to run the business and bring in revenue. 

Key Partners

Key partners are external partners involved in delivering value, such as vendors and suppliers, or maybe a bank. 

Key Resources

Key resources are any necessary practical elements that come with a cost. These might include your office space, employees, and equipment like computers. 

Revenue Streams

Revenue streams are the ways in which you receive payment from customers. You may have more than one revenue stream, such as via direct sales and subscriptions.

Customer Segments

Customer segments are the groups of people to whom you provide goods or services. In other words, your target market. Maybe your products are aimed at younger women, for instance, or older men. Whatever your target segments, you should build customer personas of each group so that you know how and where to reach them with your marketing.

Customer Relationships

Customer relationships refer to how you interact with your customers to deliver value. Your interactions may be online only, by phone, in-person, or all of the above. 

Channels refer to how you reach your customers, such as social media, internet search, direct sales calls, trade shows, and so on. 

To Summarize

If you’re just starting a business, the Business Model Canvas is a great way to understand and examine your business model. One thing to remember is that the elements you put in your Canvas will be based on assumptions that will at some point be tested in the market and adapted as needed. 

Another thing to remember is that you do not need to do a Business Model Canvas. It’s merely an exercise that can help provide insight into your business model.  

• Business Plan

A business plan is a detailed document that describes how the business will function in all facets. The key is in the “plan” part of the name. It will specify how you’ll launch your business, gain customers, operate your company, and make money. A business plan, however, is not a static document . 

The initial version will be based largely on assumptions, supported by research. As you run your business you’ll constantly learn what works and what does not and make endless tweaks to your plan.

Thus, creating a business plan is not a one-time action – it’s a dynamic and continuous process of crafting and adapting your vision and strategy. 

You’ll present your business plan to potential backers, though in recent years some investors have begun to embrace the Business Model Canvas as a tool to assess a business’ potential. 

A strong business plan includes eight essential components .

1. Executive Summary 

The executive summary is the initial section of your business plan , written last, summarizing its key points. Crucial for capturing investors’ and lenders’ interest, it underscores your business’s uniqueness and potential for success. It’s vital to keep it concise, engaging, and no more than two pages.

2. Company Description/Overview

This section provides a history of your company, including its inception, milestones, and achievements. It features both mission (short-term goals and driving force) and vision statements (long-term growth aspirations). Objectives, such as product development timelines or hiring goals, outline specific, short-term targets for the business.

3. Products or Services Offered

Detail the product or service you’re offering, its uniqueness, and its solution to market problems. Explain its source or development process and your sales strategy, including pricing and distribution channels. Essentially, this section outlines what you’re selling and your revenue model.

4. Market Analysis 

• Industry Analysis : Research your industry’s growth rate, market size, trends, and future predictions. Identify your company’s niche or sub-industry and discuss adapting to industry changes.
• Competitor Analysis : Examine main competitors , their unique selling points, and weaknesses. Highlight your competitive advantages and strategies for maintaining them.
• Target Market Analysis : Define your target market , their demographics, needs, and wants. Discuss how and where you’ll reach them and the potential for market shifts based on customer feedback.
• SWOT Analysis : Break down your company’s strengths, weaknesses, opportunities, and threats. Detail your unique attributes, potential challenges, market opportunities, and external risks, along with strategies to address them.

5. Marketing and Sales Strategies

• Marketing and Advertising Plan : Use insights from your target market analysis to decide advertising channels, emphasizing platforms that best reach your audience, like TikTok over Instagram. Develop a concise value proposition to be central to all marketing, detailing how your product addresses specific needs.
• Sales Strategy and Tactics : Define where and how you’ll sell, such as online, in-store, or through direct sales calls. Sales tactics should highlight the customer’s needs, presenting your solution without overly aggressive promotion.
• Pricing Strategy : Decide on pricing based on market positioning, whether you aim to be a discount or luxury option. Ensure prices cover costs and yield profit, and position your product in a manner that aligns with the chosen price range. Justify your chosen pricing strategy in this section.

6. Operations and Management 

• Operational Plan : Outline daily, weekly, and monthly operations, specifying roles, tasks, and quality assurance methods. Include supplier details and order schedules, ensuring clarity on key business functions and responsibilities.
• Technology Plan : For tech-based products, detail the development plan, milestones, and staffing. For non-tech companies, describe the technology tools and software you’ll employ for business efficiency.
• Management and Organizational Structure : Define who’s in charge, their roles, and their backgrounds. Discuss your management strategy and forecast the development of your organizational hierarchy.
• Personnel Plan : List current and future hires, specifying their roles and the qualifications necessary for each position. Highlight the significance of each role in the business’s operations.

7. Financial Plan 

• Startup Costs : Clearly detail every anticipated cost before starting operations. This will be vital for understanding the initial investment required to get the business off the ground.
• Sales Projections : Estimate monthly sales for the first year, with an annual forecast for the next two years.
• Profit and Loss Statement : An overview of revenue minus costs, resulting in either a profit or loss.
• Cash Flow Statement : Provides clarity on the business’s liquidity by showing cash inflows and outflows over a specific period.
• Balance Sheet : Displays the company’s net worth by detailing its assets and liabilities.
• Break-even Analysis : Understand at which point revenues will cover costs, helping to predict when the business will start making a profit.
• Funding Requirements and Sources : Enumerate the required capital and the sources of this funding. This should also include the purpose for which these funds will be used at different stages.
• Key Performance Indicators (KPIs) : Identify the metrics vital for measuring the company’s performance. Use these indicators to spot challenges, understand where improvements can be made, and pivot strategies as necessary. Ensure that each KPI aligns with the business’s objectives and offers actionable insights for growth.

Remember, although the financial section might seem daunting, it is pivotal for understanding the economic feasibility of your business. Proper financial planning helps in making informed decisions, attracting investors, and ensuring long-term sustainability. Don’t hesitate to engage financial experts or utilize tools and software to ensure accuracy and comprehensiveness in this section.

8. Appendices

The appendices section of a business plan is a repository for detailed information too extensive for the main document. This can include resumes of key personnel, full market research data, legal documents, and product designs or mockups. By placing this data in the appendices, it keeps the main plan concise while allowing stakeholders access to deeper insights when needed. Always ensure each item is clearly labeled and referenced at the relevant point in the main document.

As you can see, business models and business plans have some similarities, but in the main they are quite different. Your business model explains the foundational concept behind your business, while a business plan lays out how you’ll put that model into action and build a business. 

When you’re starting a business, it’s best to have both, as the work of getting them done involves learning about your business from every angle. The knowledge you’ll gain is likely to be invaluable, and could even be the difference between success and failure. 

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What is the difference between a business case and a business plan?

Simply, a business case is a supported argument that a business-related concept is both practical and profitable (in any sense), while a business plan contains and demonstrates the financial steps necessary to create or grow a successful business or successfully carry out a business activity. For example, you could make a business case for investing in billboard advertising for your motel. You would cite the success other motels have had from such advertising. You could make a business case for opening a Frozen Yogurt shop in downtown Phoenix, but it might be harder to make a good business case for opening your shop in Anchorage. A business plan will do two things. First, it will be your guide to creating or growing your business. It will address every major aspect, especially those related to expenses and income over time. Second, it will demonstrate to you and to others (such as potential partners and investors) the value--profitability--of your idea and your approach. The above is a layman's introduction to these topics, about which much more can be said.

Add your answer:

What is difference between business plan and policies?

there is none

What is the difference between a business plan and a budget?

A business plan is an overall look at a business that lists areas like product overview, marketing plan, action plan and it includes financial history (if any) and financial predictions; there fore a budget. So in terms of comparing these two in the same context, a budget is a subcategory of a business plan. when talking in general, a business plan gives a comprehensive look at a company and it's objectives, while a budget shows financial planning.

What is the difference in a business plan and a proposal?

So far as we have encountered, a business plan is a document that is used either toset a direction and benchmarks for a businessget fundingand business proposals are requests for funding that have as a part a business plandocuments that align a project for a client

What the difference between Long term and short term business plan?

Relating to a gain or loss in the value of a security that has been held over a specific length of time means short-term plan and relating to a liability for which a long period of time (usually one year) remains until payment of the face amount comes due means long term plan. This is the difference between short and long term plan.

Why should you have a business plan?

Having a strong business plan can be the difference between success and failure and with so many start up companies failing it would make sense to prepare a plan. A business plan should be a working document that changes as your company grows and as circumstances change. Having a plan is like having a road map, if you are not sure where you are going you can refer back to your plan and it will help you to keep moving forward with your business. Detailed financial plans can help you to avoid financial crisis, by planning ahead for time when you know the business may need extra cash you can take loans out when your business is in a good position instead of waiting for the crisis point and not being able to get financial assistance. You can benchmark your progress and see if you are getting the results you wanted to get in your plan. if you are not achieving the level of sales for instance then you can start to make changes in order to increase the sales and meet your targets. A business plan will keep you focused and driven and will help you to plan ahead in your business - this is why it can help you to achieve success.

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Strategy vs. Plan: Understanding the Key Differences

When it comes to achieving success, whether in business, personal growth, or any other area, it’s essential to understand the difference between a strategy and a plan. These terms are often used interchangeably, but they serve different purposes and play unique roles in reaching goals. In this post, we’ll explore the key differences between strategy vs plan, how they work together, and offer practical tips for aligning the two effectively.

Strategy vs Plan: Definitions

A plan and strategy are not the same thing, and understanding the differences is crucial to effective decision-making. Let’s delve into the definitions of these terms.

What is a Strategy

Strategy is your long-term vision. It sets out the broad, overarching goals and helps position you or your organization competitively. It answers the big questions like “what” you want to achieve and “why” it matters. Essentially, a strategy provides a roadmap, guiding the direction and making sure that efforts and resources are aligned with the desired outcomes.

A strategy is crucial for providing direction and ensuring all efforts are aligned with long-term goals. It sets the stage for detailed planning by outlining what needs to be achieved and why it matters. Whether in business, personal development, or any other area, having a clear strategy helps you navigate uncertainties and focus on what truly matters.

Key characteristics of a strategy

• Long-term vision : Strategies are focused on long-term goals. They’re not about what you’ll do next week or next month, but rather where you want to be in several years.
• Broad goals : A strategy outlines broad, overarching goals rather than specific actions. These goals set the direction for your efforts.
• Competitive positioning : In business, a strategy often involves figuring out how to stand out from competitors. This could mean offering something unique, targeting a specific market, or using your strengths to your advantage.
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• Guiding framework : Strategies provide a framework for making decisions. They help ensure that every action you take moves you closer to your big-picture goals.

Examples of strategy

• Business : A company might have a strategy to become the leader in sustainable products. This could involve investing in green technologies, adopting eco-friendly practices, and promoting sustainability as a core value.
• Military : A country’s defense strategy might focus on maintaining strong air power to ensure security and deter potential threats.
• Personal : An individual might develop a strategy to become a top expert in their field. This could include continuous learning, networking, and sharing knowledge to build a strong reputation.

What is a Plan

A plan is a detailed outline of the steps you need to take to achieve a specific goal. It breaks down your strategy into actionable tasks, specifying what needs to be done, how it will be done, and when it should be completed. Essentially, a plan is your roadmap for turning big-picture ideas into concrete actions.

A plan is essential for translating your strategy into action. By following a well-structured plan, you can manage your time effectively, stay organized, and make steady progress toward your objectives. Whether you’re managing a project, organizing an event, or planning your daily tasks, a clear plan is your roadmap to success.

Key characteristics of a plan

• Detailed steps : A plan provides a clear, step-by-step guide on how to accomplish your goals. It breaks down the big tasks into smaller, manageable pieces.
• Short to medium-term focus : Plans are often designed to be completed over weeks, months, or a few years. They are more immediate than long-term strategies.
• Specific actions and timelines : Plans include detailed instructions and set deadlines for each task. They outline who will do what, when, and how.

Examples of plans

• Project management : A project plan outlines the tasks, deadlines, and resources needed to complete a project. It might include timelines, milestones, and responsibilities for team members. Get more Project Plan Templates and Project Schedule Templates .
• Event planning : An event plan details all the logistics for hosting an event. This includes the schedule, venue, catering, guest list, and any other specifics needed to ensure the event runs smoothly. Learn more about Event Planning .
• Daily routines : A daily plan lists the tasks you need to accomplish each day. It helps you manage your time effectively and ensures you stay on track with your larger goals.

Key Differences Between a Strategy and Plan

While a strategy and plan are closely related and often work together, they serve different purposes and operate on different levels. Here’s a breakdown of the key differences:

How to Choose Between a Strategy and Plan

Choosing between a strategy and a plan depends on the context, the nature of your goals, and the stage of your project or initiative.

Determine your time frame and scope

• Choose a Strategy if you need to set a long-term vision and overarching goals. Strategies are about where you want to go in the future and why it’s important.

Example : A startup looking to disrupt the tech industry with innovative solutions over the next five years.

• Choose a Plan if you need to outline specific actions and steps to achieve immediate or short-term goals. Plans are about how to get things done in the near future.

Example : A company planning the launch of a new product within the next six months.

Identify your focus and purpose

• Choose a Strategy if your focus is on defining broad objectives and setting the overall direction.

Example : A non-profit organization aiming to expand its impact on global education over the next decade.

• Choose a Plan if your focus is on detailing specific tasks, timelines, and resources needed to accomplish a particular goal.

Example : A non-profit organizing a fundraising event next month, detailing logistics, roles, and schedules.

Assess the level of detail needed

• Choose a Strategy if you need to establish high-level goals and a guiding framework for decision-making.

Example : A corporation developing a strategy to enhance sustainability practices across all operations.

• Choose a Plan if you need to create a detailed roadmap with specific steps and timelines.

Example : The same corporation planning specific initiatives like reducing carbon footprint by 20% in the next year.

Consider flexibility and adaptability

• Choose a Strategy if you need a flexible framework that can adapt to changing circumstances and guide long-term decisions.

Example : A business strategy that allows for pivoting based on market trends and technological advancements.

• Choose a Plan if you need a concrete execution roadmap that outlines precise actions and deadlines.

Example : A project plan for developing a new software application, with detailed phases and milestones.

Evaluate measurement and evaluation needs

• Choose a Strategy if you want to measure overall progress toward broad, long-term goals.

Example : Measuring the success of a five-year strategy to expand into international markets by tracking overall market share growth.

• Choose a Plan if you need to evaluate the completion of specific tasks and milestones.

Example : Tracking the completion of each phase of a construction project against the planned schedule and budget.

Practical Steps to Decide

• Define your goal : Clearly understand whether your goal is long-term and broad or short-term and specific.
• Analyze the context : Consider the context in which you are operating. Are you setting a vision for the future or implementing immediate actions?
• Consult stakeholders : Discuss with team members or stakeholders to understand their perspectives and needs.
• Review resources : Assess the resources available, including time, budget, and personnel, to determine whether you need a high-level strategy or a detailed plan.

How Do Strategy & Planning Relate to One Another?

Strategy and planning are closely related, working together to help individuals and organizations achieve their goals. While they serve different purposes, their relationship is complementary and interdependent. Here’s how they connect and support each other:

Strategy sets the direction

Strategy provides the overall direction and long-term vision. It defines where you want to go and why it’s important. Without a clear strategy, efforts can become scattered and unfocused.

Example : A company’s strategy might be to become a leader in renewable energy solutions. This broad goal guides all future decisions and efforts.

Planning details the path

Planning breaks down the strategic vision into actionable steps. It outlines how to achieve the strategic goals through specific actions, timelines, and resources. Plans provide a detailed roadmap for reaching the strategic objectives.

Example : To achieve the strategy of leading in renewable energy, the company might create a plan to develop new solar technology, invest in research and development, and enter new markets within the next two years.

Strategy informs planning

The strategy informs the planning process by setting the priorities and providing a framework for what needs to be accomplished. It makes sure that the plans are aligned with the overall goals and direction.

Example : If a strategy prioritizes customer satisfaction, the plans will focus on enhancing customer service, improving product quality, and gathering customer feedback.

Planning implements strategy

Planning is the execution phase where the strategic vision is translated into specific actions. It involves creating detailed plans that outline the steps needed to achieve the strategic goals.

Example : A detailed marketing plan might include launching a new advertising campaign, hosting events, and leveraging social media to reach new customers, all aligned with the strategy to expand market presence.

Feedback loop and adaptation

There’s a continuous feedback loop between strategy and planning. As plans are implemented, the results provide insights that may lead to adjustments in the strategy. Similarly, changes in strategy may require updates to the plans.

Example : If market research reveals a new trend, the company might adjust its strategy to capitalize on this trend, and subsequently update its plans to include new product developments and marketing efforts.

Monitoring and evaluation

Both strategy and planning involve monitoring and evaluation. The success of a strategy is assessed by the overall progress toward long-term goals, while the success of a plan is measured by the completion of specific tasks and milestones. This dual evaluation ensures that both the strategic vision and the detailed plans are on track.

Example : Regular reviews might show that the company is on track to become a market leader in renewable energy (strategy) by successfully launching new products and entering new markets (plan).

How to Streamline Planning and Strategizing with Creately

Creately is packed with features that make planning and strategizing efficient and effective.

Extensive template library

Creately offers a comprehensive library of templates that cater to various planning and strategizing needs. These templates serve as a starting point, saving you time and ensuring you include all necessary elements.

• Strategic planning templates : SWOT analysis, PEST analysis, balanced scorecard
• Project planning templates : Gantt chart, project timeline, work breakdown structure (WBS)
• Business planning templates : Business model canvas, lean canvas, financial projections
• Marketing planning templates : Marketing plan, customer journey map, competitive analysis matrix
• Process mapping templates : Flowcharts, swimlane diagrams, value stream mapping

Collaborative workspace

Creately’s collaborative features allow multiple users to work on the same document simultaneously, making it easy to gather input, discuss ideas, and make real-time updates.

• Real-time collaboration : Team members can edit and comment on diagrams at the same time.
• Sharing options : Easily share documents via links or invite collaborators directly.
• Feedback and annotations : Use comments and annotations to provide feedback and discuss changes.

Drag-and-drop interface

The intuitive drag-and-drop interface makes it easy to create and customize diagrams. This feature is particularly useful for those who may not have advanced technical skills but need to create professional-looking plans and strategies.

• Ease of use : Quickly add, move, and adjust elements on your diagram.
• Customization : Modify shapes, colors, and text to fit your specific needs easily with the quick toolbar.

Built-in visual collaboration tools

Improve brainstorming and strategic discussions with visual tools that help teams think creatively and stay aligned.

• Mind maps : Create mind maps to brainstorm ideas and organize thoughts.
• Kanban boards : Visualize tasks and workflows to manage projects and processes efficiently.
• Flowcharts : Map out processes and decision flows to clarify strategies and plans.

Understanding the differences between strategy and plan is key to success. A well-defined strategy provides the vision and direction, while a detailed plan translates that vision into actionable steps. By recognizing the unique roles of each and ensuring they are effectively integrated, you can achieve your goals with greater clarity and efficiency. Balancing strategy and planning, and continuously aligning them, is the cornerstone of successful execution in any endeavor.

Join over thousands of organizations that use Creately to brainstorm, plan, analyze, and execute their projects successfully.

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Amanda Athuraliya is the communication specialist/content writer at Creately, online diagramming and collaboration tool. She is an avid reader, a budding writer and a passionate researcher who loves to write about all kinds of topics.

How to Use Instagram for Business and Drive Results in 2024

Everything you need to know about using Instagram for business — from setting up your account to creating a winning strategy.

Table of Contents

Is your business still “like”-ing the idea of using Instagram, rather than confidently sliding into the DMs of the platform’s full potential? It’s high time to stop scrolling and start strategizing.

If you’re wondering how to use Instagram for business in 2024 , we’ve got you covered. In this guide, we’ll share the top strategies to help your brand thrive on the ever-evolving platform.

Bonus: Claim your free pack of 15 creative Instagram post templates made by Hootsuite’s professional graphic designers. Easily customize them in Canva, and start getting more engagement today.

How to set up Instagram for business in 4 steps

Using Instagram for business is a bit different than using a personal account. But don’t worry, it’s not rocket science! Follow these 4 simple steps to get your brand up and running on Instagram.

1. Switch to an Instagram business account

Before you start using Instagram for business, you need to create an Instagram account for business. It’s free and anyone can do it.

Here’s how to switch your existing Instagram account to a business account:

• From your profile, tap the hamburger (three lines) menu icon in the upper-right corner.
• Tap Settings and privacy . Then, scroll down until you see the Account type and tools menu.
• Next, click Switch to a professional account to change the account you’re logged into into an Instagram business account.
• Tap Continue (you may need to tap it multiple times as Instagram previews the available features of a professional account).
• Select a Category and use the slider to choose whether to show it on your profile, then tap Done .
• Choose Business (unless it makes sense for you to choose Creator ), and tap Next .
• Use the slider to opt in or out of promotional emails from Instagram for professional accounts, then tap Next .
• Add or edit relevant contact details, then use the slider to choose whether to show your contact information on your profile, then tap Next (or tap Don’t use my contact info to skip this step).
• If you plan to connect your Instagram business account with a Facebook business page, follow the prompts to connect your account to your Facebook Page. This is technically optional, but it’s necessary in order to use Instagram shopping features or run ads on Instagram .
• Next, you’ll be prompted to add additional features to your account, like telling Instagram your goals, adding details to your portfolio, and growing your audience. If you want to save this for later, tap the X in the top left corner to close this window and return to your profile.

If you’re interested in making an Instagram account for business simply sign up for a new Instagram account , and convert it to an Instagram business account.

You can have up to five Instagram accounts , so go ahead and keep your personal Instagram account personal if that’s what you prefer. Learn more about the difference between Instagram business and creator accounts .

2. Add business information to your bio

In 150 characters or less, your Instagram bio should describe your brand and showcase your brand voice . We’ve got a full guide to creating an effective Instagram bio for business (complete with templates), but here’s a quick video to walk you through the basics:

Also be sure to make the most of the other components of your Instagram business profile:

• Profile pic: Most brands use their logo. Your profile photo displays as 110 x 110 pixels (cropped to a circle), but it’s stored at 320 x 320, so that’s the size you should upload.
• Link in bio: Link to your website, your latest blog post, a current campaign or a Link Tree .
• Contact information: If you didn’t add contact info during your account creation, you can do so at any time by tapping Edit profile . Instagram will then add a Contact button to your profile.
• Action buttons: If relevant, you can add a button that allows customers to book or reserve appointments or to order food. To use this feature, you need an account with one of Instagram’s partners . Tap Edit profile , then scroll down to Action Buttons.
• Story highlights and covers: Instagram Story highlights are another way to maximize your profile real estate by providing more information about your brand, products, or services. Organize Stories into saved collections, then add some polish with Highlight covers.

Create. Schedule. Publish. Engage. Measure. Win.

3. Connect your product catalog

To tag products in Instagram content, or to run certain kinds of Instagram ads, you need to create a product catalog. You can do this in Meta’s Commerce Manager.

• Head to Commerce Manager and click Start Now , then select Create a catalog and click Get started again.
• Select Ecommerce , then click Next.
• If you have a shop on an ecommerce platform like Shopify or BigCommerce, click Connect to an ecommerce platform and follow the prompts to create your catalog. Otherwise, click Upload product info , name your catalog and click Next.
• Click View catalog to open your catalog, then Add items to start adding products.

We’ve got a whole post on using Commerce Manager if you’d like more details on how this tool works.

4. Turn on Instagram shopping

Once your catalog is full of products, it’s time to turn on Instagram’s shopping features.

• Go to the Get started page.
• Select Get started .’
• Click Create a shop , then Get started , then Next.
• Review the pre-selected sales channels and add or subtract accounts as needed.
• Choose the account/sales channel you want to connect your shop to. If you’re already selling on Shopify or another partner platform, change your Checkout method to reflect this . When everything is set up, click Next.
• Next, choose the countries you want to ship your products to. Note that Instagram Shopping is not available everywhere. You can choose from available countries in the drop-down menu.
• Add in your business email . This is where you’ll get any communication about your Instagram Shop.
• Select your business portfolio or create a new one. Click Next .
• Select the catalog you want to use for your shop and click Next . To select a catalog, it must meet catalog eligibility requirements for shops. You can’t switch this catalog later. Note: If you don’t have a catalog already, you won’t see this step.
• Look over your shop details, review and agree to the Seller Agreement and click Finish setup to complete creating your shop.

We’ve got a full blog post explaining everything you need to know about Instagram Shopping if you want to focus on this particular aspect of using Instagram for business.

How to use Instagram for business: 8 strategies

Standing out as a business on Instagram can be, well, tough. Use these Instagram for business tips to make it easier.

1. Research your audience

A good social media strategy starts with a sound understanding of your audience.

Instagram’s audience demographics give you an overall picture of who uses the platform. For example, 18-34-year-olds represent the largest ad audience on the site.

However, that doesn’t mean your specific audience on Instagram will be made up of 18-to-34-year-olds. For example, looking at the audience insights for my own Instagram account, I can see that my audience skews older than the Instagram average:

You can find demographic information on your existing audience using Instagram Insights , Meta Business Suite , or Hootsuite Analytics . But, if you’re just getting started using Instagram for business, you might not have a large enough following to gain meaningful insights here yet.

In that case, take a look at the demographics of your audience on other social channels and of your existing customer base. While this won’t translate exactly to Instagram, it should give you a sense of who’s interested in your business and what you have to say.

Understanding your audience puts you in a better position to create targeted content and business captions for Instagram that resonate. Since audience research is an important foundation for your content strategy, we’ve got a whole post dedicated to helping you find your target market .

2. Figure out your content mix

Now that you know who your audience is, you need to determine what to share with them. Rather than posting random content whenever the mood strikes, you need to develop a content strategy that speaks to your audience and keeps them engaged, all while contributing to real business goals .

While you should certainly post some promotional content to get people excited about your products and drive sales, you also need to provide content that builds community and sparks engagement.

That might mean including user-generated content or other curated resources , sharing insider expertise about your industry, or joining in on a trending meme. (But tread carefully here—only join in on trends that are appropriate for your brand voice.)

i am wearing a disguise pic.twitter.com/HlWFQb8P22 — no name (@nonamebrands) October 31, 2022

Look for opportunities to develop themes or regular installments that you can build into a series. “Content buckets” allow you to check certain boxes without having to overthink creation. The more planning you do upfront, the better you’ll be able to produce regular content and respond to last-minute or unplanned events.

3. Schedule your content in advance

From Reels to Stories to posts, there are many options when it comes to Instagram content.

The best way to create a unified strategy is to schedule your content across all Instagram surfaces (and other social platforms) using a content calendar . Or, take it up a level and schedule all your content to publish automatically at the right time using a tool like the Hootsuite Publisher . Yes, you can even schedule Stories and Reels in advance.

The added advantage here is that you can create your content in dedicated blocks of time and schedule it to post at the best time for your audience . Even if that time is outside business hours, on the weekend, or in the middle of the night.

4. Tag products

When you share content about your products on Instagram, tagging makes it much easier for people to learn more or buy. You can tag up to 20 products in a photo feed post.

Source: Tory Burch

To tag products, create your Instagram post or Reel as usual. Then, on the final screen before posting, tap Tag products . You can tag products from your own shop or someone else’s, which creates great opportunities for collaboration and cross-promotion.

In Stories, you can tag products using the Product link sticker.

Source: Pat McGrath

5. Track your results (and learn from wins and losses)

With an Instagram for business account, you have access to the platform’s built-in analytics tools to help you understand how well different types of content perform.

There are several other analytics tools available, including Hootsuite’s , that can track longer time frames, automate reporting and make it easier to compare Instagram metrics across other social media platforms.

No matter which social media marketing tools you use, the important thing is to check in regularly to learn what kind of content resonates best with your target audience. You’ll start to see patterns about what generates the most engagement, as well as what kinds of social media content increase views beyond your existing follower base. ( Hint: Try Instagram Reels .)

Use these lessons to hone your content strategy over time.

6. Treat Instagram as a customer service channel

Success on Instagram requires you to engage with your followers rather than just blast content out and hope someone likes it. One important component of this two-way communication is monitoring your DMs for questions, comments, and customer service requests.

Instagram business accounts have access to a couple of DM features that make managing customer service easier on the platform. First, your inbox is divided into Primary and General tabs to make it easier to keep track of your messages. And second, you can create saved replies to commonly asked questions that you can access via keyboard shortcuts.

Hootsuite Inbox makes it even easier to manage your DMs by allowing you to assign messages to the appropriate team members . Or, create templated replies to common questions to save your team time and effort.

Manage all your messages stress-free with easy routing, saved replies, and friendly chatbots. Try Hootsuite’s Inbox today.

7. Automate content creation

The average Instagram business account posts 1.55 times per day on the main feed.

That’s a lot of content!

Luckily, manual content creation is now a thing of the past. These days, it’s easy to speed up content creation processes like copywriting and graphic design with the help of generative AI tools .

OwlyWriter AI is Hootsuite’s latest generative AI tool, free to all Hootsuite users. Use OwlyWriter to generate quick social media captions , and get inspiration for your posts across platforms.

You can also leverage outside tools like ChatGPT, Dall-E, Midjourney, and more. But, because OwlyWriter is oh-so convenient in your Hootsuite dashboard, we recommend starting there. Check out our blog on the best AI content creation tools here .

Always remember, content generated by AI should always be seen as a starting point, not a finished product . Be sure to check over any AI generated content for accuracy, brand voice, style, and tone before posting.

OwlyWriter AI instantly generates captions and content ideas for every social media network. It’s seriously easy.

8. Elevate your grid aesthetics

Looking to make your Instagram grid stand out from the crowd? With Hootsuite’s Instagram Grid integration , you can make a totally aesthetic Instagram grid in just a few clicks.

Here’s how it works:

• Seamless planning: Planning your grid layout has never been easier. With Instagram Grid, you can visualize how your posts will look together , ensuring a cohesive and visually appealing grid.
• Drag-and-drop simplicity: Want to rearrange your grid? No problem. With easy-to-use drag-and-drop functionality , you can experiment with different layouts until you find the perfect arrangement.
• Scheduled posts: Say goodbye to last-minute scrambling. With Hootsuite, you can schedule your grid posts in advance , ensuring that your grid remains active and engaging even when you’re busy.
• Curate like a pro: Discover and curate high-quality content right from the Hootsuite dashboard. Whether it’s user-generated content, AI hashtag suggestions , or trending topics, we’ve got the tools you need to keep your grid fresh and relevant.
• Track your success: With Hootsuite’s analytics dashboard, you can track engagement metrics and understand what resonates with your audience. Use these insights to refine your grid strategy and drive even more engagement.

FAQs about using Instagram for business

Is instagram for business free.

It’s free to set up an Instagram business account, promote your business, and even set up an Instagram shop.

The only fees for Instagram business accounts are ad costs if you choose to run Instagram ads , and selling fees if you use Commerce Manager to allow your customers to check out and complete their purchase within the Meta platform.

There is also no fee to use Instagram Shopping to tag products and direct users to your website to buy them.

What is the difference between personal and business Instagram?

The difference between personal and business Instagram accounts is pretty straightforward. Personal accounts are great for sharing your daily life and connecting with friends and family. But, if you’re running a business or want to promote or sell a product, a business account on Instagram offers tools like analytics, shopping, and advertising to help you reach your goals.

What is the best time to post on Instagram for business?

The best time to post on Instagram for your business depends on who you’re trying to reach and what you’re sharing. Mornings generally bring the most engagement for brand accounts, though certain industries, like real estate, retail, or entertainment accounts, may see more success posting in the evening.

Check out our comprehensive guide on the best times to post on every social network to learn more.

How does Instagram work for business?

By switching your personal profile to a business account, you unlock a treasure trove of tools to boost your business. Get free access to features like Instagram Insights, which lets you peek into who’s engaging with your business on Instagram, or Commerce Manager, which lets you tag and sell products directly on Instagram. It’s like having your own personal business assistant right at your fingertips!

What are the disadvantages of using Instagram for business?

While business Instagram accounts are a great way to sell products and be seen, there are a few drawbacks to consider.

First, increased competition among businesses on the platform can make it tough to secure organic reach. Second, managing a business account requires consistent effort, and eventually you may want to consider hiring a social media manager . Third, unlike personal accounts, where updates are more flexible, business profiles carry the weight of reputation and customer perception. Be sure to read up on managing social media crises before you get started.

Save time managing Instagram for business using Hootsuite. From a single dashboard, you can schedule and publish posts, carousels, Stories, Reels, and ads directly to Instagram — and engage your audience, measure performance, and handle all your other social media profiles. Try it free today.

Easily create, analyze, and schedule Instagram posts, Stories, Reels, and Threads with Hootsuite. Save time and get results.

Become a better social marketer.

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Hannah Macready is a freelance writer with 12 years of experience in social media and digital marketing. Her work has appeared in publications such as Fast Company and The Globe & Mail, and has been used in global social media campaigns for brands like Grosvenor Americas and Intuit Mailchimp. In her spare time, Hannah likes exploring the outdoors with her two dogs, Soup and Salad.

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How to Write a Business Plan Conclusion?

• Vinay Kevadia
• June 18, 2024

Completed writing your business plan?

Let’s wrap it up with a conclusion that ends your business plan on an exciting and positive note. Not to forget—a conclusion that convinces the readers about your business’s potential to succeed.

In this blog post, you will learn exactly how to write a conclusion of a business plan and get an example to guide you.

Let’s get started.

What is a business plan conclusion?

A business plan conclusion is the final section concluding very concisely the points discussed in your business plan.

It reinforces the business’s strengths and feasibility and reassures the readers of potential business success. It clarifies the reader’s benefit of associating with your business and convinces them of a profitable investment opportunity.

A conclusion is about 3-4 paragraphs long and is designed to drive action and leave a lasting impression on reader’s minds.

Business plan conclusion vs. executive summary

Many people confuse a conclusion and an executive summary to be the same. However, they are not. Let’s see how.

• An executive summary is a broad overview of your entire business plan. The conclusion, on the other hand, is a concise summary reinforcing the key takeaways of your plan.
• While an executive summary introduces the readers to your business idea, a conclusion convinces them to take the desired action.
• An executive summary is a preview of what the plan will be about. The conclusion, on the contrary, is a review of what the plan has discussed.
• An executive summary is concise. However, conclusions are more concise covering only the aspects that can drive decisions and actions.

Clear enough, right? Let’s move ahead.

Why is a business plan conclusion important?

Although a conclusion is not mandatory, it is an important aspect of a business plan. It communicates your passion and commitment to a business idea and convinces the readers of your ability to succeed.

A conclusion synthesizes the key insights of your business plan focusing on aspects such as market analysis, business strategy, competitive advantage, and milestones. It reinforces your plan’s vision and establishes your strategic position amongst readers.

A well-crafted conclusion will drive desired actions from the readers. It can seal the deal and fulfill your objective of writing a business plan .

How to write a conclusion for your business plan?

From what information to include to where to place the conclusion—this section will guide you to write an impactful conclusion for your business plan.

1. Choose the right placement

There are two places for you to place your conclusion. It can either be after your executive summary or at the end of the document.

The location changes depending on who you plan to present your business plan with.

If you prepare a business plan for investors, placing your conclusion after the executive summary will increase the likelihood of it getting read.

However, the conclusion should be placed at the end for business plans that are prepared for internal use and business partners. Conclusion in this case reviews and emphasizes the company’s strengths.

2. Place the right information

The information in your conclusion changes depending on your audience and the intent of the business plan.

For instance, if you’re a new business trying to secure funds, your conclusion can synthesize the key details about the following:

• Funding demands
• Benefit to the investors
• Target market and target customers
• Solution for the problem
• Marketing strategy
• Team members and their expertise
• Financial projections
• Competitive advantage
• Launch plan

However, if you’re a small business trying to grow or use this plan for internal use, consider covering key insights from the following aspects:

• Mission statement
• History and the milestones
• Data supporting growth
• Industry trends
• Financial summary
• Long-term goals and objectives

These are the details you can cover while writing your conclusion. However, including every bit of these in your conclusion is unnecessary.

Think from your reader’s perspective. Determine the information that would excite them about your business and form your conclusion accordingly.

3. Include stats and visuals

Now that you’ve decided on the placement and information to be included in your conclusion, it’s time to make your conclusion zesty.

How? Get the facts and stats that would support the claims you make in your conclusion.

For instance, if you’re promising growth, show market research that supports your claim. Again, if you’re promising a certain return on investment, include the statistics that can make investors believe you.

Sway away from vague statements and assumptions. And, if you feel that the statistic would be best absorbed through visual charts or graphics, don’t be afraid to add one.

4. Add a CTA

If you want the readers to take action, guide them. Add a crisp clear call to action(CTA) and explain how the readers would benefit from taking that action.

For instance, 

• Join us as a silent partner by investing in Beanco.
• Invest $2 M and secure a 20% stake in equity.
• Support our growth by sharing references.

Don’t beat around the bush. If you are making a funding request, be unapologetic. And even if not, your CTA should suggest how a reader can support your growth.

5. Review and proofread

Once your conclusion is ready, re-read and proofread it for any grammatical or spelling errors. Fix the flow and remove fluff to make your conclusion crisp and persuasive.

Get your friends and business partners to read the conclusion and check if the message you are trying to send is crisp and clear. If not, make the necessary adjustments.

Business plan conclusion example

Use this business plan conclusion as a reference and tailor yours keeping in mind the needs, objectives, and audience for your business plan.

Launching EcoRide Electric Scooters will revolutionize urban transportation by providing an eco-friendly, efficient, and affordable solution for city commuters. Our innovative design and advanced technology will set us apart in the rapidly growing market for sustainable transport options.

We are poised to make a significant impact on urban mobility, and we want [Investor’s Name] to be a foundational part of our journey. By investing in EcoRide Electric Scooters, [Investor’s Name] will benefit in the following ways:

• Joining a groundbreaking startup with a vision to reduce urban pollution and traffic congestion, led by a passionate team with over 20 years of combined experience in the automotive and tech industries.
• Supporting the development and deployment of cutting-edge electric scooters, contributing to a cleaner, greener urban environment.
• Gaining equity in a high-potential startup with a scalable business model and the potential for significant returns as we expand to new markets.

Together, we can transform urban transportation, reduce carbon footprints, and create a sustainable future for city dwellers. If you share our vision for a cleaner, more efficient urban commute, partner with us.

Let’s conclude your business plan

Now that you have understood the process and referred to an example, let’s conclude your business plan.

Identify the information you must highlight, encapsulate it into a powerful conclusion, and pair it with an even more powerful CTA.

However, remember that the conclusion just seals the deal. It’s the business plan that will hook your readers till the end. With Upmetrics’s AI business plan generator , you can create truly engaging business plans in just about 10 minutes.

So, improvise your business plan, sum it up with a convincing conclusion, and send over your business plan to your potential investors to secure funding.

Build your Business Plan Faster

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Frequently Asked Questions

How long should a business plan conclusion be.

A conclusion of your business plan can be anywhere between 2-3 paragraphs long. In this ideal length, you must outline the key takeaways of your plan, clarify the next step to the readers, and explain to them the benefit of supporting your business.

What is the most important part of a business plan conclusion?

A CTA is the most important part of the conclusion, especially if you are trying to raise funds. However, if you are writing a plan for internal purposes, focus more on synthesizing the key essentials of a plan.

Can I include new information in the conclusion?

A conclusion does not introduce any new information. It simply reinforces the business’s position and convinces the readers to take the desired action for one last time. For instance, offer funding for your business.

Is it necessary to include a call to action in the conclusion?

It is very important to add a crisp clear CTA while concluding your plan. You can’t expect the readers to invest in your business or help you grow if you don’t clarify the steps to take action.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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What to know about bump stocks and the Supreme Court ruling striking down a ban on the gun accessory

The gun accessory the Supreme Court just ruled on allows a rifle to fire dozens of bullets within seconds

WASHINGTON — The U.S. Supreme Court has struck down a ban on bump stocks, the gun accessory used in the deadliest shooting in modern American history — a Las Vegas massacre that killed 60 people and injured hundreds more.

The court’s conservative majority said Friday that then-President Donald Trump’s administration overstepped its authority with the 2019 ban on the firearm attachment , which allows semiautomatic weapons to fire like machine guns.

Here’s what to know about the case:

What are bump stocks?

Bump stocks are accessories that replace a rifle’s stock, the part that gets pressed against the shooter’s shoulder. When a person fires a semiautomatic weapon fitted with a bump stock, it uses the gun’s recoil energy to rapidly and repeatedly bump the trigger against the shooter’s finger.

That allows the weapon to fire dozens of bullets in a matter of seconds.

Bump stocks were invented in the early 2000s after the expiration of a 1994 ban targeting assault weapons. The federal government approved the sale of bump stocks in 2010 after the Bureau of Alcohol, Tobacco, Firearms and Explosives concluded that guns equipped with the devices should not be considered illegal machine guns under federal law.

According to court documents, more than 520,000 bump stocks were in circulation by the time the government reversed course and imposed a ban that took effect in 2019.

Why were bump stocks banned?

More than 22,000 people were attending a country music festival in Las Vegas on Oct. 1, 2017, when a man opened fire on the crowd from the window of his high-rise hotel room. He fired more than 1,000 rounds in the crowd in 11 minutes, leaving 60 people dead and injuring hundreds more.

Authorities found an arsenal of 23 assault-style rifles in the shooter’s hotel room, including 14 weapons fitted with bump stocks.

In the aftermath of the shooting, the ATF reconsidered whether bump stocks could be sold and owned legally. With support from Trump, a Republican, the agency in 2018 ordered a ban on the devices, arguing they turned rifles into illegal machine guns.

Bump stock owners were given until March 2019 to surrender or destroy them.

What did the justices say?

The 6-3 majority opinion written by Justice Clarence Thomas said the ATF did not have the authority to issue the regulation banning bump stocks. The justices said a bump stock is not an illegal machine gun because it doesn’t make the weapon fire more than one shot with a single pull of the trigger.

Justice Samuel Alito, who joined the majority, wrote in a separate opinion that the Las Vegas shooting strengthened the case for changing the law to outlaw bump stocks like machine guns. But that has to happen through action by Congress, not through regulation, he wrote.

The court’s three liberal justices opposed the ruling. Justice Sonia Sotomayor wrote in her dissent that there’s no common sense difference between a machine gun and a semiautomatic firearm with a bump stock.

“When I see a bird that walks like a duck, swims like a duck, and quacks like a duck, I call that bird a duck,” she wrote.

Do any states have their own bans?

At least 15 states and the District of Columbia have their own bans on bump stocks, though some could be affected by the high court’s ruling.

Most state laws, however, remain in place because the decision covered the ATF rule, not the constitutionality of state-level bans, according David Pucino, legal director of the gun control think tank Giffords.

Who challenged the ban?

A group called the New Civil Liberties Alliance sued to challenge the bump stock ban on behalf of Michael Cargill, a Texas gun shop owner. Cargill bought two bump stocks in 2018 and then surrendered them once the federal ban took effect, according to court documents.

The case didn’t directly address the Second Amendment rights of gun owners. Instead, Cargill’s attorneys argued that the ATF overstepped its authority by banning bump stocks. Mark Chenoweth, president of the New Civil Liberties Alliance, said his group wouldn’t have sued if Congress had banned them by law.

How did the case end up before the Supreme Court?

The Supreme Court took up the case after lower federal courts delivered conflicting rulings on whether the ATF could ban bump stocks.

The ban survived challenges before the Cincinnati-based 6th U.S. Circuit Court of Appeals, the Denver-based 10th Circuit, and the federal circuit court in Washington.

But the 5th U.S. Circuit Court of Appeals based in New Orleans struck down the bump stock ban when it ruled in the Texas case last year. The court’s majority in the 13-3 decision found that “a plain reading of the statutory language” showed that weapons fitted with bump stocks could not be regulated as machine guns.

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Key Republican calls for ‘generational’ increase in defense spending to counter US adversaries

FILE - Senate Armed Services Committee Ranking Member Roger Wicker, R-Miss., meets with reporters during a news conference at the Capitol in Washington, Jan. 11, 2024. The top Republican on a Senate committee that oversees the U.S. military is making an argument for aggressively increasing defense spending over negotiated spending caps. Sen. Roger Wicker, a Mississippi Republican, is releasing a plan for a “generational investment” that seeks to deter coordinated threats from U.S. adversaries like Russia, Iran and China. (AP Photo/J. Scott Applewhite, File)

FILE - In this March 27, 2008, file photo, the Pentagon is seen in this aerial view in Washington. The top Republican on a Senate committee that oversees the U.S. military is making an argument for aggressively increasing defense spending over negotiated spending caps. Sen. Roger Wicker, a Mississippi Republican, is releasing a plan for a “generational investment” that seeks to deter coordinated threats from U.S. adversaries like Russia, Iran and China. (AP Photo/Charles Dharapak, File)

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WASHINGTON (AP) — The top-ranking Republican on a Senate committee that oversees the military is calling for a “generational investment” in America’s defense, saying aggressive and significant spending increases are necessary to deter coordinated threats from U.S. adversaries such as Russia, Iran and China.

Sen. Roger Wicker told The Associated Press that he will seek an additional $55 billion in defense spending over the limits that were forged in the deal to suspend the nation’s debt limit a year ago. Wicker explained his position in global terms, saying there has “never been such a level of cooperation and coordination among an axis of aggressors” that aims to challenge U.S. dominance.

The plan lays down a significant marker for Senate Republicans as they enter into a new round of budget fights with Democrats in the heat of a closely fought election year. The White House has proposed $850 billion in defense spending , adhering to the debt limit deal by proposing a 1% increase from the previous year. That plan is unlikely to keep pace with inflation and would seek to reduce the military’s costs by retiring older ships and aircraft.

Wicker acknowledged it would be “a hill to climb” to convince Congress to break from the spending caps at a time of deep political upheaval. Washington is still grappling with divisions over support for Ukraine, the aftershocks of two long wars in Iraq and Afghanistan and a presidential election between two presumptive candidates — Biden and Republican Donald Trump — who espouse vastly different visions of America’s role abroad.

But Wicker, R-Miss., said the U.S. has no choice. “We would be very foolish on a national survival basis to adhere to that when it comes to national defense,” said Wicker, the ranking member on the Senate Armed Services Committee.

While GOP defense hawks have long advocated for robust defense spending, Wicker’s plan goes a step further, calling for a broad shift in the U.S. defense posture that would amount to a reshuffling of national priorities. Under his proposal, the military would eventually consume 5% of America’s gross domestic product, or total economic output.

Defense spending when measured as a portion of GDP is currently about 3% and has been declining since the height of the wars in Afghanistan and Iraq. It has not reached above 5% since the early 1990s.

Back in the 1980s and early 1990s, Wicker said, “nobody took a chance against the United States because we were powerful enough to keep the peace. We are simply not anywhere near that right now.”

“I think that the fact that we’re in a new Cold War is self-evident,” he said.

Wicker’s full plan is laid out in a 52-page paper he has been working on for the past year. In it, he makes the case for a new generation of weapons, pointing to an aging American arsenal as Russia moves to expand its territory in Europe and China tries to show increasing dominance in parts of the Pacific.

Closer ties between China and Russia were underscored earlier this month by a visit between leaders Vladimir Putin and Xi Jinping . The two-day visit — Putin’s first trip abroad after being inaugurated to a fifth term in office — reflected a growing partnership between the two nations, an alliance grounded in support for authoritarian regimes and dominance in their respective regions.

China has given diplomatic support to Moscow after its invasion of Ukraine and emerged as a top export market for Russian oil and gas, helping fill the Kremlin’s war coffers for the ongoing offensive.

Wicker said the high-level meeting between Putin and Xi “ought to be a wake up call.”

He said in his proposal that the U.S. faces “the most dangerous threat environment since World War II” and urges a national war footing appropriate for a long, drawn-out conflict with a major world power. For Wicker, that encompasses everything from addressing deferred maintenance on U.S. military facilities that don’t have the right voltage on power outlets to preparing for nuclear weaponry in space.

Still, the spending increases are likely to be viewed skeptically by lawmakers wary of growing the defense budget, which already dominates annual discretionary funding. The legislation to suspend the nation’s debt limit passed Congress with strong bipartisan support and aimed to limit federal budget growth to 1% for the next six years, although the spending caps were only mandatory through this year’s budget.

The House Armed Services Committee this month approved with near-unanimous support an $884 billion proposal for the annual defense authorization bill, keeping within the spending caps but shifting funding towards specific military programs. Yet Senate Democrats are likely to resist further spending cuts to other government programs.

The Senate committee is set to craft the annual military authorization bill next month, but the chairman, Democratic Sen. Jack Reed of Rhode Island, has not publicly released the spending amount that he will propose. Wicker said that he had been in contact with Reed, as well as top Democratic appropriators, about the plan, but their level of support was not clear.

At the same time, defense hawks like Wicker are navigating the shifting politics of defense spending in their own party under Trump’s “America First” brand of foreign policy. Earlier this year, a $95 billion package of foreign aid for Ukraine, Israel and Taiwan faced heavy resistance from a large portion of congressional Republicans, even though much of the funds would be spent buying equipment and ammunition from U.S.-based defense manufacturers.

Senate Republican leader Mitch McConnell, R-Ky., has been vocal about countering those within his party who want to push the U.S. towards a more isolationist stance. And Wicker said there was “an opportunity” to win broad support for redoubling U.S. efforts in the Pacific because congressional Republicans are still supportive of countering China.

As he works to convince Congress to rethink defense spending, Wicker said he was modeling his effort on the push that former Sen. John McCain, an Arizona Republican, made in 2017 as he tried to dramatically increase defense spending. That effort was mostly unsuccessful.

But Wicker expressed confidence that this time can be different.

With China’s military strength dramatically growing and Russia launching the largest land invasion in Europe since World War II, the difference between 2017 and now is “the reality on the ground,” he said.