How to Write a 5-Year Business Plan

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
Why Create a Five-Year Business Plan?
Sections to Include in Your Business Plan
Executive Summary. A brief overview of your business and its goals. Company Description. What does your firm do? Where does it operate and how does it fulfill its goals? Management Team. Who runs your company? What relevant background do they have? Products and Services. What exactly does your company produce/provide and how much? Target Audience. Who do you expect to buy your products and/or services? Are there new audiences you want to reach, too? Competitive Analysis. Who are your competitors and how do you compare? Market Analysis. How well is your company meeting the needs of your clients and keeping up with the industry? Marketing and Sales Plan. What is your plan for getting your company out there, expanding awareness of your products/services, and increasing your sales? Financials and Budget. What is your company’s budget and what financial information (like profit and loss statements) can you provide?
Seven Steps to Creating a Five-Year Business Plan
1. Prepare Your Executive Summary
Example of a Mission Statement
2. Consider Your Strategic Plan
Example of a Strategic Plan
3. Describe Your Business
Example of Management Team Description
4. Analyze Your Market
Example of a Market Analysis Statement
5. Outline How You Will Handle Marketing
Example of a Marketing Plan
Social media (Facebook, Instagram) Social media ads Content marketing Email marketing Pay-per-click ads
6. Budget Costs and Revenues
Example of a Marketing Budget
Social media management (outside firm): $12,000 Marketing software: $300 Advertising: $5,000
7. Review Regularly
The Takeaway
Frequently Asked Questions
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About the Author
Su Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.
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