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Google Workspace Pricing (2023): How to Choose the Right Plan for Your Business

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Google announced in February 2023 Workspace price changes . For customers who pay annually, rates remain unchanged. However, customers who pay monthly will pay slightly more for this flexibility. Price changes go into effect March 2023, except for customers with 10 or fewer accounts, for whom changes are deferred until January 2024.

Here’s a look at the current Google Workspace plans and pricing , along with key features you might consider when selecting a plan.

Plans and pricing for Google Workspace

Google workspace’s plans.

Google Workspace offers three Business plans — Starter, Standard and Plus — and two Enterprise plans — Standard and Plus ( Figure A ). An additional option, Google Workspace Essentials Starter , allows teams of up to 25 people to use Google’s collaboration tools, such as Google Docs, alongside an existing email and calendar collaboration system.

Pricing for Google Workspace Business plans

• Google Workspace Business Starter : $7.20 per user paid monthly or $72 per user paid annually.
• Google Workspace Business Standard : $14.40 per user paid monthly or $144 per user paid annually.
• Google Workspace Business Plus : $21.60 per user paid monthly or $216 per user paid annually.

Pricing for Google Workspace Enterprise plans

Pricing for Enterprise plans is not published. As a legacy customer, when I walked through the upgrade process, the offers I saw included the following; the per user pricing Google offers your organization for Enterprise plans may be different.

• Google Workspace Enterprise Standard: $27.60 per user per month or $276 per user paid annually.
• Google Workspace Enterprise Plus: $36 per user per month or $300 per user paid annually.

Google requires that new customers who seek Enterprise licenses contact Sales. Note that there is no minimum or maximum number of users for Enterprise plans.

Google Workspace plans’ features compared

Google provides a comparison page with a detailed checklist that allows you to review the features offered not only across the Business Starter, Standard and Plus plans, but also across the various Enterprise, Education and Essentials editions ( Figure B ).

Pricing of Microsoft 365 Business plans

The adjusted prices align Google Workspace pricing more closely with Microsoft 365 . For example, Microsoft lists pricing for its 365 Business offerings as:

• Microsoft 365 Business Basic: $72 per user paid annually.
• Microsoft 365 Business Standard: $150 per user paid annually.
• Microsoft 365 Business Premium: $264 per user paid annually.

Key features of some Google Workspace plans

The following analysis compares key features of Business Starter, Business Standard and Business Plus plans, along with a few Enterprise plan features.

User limits

The Google Workspace Business plans all add one key constraint not previously present in prior G Suite plans: a maximum of 300 users. If you need more than 300 user accounts, you’ll need an Enterprise plan. Microsoft similarly sets a limit of 300 user accounts on its Microsoft 365 Business plans.

Storage limits

All files created, added or modified after June 1, 2021, count toward a user’s storage limit. Files such as Google Docs, Sheets, Slides, Drawings, Forms, Sites, images (e.g., JPG, PNG), PDFs, Word, Excel, PowerPoint and other formats will count toward storage limits.

SEE: Google Workspace storage: 3 essential things you need to know (TechRepublic)

External sharing

Of the three Google Workspace Business plans, both Business Standard and Business Plus offer an administrator the ability to restrict and manage external file sharing with specific domains. An administrator lacks control over external sharing in Business Basic, which may make this plan less appealing where such restrictions may be desired.

Google Meet recording

Business Standard and Business Plus add the ability to record and save Google Meet video conferences. The maximum number of Google Meet participants for the plans are:

• 100 people for Business Starter
• 150 people for Business Standard
• 500 people for Business Plus

Google’s feature comparison page lists several Meet features, such as polling and Q&A and breakout rooms, all of which require a Business Standard or better account. Business Plus and better plans also support attendance tracking in Meet.

E-discovery and retention

Google Vault is the organization’s offering to support administrative e-discovery and data retention. Only Business Plus includes Google Vault; although, organizations on Starter and Standard may select Vault as a paid add-on. When I browsed through my offered pricing, Vault displayed a $6 per user per month add-on price.

How to choose a new Google Workspace plan

If you’re a new customer, your task is relatively simple. Define your needs, select the plan that best fits the balance of your needs and your budget, then help people in your organization get started with Workspace .

If you have been a G Suite or Google Workspace customer, an administrator can sign in to the Admin console to access account options. To do this, the admin would sign in at https://admin.google.com , select the three-horizontal line menu in the upper left corner, then choose Billing, and select Get More Services from the sub-menu.

If you are a current customer, the Google Admin Get More Services page highlights available Google Workspace plans ( Figure C ).

Select any of the options, and the system will display the details of key features your account will either gain or lose. Select your option, address any identified issues and follow any step-by-step instructions to switch.

How to choose between monthly or annual Google Workspace plans

A Google Workspace administrator has the option to choose between monthly or annual account payment plans ( Figure D ). In a stable situation with sufficient capital and cash flow, the annual option makes the most financial sense.

However, not every organization has the ability to pre-pay for accounts for a year. The decision between monthly and annual payments becomes more significant as the number of users increases. Since the total dollar difference can be on the order of thousands of dollars each year, your organization’s cash flow and capital position may affect your decision.

Additionally, if you anticipate major reductions in the number of accounts during the upcoming year (i.e., layoffs), the monthly payment option may be preferable. The marginal cost of a few dollars per month per account may be preferable to locking in a discount by paying an annual price for an account no longer needed at a future date.

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I Wish I Knew This About Google Before Trying My Growth Strategy Smart digital marketers love to sharpen their pencils while optimizing ad campaigns. But, as you will learn in this article, there is such a thing as over-sharpening your pencil to the point it breaks when you press on it, putting the entire campaign into a death spiral.

By George Deeb Edited by Micah Zimmerman May 24, 2024

Key Takeaways

• Google needs data to work with, and its algorithms need a minimum amount of data to do their job successfully.

Opinions expressed by Entrepreneur contributors are their own.

I have been a digital marketer for over 30 years, living by the mantra of making data-driven decisions that maximize your return on ad spend (ROAS). Like any good marketer, you will always be testing and tinkering with your ad campaigns to optimize your copy, creatives, landing pages and messaging to get you the best results in the form of your highest ROAS or lowest cost of customer acquisition (CAC).

But something happened with one of my businesses in the last few months: Over-optimizing the campaign caused the bus wheels to fall off. I had never seen that before, and I thought this case study was worth sharing with you so you don't repeat this same mistake.

Related: Forget Google and Facebook. Use These Marketing Tips Instead.

The situation

We had been growing our Restaurant Furniture Plus e-commerce business consistently over the last few years. The growth strategy was almost entirely Google Ads-focused, where if we wanted to increase revenues, all we needed to do was spend more money with Google year over year. We have also increased our annual advertising budget from $100,000 to $2,000,000 over the last few years.

Things were largely going fine. As we scaled advertising spend, our revenues scaled along with it in a pretty consistent way. We weren't overly optimized in our efforts; we simply managed the campaign with a few high-level metrics to ensure we were heading in the right direction.

Those metrics included our ROAS and Cost Per Lead (CPL), which were largely unchanged over the years, ignoring one-time anomalies in the market — like COVID-19 in 2020. We biased CPL over CAC since we could easily tie Google Ads into our Call Rail tracking data at the campaign level and couldn't connect our CRM data to Google at the time.

But, after we upgraded our CRM with one that better enabled a direct data tie to Google Ads, we thought the campaign could perform more profitably if we engaged a more sophisticated marketing agency with more experience running campaigns based on CAC instead of CPL. An agency that would be more "in the weeds" than we were as business executives, optimizing everything within the campaign, including the keywords, creatives, landing pages, product segmentation, audience targeting, etc. We felt the biggest opportunity was managing the campaign at the CAC level, as opposed to the CPL level, since we figured knowing if a customer purchased from us was more important than if they contacted us. It sounded pretty reasonable, right? But keep reading.

Our ad agency's plan

Our advertising agency was very bullish on connecting our CRM data directly with Google Ads, to let Google know which ads of theirs lead to actual buying customers. The agency had a lot of success with their other clients with this strategy, and they were confident it would work for us. We did a lot of work to set that up and launched it, crossing our fingers it would lead to a material decrease in our CAC and a material increase in our ROAS.

But what followed had us all scratching our heads. Instead of improving our campaign , this action actually hurt it. All of our marketing metrics started to move in the opposite direction — our CAC doubled, and our ROAS cut in half. None of us really had an explanation for what had gone wrong until we started to do a little more digging.

What happened?

The single change we made, which we thought would help us, actually hurt us. We changed our primary data point that we wanted Google to optimize for from a number of leads (e.g., phone calls and email form fills) to a number of customers (e.g., closed transactions in our CRM). And, more specifically, we didn't care about online customers who purchased on our website, we only cared about offline customers who purchased with our team of expert project managers because our average order size of offline orders was 3x that of our average order size of online orders, by adding that personal human connection and having the opportunity to upsell the order. But, from a data perspective, that meant we went from sending Google 1,000 data points per month from phone calls and emails to only sending Google 100 data points a month from the offline transactions that were directly sourced from Google.

Remember, Google is an algorithm, and it needs data to digest to do its work. The more data, the better. By making this move, we were effectively "starving" Google by cutting back the data points. And what does Google's algorithm do when there isn't enough data to work with? It becomes paralyzed and doesn't know what to do. So it starts "spraying and praying" across its entire network, where it can hopefully generate more useful data and results to work with. And, what happens to your advertising effectiveness during this time? It basically gets flushed down the toilet.

Related: This Google Update Could Be Tanking Your Traffic. Follow These Steps to Significantly Boost Your Page Views and Revenue Now.

Once we learned what the issue was, it was a simple fix: we basically returned to our old ways, telling Google to optimize on the leads data instead of the transaction data. That started feeding Google's algorithm again, and good things happened. Our ROAS and CAC returned to the historical levels once the campaign wasn't strangled and suffocating anymore.

The lessons learned

There were many lessons learned here. First, we mentioned above that Google needs data to work with, and there is a minimum amount of data that Google needs for its algorithms to do their job successfully. We had choked it. Secondly, there were a lot of very smart veteran marketers around the table who all collectively bought into the strategy that failed.

So, even experts can make mistakes. In this case, the agency's success with other clients was due to those other clients being materially larger than we were, sending Google a lot more data than we were able to send them. And, lastly, there is a point in your marketing campaigns that you simply have "over-sharpened" your pencils, to the point the tips break off when you press on them.

Yes, campaign optimization is good and needed, but over-optimization could end up being the noose around your neck. So, as you are tuning up your campaigns, don't turn the dials up too high or you may bust a few springs along the way.

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George Deeb is the managing partner at  Red Rocket Ventures , a consulting firm helping early-stage businesses with their growth strategies, marketing and financing needs. He is the author of three books including  101 Startup Lessons -- An Entrepreneur's Handbook .

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Google’s Secret Formula for Management? Doing the Basics Well

• Raffaella Sadun

Employees learn how to run meetings, have conversations, and set goals.

Google has opened its trove of management processes to one and all, for free. It might not feel that surprising – after all, Google has created plenty of other free tools for the world to use. And it also follows Google’s many years of work in people analytics. But in fact, there is something surprising in the details of what they revealed: Their management tools focus on some pretty basic stuff like how to run meetings, have conversations, and set goals. As basic and unsurprising as some of these practices may look, they are really hard to do well on a consistent basis. Reasons for that include a lack of awareness that better processes are needed, a lack of the skills needed to do those processes, and organizational politics.

Basic management fundamentals are hard to implement. It’s part of the reason you can’t just copy another company’s management practices (even Google’s) and simply sit back and wait for success. Companies still have to do the hard work of addressing the essential ways their management practices function.

Google has opened its  trove of management processes  to one and all, for free. It might not feel that surprising — after all, Google has created plenty of free tools for the world to use, from internet search to email. Management tools may not seem that different. And it also follows Google’s many years of work in  people analytics .

But, in fact, there is something surprising in the details of what Google revealed. Turns out a lot of its management tools focus on some pretty basic stuff, like how to run meetings, have conversations, and set goals.

Why would Google release its management processes? I see three reasons.

First, the company has nothing to lose by doing it. That’s because as basic and unsurprising as some of these practices may look, they are really hard to do well on a consistent basis. My coauthors and I explore this in detail as part of a  study of how well 12,000 firms in 34 countries performed 18 core management practices . We found many reasons for weak adoption of basic things like target setting and talent management, but some of the most prominent ones include:

• A lack of awareness that better processes may be needed
• A lack of the skills needed to adopt those better processes
• Organizational politics — but more generally a lack of trust within the organization to adopt new processes. Taking steps like standardizing the way interviews are conducted, for example, may be perceived as excessive bureaucracy by some employees even if they are beneficial to the organization as a whole.

These hurdles are hard to overcome — because of them, even basic management fundamentals are hard to implement. It’s part of the reason why you can’t just copy another company’s management practices (even Google’s) and simply sit back and wait for success. Without building the core competencies that allow those practices to work, all you’ve got is something that sounds good on paper.

Consider the difficulties researchers find in  replicating lab experiments . It turns out that even the small differences in methods led to failure for efforts to replicate certain results. Management practices have a similar flavor — you need a whole set of practices, and standards around those practices, to be in place for them to be effective. So in this light, there’s very little downside to Google being “open source” about management; it’s so hard to copy good management that the company isn’t risking much.

Research Shows Good Management Is Incredibly Hard to Copy

The second reason Google might choose to release these practices exists in some tension with the first: When really implemented, even simple management practices can have a  huge  payoff. In other words, because basic management practices are difficult to adopt, the firms that manage to do so see a major impact on organizational performance. Any company that successfully adopted Google’s management tools would be likely to see huge gains.

In our sample, the average firm that managed to improve from the bottom 10% to the top 10% in management skill would see a $15 million increase in profits, 25% faster annual growth, and 75% higher productivity. To see why, consider something as basic as process implementation. Adherence to a common set of processes is a way to remove common biases in an organization and to  focus on objective results  rather than  gut feelings . It’s an important part of teamwork, especially when very skilled individuals  with complementary specialties  have to work together. Surgeon Atul Gawande’s  focus on simple checklists  as a way to reduce errors in the operating room is an example of this; his checklist is a common process that helps keep teams of diverse and highly skilled people focused on the job at hand. Basic practices like the ones Google focuses on are often the  glue and cohesiveness  needed across all sectors, including tech. As  Google CEO Sundar Pichai said : “I also value teamwork quite a bit and I think it’s really important to build organisations where people really want to work together. Everything comes out of that. So, setting up collaborative cultures is another big thing I’ve been trying to focus on.” Management practices are an essential ingredient in building culture.

Third, and finally, Google might also choose to release its management tools because doing so could help macroeconomic growth. When firms grow, the economy grows. We’ve found that better-managed firms spend 10 times as much on R&D as poorly managed ones and also increase their patenting by a factor of 10. All that innovation is good for the broader economy. Indeed, in our study the average management quality in a country was strongly correlated with standard measures of economic growth.

While they may not always feel glamorous, strong managerial processes really matter. It’s great that Google made its public, but companies still have to do the hard work of addressing the essential ways that their management practices function.

• Raffaella Sadun is the Charles E. Wilson Professor of Business Administration at Harvard Business School and a co-chair of its Managing the Future of Work project.

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

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

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

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

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

What is a business plan?

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

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Financial plan

Management team

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

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

Business plan vs. business model canvas

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

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

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

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

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

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

Why is a business plan important?

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

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

Helps to define the business goals and objectives

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

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

Guides decision-making

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

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

Attracts investors and secures funding

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

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

Identifies potential challenges and risks

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

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

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

Provides a basis for measuring success

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

Are we where we want to be at this point?

Did we achieve our goals?

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

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

How to make a business plan step by step

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

1. Create an executive summary

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

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

2. Write your company description

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

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

3. Conduct a market analysis

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

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

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

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

4. Describe your products and services

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

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

5. Design a marketing and sales strategy

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

Pricing strategy

Advertising and promotional tactics

Sales channels

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

6. Determine budget and financial projections

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

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

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

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

8. Make an action plan

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

Types of business plans

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

Startup business plan

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

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

Strategic business plan

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

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

Operational business plan

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

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

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

Growth-business plan

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

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

One-page business plan

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

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

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

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

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

Be practical

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

Be specific

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

Be thorough with your research

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

Get input from others

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

Review and revise regularly

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

Create a winning business plan to chart your path to success

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

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

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

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Google's CEO: A timeline of the company's leadership evolution and the legacies each executive left behind

• Google was founded in 1998 but operated without a traditional CEO until 2001.
• Since then, the search giant has had three CEOs: Eric Schmidt, Larry Page, and Sundar Pichai.
• Google has undergone massive growth over the last 25 years, and each CEO has left a unique legacy.

Sundar Pichai has been the CEO of Google since October 2015. He's the company's third chief executive since its incorporation in 1998.

Let's break down the company's chief executives and their tenures:

The Triumvirate years (1998-2001)

During this time period, Google was run by Eric Schmidt, Larry Page , and Sergey Brin. While the company didn't have a formal CEO during this time, Page considered himself the CEO and attempted to fire all project managers, believing that Google had no need for a management layer — much less one without engineering experience — between its top-notch engineers and the CEO.

However, Page's abrupt dismissal of the project managers did not stick and it eventually became clear that Google still needed them.

Eric Schmidt (2001-2011)

Eric Schmidt took the helm as chairman and CEO after Google's founders were convinced by investors that the company needed experienced management.

Schmidt was a veteran computer expert: He holds a doctorate in Computer Science and had served as Chief Technology Officer for Sun Microsystems and the CEO of Novell during the 1990s.

Related stories

His tenure as CEO saw the company through its initial stages, Initial Public Offering (IPO), and its rise to market dominance. Schmidt remained as executive chairman until 2017 and as a technical advisor to the company until February 2020.

Larry Page (2011-2015)

Larry Page's communication style, even with co-founder Sergey Brin , was aggressive and tense — they often interacted bluntly, called each other names, and labeled ideas as stupid or naive.

When Page felt no negative impact on his friendship with Brin — their bond was actually strengthened — he continued using this style in interactions with employees: Page once told a room full of marketing employees that their profession was built on an ability to lie.

Page connected with people's ideas rather than their feelings. Heather Cairns, an early HR boss at Google, once recalled how Page talked intently with a janitor, complimenting his efficiency and stating "I learned from that."

He connected best with people through visions of the future and cool technologies, without regard for feelings; downsides to complex problem solutions were viewed as collateral damage he could live with.

In 2007, Page decided that he was attending too many meetings, so he fired his assistants so that anyone who wanted to meet with him would have to find him in person. He was well known for dismissing people with a friendly nod over the shoulder as he kept walking. The next year, he told Google's communications team that he would only be available for interviews a total of eight hours a year.

After learning under Eric Schmidt for 10 years, Page stepped back into the chief executive role and Schmidt became the executive chairman.

Under Page's leadership, Google continued to grow and expand into new areas. Page was at the helm during the introduction of Google Glass , the Chromebook, and Google Plus. Page was also responsible for the advent of Google Street prior to his tenure as CEO.

Page also overhauled Google's senior management early in his tenure, installing CEO-like managers at major Google divisions like YouTube , Google Search, and Google AdWords, now known simply as Google Ads .

In 2015, Page opted to create the holding company Alphabet Inc. and made Google its subsidiary. With this decision, Page was replaced by Sundar Pichai as Google CEO and became the CEO of Alphabet, Google's parent company , where he could better oversee other ventures.

Sundar Pichai (2015-present)

Sundar Pichai took the helm of Google when Larry Page formed Google's parent company, Alphabet Inc., and became its CEO.

He had previously served as a project manager for a multitude of products, including Google Chrome, and was appointed as Product Chief by Page during his tenure as Google's Chief Executive.

Pichai also became the CEO of Alphabet Inc. in December 2019 after Page stepped back from the role.

On February 28, Axel Springer, Business Insider's parent company, joined 31 other media groups and filed a $2.3 billion suit against Google in Dutch court, alleging losses suffered due to the company's advertising practices.

Watch: 5 ways Elon Musk shook up Twitter as CEO

• Main content

How to Build a Detailed Business Plan That Stands Out [Free Template]

Updated: March 29, 2022

Published: March 11, 2022

While starting a company may seem easier now than ever before, entrepreneurs have an uphill battle from the moment they start a business. And without a clear, actionable business plan for selling, marketing, finances, and operations, you're almost destined to face significant challenges.

This is why crafting a business plan is an essential step in the entrepreneurial process.

In this post, we'll walk you through the process of filling out your business plan template, like this free, editable version :

Download a free, editable one-page business plan template.

We know that when looking at a blank page on a laptop screen, the idea of writing your business plan can seem impossible. However, it's a mandatory step to take if you want to turn your business dreams into a reality.

That's why we've crafted a business plan template for you to download and use to build your new company. You can download it here for free . It contains prompts for all of the essential parts of a business plan, all of which are elaborated on, below.

This way, you'll be able to show them how organized and well-thought-out your business idea is, and provide them with answers to whatever questions they may have.

Free Business Plan Template

The essential document for starting a business -- custom built for your needs.

• Outline your idea.
• Pitch to investors.
• Secure funding.
• Get to work!

You're all set!

Click this link to access this resource at any time.

Building a Successful Business Plan

In the next section, we'll cover the components of a business plan , such as an executive summary and company description. But before we get to that, let's talk about key elements that should serve as building blocks for your plan.

For some entrepreneurs, the thought of writing a business plan sounds like a chore — a necessary means to an end. But that's a bad take.

A solid business plan is a blueprint for success . It's key to securing financing, presenting your business, outlining your financial projections, and turning that nugget of a business idea into a reality.

At the core, your business plan should answer two questions: why your business and why now?

Investors want to know why your business is entering the market, i.e. what problem it's solving and how it's different from what's currently out there. They also want to know why now is the right time for your type of product or service.

At a minimum, your plan should:

• Be more realistic than idealistic: Too often, business plans focus too much on how things could be instead of how they are. While having a vision is important, your plan needs to be rooted in research and data.
• Legitimize your business idea : If an idea fails on paper, it's a signal to go back to the drawing board. In doing so, you avoid losing precious time or money chasing an unrealistic idea.
• Position your business for funding: To get your business off the ground, chances are you'll need financial backing. Even with a solid business idea, investors, lenders, and banks still need convincing. An effective business plan will outline how much money you need, where it's going, what targets you will hit, and how you plan to repay any debts.
• Lay the foundation: Investors focus on risk – if anything looks shaky, it could be a dealbreaker. Ideally, your business plan will lay down the foundation for how you'll operate your business — from operational needs to financial projections and goals.
• Communicate your needs: It's nearly impossible to communicate your needs if you don't know what they are first. Of course, a business’ needs are always changing — but your plan should give you a well-rounded view of how your business will work in the short and long term.

So back to the question of why and why now – consider three things:

• Your industry – How does your product or service fit within your industry? Are you targeting a specific niche? Where do you see the industry going in the next five to 10 years?
• Your target audience – Who are you targeting? What challenges are they facing? How will your product or service help them in their daily lives?
• Your unique selling proposition (USP) – What sets you apart from your competitors? Is it your product/service features? Your company values? Price?

Once you know the answers to these questions, you'll be equipped to answer the question: why your business and why now.

How to Build a Business Plan

• Executive Summary
• Company and Business Description
• Product and Services Line
• Market Analysis
• Marketing Plan
• Legal Notes
• Financial Considerations

Featured Resource: Free Business Plan Template

1. cover page.

Your business plan should be prefaced with an eye-catching cover page. This means including a high-resolution image of your company logo, followed by your company's name, address, and phone number.

Since this business plan will likely change hands and be seen by multiple investors, you should also provide your own name, role in the business, and email address on the cover page.

At the bottom of this page, you can also add a confidentiality statement to protect against the disclosure of your business details.

The statement can read as follows: " This document contains confidential and proprietary information created by [your company name]. When receiving this document, you agree to keep its content confidential and may only reproduce and/or share it with express written permission of [your company name] ."

Remember to keep your cover page simple and concise — and save the important details for other sections.

Why it matters: First impressions are everything, and a clean cover page is the first step in the right direction.

Example of a Cover Page

2. Executive Summary

The executive summary of your business plan provides a one- to two-page overview of your business and highlights the most crucial pieces of your plan, such as your short-term and long-term goals.

The executive summary is essentially a boiled-down version of your entire business plan, so remember to keep this section to the point and filled only with essential information.

Typically, this brief section includes:

• A mission statement.
• The company's history and leadership model.
• An overview of competitive advantage(s).
• Financial projections.
• Company goals.
• An ask from potential investors.

Why it matters: The executive summary is known as the make-or-break section of a business plan. It influences whether investors turn the page or not — so effectively summarizing your business and the problem it hopes to solve is a must.

Think of the Summary as a written elevator pitch (with more detail). While your business plan provides the nitty-gritty details, your Summary describes — in a compelling but matter-of-fact language — the highlights of your plan. If it's too vague, complicated, or fuzzy, you may need to scrap it and start again.

Example of an Executive Summary Introduction

"The future looks bright for North Side Chicago, particularly the Rock Hill Neighborhood. A number of high-end commercial and residential developments are well on their way, along with two new condo developments in nearby neighborhoods.

While the completion of these developments will increase the population within the neighborhood and stimulate the economy, the area lacks an upscale restaurant where residents and visitors can enjoy fine food and drink. Jay Street Lounge and Restaurant will provide such a place."

3. Company & Business Description

In this section, provide a more thorough description of what your company is and why it exists.

The bulk of the writing in this section should be about your company's purpose – covering what the business will be selling, identifying the target market, and laying out a path to success.

In this portion of your business plan, you can also elaborate on your company's:

• Mission statement
• Core values
• Team and organizational structure

Why it matters: Investors look for great structures and teams in addition to great ideas. This section gives an overview of your businesses' ethos. It's the perfect opportunity to set your business apart from the competition — such as your team's expertise, your unique work culture, and your competitive advantage.

Example of a Values/Mission Statement

"Jay Street Lounge and Restaurant will be the go-to place for people to get a drink or bite in an elegant, upscale atmosphere. The mission is to be North Side's leading restaurant, with the best tasting food and the highest quality service."

3. Product & Services Line

Here's where you'll cover the makeup of your business's product and/or services line. You should provide each product or service's name, its purpose, and a description of how it works (if appropriate). If you own any patents, copyrights, or trademarks, it's essential to include this info too.

Next, add some color to your sales strategy by outlining your pricing model and mark-up amounts.

If you're selling tangible products, you should also explain production and costs, and how you expect these factors to change as you scale.

Why it matters: This section contains the real meat of your business plan. It sets the stage for the problem you hope to solve, your solution, and how your said solution fits in the market.

There's no one-size-fits-all formula for this section. For instance, one plan may delve into its ability to market in a more cost-effective way than the competition, whereas another plan focuses on its key products and their unique features and benefits.

Regardless of your angle, it's critical to convey how your offerings will differ from the competition.

Example of a Product/Service Offering

"The menu at Jay Street Lounge and Restaurant will focus on Moroccan cuisine. The stars of the menu (our specialties) are the Moroccan dishes, such as eggplant zaalouk, seafood bastilla, tagine, and chickpea stew. For those who enjoy American dishes, there will also be a variety of options, from burger sliders and flatbread pizza to grilled steak and salads.

The food at Jay Street will have premium pricing to match its upscale atmosphere. During the summer months, the restaurant will have extra seating on the patio where clients can enjoy a special summer menu. We will be open on all days of the week."

4. Market Analysis

It helps to reference your market research documentation in this section, like a Porter's Five Forces Analysis or a SWOT Analysis ( templates for those are available here ). You can also include them in your appendix.

If your company already has buyer personas, you should include them here as well. If not, you can create them right now using the Make My Persona Tool .

Why it matters: Having an awesome product is, well, awesome — but it isn't enough. Just as important, there must be a market for it.

This section allows you to dig deeper into your market, which segments you want to target, and why. The "why" here is important, since targeting the right segment is critical for the success and growth of your business.

It's easy to get lost (or overwhelmed) in a sea of endless data. For your business plan, narrow your focus by answering the following questions:

• What is my market? In other words, who are my customers?
• What segments of the market do I want to target?
• What's the size of my target market?
• Is my market likely to grow?
• How can I increase my market share over time?

Example of a Market Analysis

"Jay Street Lounge and Restaurant will target locals who live and work within the Rock Hill Neighborhood and the greater North Side Chicago area. We will also target the tourists who flock to the many tourist attractions and colleges on the North Side.

We will specifically focus on young to middle-aged adults with an income of $40,000 to $80,000 who are looking for an upscale experience. The general demographics of our target market are women between 20 to 50 years old.

A unique and varied Moroccan-American menu, along with our unique upscale atmosphere, differentiates us from competitors in the area. Jay Street will also set itself apart through its commitment to high-quality food, service, design, and atmosphere."

5. Marketing Plan

Unlike the market analysis section, your marketing plan section should be an explanation of the tactical approach to reaching your aforementioned target audience. List your advertising channels, organic marketing methods, messaging, budget, and any relevant promotional tactics.

If your company has a fully fleshed-out marketing plan, you can attach it in the appendix of your business plan. If not, download this free marketing plan template to outline your strategy.

Free Marketing Plan Template

Outline your company's marketing strategy in one simple, coherent plan.

• Pre-Sectioned Template
• Completely Customizable
• Example Prompts
• Professionally Designed

Why it matters: Marketing is what puts your product in front of your customers. It's not just advertising — it's an investment in your business.

Throwing money into random marketing channels is a haphazard approach, which is why it's essential to do the legwork to create a solid marketing plan.

Here's some good news — by this point, you should have a solid understanding of your target market. Now, it's time to determine how you'll reach them.

Example of a Marketing Plan Overview

"Our marketing strategy will focus on three main initiatives:

• Social media marketing. We will grow and expand our Facebook and Instagram following through targeted social media ads.
• Website initiatives. Our website will attract potential visitors by offering updated menus and a calendar of events.
• Promotional events. Jay Street will have one special theme night per week to attract new clients."

6. Sales Plan

It doesn't matter if your sales department is an office full of business development representatives (BDR) or a dozen stores with your products on their shelves.

The point is: All sales plans are different, so you should clearly outline yours here. Common talking points include your:

• Sales team structure, and why this structure was chosen.
• Sales channels.
• Sales tools, software, and resources.
• Prospecting strategy.
• Sales goals and budget.

Like with your marketing plan, it might make sense to attach your completed sales plan to the appendix of your business plan. You can download a template for building your sales plan here .

Why it matters: Among other things, investors are interested in the scalability of your business — which is why growth strategies are a critical part of your business plan.

Your sales plan should describe your plan to attract customers, retain them (if applicable), and, ultimately, grow your business. Be sure to outline what you plan to do given your existing resources and what results you expect from your work.

Example of a Sales Plan Overview

"The most important goal is to ensure financial success for Jay Street Lounge and Restaurant. We believe we can achieve this by offering excellent food, entertainment, and service to our clients.

We are not a low-cost dining option in the area. Instead, the food will have premium pricing to match its upscale feel. The strategy is to give Jay Street a perception of elegance through its food, entertainment, and excellent service."

7. Legal Notes

Your investors may want to know the legal structure of your business, as that could directly impact the risk of their investments. For example, if you're looking for business partners to engage in a non-corporation or LLC partnership, this means they could be on the line for more than their actual investment.

Because this clarification is often needed, explain if you are and/or plan to become a sole proprietor, partnership, corporation, LLC, or other.

You should also outline the steps you have taken (or will need to take) to operate legally. This includes licenses, permits, registrations, and insurance.

The last thing your investor wants to hear after they've sent you a big chunk of change is that you're operating without proper approval from the local, state, or federal government.

Why it matters: The last thing your investor wants to hear after they've sent you a big chunk of change is that you're operating without proper approval from the local, state, or federal government.

Example of Legal Notes

"Jay Street Lounge and Restaurant is up-to-date on all restaurant licenses and health permits. Our business name and logo are registered trademarks, presenting the possibility of expanding locally."

8. Financial Considerations

Ultimately, investors want to know two things:

• When they will earn their money back.
• When they will start seeing returns on their initial investment.

That said, be clear, calculated, and convincing in this section. It should cover:

• Startup costs.
• Sales forecasts for the next several months/quarters.
• Break-even analysis for time and dollars.
• Projected profit and loss (P&L) statement.

Facts and figures are key here, so be as specific as possible with each line item and projection. In addition, explain the "why" behind each of these sections.

However, keep in mind that information overload is a risk, especially when it comes to data. So, if you have pages upon pages of charts and spreadsheets for this section, distill them into a page or two and include the rest of the sheets in the appendix. This section should only focus on key data points.

Why it matters: One of the most important aspects of becoming "investor ready" is knowing your numbers. More importantly, you need to understand how those numbers will enhance your business.

While it's easy to write a number down on paper, it's more important to understand (and communicate) why you need capital, where it's going, and that your evaluation makes sense.

Example of Financial Projections

"Based on our knowledge and experience in the restaurant industry, we have come up with projections for the business.

Starting with an expenditure of $400,000 in year 1, we forecast sales of $1,500,000 and $2,800,000 for years two and three. We expect to achieve a net profit of 15% by year three."

9. Appendix

A detailed and well-developed business plan can range anywhere from 20 to 50 pages, with some even reaching upward of 80.

In many cases, the appendix is the longest section. Why? Because it includes the supportive materials mentioned in previous sections. To avoid disrupting the flow of the business plan with visuals, charts, and spreadsheets, business owners usually add them in the last section, i.e. the appendix.

Aside from what we've already mentioned – marketing plan, sales plan, department budgets, financial documents – you may also want to attach the following in the appendix:

• Marketing materials
• Market research data
• Licensing documentation
• Branding assets
• Floor plans for your location
• Mockups of your product
• Renderings of your office space or location design

Adding these pieces to the appendix enriches the reader's understanding of your business and proves you've put the work into your business plan without distracting from the main points throughout the plan.

Why it matters: An appendix helps the reader do their due diligence. It contains everything they need to support your business plan.

Keep in mind, however, that an appendix is typically necessary only if you're seeking financing or looking to attract business partners.

Use a Business Plan Template to Get Started

Writing a business plan shouldn't be an insurmountable roadblock to starting a business. Unfortunately, for all too many, it is.

That's why we recommend using our free business plan template. Pre-filled with detailed section prompts for all of the topics in this blog post, we're confident this template will get your business plan started in the right direction.

Editor's note: This post was originally published in June 2017 and has been updated for comprehensiveness.

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2 Essential Templates For Starting Your Business

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With a Business Profile on Google, you can manage how your local business shows up across Google products, like Maps and Search. If you run a business that serves customers at a particular location, or you serve customers within a designated service area, your Business Profile can help people find you. Verified businesses on Google are twice as likely to be considered reputable.

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• Tell Google your hours, website, phone number, and location (a street address, service area, or place marker, depending on your business).
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• Post photos of your business and its products and services.
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• Search engine optimization, or SEO, refers to how results appear when someone uses a search engine like Google. These are called organic search results. You can’t pay to change how and where organic search results show up. Your results are determined by a number of factors, like how relevant they are to the original search. Learn how to improve your SEO .
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• How to Start a Business

How to Start a Business: A Comprehensive Guide and Essential Steps

Building an effective business launch plan

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Conducting Market Research

Crafting a business plan, reviewing funding options, understanding legal requirements, implementing marketing strategies, the bottom line.

• How to Start a Business: A Comprehensive Guide and Essential Steps CURRENT ARTICLE
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Starting a business in the United States involves a number of different steps spanning legal considerations, market research, creating a business plan, securing funding, and developing a marketing strategy. It also requires decisions about a business’ location, structure, name, taxation, and registration. Here are the key steps involved in starting a business, as well as important aspects of the process for entrepreneurs to consider.

Key Takeaways

• Entrepreneurs should start by conducting market research to understand their industry space, competition, and target customers.
• The next step is to write a comprehensive business plan, outlining the company’s structure, vision, and strategy.
• Securing funding in the form of grants, loans, venture capital, and/or crowdfunded money is crucial if you’re not self-funding.
• When choosing a venue, be aware of local regulations and requirements.
• Design your business structure with an eye to legal aspects, such as taxation and registration.
• Make a strategic marketing plan that addresses the specifics of the business, industry, and target market.

Before starting a business, entrepreneurs should conduct market research to determine their target audience, competition, and market trends. The U.S. Small Business Administration (SBA) breaks down common market considerations as follows:

• Demand : Is there a need for this product or service?
• Market size : How many people might be interested?
• Economic indicators : What are the income, employment rate, and spending habits of potential customers?
• Location : Are the target market and business well situated for each other?
• Competition : What is the market saturation ? Who and how many are you going up against?
• Pricing : What might a customer be willing to pay?

Market research should also include an analysis of market opportunities, barriers to market entry, and industry trends, as well as the competition’s strengths, weaknesses, and market share .

There are various methods for conducting market research, and these will vary depending on the nature of the industry and potential business. Data can come from a variety of places, including statistical agencies, economic and financial institutions, and industry sources, as well as direct consumer research through focus groups, interviews, surveys, and questionnaires.

A comprehensive business plan is like a blueprint. It lays the foundation for business development and affects decision-making, day-to-day operations, and growth. Potential investors or partners may want to review and assess it in advance of agreeing to work together. Financial institutions often request business plans as part of an application for a loan or other forms of capital. 

Business plans will differ according to the needs and nature of the company and should only include what makes sense for the business in question. As such, they can vary in length and structure. They can generally be divided into two formats: traditional and lean start-up. The latter is less common and more useful for simple businesses or those that expect to rework their traditional business plan frequently. It provides a vivid snapshot of the company through a small number of elements.

The process of funding a business depends on its needs and the vision and financial situation of its owner.  The first step is to calculate the start-up costs . Identify a list of expenses and put a dollar amount to each of them through research and requesting quotes. The SBA has a start-up costs calculator for small businesses that includes common types of business expenses.  

The next step is to determine how to get the money. Common methods include:

• Self-funding , also known as “ bootstrapping ”
• Finding investors willing to contribute to your venture capital
• Raising money online by crowdfunding
• Securing a business loan from a bank, an online lender, or a credit union
• Winning a business grant from a donor, usually a government, foundation, charity, or corporation

Different methods suit different businesses, and it’s important to consider the obligations associated with any avenue of funding. For example, investors generally want a degree of control for their money, while self-funding puts business owners fully in charge. Of course, investors also mitigate risk; self-funding does not.

Availability is another consideration. Loans are easier to get than grants, which don’t have to be paid back. Additionally, the federal government doesn’t provide grants for the purposes of starting or growing a business, although private organizations may. However, the SBA does guarantee several categories of loans , accessing capital that may not be available through traditional lenders. No matter the funding method(s), it’s essential to detail how the money will be used and lay out a future financial plan for the business, including sales projections and loan repayments . 

Businesses operating in the U.S. are legally subject to regulations at the local, county, state, and federal level involving taxation, business IDs, registrations, and permits.

Choosing a Business Location

Where a business operates will dictate such things as taxes, zoning laws (for brick-and-mortar locations), licenses, and permits. Other considerations when choosing a location might include:

• Human factors : These include target audience and the preferences of business owners and partners regarding convenience, knowledge of the area, and commuting distance.
• Regulations : Government at every level will assert its authority.
• Regionally specific expenses : Examples are average salaries (including required minimum wages), property or rental prices, insurance rates, utilities, and government fees and licensing.
• The tax and financial environment : Tax types include income, sales, corporate, and property, as well as tax credits; available investment incentives and loan programs may also be geographically determined.

Picking a Business Structure

The structure of a business should reflect the desired number of owners, liability characteristics, and tax status. Because these have legal and tax compliance implications , it’s important to understand them fully. If necessary, consult a business counselor, a lawyer, and/or an accountant.

Common business structures include:

• Sole proprietorship : A sole proprietorship is an unincorporated business that has just one owner, who pays personal income tax on its profits.
• Partnership : Partnership options include a limited partnership (LP) and a limited liability partnership (LLP) .
• Limited liability company (LLC) : An LLC protects its owners from personal responsibility for the company’s debts and liabilities.
• Corporation : The different types of corporations include C corp , S corp , B corp , closed corporation , and nonprofit .

Getting a Tax ID Number

A tax ID number is the equivalent of a Social Security number for a business. Whether or not a state and/or federal tax ID number is required will depend on the nature of the business and the location in which it’s registered.

A federal tax ID, also known as an employer identification number (EIN) , is required if a business:

• Operates as a corporation or partnership
• Pays federal taxes
• Has employees
• Files employment, excise, alcohol, tobacco, or firearms tax returns
• Has a Keogh plan
• Withholds taxes on non-wage income to nonresident aliens
• Is involved with certain types of organizations, including trusts, estates, real estate mortgage investment conduits, nonprofits, farmers’ cooperatives, and plan administrators

An EIN can also be useful if you want to open a business bank account, offer an employer-sponsored retirement plan, or apply for federal business licenses and permits. You can get one online from the Internal Revenue Service (IRS) . State websites will do the same for a state tax ID.

Registering a Business

How you register a business will depend on its location, nature, size, and business structure.  For example, a small business may not require any steps beyond registering its business name with local and state governments, and business owners whose business name is their own legal name might not need to register at all.

That said, registration can provide personal liability protection, tax-exempt status, and trademark protection, so it can be beneficial even if it’s not strictly required. Overall registration requirements, costs, and documentation will vary depending on the governing jurisdictions and business structure.  

Most LLCs, corporations, partnerships, and nonprofits are required to register at the state level and will need a registered agent to file on their behalf. Determining which state to register with can depend on factors such as:

• Whether the business has a physical presence in the state
• If the business often conducts in-person client meetings in the state
• If a large portion of business revenue comes from the state
• Whether the business has employees working in the state

If a business operates in more than one state, it may need to file for foreign qualification in other states in which it conducts business. In this case the business would register in the state in which it was formed (this would be considered the domestic state) and file for foreign qualification in any additional states.

Obtaining Permits

Filing for the applicable government licenses and permits will depend on the industry and nature of the business and might include submitting an application to a federal agency, state, county, and/or city. The SBA lists federally regulated business activities alongside the corresponding license-issuing agency, while state, county, and city regulations can be found on the official government websites for each region.

Every business should have a marketing plan that outlines an overall strategy and the day-to-day tactics used to execute it. A successful marketing plan will lay out tactics for how to connect with customers and convince them to buy what the company is selling. 

Marketing plans will vary according to the specifics of the industry, target market, and business, but they should aim to include descriptions of and strategies for the following:

• A target customer : Including market size, demographics, traits, and relevant trends
• Value propositions or business differentiators : An overview of the company’s competitive advantage with regard to employees, certifications, and offerings
• A sales and marketing plan : Including methods, channels, and a customer’s journey through interacting with the business
• Goals : Should cover different aspects of the marketing and sales strategy, such as social media follower growth, public relations opportunities, and sales targets
• An execution plan : Should detail tactics and break down higher-level goals into specific actions
• A budget : Detailing how much different marketing projects and activities will cost

How Much Does It Cost to Start a Business?

Business start-up costs will vary depending on the industry, business activity, and product or service offered. Home-based online businesses will usually cost less than those that require an office setting to meet with customers. The estimated cost can be calculated by first identifying a list of expenses and then researching and requesting quotes for each one. Use the SBA’s start-up costs calculator for common types of expenses associated with starting a small business.

What Should I Do Before Starting a Business?

Entrepreneurs seeking to start their own business should fully research and understand all the legal and funding considerations involved, conduct market research, and create marketing and business plans. They will also need to secure any necessary permits, licenses, funding, and business bank accounts.

What Types of Funding Are Available to Start a Business?

Start-up capital can come in the form of loans, grants, crowdfunding, venture capital, or self-funding. Note that the federal government does not provide grant funding for the purposes of starting a business, although some private sources do.

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