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How to Write a Business Plan, Step by Step

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What is a business plan?

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

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

LLC Formation

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

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

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

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

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

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

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

Your business’s registered name.

Address of your business location .

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

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

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

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

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

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

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

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

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

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

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

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

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

Licenses and permits.

Equipment leases.

Bank statements.

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

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

How much do you need?

with Fundera by NerdWallet

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

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

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

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

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

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

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Business Plan Template for Small Businesses

Business planning can feel complicated. it doesn't have to be. start putting pen to paper today with your free business plan template download..

Available formats:

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Our free business plan template includes:

Fill-in-the-blanks simplicity

You don't need to be an expert. This business plan template makes business planning easy.

All 100% free. We're here to help you succeed in business, no strings attached.

Why you need a business plan template

Writing a business plan can seem like a big task, especially if you’re starting a business for the first time and don’t have a financial background. After all, business plans have changed over the years, and what lenders and investors expect now is different than it was even just 10 years ago.

But using a business plan template will help you:

• Develop a strategy for success
• Reduce the risk of starting a business
• Explore new business ideas
• Attract investors and get funding

Learn more about how you can get value out of your business plan .

What is included in this free business plan template?

This business plan template includes definitions, guidance, and examples for every business plan component needed to start, fund, and grow your business.

After downloading the full template of a business plan, you’ll receive instructions on how to fill out each of the following sections.

Executive summary

The brief summary of your business plan introduces everyone to your business, the problem you solve, and what you’re asking from your readers. It’s the first chapter of your business plan and the last thing you write once you have the details from your full plan.

Problem & solution

More than a simple description of your products and services – here you define the problem you’re solving and the value you provide. It’s also your chance to showcase any initial traction that shows you’re on the right track.

Market analysis and target market

A detailed assessment of the market you intend to enter, including the size and value of the market, potential customer segments, and their buying patterns.

Competition

Show that you know who your competitors are, what advantages you have, and how you’re positioning your business to be competitive.

Marketing & sales

Describe how you’ll reach and sell to potential customers with a detailed sales plan and chosen marketing channels.

What makes your business run? Outline the day-to-day workflows and what needs to be set up for your business to deliver a product or service.

Milestones & metrics

Set goals for your business that include the dates and people responsible for accomplishing them. This is what you’ll use to manage responsibilities, track growth, and execute your larger strategy.

Company overview and team

Provide a brief rundown of the legal and structural components of your company, including your history, current team, and gaps you need to fill.

Financial plan

Create well-structured and accurate financial statements to help you pitch to investors, land funding, and achieve long-term success. All without the help of a financial advisor or a degree in accounting.

While not required, this last section of your business plan is a great place to drop in additional documents that support and strengthen the rest of your plan.

How do you write a simple business plan?

If you’re exploring a business idea and don’t plan to pursue funding, then you actually don’t need to write a traditional business plan. Instead, opt for a one-page plan , which is far easier to create but just as effective.

To write a simple one-page business plan, follow the same core sections as a traditional plan. But instead of lengthy paragraphs and multiple pages covering each area of your business, stick with single sentences and bulleted lists.

If a one-page plan sounds like a better option, download our free simple one-page business plan template to get started.

Start your business plan today

Whether you're writing a business plan to validate your business idea, secure funding, or grow your existing business – our free business plan template will help you achieve your goals.

Business plan template FAQ

What file formats are available for this business plan template?

Our free business plan template is available to download in a number of common file formats including Google Docs, Microsoft Word (doc.x), or as a free business plan PDF . You only have to provide your email address once in order to access all file types for this business plan template.

Can you print out this template for a business plan?

This is a printable business plan template—no matter if you download it as a pdf or word document, or access via Google Docs. The template is pre-formatted and structured to fit lender and investor standards, but can be edited and adjusted to suite your needs before printing. Just be aware that any changes may unintentionally break the template, so make sure to review before printing.

Why should I start with a business plan template?

You should start with a good business plan template (like this one) to avoid having to make guesses about what to include in your business plan and how to structure the document. This business plan template helps you organize your thoughts, and provides guidance, instructions, and examples to create an investor-ready and SBA-approved business plan format. It really speeds up the planning process. Oh, and it's 100% free!

Can I write a business plan myself?

You can absolutely write a business plan by yourself. Millions of entrepreneurs have been in your exact situation and have been able to write complete, detailed, and useful business plans. By using a business plan template, you can speed up the writing process, avoid costly mistakes, and write your business plan without having to pay for additional support.

What are the steps to write a business plan?

The steps to write a business plan include:

• Defining the opportunity: Explain the problem your business solves, the solution you offer, your target market, and the competitive landscape.
• Describing how you'll execute: Outline your marketing and sales strategies, operational plan, milestones, and success metrics.
• Adding company details: Provide information about your business structure, ownership, and team.
• Creating a financial plan and forecasts: Include detailed financial statements, forecasts, and funding requirements.
• Adding supplementary info to your appendix: Add any additional information, such as resumes, permits, and other relevant documents.
• Summarizing your plan: While it may be first, do your executive summary last. In it, you'll briefly summarize your business, highlighting key points such as mission, product/service, and basic financial information.

For additional information, check out our full step-by-step guide to write a business plan .

How many hours does it take to write a business plan?

It can take as little as 30-minutes to write a fully functioning business plan. However, if you need to create a more detailed business plan it can take multiple hours to actually write the full document. To save yourself time, be sure to pick an appropriate business plan type for your intended use case. Additionally, do any necessary research and collect your notes and other documentation beforehand so that you can focus all your effort on writing your business plan.

How can I write a simple business plan?

To write a simple business plan it's best to use a one-page business plan format. A one-page business plan includes all of the same components as a more detailed business plan but is designed to fit on a single page—making it more useful as an internal planning tool. If you still want to use a traditional business plan template, just focus on using bulleted lists and short sentences while writing to create a simpler business plan.

Is writing a business plan easy?

Writing a business plan can be easy if you use the right tools, understand your business, and come in prepared to write your business plan. Using a business plan template can make writing a business plan easier. Additionally, if you focus on just getting your information down quickly, with the expectation that you'll revisit and revise your plan, you can speed up and simplify the process .

Can someone else write my business plan for me?

Yes, you can hire a professional business plan writer to write your business plan for you. Working with a professional can be especially useful if you're still struggling to write your business plan even when using a template for your business plan. Just be prepared to talk about your business, provide the appropriate details, and review the finished business plan to be sure it actually reflects your business. If you need help vetting professional business plan writers, check out our free resource to help you ask just the right questions  of potential plan writers.

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How to write an effective business plan in 11 steps (with workbook)

February 02, 2023 | 14 minute read

Writing a business plan is a powerful way to position your small business for success as you set out to meet your goals. Landmark studies suggest that business founders who write one are 16% more likely to build viable businesses than those who don’t and that entrepreneurs focused on high growth are 7% more likely to have written a business plan. 1 Even better, other research shows that owners who complete business plans are twice as likely to grow their business successfully or obtain capital compared with those who don’t. 2

The best time to write a business plan is typically after you have vetted and researched your business idea. (See How to start a business in 15 steps. ) If conditions change later, you can rewrite the plan, much like how your GPS reroutes you if there is traffic ahead. When you update your plan regularly, everyone on your team, including outside stakeholders such as investors, will know where you are headed.

What is a business plan?

Typically 15-20 pages long, a business plan is a document that explains what your business does, what you want to achieve in the business and the strategy you plan to use to get there. It details the opportunities you are going after, what resources you will need to achieve your goals and how you will define success.

Why are business plans important?

Business plans help you think through barriers and discover opportunities you may have recognized subconsciously but have not yet articulated. A business plan can also help you to attract potential lenders, investors and partners by providing them with evidence that your business has all of the ingredients necessary for success.

What questions should a business plan answer?

Your business plan should explain how your business will grow and succeed. A great plan will provide detailed answers to questions that a banker or investor will have before putting money into the business, such as:

• What products or services do you provide?
• Who is your target customer?
• What are the benefits of your product and service for customers?
• How much will you charge?
• What is the size of the market?
• What are your marketing plans?
• How much competition does the business face in penetrating that market?
• How much experience does the management team have in running businesses like it?
• How do you plan to measure success?
• What do you expect the business’s revenue, costs and profit to be for the first few years?
• How much will it cost to achieve the goals stated in the business plan?
• What is the long-term growth potential of the business? Is the business scalable?
• How will you enable investors to reap the rewards of backing the business? Do you plan to sell the business to a bigger company eventually or take it public as your “exit strategy”?

How to write a business plan in 11 steps

This step-by-step outline will make it easier to write an effective business plan, even if you’re managing the day-to-day demands of starting a new business. Creating a table of contents that lists key sections of the plan with page numbers will make it easy for readers to flip to the sections that interest them most.

• Use our editable workbook to capture notes and organize your thoughts as you review these critical steps. Note: To avoid losing your work, please remember to save this PDF to your desktop before you begin.

1. Executive summary

The executive summary is your opportunity to make a great first impression on investors and bankers. It should be just as engaging as the enthusiastic elevator pitch you might give if you bumped into a potential backer in an elevator.

In three to five paragraphs, you’ll want to explain what your business does, why it will succeed and where it will be in five years. The executive summary should include short descriptions of the following:

• Business concept. What will your business do?
• Goals and vision. What do you expect the business to achieve, both financially and for other key stakeholders, such as the community?
• Product or service. What does your product or service do — and how is it different from those of competitors?
• Target market. Who do you expect to buy your product or service?
• Marketing strategy. How will you tell people about your product or service?
• Current revenue and profits. If your business is pre-revenue, offer sales projections.
• Projected revenue and profits. Provide a realistic look at the next year, as well as the next three years, ideally.
• Financial resources needed. How much money do you need to borrow or raise to fund your plan?
• Management team. Who are the company’s leaders and what relevant experience will they contribute?

2. Business overview

Here is where you provide a brief history of the business and describe the product(s) or service(s) it offers. Make sure you describe the problem you are attempting to solve, for whom you will solve it (your customers) and how you will solve it. Be sure to describe your business model (such as direct-to-consumer sales through an online store) so readers can envision how you will make sales. Also mention your business structure (such as a sole proprietorship , general partnership, limited partnership or corporation) and why it is advantageous for the business. And be sure to provide context on the state of your industry and where your business will fit into it.

3. Business goals and vision

Explain what you hope to achieve in the business (your vision) as well as its mission and value proposition. Most founders judge success by the size to which they grow the business using measures such as revenue or number of employees. Your goals may not be solely financial. You may also wish to provide jobs or solve a societal problem. If that’s the case, mention those goals as well.

If you are seeking outside funding, explain why you need the money, how you will put it to work to grow the business and how you expect to achieve the goals you have set for the business. Also explain your exit strategy—that is, how you would enable investors to cash out, whether that means selling the business or taking it public.

4. Management and organization

Many investors say they bet on the team behind a business more than the business idea, trusting that talented and experienced people will be capable of bringing sound business concepts to life. With that in mind, make sure to provide short bios of the key members of your management team (including yourself) that emphasize the relevant experience each individual brings, along with their special talents and industry recognition. Many business plans include headshots of the management team with the bios.

Also describe more about how your organization will be structured. Your company may be a sole proprietorship, a limited liability company (LLC) or a corporation in one or more states.

If you will need to hire people for specific roles, this is the place to mention those plans. And if you will rely on outside consultants for certain roles — such as an outsourced CFO — be sure to make a note of it here. Outside backers want to know if you’ve anticipated the staffing you need.

5. Service or product line

A business will only succeed if it sells something people want or need to buy. As you describe the products or services you will offer, make sure to explain what benefits they will provide to your target customers, how they will differ from competing offerings and what the buying cycle will likely be so it is clear that you can actually sell what you are offering. If you have plans to protect your intellectual property through a copyright or patent filing, be sure to mention that. Also explain any research and development work that is underway to show investors the potential for additional revenue streams.

6. Market/industry analysis

Anyone interested in providing financial backing to your business will want to know how big your company can potentially grow so they have an idea of what kind of returns they can expect. In this section, you’ll be able to convey that by explaining to whom you will be selling and how much opportunity there is to reach them. Key details to include are market size; a strengths, weaknesses, opportunities and threats (SWOT) analysis ; a competitive analysis; and customer segmentation. Make it clear how you developed any projections you’ve made by citing interviews or research.

Also describe the current state of the industry. Where is there room for improvement? Are most companies using antiquated processes and technology? If your business is a local one, what is the market in your area like? Do most of the restaurants where you plan to open your café serve mediocre food? What will you do better?

In this section, also list competitors, including their names, websites and social media handles. Describe each source of competition and how your business will address it.

7. Sales and marketing

Explain how you will spread the word to potential customers about what you sell. Will you be using paid online search advertising, social media promotions, traditional direct mail, print advertising in local publications, sponsorship of a local radio or TV show, your own YouTube content or some other method entirely? List all of the methods you will use.

Make sure readers know exactly what the path to a sale will be and why that approach will resonate with customers in your ideal target markets as well as existing customer segments. If you have already begun using the methods you’ve outlined, include data on the results so readers know whether they have been effective.

8. Financials

In a new business, you may not have any past financial data or financial statements to include, but that doesn’t mean you have nothing to share. Preparing a budget and financial plan will help show investors or bankers that you have developed a clear understanding of the financial aspects of running your business. (The U.S. Small Business Administration (SBA) has prepared a guide you can use; SCORE , a nonprofit organization that partners with the SBA, offers a financial projections template to help you look ahead.) For an existing business, you will want to include income statements, profit and loss statements, cash flow statements and balance sheets, ideally going back three years.

Make a list of the specific steps you plan to take to achieve the financial results you have outlined. The steps are generally the most detailed for the first year, given that you may need to revise your plan later as you gather feedback from the marketplace.

Include interactive spreadsheets that contain a detailed financial analysis showing how much it costs your business to produce the goods and services you provide, the profits you will generate, any planned investments and the taxes you will pay. See our startup costs calculator to get started.

9. Financial projections

Creating a detailed sales forecast can help you get outside backers excited about supporting you. A sales forecast is typically a table or simple line graph that shows the projected sales of the company over time with monthly or quarterly details for the next 12 months and a broader projection as much as five years into the future. If you haven’t yet launched the company, turn to your market research to develop estimates. For more information, see “ How to create a sales forecast for your small business. ”

10. Funding request

If you are seeking outside financing such as a loan or equity investment, your potential backers will want to know how much money you need and how you will spend it. Describe the amount you are trying to raise, how you arrived at that number and what type of funding you are seeking (such as debt, equity or a combination of both). If you are contributing some of your own funds, it is worth noting this, as it shows that you have skin in the game.

11. Appendix

This should include any information and supporting documents that will help investors and bankers gain a greater understanding of the potential of your business. Depending on your industry, you might include local permits, licenses, deeds and other legal documents; professional certifications and licenses; media clips; information on patents and other intellectual property; key customer contracts and purchase orders; and other relevant documents.

Some business owners find it helpful to develop a list of key concepts, such as the names of the company’s products and industry terms. This can be helpful if you do business in an industry that may not be familiar to the readers of the business plan.

Tips for creating an effective business plan

Use clear, simple language. It’ll be easier to win people over if your plan is easy to read. Steer clear of industry jargon, and if you must use any phrases the average adult won’t know, be sure to define them.

Emphasize what makes your business unique. Investors and bankers want to know how you will solve a problem or gap in the marketplace differently from anyone else. Make sure you’re conveying your differentiating factors.

Nail the details. An ideal business plan will be detailed and accurate. Make sure that any financial projections you make are realistic and grounded in solid market research. (If you need help in making your calculations, you can get free advice at SCORE.) Seasoned bankers and investors will quickly spot numbers that are overly optimistic.

Take time to polish it. Your final version of the plan should be neat and professional with an attractive layout and copy that has been carefully proofread.

Include professional photos. High-quality shots of your product or place of business can help make it clear why your business stands out.

Updating an existing business plan

Some business owners in rapidly growing businesses update their business plan quarterly. Others do so every six months or every year. When you update your plan make sure you consider these three things:

• Are your goals still current? As you’ve tested your concept, your goals may have changed. The plan should reflect this.
• Have you revised any strategies in response to feedback from the marketplace? You may have found that your offerings resonated with a different customer segment than you expected or that your advertising plan didn’t work and you need to try a different approach. Given that investors will want to see a marketing and advertising plan that works, keeping this section current will ensure you are always ready to meet with one who shows interest.
• Have your staffing needs changed? If you set ambitious goals, you may need help from team members or outside consultants you did not anticipate when you first started the business. Take stock now so you can plan accordingly.

Final thoughts

Most business owners don’t follow their business plans exactly. But writing one will get you off to a much better start than simply opening your doors and hoping for the best, and it will be easier to analyze any aspects of your business that aren’t working later so you can course-correct. Ultimately, it may be one of the best investments you can make in the future of your business.

Business plan FAQs

What are common mistakes when writing a business plan.

The biggest mistake you can make when writing a business plan is creating one before the idea has been properly researched and tested. Not every idea is meant to become a business. Other common mistakes include:

• Not describing your management team in a way that is appealing to investors. Simply cutting and pasting someone’s professional bio into the management section won’t do the trick. You’ll want to highlight the credentials of each team member in a way that is relevant to this business.
• Failing to include financial projections — or including overly optimistic ones. Investors look at a lot of business plans and can tell quickly whether your numbers are accurate or pie in the sky. Have a good small business accountant review your numbers to make sure they are realistic.
• Lack of a clear exit strategy for investors. Investors may want the option to cash out eventually and would want to know how they can go about doing that.
• Slapdash presentation. Make sure to fact-check any industry statistics you cite and that any charts, graphs or images are carefully prepared and easy to read.

What are the different types of business plans?

There are a variety of styles of business plans. Here are three major types:

Traditional business plan. This is a formal document for pitching to investors based on the outline in this article. If your business is a complicated one, the plan may exceed the typical length and stretch to as many as 50 pages.

One-page business plan. This is a simplified version of a formal business plan designed to fit on one page. Typically, each section will be described in bullet points or in a chart format rather than in the narrative style of an executive summary. It can be helpful as a summary document to give to investors — or for internal use. Another variation on the one-page theme is the business model canvas .

Lean plan. This methodology for creating a business plan is ideal for a business that is evolving quickly. It is designed in a way that makes it easy to update on a regular basis. Lean business plans are usually about one page long. The SBA has provided an example of what this type of plan includes on its website.

Is the business plan for a nonprofit different from the plan for other business types?

Many elements of a business plan for a nonprofit are similar to those of a for-profit business. However, because the goal of a nonprofit is achieving its mission — rather than turning a profit — the business plan should emphasize its specific goals on that front and how it will achieve them. Many nonprofits set key performance indicators (KPIs) — numbers that they track to show they are moving the needle on their goals.

Nonprofits will generally emphasize their fundraising strategies in their business plans rather than sales strategies. The funds they raise are the lifeblood of the programs they run.

What is the difference between a business plan, a strategic plan and a marketing plan?

A strategic plan is different from the type of business plan you’ve read about here in that it emphasizes the long-term goals of the business and how your business will achieve them over the long run. A strong business plan can function as both a business plan and a strategic plan.

A marketing plan is different from a business plan in that it is focused on four main areas of the business: product (what you are selling and how you will differentiate it), price (how much your products or services will cost and why), promotion (how you will get your ideal customer to notice and buy what you are selling) and place (where you will sell your products). A thorough business plan may cover these topics, doing double duty as both a business plan and a marketing plan.

Explore more

Editable business plan workbook

Starting a new business

1 . Francis J. Green and Christian Hopp. “Research: Writing a Business Plan Makes Your Startup More Likely to Succeed.” HBR. July 14, 2017. Available online at https://hbr.org/2017/07/research-writing-a-business-plan-makes-your-startup-more-likely-to-succeed.

2 . CorpNet, “The Startup Business Plan: Why It’s Important and How You Can Create One,” June 29, 2022.

Important Disclosures and Information

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Start » strategy, 15 free resources for small businesses to leverage year-round.

Many organizations provide support and online tools for small business owners and employees. Take advantage of these free resources during Small Business Month and throughout the year.

Being a small business owner comes with many responsibilities, and learning the best practices for growing one’s business takes time. However, plenty of free resources are available to help fast-track entrepreneurs to success.

Below, discover resources you can take advantage of during Small Business Month (May) and beyond.

Amazon’s Small Business Academy provides a wealth of free resources, ideal for both aspiring and established entrepreneurs. These resources include live events, podcasts, and on-demand classes, along with access to a network of like-minded business professionals. Additionally, they offer practical guides for starting and growing a successful business, and specific resources catered to those interested in selling their wares on Amazon’s store.

Amazon’s Founders Table event series, in particular, is an excellent resource for those just starting on their entrepreneurial journey. Small business experts and successful entrepreneurs share insights on industry trends and practical growth strategies during each event.

[Read More: 7 Marketing Trends Every Small Business Needs to Know About in 2024 ]

America’s Small Business Development Centers (SBDC)

America’s Small Business Development Centers (SBDC ) is a nationwide network that supports small business growth. The network has nearly 1,000 local hubs sponsored by top educational institutions, state economic development agencies, and private partners. America’s SBDC provides free consulting and affordable training to new and established businesses.

The nonprofit’s website provides ample resources like infographics, checklists, and templates. America’s SBDC even hosts annual conferences, virtual summits, and other educational events that cater to small businesses at no cost. The network promotes programs like The Inclusivity Initiative , which aims to empower small business communities and support their growth and development. So far, more than 10 states have accepted the challenge, working toward a more inclusive future.

A Google Business Profile , formerly Google My Business, can drive customers to your brick-and-mortar storefront and online platform. It also offers many free tools for entrepreneurs and small teams, including Google Workspace and Google Drive. The Google for Small Business page provides a wealth of information for small business owners, helping you navigate SEO, advertising, and marketing.

The small business lesson collection helps you research your market, develop a business plan, and prepare to request funding. Also, check out the Grow with Google small business showcase on YouTube . It offers more than 250 videos covering topics like project management and data analytics.

HubSpot is a cloud-based customer relationship management (CRM) tool offering free and paid courses. It also provides the HubSpot Academy for ongoing education geared toward your entire team, including leaders, department supervisors, and employees. There are dozens of programs, including free online courses and longer certification sessions, and you can display earned badges on websites and company bios.

Also, check out HubSpot’s Website Grader . Enter your company’s website and email address in HubSpot’s Website Grader and click “get your score.” HubSpot grades your site based on performance, search engine optimization (SEO), mobile, and security. It also provides a list of recommendations for site improvements.

Manage human resources effectively with a free membership and resources from HR.com . It has e-learning lessons, webcasts, and virtual events. You can learn about upcoming changes to regulations and help your HR employees achieve Professional in Human Resources (PHR) and Senior Professional in Human Resources (SPHR) certifications, among others.

[Read More: 4 Human Resources Tools for Small Businesses ]

IRS Small Business and Self-Employed Tax Center

The IRS Small Business and Self-Employed Tax Center is a comprehensive resource designed to assist small businesses and self-employed individuals with their tax needs. It caters to those filing Form 2106, Form 1040 or 1040-SR, or Schedules C, E, or F, and small businesses with less than $10 million in assets.

Small business owners can access a range of free tools and information, including forms, instructions, and tips, to help ensure businesses comply with tax laws. The resource provides insight into starting, operating, and closing a business, as well as how to handle employment taxes and common expenses and deductions.

LinkedIn is a professional-focused social media platform used by entrepreneurs globally. You can showcase your company and build relationships with business customers and future employees. It’s also a key spot to highlight your expertise as an entrepreneur in your personal profile. Get started with LinkedIn’s Action Plan for Small Businesses . It’s a five-page guide to completing your page, growing your follower count, and posting the right content.

But don’t stop there! LinkedIn has a resource center packed with content for business owners. It offers reports, checklists and guides, and certification programs covering everything from employee development to important metrics for success. We recommend How to Use LinkedIn Learning for existing businesses, as it offers guidance through the expansive library of over 20,000 courses about branding, lead generation, and hiring.

MIT Open Learning Library

Expand into a new industry and explore diverse courses through the MIT Open Learning Library . These self-paced lessons are free to download — no registration required. Most courses include interactive content and exercises, which provide immediate feedback. These sessions are a great free resource for businesses wanting to offer professional development options for employees .

National Association for the Self-Employed (NASE)

Networking groups for entrepreneurs can help you develop local and national connections. NASE represents companies with 10 employees or fewer. It has free resources for small business owners and offers many more tools for members, including unlimited access to consultants for tax, retirement, finance, and operations questions.

NASE also provides member-only scholarships and grants, including the NASE Growth Grant. The grant helps entrepreneurs pay for training programs, business courses, and other small business investments.

National Federation of Independent Businesses (NFIB)

As the “voice of small business,” the NFIB is an advocacy organization representing small and independent businesses across the United States. The nonprofit strives to protect the rights of small business owners to own, operate, and grow their businesses. The NFIB provides a business legal center, webinars, and referral services. Additionally, small business owners can benefit from the NFIB’s business insights and reporting, exclusive networking events, and educational content like its Small Business Rundown podcast.

The NFIB’s membership program is another resource where entrepreneurs can take advantage of increased access to resources, discounts on purchases made through NFIB partners, and a stronger voice in the program’s advocacy efforts.

National Retail Federation (NRF)

As the largest retail trade association in the world, the NRF advocates for the interests of the retail sector. The NRF provides education on best practices, cutting-edge research, and extensive networking opportunities. Notably, the NRF’s 2024 Annual Retail Sales Forecast, along with its holiday data and research on seasonal trends, provides valuable insights to small business owners, enabling them to plan and execute successful campaigns.

The organization also hosts virtual and in-person events across the country. The NRF Retail’s Big Show, in particular, is a large-scale, annual event that delivers expert insights into the retail industry and provides networking opportunities for participants.

Service Corps of Retired Executives (SCORE)

SCORE provides many great resources for small business owners, including webinars, interactive courses, business templates, and local workshops. SCORE partnered with Google and the International Downtown Association (IDA) to develop a free digital readiness series . Each module provides digital tools, webinars, and videos on how to grow your business with Google.

Recently, SCORE added The Startup Roadmap . It’s an excellent guide for individuals wanting to start a company. An entrepreneur can complete the step-by-step tutorial alone or with a mentor. It has 12 modules, which you can complete in any order. Each module offers actionable steps, free resources, and other online tools to complete the steps.

You can find SCORE events and workshops near you by entering your state or zip code and filtering the results according to business stage, topic, and format. SCORE also offers mentorship opportunities to any citizen or permanent resident who owns a business or wants to start one. The sessions can take place in person or virtually via email, phone, or video.

U.S. Chamber of Commerce

As the world’s largest business organization, the U.S. Chamber of Commerce advocates for business-friendly policies, supports local chapters, and provides free resources for entrepreneurs. You’ll find many virtual events and informative guides on small business topics and can network within your community by joining a local branch.

Check out the U.S. Chamber of Commerce Small Business page . It displays events, a Small Business Weekly Forecast, and current initiatives. Remember to register for CO—'s Small Business Day event featuring small business experts. It takes place on Wednesday, May 1, 2024, at 12 p.m. ET.

Bookmark these links to stay informed with regularly updated content:

• Local chapters: Get involved at the local level by finding a chamber of commerce in your area. There are thousands of local chapters in 57 states and territories offering community networking opportunities.
• Chamber OnDemand: View videos, forums, and interviews with experts, business leaders, and government officials on the Chamber OnDemand platform. Browse by topic or series, such as technology, economy, and government policy.
• CO—by U.S. Chamber of Commerce: Start your morning or end your day by expanding your small business knowledge on CO— by U.S. Chamber of Commerce . It delivers fact-based articles on best practices for how to start, grow, and run your company. Plus, you can get expert tips from industry leaders and small business owners.

[Read More: Small Business Month Events to Register for Now ]

U.S. Small Business Administration (SBA)

Learn how to start, grow, or sell your business using the SBA’s free resources. The SBA offers informative content, interactive online tools, and a video library for entrepreneurs. These range from business planning solutions to mentoring services.

You can explore export assistance programs and financial resources. Both help grow businesses and enable entrepreneurs to strengthen their market position. Or learn how to qualify for government contracts , get funding for your company, and explore business certifications .

Check out these SBA tools and content:

• Small Business Development Centers: Attend in-person events and get individualized assistance from small business centers near you. Enter your zip code to find your local SBDC .
• SBA’s Ascent: Explore Ascent — a free learning platform for women entrepreneurs — by choosing your journey and topics to master. Content options include fireside chats, self-assessments, discussion guides, and exercises.
• Learning center courses: The SBA’s learning center video courses cover starting up to selling your business and everything in between. Most topics have several videos, with many around a minute long.
• Boots to Business: If you’re a transitioning service member (including National Guard and Reserve) or a spouse with access to a military installation, check out the Boots to Business program. Alternatively, Reboot courses , which offer one- and two-day classes on business fundamentals, are available to veterans, National Guard, Reserve, and military spouses.
• T.H.R.I.V.E. Emerging Leaders Reimagined: If you have at least one employee besides yourself, been in business for three years, and have annual revenues of at least $250,000, consider the six-month T.H.R.I.V.E. Emerging Leaders Reimagined program. It provides MBA-equivalent knowledge, and you’ll create a three-year strategic business growth action plan.

Verizon Small Business Digital Ready is a one-stop resource center for entrepreneurs and small business owners looking to access coaching, networking and funding opportunities, and educational content. The hub features more than 40 online courses packed with expert guidance on various topics crucial for small businesses at any stage of development. Additionally, it enables entrepreneurs to engage in personalized coaching sessions and workshops with industry experts, offering tailored support and professional insights.

To date, the program has been instrumental in supporting small businesses. The Small Business Digital Ready program has provided over $1 million in funding annually to entrepreneurs and hosted over 200 virtual and live events in its time.

[ Read more: Things to Do in Small Business Month to Grow Your Company ]

This story was originally written by Jessica Elliott.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here .

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11 Free Courses and Learning Resources for Small Business Owners Big businesses have a wealth of expertise, and the ones on our Champions of Small Business list want to make their know-how available to you.

By Dan Bova Sep 22, 2023

Key Takeaways

• The 2023 Champions of Small Business is our first-annual list of big businesses that are helping entrepreneurs with grants, accelerators, and free resources.
• Below find great learning resources and free online courses.

Program: Amazon's Small Business Academy

Launched in 2019, this free program gives early-stage entrepreneurs and small business owners a suite of tools, resources, and networking opportunities. The curriculum was designed in partnership with the Collegiate Entrepreneurs' Organization and offers three educational tracks: "Start," "Build," and "Launch."

Program: Small Business Resources

The small business resources page offers free expert webinars and educational series from business mentors like Barbara Corcoran. They also offer free "playbooks" for business concerns like going virtual or cybersecurity and protections, along with phone and Wi-Fi deals tailored to small business needs.

Bank of America

This part of Bank of America's website offers small business owners insights and resources for managing money, applying for funding, improving credit, planning for retirement, and tracking industry trends, as well as operational assistance with HR and customer relations, and strategizing for small businesses.

Program: Cisco Small Business Resource Center

This site publishes news and technology advice to help small and medium business owners build their knowledge around security, networking, and collaboration.

Program: FreshBooks

FreshBooks is a platform that provides accounting services tailored to the needs of many industries and company sizes. Its blog offers tips and insights for small business owners looking for guidance at different stages of growth.

Program: Google for Startups

Google for Startups offers a range of resources to help small businesses grow. It provides guides and insights for startups at all stages of the journey, along with mentorship and funding opportunities including the Founders Academy, Accelerator, Cloud Program, Black Founders Fund, and Latino Founders Fund.

Program: Mailchimp Marketing Library

Mailchimp provides an information resource for small businesses wanting to learn more about starting, running, and marketing their businesses. Browse straightforward articles like "Email Marketing 101: A Beginner's Guide for Small Businesses."

Program: Shopify Blog

The commerce company offers tools to help merchants start, scale, market, and run a retail business of any size. It has a robust blog with advice for aspiring entrepreneurs on everything from sourcing products to marketing, customer management, and more. Shopify also pledged $130 million to support the 1 Million Black Businesses initiative.

Program: Small Business Digital Ready

This platform gives small business owners access to free courses and educational materials, as well as live events, mentorship, peer networking, and grant opportunities. The courses support small business owners across the entirety of their business, with a specific focus on helping diverse and under-resourced business owners. Resources are also available in Spanish.

Program: Visa Small Business Hub

This landing page on the Visa website gives small businesses opportunities to read about trending topics that are relevant to their industries, along with tools and resources to manage their finances, grow their audiences, take advantage of analytics, optimize their online presence, and more.

Wells Fargo

Program: Wells Fargo Small Business Resources

On its "Small Business Resources" page, the bank provides articles on optimizing day-to-day operations, securing financing, leveraging credit, and paying down debt, as well as networking, sales, and marketing.

See more Champions of Small Business resources:

16 Accelerators Designed to Fast-Track Small Business Founder Success

13 Grant Programs Being Offered by Big Businesses

10 Discounted (and Free!) Tech, Finance and Marketing Solutions for Small Businesses

Entrepreneur Staff

VP of Special Projects

Dan Bova is the VP of Special Projects at Entrepreneur.com. He previously worked at Jimmy Kimmel Live, Maxim, and Spy magazine. His latest books for kids  include  This Day in History , Car and Driver's Trivia Zone ,  Road & Track Crew's Big & Fast Cars , The Big Little Book of Awesome Stuff , and  Wendell the Werewolf . 

Read his humor column This Should Be Fun  if you want to feel better about yourself.

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70 Small Business Ideas for Anyone Who Wants to Run Their Own Business

Published: March 19, 2024

A good business idea may seem hard to come by, but with some planning and preparation, you can easily launch a small business to supplement your income — or become your own full-time boss.

Maybe you already have an idea of the business you’d like to start. But while you might feel ready for a new venture and passionate about your idea, you might be looking for some direction.

To help get you started, here's a list of small business ideas separated into a few sections:

• What makes a good small business?

Best Small Business Ideas

Best businesses to start with little money, home business ideas.

• Online Businesses Ideas

Easy Businesses to Start

Business ideas for students, creative small business ideas, how to start a small business at home, starting a small business: faq.

The first step to becoming a successful entrepreneur is finding a business idea that works for you. In this article, you’ll find dozens of small business ideas you can start from home and scale up as your clientele grows. Let’s get started.

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What makes a good small business idea?

Not all small business ideas are made equal: Some require more effort and funding than others, while some can be launched with few resources — or resources you already have. As a potential small business owner, you’ll want to save as much money as possible on training, rent, supplies, and other necessities.

Let’s go over what makes a good business idea:

• Requires little to no training . A good small business idea will ideally leverage your existing field of expertise and require little to no training. That will not only shorten your time-to-launch, but also lessen your expenses, since training courses can cost a significant amount of money. Plus, you’ll be more confident offering services that you feel prepared to deliver.
• Requires low setup costs. Your business should be cheap to start. Maybe you only need to purchase a website domain or buy a desk for your garage.
• Requires little hands-on inventory or supply management . A great business idea needs few supplies and little inventory management. If you want to sell physical goods, you can either try drop-shipping and manually make goods in small batches.
• Is based online . The best small business ideas are based online and can be carried out from your personal computer. This will automatically lower your commuting costs and give you greater flexibility over your personal and work life.
• Can sustainably be managed by few people . As a small business owner, you won’t have the funds to hire other people to help you run your business — at least not at first. A good business idea should give you the ability to run your business on your own.

Airbnb Co-founder, Brian Chesky, said, “If we tried to think of a good idea, we wouldn’t have been able to think of a good idea. You just have to find the solution for a problem in your own life.”

If you’re like Brian and you’ve already thought about a solution for a problem you encounter in your life — or you’re on the path to doing so — then starting a small business may be in your future. It may also be for you if you dream of clocking out of your nine-to-five job for the last time and becoming your own boss.

Below, we include the best ideas for you to start your small business — with resources and examples to help you get started.

1. Handyman

8. Life/Career Coach

If you have experience navigating career, personal, and social transitions successfully, put it to good use as a life or career coach. Many of us are looking for guidance in our careers — and finding someone with the time to mentor us can be tough.

Life/career coaches don’t come cheap, but they are able to offer clients the intense and hands-on training and advice they need to make serious moves in their personal and professional lives. After all, everyone needs some uplifting advice from time to time.

To start your life/career coaching business with confidence, you can look for a certification program (like the Life Coach School’s or Diane Hudson’s ), then apply your skills as you acquire new clients.

A resume writing business is economical, has few overhead costs, and has few educational requirements. We still recommend having an Associate’s or Bachelor’s degree and a few resume samples on hand. If you still feel that you need to brush up on your resume writing skills, you can take a course like Coursera’s or LinkedIn Learning’s .

Once you’ve gotten resume writing down, you can expand your business to include cover letter writing and even offer career coaching services in conjunction with these services.

10. Freelance Writer

If you have writing skills , there’s someone out there willing to pay you for them. Write blog posts, magazine articles, and website copy galore — just make sure you have a body of work built up to share with potential clients. Even if you create a few sample pieces to have on hand, they’ll help exhibit your work and attract new business.

To become a freelance writer, it’s essential to choose a specialty. For instance, you might choose to only write for publications in the healthcare industry (maybe because you were previously a healthcare worker) or focus on lifestyle publications. Whatever the case, specializing will help you find your niche market and gain confidence as a new freelancer writer.

There are no educational requirements for freelance writing, but you do need strong writing skills. It also helps to enjoy writing. While certification may be beneficial, getting practice and writing every day is more important. Try these writing prompts to start.

11. Landscaper

Mowing, tree-trimming, and seasonal decor are all neighborhood needs. If you have or can acquire the equipment, a landscaping business can be a lucrative affair. It’s also a great choice if you enjoy doing it for your own home and have a good eye for landscape design.

The good news is that you can start small. For instance, you could offer your neighbors seasonal planting services and start with a few perennial plants, or simply offer mulching services.

To grow your landscaping business, you should consider taking some formal training. The following organizations offer courses:

• New York Botanical Gardens

After completing a course and getting enough experience, you can apply for a certificate from a landscaping organization. While a certificate isn’t necessary to work in the field, it can build your credentials and help you make industry connections to take your landscaping business to the next level. The Association of Professional Landscape Designers offers one potential certificate you could pursue.

Some states require licensure, especially if you’ll be using pesticides and fertilizers. Be sure to review the requirements for your state.

Learn some of the basics now with this video on landscape design from Lowe’s:

12. Videographer

Video production requires you to have invested in the equipment up front, which can be quite expensive. But that’s also what makes your services so valuable. Make sure you have a reel of your work to share or create a website with several selections of your work available for interested viewers.

There are no educational or licensure requirements for starting a video production business. As with writing and other creative arts, though, it pays to specialize. Real estate videos differ radically from wedding videos, and wedding videos differ radically from in-studio interviews and testimonials. By specializing, you target a highly specific customer who’ll benefit the most from your services, and you can also skill-up more effectively in one shooting style.

While you can find general classes on videography, you should consider taking a class in the type of videography you’d like to do. For instance, you could take The Complete Wedding Videography Course .

Hot tip: If you’re interested in specializing in video marketing, check out The Ultimate Guide to Video Marketing and download our starter pack below.

13. Photographer

Start by conducting photo shoots for your family and friends. As you build a body of work, ask for referrals and reviews. Photography businesses often grow by word of mouth, so create a Facebook page where you can tag recent clients. Photos where you tag those clients will show up in their friends’ newsfeeds, where they can view your work. You can also ask them to leave reviews on your Facebook business page.

Like with a video production small business, you’ll want to specialize. Will you do product shoots or portraits? How about wedding or fashion photo shoots? Once you specialize, you’ll be able to create a body of work that most accurately represents your strengths.

There are no educational or licensure requirements for starting a small photography business. Still, we recommend investing in a few photography courses, especially if you haven’t used your camera in a while. Some courses you might start with include:

• Cornell’s Digital Photography Certificate Program
• New York Institute of Photography’s Course

From there, seek courses that help you build skills in your chosen specialty.

If you’re not sure where to start with freelance photography, take a look at Erica Clayton’s journey into the business below. Her advice? Give yourself a firm deadline to turn a profit.

14. Bed and Breakfast Owner

Some consulting industries are more competitive than others, so be sure to complete your research before starting a small consulting business. One way to find out how competitive a consulting niche is by doing keyword search . If your target niche is highly searched or is already dominated by big companies, you may have a harder time breaking in. You can use keyword research tools to uncover keyword volume and local demand.

If there’s room for you to enter the market, the next step is to land your first clients. Be sure to participate in local networking events covering your niche and reach out to potential prospects through cold calling and emailing. Investing in dedicated sales software can also help measure and improve your emailing strategy, as well as keep track of worthwhile leads.  

12. Event Planner

An event planning business is an excellent choice if you have great organizational and interpersonal skills, and it’s relatively cheap to start. You might choose to specialize in a specific type of event — like weddings or company meetings — or set yourself up as an event planner of all trades.

The good news is that event planners are always in demand. It’s not an easily automated job, so this small business idea is set to thrive regardless of the digital landscape. To start, you’ll want to look for a platform that will easily allow you to advertise your availability, such as event planner directories like Eventective and WeddingWire .

If you’re highly organized, detail-oriented, and have experience planning large events, it might be time for others to benefit from your skills.

13. Personal Assistant

Personal assistants help business owners and executives take care of administrative tasks. To launch a freelance personal assistant business, you should leverage networking opportunities on LinkedIn and attend small business events at local chambers of commerce. Most local business owners might not even know they need a personal assistant until you market your services to them.

If you’re an organized, highly-detailed person, the life of a personal assistant might be for you. Don’t want to be tied to one office or person all day, every day? Consider becoming a virtual assistant, which allows you a more flexible work environment.

To become an assistant, choose a niche — will you be helping women business owners specifically? Do you have a specific field of expertise, like bookkeeping? A website can also go a long way, and be sure to print business cards for you to hand out during networking events.

14. Consignment Shop Owner

If you have an eye for style but don’t want to invest in the inventory of a brand-new boutique, consider starting a consignment shop. It will allow you to curate a collection of clothing that matches your goals and aesthetic without the overhead of a boutique selling entirely new garments.

The beauty of a small consignment business is that you can now start one online. You can sign up on a platform such as Poshmark , Depop , and even Etsy , then easily start selling your own used fashion from home.

Once you’ve defined your niche — such as vintage clothing, unique locally made art, or colorful shoes — you can begin sourcing new products from your local stores and thrift shops.

15. Caterer

If the personal chef gig is too restrictive for your schedule, consider catering instead. Pick your projects, work on fewer but larger events, and hone in on your time management skills.

Becoming a caterer is a natural step for those who are used to cooking for large events — for instance, you may have already catered your friend’s wedding or brought a 20-person meal to a potluck (that counts, too!).

It’s essential that you have enough temperature-regulated storage for the meals prior to each event, and that you arrange for reliable, temperature-controlled transportation to and from your home kitchen. Alternatively, you can lower your costs by inviting customers to pick up their order at your home.

16. Gym Owner

Kickboxing gyms, yoga studios, CrossFit, oh my! Turn your passion for fitness into a community for others by creating your own gym — start one from the ground up, become an affiliate, or open a franchise location.

Available franchise opportunities include Anytime Fitness, Orangetheory Fitness, Pure Barre, Planet Fitness, Crunch Fitness, and more. Be prepared to take out a loan to finance your franchise — most agreements start with fees upward of $20,000. But the payoff can be tremendous due to brand recognition. You’ll have no trouble recruiting new members as long as you use local marketing strategies .

Alternatively, you can create a local studio, but ideally, it should be for a specific activity instead of general fitness. Yoga, pilates, bootcamp-style gyms, and martial arts perform well as independent fitness studios.

17. Boutique Agency Owner

What’s your specialty? Whether it’s marketing, social media, or PR, it might be time to start your own agency. Many other small businesses need this type of help but don’t have the resources or volume to necessitate a full-time position.

To start an agency, you would ideally have worked in your specialty for a number of years. You should also be prepared to interface directly with clients, fulfill their requirements, and temper their expectations (if they want results in an unreasonably short amount of time).

Consider building a small team and learn from other entrepreneurs who’ve successfully started their own agencies, like Duane Brown of Take Some Risk .

18. Coffee Shop Owner

Turn your caffeine addiction into something a little more lucrative. Opening a franchise or buying an existing shop are lower-risk entry points to the coffee game, but they usually require a little more cash upfront. Starting a shop from scratch requires more planning and work — but it also maximizes your earning potential in the future.

A coffee shop is an excellent fit if you already have a full-time remote job and wish to supplement your income with a small business. You can manage the coffee shop as you work at one of the tables, but be sure to have the budget to hire an experienced barista who can pick up the slack.

If you would like to open a coffee shop and run it full-time on your own, you’ll need to undertake barista training, understand worldwide coffee sources, and have excellent customer service skills.

19. Moving Company

A truck, moving equipment, manpower, and the correct permits and insurance are the building blocks of starting your own moving company . Before you buy your first fleet of trucks, however, start small with a moving van and keep your costs low.

Still sound like too much of an initial investment? Consider offering packing services only, which have a much lower financial barrier to entry. You can partner with moving companies and offer to do their packing, or have them refer clients to you.

You could even take a niche approach to the industry as Astro International has by offering international moving services.

2. Vending Machine Owner

Since 2015, the growth rate for vending machine businesses has increased 1.4%. Even as social distancing restrictions are still in place, this business can still be lucrative if you choose the right locations. High-traffic is key — places like hospitals, schools, and community centers are smart places to start placing your machines to generate enough revenue to cover cost and turn a profit.

3. Social Media Manager

Do you have a knack for social media? As a social media manager, you can use your skills to manage the social media accounts for companies and even individual people. Influencer marketing has become more common and many influencers rely on marketing agencies or employees to help them run their social channels.

Online Business Ideas

If you want a business idea that you can run entirely online, check out the ones below. These ideas are ideal for those looking for a passive income stream. In other words, you shouldn’t need to do too much manual work to launch these businesses from your home or preferred business location.

1. Become an online reseller.

To become an online reseller, all you need is some business savvy and some funds to invest in product stock from manufacturers — or, of course,the willingness to sell your own used items. Generally, this is a low-touch but high-performance way of creating a passive income online business.

Online resellers usually use a platform, such as Facebook Marketplace or Amazon Sellers, to sell either their own or manufacturers’ stock. The benefit of using Facebook Marketplace is that you can begin today with your own Facebook account, and simply list items that you already own.

Interested buyers typically drive directly to your home for pick-up — but if you’re not interested in human interaction, you can leave it outside and have the buyer pay via an online platform.

8. Publish a subscription-based newsletter.

We’ve already discussed becoming an independent author, but if long-form writing, such as novels, seems out of reach, you can always go for something much shorter and simpler: Newsletters. And the best part about paid newsletters is that you typically don’t need to have a separate website and blog; instead, you can sign up on a platform and begin publishing right away.

A website can, of course, benefit you, but the core of your revenue will come from the newsletter itself.

Blogging is one of the most accessible small businesses to start, and there are countless niches to choose from. That said, because there are many blogs online, you’ll need to learn blog SEO and keyword research to ensure your audience finds you. That way, you actually make money out of your blogging efforts.

The great news is that a small blogging business has a ridiculously low overhead. All you need is a custom domain and your time for writing blog posts. Although finding the right topic ideas and outlining your posts may seem challenging at first, especially if you’re new to writing, you can let a blog ideas generator do most of the grunt work for you.

These tools leverage Artificial Intelligence to help you brainstorm ideas and set up your content structure. That way, you can kickstart your creative juices and begin writing about what you love right away. 

5. Home-Baked Goods Seller

Warehouse-made, store-bought chocolate chip cookies will never compare to a batch made with love in someone’s home. Simple desserts can be easily baked and packaged to sell at local events or around your neighborhood. Use custom labels and watch the word spread about your goods!

You can begin a baked goods business easily by opening a Facebook and Instagram profile. Facebook and Instagram are both excellent platforms to market your goods, show pictures of your previous baked products, and even showcase happy clients.

Build a loyal following slowly, and save on costs by asking clients to drive to your home to pick up their order. Choosing a niche can be helpful here, or baking in a specific style that can’t be found at grocery store bakeries. The overhead can be especially low if you already have most essential baking supplies.

6. Ecommerce Store Owner

Do you create, collect, or curate anything special? Consider starting an ecommerce store and turning your hobby into a full-time job. Whether you need somewhere to sell all that pottery you’ve been making, or an excuse to search for the sports memorabilia you love tracking down, an ecommerce store can make it financially viable for you to pursue your passion.

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Starting an ecommerce store is simple and easy. You can set up a shop using an ecommerce website builder , all of which start at a minimal monthly subscription (some even start at free). Be sure to take good photos of your products and write descriptive product pages .

If you don’t have inventory, you can always own an ecommerce store by using dropshipping . Instead of creating and shipping your products yourself, you’ll instead partner with a dropshipping website and have them mail out the orders directly to your client.

7. House Cleaner

With a low barrier to entry, house cleaning can be a great way to start doing what you love — soon. Consider advertising to homes in your neighborhood and get more bang for your buck by earning a few small businesses as clients as well. They’ll usually bring in a higher paycheck for a similar amount of work.

To become a house cleaner, you should be prepared to invest in cleaning supplies and accessories, or be willing to use your own. If you plan to serve small businesses, you should buy industrial janitorial supplies so you can get work done more effectively.

Need some inspiration? This small business cleaning service grew virtually overnight on Instagram after their content went viral during the pandemic.

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4. create a business plan..

No business plan? No business. Particularly if your small business idea requires investors, you'll need to draft up a business plan to provide an overview of your market positioning, your financial projections, and your unique competitive advantages. You can download HubSpot's free business plan templates for free to get started.

Learn more about choosing the right structure for your business from the Small Business Administration.

6. Create a business bank account.

Once you have a legally formed business and have been issued an Employer Identification Number (EIN), open a bank account specifically for your business. Having a business bank account is essential for keeping your personal and business finances separate which can help you gain an accurate picture of your business’s cash flow and financial health.

Additionally, keeping your personal and business finances separate makes bookkeeping and tax preparation easier.

Many banks offer business checking and savings accounts. Business checking accounts typically do not have a limit on the number of transactions that can take place, and issue a debit card that can be used for making business purchases. However, these checking accounts do not accrue interest.

Business savings accounts typically earn interest over time but have a limited number of transactions that can occur each month. When you’re just starting out, look for a business bank account that does not have a minimum balance requirement so you are not penalized for having low funds as you work to build your business.

7. Determine if your business idea works well from home.

Ask yourself whether your business idea will work well from home. Some businesses simply aren’t suited to be based from home. If you want to run a dog boarding center but live in an apartment without a backyard, you might want to consider a dog walking business instead.

8. Set up an office.

If your business idea is well-suited for being run from home, it’s still important you have a designated workspace. While a home office might not be possible, consider setting aside a corner in your living room or putting a desk in your bedroom for a space that inspires you and creates the conditions for success.

Need a more professional space? If you conduct client-facing work requiring you to be on video calls, no one wants to see your rumpled sheets in the background. Check out local coworking spaces for memberships that earn you access to conference rooms, desk space, and more.

9. Get to work!

You’ve put in the hard work, but I’ve got bad news — it’s only going to get harder. But most entrepreneurs will agree that the payoff of being your own boss, making your own hours, and working on projects that you’re passionate about will pay dividends for the rest of your life.

What are the types of small businesses?

The types of small business structures are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.

• Sole Proprietorship — The simplest type of business structure is a sole proprietorship, which is also the easiest to start. As a sole proprietor, you are personally responsible for the business's liabilities and profits, and you have complete control over your business. If you are a solopreneur, you are automatically considered a sole proprietor.
• Partnership — A partnership is a business model involving two or more individuals who agree to share the business‘s profits and liabilities. Each partner contributes to the business and shares the risks and rewards. It’s essential to have a partnership agreement that defines each partner's roles and responsibilities to ensure clarity and prevent potential misunderstandings.
• Limited Liability Company (LLC) — An LLC, or limited liability company, is a common option for small businesses because it protects its owners by separating personal assets from the company's liabilities. To form an LLC, the business owner must file the required paperwork with the state.
• Corporation — A corporation is an independent legal entity distinct from its owners. It provides limited liability protection to its shareholders, who are not held personally accountable for the company's debts. Corporations have formal requirements and often raise capital by issuing stocks or shares.

Which business type is best?

The best business type is a limited liability company (LLC). Operating as an LLC means that your personal assets are separate from your business assets. If your business goes bankrupt, your personal holdings won’t be affected. That said, it’s also one of the costlier types, requiring a fee paid to the state.

The easiest business type to start is a sole proprietorship. The main downside is that there’s no differentiation between you and your business.

It's crucial to seek advice from legal or accounting professionals to determine the best business structure based on your unique needs and objectives. Each structure has advantages, legal requirements, tax implications, and flexibility considerations.

How do I create a business idea?

To create a business idea, determine your skill set, work preferences, startup budget, and available resources. It’s important to strike the right balance between what you can feasibly offer and what you can feasibly afford in the short and long term.

We recommend starting with your skill set so that you can easily determine the niche in which you can effectively compete. For instance, if you have ample experience as a writer, you might consider starting a freelance writing business. But if you know you’d prefer to work with clients face-to-face, you might choose to start a ghostwriting business instead. That’s why it’s so important to take your work preferences into account, as well.

After that, take a look at your budget and determine the type of business you can start based on the resources at your disposal. For instance, you might not be able to afford a physical office or location, so a location-based business will likely not be a good fit. In that case, starting an online business is your best option.

What resources or tools can I use to refine and validate my business ideas during the brainstorming process?

Online market research tools like Google Trends, Keyword Planner, and SEMrush can provide insights into market demand, competition, and keyword trends related to your business niche. Industry reports and market analyses from reputable sources such as IBISWorld, Gartner, Statista, and industry-specific publications can offer valuable data and trends to inform your decision-making. Ensure you know the industry risk before embarking on your small business venture.

→ Download Now: Market Research Kit [Free Download]

Additionally, joining entrepreneurial communities, forums, and social media groups can provide opportunities to seek feedback, network with like-minded people, and gain insights from experienced entrepreneurs. Finally, consider conducting surveys or interviews with potential customers to gather feedback and validate your business concept before investing significant time and resources.

What are some of the most successful small businesses?

Every small business has the potential to be successful and profitable, provided it’s backed by a strong product-market fit and a robust business plan . These two elements are essential. Maybe postnatal services are one of the most successful small businesses to launch, but if you live in an area with declining population or a large elderly population, then that small business idea won’t yield a high return on investment.

Think carefully about the market where you’re launching your business, and you’ll be more than likely to see lasting success.

What are the top growing small businesses?

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40 Small Business Freebies, Tools and Resources For Your Company

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure .

When you’re a small business owner, saving money is always at the top of your to-do list. 

Free resources, apps, programs, and online tools can help you better manage your business - without breaking the bank. 

Many companies offer free trials or a free version of their product, hoping you’ll upgrade to the premium tier as your business grows. 

There’s also a few free things - yes, physical objects - you can get as a small business owner. 

Let’s dive in. 

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Free stuff for small business owners

Most companies don’t give out free stuff to small business owners, but we still found these four business freebies.

1. Shutterfly samples

This popular printing website constantly runs freebies for new members who create a free account . The free items you can receive vary depending on the day. Sometimes, it’s magnets, 8x10 prints, return address labels, or luggage tags. 

There’s a catch of course: You have to pay for shipping. On the plus side, you’ll get free shipping on your first order after that.

2. VistaPrint free sample kit

VistaPrint’s business sample pack includes a selection of popular marketing materials, including business cards, a presentation folder, postcards, and brochures.

The biggest drawback? You can’t customize the samples with your own logo or branding. They’re simply meant to showcase VistaPrint’s different offerings.

To get your kit, click request sample now and enter your address. VistaPrint will ship your business sample kit for free to your address.

3. Free pen from The National Pen Company

Who doesn’t love a free pen?

If you’re in the market for a bulk order of custom pens, the National Pen Company wants your business.

“We offer free sample pens and promotional items for businesses because we get that this is a big investment,” its site, pens.com , explains

You can’t request your free company-branded pen (or keychain or tote bag) online, though.

You’ll need to call the company at 1-866-900-7367 to get your free promotional item.

4. Other free pens and promotional items

It turns out that several companies specializing in business-to-business promotional items will send you a free pen — or pretty much any item in their catalog — so you can try before you buy. 

You can check out AnyPromo , 4Imprint , Marco Promo , and Jail Pens . 

Most of the businesses will charge you shipping, but not always. Each company’s exact requirements vary—you may need to email or call them to request a sample). 

Just remember, these companies want you to become a paying customer. Don’t abuse the system by requesting samples from companies you have zero interest in.

Free resources for small businesses

While business freebies may be hard to come by, free resources to help manage and scale your company abound.

Whether you're a solopreneur, a startup founder, or a seasoned business owner, these resources are here to offer education, guidance, and support.

5. Small Business Administration

The U.S. Small Business Administration (SBA) offers a bunch of free resources, including guides, webinars, templates, and online courses to help entrepreneurs manage and grow their businesses.

SCORE is a nonprofit organization providing free mentoring and educational resources for small business owners. Its network of volunteers offers guidance on all aspects of business, including planning, marketing, finance, and more. 

7. Small Business Development Centers

SBDCs are funded by the SBA and provide free consulting services, training programs, and resources. You can find guidance on business planning, marketing strategies, financial management, and more.

8. Women's business assistance:

Some SBDCs offer specialized assistance for female entrepreneurs, including resources, workshops, and networking opportunities. Contact your local SBDC to learn more about specific programs for women-owned businesses.

9. Networking events and workshops

Keep an eye out for free networking events, workshops, and seminars hosted by local business associations and entrepreneurial groups. Meetup , Eventbrite , and Facebook are all great places to find these types of events.

10. YouTube Creator Academy

If you're interested in using YouTube for marketing or content creation, the YouTube Creator Academy offers free resources, tutorials, and best practices to help you succeed.

11. IRS Small Business Tax Center

Taxes are confusing. Thankfully, the IRS Small Business Tax Center offers free tools and publications to help small business owners navigate their tax obligations, deductions, and credits.

Free business tools

From project management and marketing to accounting and design, check out these free tools to help your business grow and thrive.

12. Google My Business

Create a free business listing on Google My Business to enhance your online visibility, manage your business information and interact with customers. This tool allows you to appear in Google Maps and local search results.

13. Amazon Web Services

The free tier of Amazon Web Services gives you access to various cloud services, including compute, storage and databases—perfect for small businesses looking to leverage cloud technology.

14. Google Alerts

Get notified by email each time your company name gets mentioned in online articles. You can create multiple Google alerts for different keywords.

Free invoicing and accounting tools

Managing finances and keeping track of invoices can be a headache. Thankfully, free accounting software and invoicing tools are designed to simplify your bookkeeping and help you stay organized.

15. FreshBooks

Want to streamline your accounting and invoicing processes? FreshBooks helps you create professional invoices, track expenses, and get paid faster. (A paid subscription is required to access the full range of features beyond the trial period.)

16. Invoice Ninja

Invoice Ninja offers a free, open-source platform where you can create and send invoices, track expenses, and accept online payments.

Square offers free tools to help manage your small business, including point-of-sale software, invoicing, and payment processing.

Wave is a free accounting software program that lets you track expenses, create invoices, and manage your small business’s finances. It's particularly useful for freelancers.

Zoho Books provides a free plan where you can create and send professional invoices, track expenses, and manage customer payments. It’s customizable and supports multiple currencies.

Design and content tools

Creating stunning visuals and captivating content doesn’t have to cost a fortune. 

These tools are here to help. Some are totally free, while others offer a free version with robust features.

Canva is a free graphic design website where you can create professional-looking graphics, social media posts, flyers, and more. It offers a wide range of templates, fonts, and images to help with your marketing efforts.

21. FreeLogoDesign

Use the free logo maker tool on FreeLogoDesign to create a custom logo. There’s a variety of templates, fonts, and icons to choose from.

22. Adobe Express

Formerly Adobe Spark, this program helps you create visually appealing graphics, videos, and web pages. The free Adobe Express plan comes with thousands of design templates, a limited collection of royalty-free Adobe Stock photos as well as basic editing and photo effects.

Pixlr is a free online photo editor that can come in clutch for creating and editing visuals for your social media posts. While it offers a paid version with additional features, the free version is robust enough for basic editing needs.

24. Readability Analysis Tool by WebFX

This helpful free online tool lets you check the readability of your content quickly. Just paste your text into the tool, and it will analyze it and provide insight. It’s a great way to check your site before it goes live.

25. Hemingway Editor

The Hemmingway Editor is a free online tool that improves your content’s readability. It highlights complex sentences, suggests simpler alternatives, and enhances clarity.

26. Copyscape

Check for plagiarism and ensure the originality of your website content or blog posts with Copyscape’s free version.

Marketing and social media tools

You want to get your small business noticed, but where do you even start? 

These free marketing tools for small businesses help you connect with your audience through email and social media so you can generate more leads and land more sales.

27. AnswerThePublic

This free consumer insight tool lets you enter a search term, then displays questions people are asking related to that topic. With three free searches a day, the tool generates keyword ideas so you can see what your potential customers actually want to know.

Buffer provides a free social media scheduling tool that allows you to plan and publish posts on multiple social media channels.

29. Mailchimp

Mailchimp is a popular email marketing platform that offers a free plan for small businesses with up to 2,000 subscribers with 12,000 free sends per month.

30. Hootsuite

Schedule and manage your social media content effectively with Hootsuite's limited free option. It supports one user and up to three social media profiles and provides basic analytics.

31. Wave.video

Create and edit videos for social media and marketing campaigns with Wave.video . The free plan offers basic video editing capabilities and a library of stock footage.

Learn about other ways to effectively engage with your audience with social media marketing.

Project management and scheduling tools

Get everyone on the same page with these free project management and scheduling tools.

Asana provides a free project management platform where you can create tasks, set deadlines, and track project progress. It offers basic collaboration features and integrations with other tools.

Trello is a free project management tool that helps you organize tasks, collaborate with team members, and track progress

34. Calendly

Calendly helps you simplify appointment scheduling and meeting coordination. The free plan lets you easily share your availability and eliminates the hassle of back-and-forth emails.

Other free tools for small businesses

Bitly is a URL shortening service. Its free version includes basic link shortening features, link customization, and some limited analytics.

36. Typeform

This program is perfect for creating interactive and engaging online forms and surveys. You can play around with Typeform’s features, but you’ll need to upgrade to a paid plan if you want to share the form with others.

37. Naminum

Input keywords and Naminum will provide a list of unique and available business name ideas.

38. Nameboy

Enter primary and secondary keywords in Nameboy to generate domain name suggestions for your business.

39. SITE123

Build professional-looking websites quickly with SITE123's easy-to-use platform. Its free plan includes web hosting and the web editor tools at no cost. You’ll also get 500 MB of storage and 1 GB bandwidth.

40. PageSpeed Insights

This totally free tool from Google lets you analyze the speed and performance of your website and receive suggestions for optimization.

Rachel Christian is a Certified Educator in Personal Finance and a senior writer at The Penny Hoarder. She focuses on small businesses, retirement, investing and taxes.

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Related reading

• Best Free Website Builder for Small Business
• Top 7 Free Inventory Management Systems for 2023
• The Best Free Payroll Software for Small Businesses in 2023
• Free Payroll Templates
• 11 Best Free Business Checking Accounts 2023

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• Building Your Business
• Becoming an Owner
• Business Plans

Resource Planning For Your Business Plan

Identifying the resources you need to grow your business

Why Is Resource Planning Important

How to start resource planning, the bottom line, frequently asked questions (faqs).

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A business plan helps you organize your goals and growth plans for your business. Identifying business resources you'll be starting your business with already, and accounting for the resources you'll need to acquire after launching the business, is a crucial step in business planning.

Key Takeaways

• A business plan helps you organize your goals and growth plans for your business.
• Resource planning help you account for resources you have, plan for resources you need and ways to optimize their use
• You can plan for physical, people and technical resources in your business plan

Resource planning help you account for resources you have, plan for resources you need and ways to optimize their use. Among other things, even the most simple business plans are designed to walk you through the activity of describing every source and the exact dollar amount of your initial equity capital, as well as account for the equipment necessary to produce your products or services.

It can be difficult to accurately estimate your future resource needs, which is why this startup mistake is one of the most frequent contributors to young businesses running out of cash early on.

A very important section in your business plan is about the finances of your business, and that includes how much you hope to spend on resources you need to acquire and maintenance expenses on assets you own. Your plans for obtaining the necessary personnel, equipment, and cash to meet your capital expenses will need to be detailed throughout your business plan.

You may need financing from a bank or investors or will invest your personal savings in the business, and resource planning will come in handy for that too.

Resource allocation plans are what your potential investors and business partners are going to need to see before jumping on board with your new company.

There are different types of resources and you need to budget and plan for them accordingly. In describing each of the resources that you have and need for your business to reach profitability, position each of them in terms of the value it will bring to the company, both in the near term and down the road.

To figure out exactly which resources your business is going to need, and account for those in your business planning process, ask yourself these two crucial questions:

• Does starting and growing your business require having staff on hand? If your business relies upon output from people other than yourself and your business partners, you're going to need to allocate resources for hiring staff at fair market rates. 
• What type of equipment or fixed assets will your business need to get going? If your business is dependent upon purchasing or leasing equipment or other fixed assets like retail and office space, these are major considerations as you plan out your resource allocation.

Physical Assets

Depending on the nature of your business, you may have varying need for physical assets. However, in all likelihood you'd need some sort of office furniture and definitely some computers. Physical assets could also include office space, storefronts, manufacturing facilities and equipment necessary for your business. For example, if you own a baked good business, baking equipment like mixers and ovens would be physical assets you'd need to plan for.

Personnel and People

There are different types of people that can be a part of your business. People you hire, for example, can be employees or independent contractors and there are different cost implications for your business depending on whether you hire the former or the latter.

Investing in skills and capacities for people in your business is also an important part of resource planning.

How about mentors, key advisors, supplier connections, and other intangible resources for your business? These types of relationships whose value to your business can be immense, also need to be accounted for within your business plan as they'll have a very large impact on the future growth of your company.

Think of the massively positive effect your company would experience if you had a friend or family member that was a decision-maker at a large company who'd be your perfect first customer. It would undoubtedly be one of your key strategies for driving the early growth of your company. So, as you're planning your resource allocation, you'd naturally be spending in areas that make your young business more appealing to the target customers you want to serve.

Technical Resources

It is a good time to evaluate your technical resources and requirements as well. Some businesses rely more heavily on technology or intellectual property than others. Technology-dependent companies will need a strong IT network to get started. If building your own website won't be any trouble, then that's one major cost you'll be able to avoid as you get started with your company. Otherwise, you may need to allocate for web design, development, and other website-related expenses.

Regardless of your situation, don't be intimidated by the upfront costs of starting a business. Instead, keep in mind that in today's age, your product or service will only be as good as the technology that supports it, and if you buy or build low-grade gear, you’ll probably have to replace it in a few years anyway.

Clearly, there are a lot of different expenses to take into account as you allocate the resources for your new business. However, forcing yourself to go through this activity in extreme detail while building your business plan will save you a lot of headaches and potential failures in the future.

What are assets and resources in a business plan?

Resources can be anything that helps you operate or run your business. Assets are a type of resources that help you achieve you business. Assets can be cash, or physical assets such as equipment or intangible assets such as the brand of your business. In a business plan, you talk about the resources you have and the resources you need to acquire to help your business grow. You also account for your assets on your balance sheet. A strong balance sheet presented in your business plan can be appealing to potential investors.

Which components of a business plan are most useful to attract investors?

Each section of a business plan is important to potential investors. An executive summary gives your investors an elevator pitch to your business. Company description explains to them how your business is solving a market need, while market analysis shows investors you understand your industry and competition. Sections on organization, product details and marketing plans dig deeper into your vision for your business and how its organized. And the financial information component helps them see if you idea is worth putting their money into.

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Planview. " Resource Planning: How To Build a Resource Plan ."

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Need help 20 resources for young entrepreneurs.

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Young business leaders often encounter challenges early on in their entrepreneurial journey. Without access to adequate resources for knowledge or guidance, it can be difficult to overcome these obstacles alone.

From industry-specific programs and online platforms to in-person events, there are a number of easily available resources newer entrepreneurs can tap into to ensure they are knowledgeable and able to run their businesses with minimal interruption. Below, 20 Forbes Business Council members each share additional resources they recommend young entrepreneurs look into for mentorship or advice.

1. Your Existing Network

Seek advice from someone you already know and trust, especially if they've supported you selflessly. Young entrepreneurs often need guidance on non-technical matters, so it's okay to rely on someone without a business background, as long as they possess wisdom and a genuine interest in your well-being. Be cautious of advisors with ulterior motives who may exploit your success for their own gain. - Samuel Darwin , Joy Technologies

2. Tailored Startup Programs

I highly recommend joining startup programs tailored to your sector. These programs, such as accelerators and incubators, can connect you with valuable ecosystems, mentors and successful founders eager to offer free advice. For example, we launched Legitify at Antler Incubator and later joined NDRC Accelerator and Alchemist Accelerator, gaining exceptional advisors and investors along the way. - Aida Lutaj , Legitify

3. A Network Of Founders

Building a network of founders is one of the best things a founder can do, as you'll have a group of people who have likely experienced what you are experiencing. A founder coach who has previously built businesses is also really great to have, so I would highly recommend seeking one out for the reasons mentioned above. - Hrag Sarkissian , eSkootr Championship

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‘emily in paris’ dethroned in netflix’s top 10 list by a new show, nyt ‘strands’ hints, spangram and answers for tuesday, august 20th, 4. organic connections.

Sustainable mentorship thrives on organic connections rather than rigid structures. If you are looking for a mentor as an emerging founder, focus on shared interests, expertise and what you can bring to the table. Also, consider what you can offer your mentor in terms of learning and growth, ensuring that what you're seeking advice on is in their realm of interest and expertise. - Anthony Lacavera , Globalive

Having a mentor within your industry who is intimately familiar with the specific challenges you face can be a game-changer. I serve as a mentor to entrepreneurs in biopharma through the Healthcare Businesswomen’s Association, and an added bonus is the ability to support women working their way up. Every industry has organizations with experts at the ready to provide customized mentoring for entrepreneurs, so seek them out. - Cheryl Lubbert , Reverba

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6. Startup Schools

I’d recommend attending Y Combinator’s Startup School. It will provide tips and tricks, a platform to connect with like-minded entrepreneurs and solutions that have worked for others. This is an Ideal resource for students who are new to business and looking for guidance, strategies and best practices. - Chris Kille , EO Staff

7. Industry-Specific Networks

As a young business leader, seeking guidance is essential. I recommend exploring industry-specific networks for mentorship and advice. These communities provide invaluable insights, connections and experienced perspectives that can profoundly impact your entrepreneurial path. Embrace the power of networking—it's a pivotal resource for success. - Abhishek Jajoo , AJMS Global Consulting LLC

8. Peer Groups

Find a peer group to act as your personal board of directors. Share the personal and professional highs and lows so they can support, challenge and cheer you on. They can also give you new perspectives and help you identify any blind spots. - Ann Sheu , Mpowered Families

9. Your Alma Mater

An alma mater can be an incredible resource for young entrepreneurs. It can foster faculty connections or connections to the numerous alumni who offer pro bono mentorship within your specific profession. - Robert Barboni , Evershore Financial Group

As a young business leader, I recommend joining a board. It will hone expert communication and problem-solving skills while also helping you build trust in others and shared responsibilities. Serving on a board taught me how to actively collaborate and solve problems with others. This skill enables me to tackle challenges in my business differently by trusting others to support me. - Kristine Johnson , Cognition Studio Inc .

11. Mastermind Groups

Joining a mastermind group is an excellent resource for young entrepreneurs. Leaders don't have to navigate challenges alone. By finding like-minded people, you gain mentorship, shared experiences and collective wisdom. This supportive network is crucial for personal and professional growth, fostering a sense of belonging and mutual success. - Patrick Grimes , Passive Investing Mastery

12. The Intro App

One valuable resource for young entrepreneurs seeking mentorship or advice is the app Intro. It connects users with experienced mentors and industry experts who can provide personalized guidance and insights. I recommend Intro because it offers access to a diverse network of professionals who can help navigate challenges, offer strategic advice and support personal and professional growth. - Brittany Harrer Dolin , The Pocketbook Agency

One valuable resource for young entrepreneurs seeking mentorship or advice is Service Corps of Retired Executives (SCORE), a nonprofit organization that provides free, confidential business mentoring. SCORE connects entrepreneurs with experienced mentors who offer personalized guidance and support. I recommend it because it offers access to a vast network of business experts across various industries. - Padmakumar Nair , Ennoventure Inc.

14. Investors

I recommend approaching investors for mentorship or advice. Firstly, my investors are strongly bonded with me in terms of common interests, which makes them motivated to share their thoughts, insights and guidance with me. Secondly, their experience, resources and connections are deeply related to my challenges and struggles. My investors are more like my mentors, friends and supporters. - Hannah Ma , Globevisa Group

15. Community-Focused Organizations

Community-focused organizations are an excellent resource for young entrepreneurs. In our community, weVENTURE's Women's Business Center Coaching Program offers no- or low-cost educational opportunities for female entrepreneurs. These programs can help foster business growth by providing mentoring, workshops and resources to help entrepreneurs navigate and succeed in their journey. - Kelley Higney , Bug Bite Thing

16. Business Leaders You Admire

You should never be afraid to reach out to other business leaders you admire—you may be surprised to see who is willing to offer advice. However, when you do secure a call with a business leader you admire, set the call for 15 minutes and come prepared with five very specific questions. Use your time, and theirs, wisely, and use this opportunity to build a lasting relationship. - Jennifer Sanders , North Texas Innovation Alliance

17. Welcoming Organizations And Conferences

Mentor moments matter, so seek out organizations and conferences that throw their doors open to even the youngest entrepreneurs. Y Combinator, Luminary, Techstars and more organizations all have mentors ready to give impactful advice to tomorrow's business leaders today. - Illana Raia , Être

18. Business Accelerator Initiatives

Aspiring business owners should enroll in a business accelerator initiative. These programs provide mentorship and networking with industry veterans. By taking part in an accelerator initiative, you will receive assistance, feedback from peers and resources that can greatly improve your business acumen and ability to overcome obstacles. I suggest this option for its support in promoting growth and creativity. - Kartik Jobanputra , Smartt-ai.com

19. Local Business Organizations

Young entrepreneurs should explore local business incubators or accelerators. These organizations provide mentorship, resources and networking opportunities that support startups. I recommend them because they connect you with experienced industry professionals and other entrepreneurs who can offer practical advice, feedback and support. - Andrei Neacsu , HyperSense Software Inc.

20. Your Instincts

Whenever I followed a mentor's advice or business guidance, the results were unfavorable and I regretted it. Trust your gut, especially as a young entrepreneur. Relying on a mentor or seeking outside guidance won't train your instincts to make the right decisions. Embrace mistakes and learn from your own experiences to develop your own unique approach. - Shaul Rappaport , Space Touch

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Original text

As a student entrepreneur, you've probably encountered discussions about balance sheets, yet you might not entirely comprehend their importance in small business management. A balance sheet is more than just a snapshot of a company's financial condition; it's a powerful tool that can guide your strategic decision-making and propel your entrepreneurial endeavors toward success.

Having a comprehensive picture of your business's assets, liabilities, and equity at your fingertips is invaluable. This invaluable information can empower you to navigate the complexities of starting and running a small business with confidence and foresight.

Understanding balance sheets opens up opportunities to make informed choices, mitigate risks, and establish the groundwork for sustainable growth.

The Indispensable Value of Accountancy in Small Business Management

Foundation of financial decision making.

Accountancy is crucial for making smart financial decisions in any new business. It helps business owners keep a close eye on their finances, understand how their business is doing, and plan for the future. The importance of a strong command over the basics of accountancy cannot be overstated. In this regard, online math tutors can play a pivotal role in strengthening one’s understanding of accounting principles. By offering personalized guidance and expertise, these tutors ensure that entrepreneurs grasp the fundamental concepts essential for financial analysis and decision-making.

Regulatory Compliance and Transparency

Accountancy plays a crucial role in ensuring compliance and avoiding legal pitfalls. As a student entrepreneur, maintaining transparency with stakeholders, such as investors or lenders, is paramount. 

A well-managed balance sheet demonstrates your commitment to fiscal responsibility and builds trust with those who have a vested interest in your business's success.

Strategic Budgeting and Forecasting

Effective budgeting and forecasting are essential components of any successful small business strategy. Accountancy aids in budget formulation, financial forecasting, and strategic planning, ensuring that resources are allocated efficiently to foster growth and sustainability.

By analyzing your balance sheet, you can identify areas where costs can be optimized, investments can be made, or financing is needed. This proactive approach allows you to stay ahead of the curve and make informed decisions that align with your long-term goals.

Balance Sheets for Decision Making

Risk assessment.

A primary function of a balance sheet is to identify potential financial risks by analyzing liabilities and assessing your company's ability to cover them with assets. This invaluable insight empowers you to take preemptive measures and mitigate risks before they escalate, safeguarding your business from potential pitfalls.

For example, if your balance sheet reveals an excessive reliance on debt financing or a significant portion of your assets tied up in inventory, you can address these issues proactively by exploring alternative financing options or implementing inventory management strategies.

Opportunity Identification

While the balance sheet illuminates potential risks, it also unveils a wealth of growth and expansion opportunities. By scrutinizing the assets listed on your balance sheet, you can identify underutilized resources or untapped potential that can be leveraged for new business opportunities.

In case discovering that your company owns a valuable piece of intellectual property or a prime real estate location that could be monetized through licensing agreements or strategic partnerships. These insights, gleaned from your balance sheet, can open doors to diversification, increased revenue streams, and long-term sustainability.

Investor Attraction

In the world of entrepreneurship, attracting investors is often a make-or-break factor for success. By maintaining a well-managed balance sheet, you demonstrate your company's financial health and strategic asset management, increasing your appeal to potential investors.

According to a report by the National Venture Capital Association ,  most venture capitalists cite a strong balance sheet as a critical factor in their investment decisions. By presenting a compelling balance sheet, you signal to investors that your business is a sound investment opportunity, increasing your chances of securing the necessary funding to fuel your growth.

Beyond Basics: Advanced Uses of Balance Sheets

Working capital insights.

Working capital, the lifeblood of any business, is a crucial metric that can be derived from your balance sheet. By calculating and optimizing your working capital, you can ensure operational efficiency and financial health, enabling your business to meet its short-term obligations and capitalize on growth opportunities.

Being able to identify the optimal level of inventory, accounts receivable, and cash on hand to maintain a healthy cash flow. This insight allows you to make strategic adjustments, such as negotiating better payment terms with suppliers or implementing just-in-time inventory management, ultimately improving your bottom line.

Growth Planning

As your business expands, so too will your need for strategic planning and forecasting. Projecting future balance sheets, known as pro forma balance sheets, enables you to plan for growth, investments, and financing needs with greater accuracy.

By analyzing various growth scenarios and their impact on your balance sheet, you can make informed decisions about when to seek additional financing, how to allocate resources for expansion, and what measures to take to maintain a healthy financial position. This proactive approach ensures that your business remains agile and adaptable in a constantly evolving market.

Common Mistakes to Avoid in Balance Sheet Analysis

While balance sheets offer invaluable insights, it's essential to understand and avoid common pitfalls that can undermine their effectiveness. Here are some common mistakes to watch out for:

Misclassification of Assets and Liabilities: Incorrectly categorizing items on your balance sheet can lead to inaccurate financial reporting and flawed decision-making. Ensure that you have a clear understanding of what constitutes an asset, liability, or equity, and consult with professionals if necessary.

Failing to Reconcile Accounts: Neglecting to reconcile your accounts regularly can result in discrepancies between your balance sheet and actual financial position. Implement robust accounting practices and regularly reconcile your accounts to maintain accurate records.

Overlooking the Importance of Regular Updates: Balance sheets are snapshots in time, and failing to update them regularly can render the information obsolete and misleading. Make it a habit to review and update your balance sheet at regular intervals to ensure you're working with the most current data.

By being aware of these common pitfalls and taking proactive steps to address them, you can ensure that your balance sheet analysis remains reliable and actionable, guiding you towards better decision-making and long-term success.

Enhancing Business Performance with Balance Sheet Analysis

Operational improvements.

Beyond its core financial functions, balance sheet analysis can also be leveraged to streamline operations, reduce costs, and improve overall efficiency. By analyzing your balance sheet, you can identify areas where resources are being underutilized or inefficiently allocated.

For instance, if your balance sheet reveals an excessive amount of inventory or fixed assets, you may consider implementing lean manufacturing principles or exploring asset-light business models to optimize your resource utilization. Conversely, if your balance sheet shows a shortage of working capital, you can take steps to improve cash flow management or negotiate better payment terms with suppliers.

Strategic Financing

One of the most critical decisions you'll face as a small business owner is determining the optimal financing strategy for your venture. Should you opt for debt financing, equity financing, or a combination of both? Your balance sheet holds the key to answering this question.

By analyzing your financial structure as revealed in the balance sheet, you can assess your company's ability to service debt, the potential dilution of equity, and the overall impact of various financing options on your long-term goals. This insight empowers you to make informed decisions that align with your risk tolerance and growth aspirations.

The Balance Sheet as a Foundation for Business Success

As a student entrepreneur, mastering the art of balance sheet analysis is instrumental in navigating the complexities of starting and running a small business. Financial literacy, fueled by a deep understanding of balance sheets, is a key driver of entrepreneurial success.

By leveraging the insights gleaned from your balance sheet, you can make informed decisions, mitigate risks, identify opportunities, and lay the groundwork for sustainable growth. Whether it's assessing financial health, attracting investors, or optimizing operations, the balance sheet serves as a powerful tool in your entrepreneurial arsenal.

1. Why is understanding balance sheets crucial for student entrepreneurs? Understanding balance sheets is essential as it provides a clear snapshot of a business's financial health, helping student entrepreneurs make informed decisions and manage their resources effectively.

2. How can balance sheets help in securing funding for a student-led startup? Balance sheets demonstrate a startup's financial stability and growth potential to investors and lenders, increasing the chances of securing necessary funding.

3. What key components of a balance sheet should student entrepreneurs focus on? Student entrepreneurs should focus on assets, liabilities, and equity, as these elements reveal the net worth of their business and its financial viability.

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Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.