business plan with small investment

Free Small Business Plan Templates and Examples

By Kate Eby | April 27, 2022

• Share on Facebook
• Share on LinkedIn

Link copied

We’ve compiled the most useful collection of free small business plan templates for entrepreneurs, project managers, development teams, investors, and other stakeholders, as well as a list of useful tips for filling out a small business template.

Included on this page, you’ll find a simple small business template and a one-page small business plan template . You can also download a fill-in-the-blank small business plan template , and a sample small business plan template to get started.

Small Business Plan Template

Download Small Business Plan Template Microsoft Word | Adobe PDF | Google Docs  

Use this small business plan template to identify trends and demographics in the company overview. Highlight how your product or service uniquely benefits consumers in the offerings section, and note your proposed timeline, milestones, and the key performance metrics (KPIs) you will use to measure your success. This template has all the components of a standard business plan, from the executive summary through financing details.

Small Business Plan Sample Template

Download Small Business Plan Sample Microsoft Word | Adobe PDF | Google Docs  

Use this small business plan sample template to draft the subsections and headings of the contents of your plan. This template provides editable sample text that shows you how to organize and create a ready-to-be-implemented business plan. This sample template helps remove the guesswork of what to include in a small business plan.

Simple Small Business Plan Template

Download Simple Small Business Plan Template Microsoft Word | Adobe PDF

Use this streamlined, customizable, simple small business plan template to chart revenue, expenses, and net profit or loss forecasts with sample graphics. Order your small business plan with numbered subsections and list them in a table of contents. Supplement the plan with additional information in the appendix for a complete business plan that you can present to investors.

Small Business Plan Chart Template

Download Small Business Plan Chart Template Microsoft PowerPoint | Google Slides

Use this small business plan chart template to plan and track month-by-month and annual business planning. The flexible color-coded bar chart simplifies tracking and allows you to customize the plan to meet your needs. Add tasks, track owner status, and adjust the timeline to chart your progress with this dynamic, visually rich small business planning tool.

Small Business Plan Outline Template

Download Small Business Plan Outline Template Microsoft Word | Adobe PDF | Google Docs

Use this small business plan outline template to jumpstart a plan for your small business. This template includes the nine essential elements of a traditional business plan, plus a title page, a table of contents, and an appendix to ensure that your document is complete, comprehensive, and in order. Easily simplify or expand the outline to meet your company’s needs.

Printable Small Business Plan Template

Download Printable Small Business Plan Template  Microsoft Word | Adobe PDF | Google Docs

This print-friendly small business plan template is ideal for presentations to investors and stakeholders. The customizable template includes all the standard, critical business plan elements, and serves as a guide for writing a complete and comprehensive plan. Easily edit and add content to this printable template, so you can focus on executing the small business plan.

Small Business Startup Plan Template

Download Small Business Startup Plan Template Microsoft Word | Adobe PDF | Google Docs  

Use this small business startup plan template to draft your mission statement and list your keys to business success, in order to persuade investors and inform stakeholders. Customize your startup plan with fillable tables for sales revenue, gross profit margin, and cost of sales projections to secure your business's pricing structure.

Fill-in-the-Blank Small Business Plan Template

Download Fill-in-the-Blank Small Business Plan Template  Microsoft Word | Adobe PDF

This small business plan template simplifies the process to help you create a comprehensive, organized business plan. Simply enter original content for the executive summary, company overview, and other sections to customize the plan. This fill-in-the-blank small business plan template helps you to maintain organization and removes the guesswork in order to ensure success.

One Page Small Business Plan Template

Download One Page Small Business Plan Template  Microsoft Excel | Microsoft Word | Adobe PDF

This one page small business plan template is ideal for quick, simple presentations. Use this template to summarize your business overview, market analysis, marketing, and sales plan, key objectives and success metrics, and milestones timeline. Complete the fillable sections to educate investors and inform stakeholders.

One Page Small Business Plan Example

Download One Page Business Plan Example Microsoft Excel | Microsoft Word | Adobe PDF

This one page small business plan example prompts you to list your vision, mission, product or service, team member names, roles, and relevant experience to promote your small business. Use the market analysis, marketing, sales plan sections to detail how you aim to sell your product or service. This small business plan features fillable tables for key objectives and success metrics. Plus, you’ll find space for your financial cost structure and revenue sources to show how your business will remain profitable.

What Is a Small Business Plan Template?

A small business plan template is a roadmap for defining your business objectives and detailing the operational, financial, and marketing resources required for success. Use a small business plan template to strategize growth, forecast financial needs, and promote investment. 

A small business plan template organizes and outlines the content needed to achieve goals for growth and profit, including marketing and sales tactics. As opposed to starting from scratch, using a template makes it easy to organize the information and customize the plan to meet your needs. 

A small business plan template includes standard business plan sections, as well as the following sections: 

• Executive Summary: Summarize the key points in your small business plan in two pages or less to hold your reader's attention and promote buy-in. Write this section last to capitalize on your understanding of the small business plan.
• Company Overview: Describe the nature of your small business, the industry landscape and trends, demographics, and economic and governmental influences. List your location, product or service, and goals to show what makes your small business unique.
• Problem and Solution: Identify and explain the problem your product or service will solve and its costs. Propose and describe your solution and its benefits. Conclude this section with a summary of the problem and solution.
• Target Market: Identify your small business's target market by researching your product and service to determine the most likely demographic. Explain your target market's motivations for buying your product or service.
• Competition: Note the other competitor product or service offerings, pricing, and company revenues to understand how to outperform your competitors. Detail your small business's competitive advantages, based on research.
• Product or Service Offerings: Describe your product or service, how it benefits your target market, and what makes it unique. Highlight how your product or service will outsell competitors.
• Marketing: Detail your marketing plan with objectives and strategy, including goals, costs, and an action plan. A successful marketing plan reduces costs and boosts your product or service sales.
• Timeline and Metrics: Break down your small business plan into smaller activities. Describe these activities (and the performance metrics you intend to use to track them) and list a completion date for each.
• Financial Forecasts: Explain how your organization uses past performance and market research to inform your business's economic forecasts. Estimate growth and profits based on your informed assumptions.
• Financing: List your funding sources and how you intend to use the funds to keep your company on track as it grows. Smart financing at the planning stage prepares your organization for unexpected challenges and helps to mitigate risk.

A small business plan template enables you to complete your business plan quickly and comprehensively, so you can achieve your goals and turn your product or service idea into a profitable reality.

Optimize Your Business Plan with Real-Time Work Management in Smartsheet

Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change. 

The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

Discover why over 90% of Fortune 100 companies trust Smartsheet to get work done.

How to Write a Convincing Business Plan for Investors

Noah Parsons

9 min. read

Updated April 8, 2024

Raising money for your business is a major effort. You need lists of investors to reach out to and you need to be prepared for your investor meetings to increase your chances of getting funded . You need to practice your pitch and be ready to intelligently answer any number of questions about your business. A key to making this entire process much easier is to invest a little time and write a business plan . It’s true — not all investors will ask to see your business plan. But the process of putting together a business plan will ensure that you’ve thought through every aspect of your business and you’re ready to answer any questions that come up during the fundraising process.

• Why do investors want to see a business plan?

The business plan document itself isn’t what’s important to investors. It’s the knowledge that you’ve generated by going through the process that’s important. Having a business plan shows that you’ve done the homework of thinking through how your business will work and what goals you’re trying to achieve.

When you put together a business plan, you have to spend time thinking about things like your target market , your sales, and marketing strategy , the problem you solve for your customers, and who your key competitors are . A business plan provides the structure for thinking through these things and documents your answers so you’re prepared for the inevitable questions investors will ask about your business. 

Even if investors never ask to see your business plan, the work you’ve done to prepare it will ensure that you can intelligently answer the questions you’ll get. And, if an investor does ask for your business plan, then you’re prepared and ready to hand it over. After all, nothing could be worse than arriving at an investor meeting and then getting a request for a business plan and not having one ready.

Beyond understanding your business strategy, investors will also want to understand your financial forecasts. They want to know how your business will function from a financial standpoint — what is typically called your “ business model .” They’ll also want to know what it will take for your business to be profitable and where you anticipate spending money to grow the business. A complete financial plan is part of any business plan, so investing a little time here will serve you well. 

• What do investors want to see in a business plan?

There’s no such thing as a perfect business plan and investors know this. After all, they’ve spent years, and often decades, hearing business pitches, reading business plans, investing in companies, and watching them both succeed and fail. As entrepreneur and investor Steve Blank likes to say, “No business plan survives first contact with a customer.” 

If this is true, then why bother writing a business plan at all? What’s the value of planning and why do investors want them if they know the plan will shortly be outdated?

The secret is that it’s the planning process, not the final plan, that’s valuable. Investors want to know that you’ve thought about your idea, documented your assumptions, and are on track to validate those assumptions so that you can remove risk from your business. 

So what do investors want to see in your business plan? Beyond the typical sections , here are the most important things that investors want to see in your plan.

A vision for the future

Investors, particularly those investing in early-stage startups, want to understand your vision . Where do you see your company going in the future? Who will your customers be and what problems will you solve for them? Your vision may take years to execute — and it’s likely that the vision will change and evolve over time — but investors want to know that you’re thinking beyond tomorrow and into the future.

Product/market fit and traction

Investors want more than just an idea. They want evidence that you are solving a problem for customers. Your customers have to want what you are selling for you to build a successful business and your business plan needs to describe the evidence that you’ve found that proves that you’ll be able to sell your products and services to customers. If you have “traction” in the form of early sales and customers, that’s even better.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

Funding needed and use of funds

When you’re pitching investors, you need to know how much you’re asking for. Your financial forecast should help you figure this out. You’ll want to raise enough money to cover planned expenses and cash flow requirements plus some additional funding as a safety net. In addition, you’ll want to specify exactly how you plan on using your investment . In a business plan, this section is often called “sources and uses of investment.”

A strong management team

A good idea is really only a small part of the equation for a successful business. In fact, lots of people have good business ideas — it’s the people that can execute well that generally succeed. Investors will pay a lot of attention to the section of your plan where you talk about your management team because they want to know that you can transform your idea into a successful business. If you have gaps and still need to hire key employees, that’s OK. Communicating that you understand what your needs are is the most important thing.

An exit strategy

When investors give you money to start and grow your business, they are looking to eventually make a return on their investment. This could happen by eventually selling your business to a larger company or even by going public. One way or another, investors will want to know your thoughts about an eventual exit strategy for your business.

• What documents do investors want to see?

Even if investors never ask for a detailed business plan, your business planning process should produce a few key documents that investors will want to see. Here’s what you need to be prepared to pitch investors:

Cover letter

These days, a lot of fundraising outreach is done over email and you’ll need a concise cover letter that sparks investor interest. Your cover letter needs to be very brief, but describe the problem you’re solving for your target market.

Great cover letters are sometimes in a “story” format that hooks readers with a real-world, relatable example of the problems your customers face and how our product or service The goal of the cover letter isn’t to explain every aspect of your business. It’s just to spark interest and get a meeting with an investor where you’ll have more time to actually pitch your business. Keep your cover letter brief, engaging, and to the point.

If you get an investor meeting, you’ll almost certainly need a pitch deck to present your idea in more detail and showcase your business idea. Your pitch deck will cover the problem you’re solving, your solution, your target market, and key market trends.

Further Reading: What to include in your pitch deck

Executive summary and/or one-page plan

You might not get a meeting right away. Your cover letter may generate a request for additional information and this is where a solid executive summary or one-page business plan comes in handy. This document, while still short, is more detailed than your cover letter and explains a bit more about your business in a page or two.

Read more about what goes into a great executive summary and how to build a lone-page business plan.

Financial forecasts

Investors will inevitably want to see your financial forecasts. You’ll need a sales forecast, expense budget , cash flow forecast , profit and loss, and balance sheet . If you have historical results, you should plan on sharing those too as well as any other key metrics about your business. Investors will always look deep under the hood of your business, so be prepared to share all the details of how your business will work from a financial perspective.

• What to include in your investor business plan

When you put together a detailed business plan for investors, you’ll follow a fairly standard format. Of course, feel free to customize your plan to fit your business needs. Remember: your business plan isn’t about the plan document that you create — it’s about the planning process that helps you think through and develop your business strategy. Here’s what most investor business plans will include:

Executive Summary

Usually written last, your executive summary is an overview of your business. As I mentioned earlier, you might use the executive summary as a stand-alone document to provide investors more detail about your business in a concise form. Read our guide on executive summaries here .

Opportunity

The opportunity section of your plan covers the problem you are solving, what your solution is, and highlights any data you have to prove that people will spend money on what you’re offering. If you have customer validation in any form, this is where you highlight that information.

Market Analysis

Describe what your target market is and key trends that are occurring in this market . Is the market growing? Are buying patterns changing? How is your business positioned to take advantage of these changes? Be sure to spend some time discussing your competition and how your target market solves their problems today and how your solution is superior.

Marketing & Sales Plan 

Most businesses need to figure out how to get the word out and attract customers. Your business plan should include a marketing plan that describes how you’re going to reach your target market and any key marketing initiatives that you’re going to undertake. You should also spend time describing your sales plan, especially if your sales process takes time to close customers.

Milestones / Roadmap

Outline key milestones you hope to achieve and when you plan on achieving them. This section should cover key dates for product development, key partnerships you need to create, and any other important goals you plan on achieving.

Company & Management

Here’s where you describe the nuts and bolts of your business. How is your organization structured? Who is on your team and what are their backgrounds? Are there any important positions that you still need to recruit for?

Financial Plan

As I mentioned, you’ll need to create a profit and loss, cash flow, and balance sheet forecast. Your financial plan should be optimistic, yet realistic. This is a tough balance and your forecast is certain to be wrong, but you need to document your assumptions and plans for the business.

Finally, you can include an appendix for any key additional information you want to share. Product diagrams, additional details on how you deliver your service, or additional research can all be included.

• What comes next?

Writing a business plan for investors is really about preparing you to pitch your business . It’s quite likely that you’ll never get asked for the actual business plan document. But, the process will prepare you better than anything else to answer any questions investors may have.

Create a business plan that maximizes your chances of securing funding

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

Related Articles

1 Min. Read

5 Tips on Negotiating an Investment Deal

2 Min. Read

How Much of My Company Do I Offer Investors?

5 Min. Read

Make Sure You See Eye to Eye With Your Investors

Five Common Myths About Angel Investing

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

How to Write a Business Plan For Investors (That They Will Love)

You want to write a great business plan that investors will love, but you have no idea how. luckily, the experts at bizplan have given us some great tips check out this in-depth, point-by-point breakdown of how to write an awesome business plan..

April 14th, 2022    |    By: The Startups Team     |    Tags: Development , Pitching , Leadership , Growth , Management , Team , Communication , Pitch Deck , Customers , Scaling , Planning , Product/MVP

A good business plan does more than just inform readers about what your company does, how you earn money, or what you want to do. It persuades the reader that your company is awesome, gets them excited about the opportunity to get involved, and makes them want to help you succeed.

But how do you write a good business plan for investors? You probably didn’t go to business school and if you’re a first-time founder, it can be really hard to figure out how to do something so technical. But don’t worry! This guide will walk you through how to write a business plan for investors, will help you answer the most important questions about your business, and will show you the best ways to illustrate them. We’ve also thrown in some additional resources you can turn to for help.

And if that’s still not enough, Bizplan is giving Startups.com readers 50 percent off their first month of business planning services. Check it out here .

The Big Picture

There are 14 important sections of a business plan. But that is by no means an excuse to write out your entire life story on paper. The average business plan should be around 15 pages — no more than 20.

In the past, the average business plan was anywhere from 40 to 100 pages, and guess what they found out? No one was reading all of that. So don’t let important information about your company get lost in a jumble of words. Investors look for founders who can provide the most value in the least amount of time, and your business plan is a great indication of that ability.

The Big Questions

By the time readers are done reading your business plan, they should have a clear understanding of the following: Why (Why this? Why now? Why you? Why them?) and how (How will you make money? How will you get customers? How will you grow your business?).

These questions should be answered throughout your business plan, and should prove to those reading it that your company has the right product, market, team, time, and strategy to make them a return on their investment.

So without further adieu, here is a breakdown of writing a business plan for investors:

1. Executive Summary

The Executive Summary is an introduction to the main ideas that you will discuss in the rest of the plan. If an investor read only the Executive Summary and nothing else, you’d want them to be able to walk away with a clear understanding of the main highlights of your business and why it’s exciting.

A good Executive Summary includes quick, one to two sentence overviews of the following information: mission statement, product/service summary, market opportunity summary, traction summary, next steps, and vision statement.

Pro tip: Although the Executive Summary comes first, it is often helpful to write it last because you’ll have worked through everything by then.

2. Investment Opportunity

The Investment Opportunity section is where you tell investors what your goals are, why they are integral in helping you achieve those goals, and what they have to gain from getting involved with your company. This includes:

• Your Funding Goal : How much money do you need to move forward
• Terms : What will investors get in exchange for their investment?
• Use of Funds : How do you plan to use those funds? (Hint: a 6-figure salary for yourself isn’t what they’re looking for here)
• Milestones : What will you be able to achieve with their investment?

Again, the most important question to answer here is why: Why should investors want to be a part of your company, and why is now the time for them to get involved? Identify the three to four key factors that make your company a great opportunity and make sure they’re included in this section.

3. Team Overview

This is where you introduce your team and how you’ll work together to bring the business to life. An ideal Team Overview section makes the case not only that your team is the right team for the job, but that you’re the only team for the job.

In order to do this, you need to create a bio for each member of the team. Each team bio should include: the team member’s name; their title and position at the company; their professional background; any special skills they have developed as a result of their past experience; their role and responsibilities at your company; and what makes them uniquely qualified to take that role on.

Pro Tip: This is not the time or place for cheesy fun facts or hobbies. Aim for three to five concise sentences on each team member.

4. Market Opportunity

Before you do a deep dive into what your company does, it’s important to set the stage and provide readers with some insight about why you’re starting this company in the first place. A good market opportunity section addresses two key points: The problem that your product/service solves, and the industry trends that make now the time for your company to succeed.

When writing the “problem” part of this section, consider two questions: What problems do your target customers face that your product/service solves? What annoyances or inconveniences do they face that your company helps to eliminate?

When writing the “trends” section, consider these three questions: What recent emerging trends have you developed your product/service in response to? Are there any new or emerging technologies that make your product/solution possible? Are there any specific brands you can point to that illustrate the demand for products/services like (but not too like) yours?

And to sum it all up, write a conclusion that answer this question: How do the problems customers face and the trends that are happening come together to create the perfect environment for your company to succeed?

5. Company Synopsis

The company synopsis section is where you introduce readers to your company and what you have to offer. This is the easy part: It’s where you get to talk about what you’re doing and why it’s awesome.

Consider these questions if you’re having trouble getting started: What does your company do? How does it solve the problem you’ve previously outlined? What products and services do you offer? How will customers use your product/service? What are the key features? What makes your product/service different from anything currently available?

6. Revenue Model

This is where you answer the age-old question of any business: How does your company make money? Identify all current/initial revenue sources, including pricing, COGS, and margins.

Ask yourself: Why is this revenue model the right fit for your current stage? How does your pricing compare to competitors? Are there additional revenue sources you plan to add down the line? If you haven’t started generating revenue when & how will you “flip the switch”?

7. Traction/Company Milestones

It’s important for investors to see that your business is more than just an idea on a cocktail napkin; it’s an actual, viable business. Traction is a huge part of making that case.

Here are some key categories of traction that signal to readers that your company is making moves.

• Product Development : Where are you in the process? Is your product in the market?
• Manufacturing/Distribution: Do you have an established partner for production/manufacturing? Distribution?
• Early Customers and Revenue : Do you have existing customers? How many? And how fast are you growing? Have you started generating revenue?
• Testimonials and Social Proof : Do you have any positive client reviews of your product/service? Any high profile customers or industry experts?
• Partnerships : Have you secured partnerships with any established brands?
• Intellectual Property : Do you have any patents for the technology behind your company? Is your company name trademarked?
• Press Mentions : Has your company been featured by any media outlets? Which ones?

8. Industry Analysis

The industry analysis section provides a bird’s eye view of the industry your company is positioned in, what’s happening in the industry, and where your company stands in relation to your peers. You want readers to walk away from your business plan seeing not only that you’re an expert in your company but that you’re highly knowledgeable about the industry you’re entering into.

Be intentional about the statistics you include in the plan. Include only numbers that really help to illustrate: the size of the opportunity your company is positioned to address; the demand for your solution; the growth of the audience/demand for your product that is already happening; and competitor analysis.

Now that you’ve introduced readers to your industry, it’s time to give them a glimpse into the other companies that are working in the same space, and how your company stacks up. Identify at least three sources of competition for your company and answer the following questions about each one:

• Basic Info : Where are they based? What stage of growth are they in?
• Traction : How much revenue do they generate? How many customers do they have? Have they received funding?
• Similarities and Differences : What are their strengths? How do you plan to neutralize them? What are their weaknesses? How is that an advantage to you?
• The Takeaway : What can you learn from your competitors to make your company stronger?

Pro tip: When identifying competitors, it’s important to think outside the box, and look beyond companies that are offering the exact same product or service that you are. A skimpy competitor analysis section doesn’t tell investors that your solution is unrivaled — it tells them that you’re not looking hard enough.

9. Differentiating Factors

The differentiating factors section is where you outline how your product/service is different from others on the market and how those differences will help you to maintain your strategic edge. Ask yourself: What are three to five key differentiators between your company and other solutions out there? How will these advantages translate into a long-term advantage for your company?

10. Target Audience

The target audience section is where you show readers that you know who your audience is, where they are, and what is important to them.

Some questions to help you get started include: Who are the people that your product/service is designed to appeal to? What do you know about customers in this demographic? Does your target audience skew more male or more female? What age range do your target customers fall in? Around how many people are there in this target demographic? Where do your target customers live? How much money do they make? Do they have any particular priorities or concerns when it comes to the products/services they buy?

11. User Acquisition and Marketing Strategy

Now that we know who your customers are, the next question is: How do you plan on getting them?

Ask yourself: How will you get your first customers? Who will you target first? Will you introduce your product in certain key geographic locations? Are there any existing brands that you are planning to partner with? How do you plan to raise awareness for your brand? What forms of media will you use? Why? Do you have a presence on social media? Which platforms do you use and why? Essentially, what is your marketing strategy ?

12. Future Growth and Development

Once you’ve accomplished all the short-term goals, built out your initial product offering, and acquired your first customers — what will you do to grow your business from there?

Ask yourself: Do you have any new products in the pipeline? How will these new products enhance your current offerings? Are you planning to expand into new markets (new cities, new demographic categories)? Can you provide a timeline of when you expect each new development to take place? What metrics or conditions will help you to decide when it’s time to move forward? What are some potential exit strategies for your company down the road? Will you seek acquisition by a larger company? Do you plan to take the company public with an Initial Public Offering?

13. Financial Overview

Financial data is always at the end of the business plan, but that doesn’t mean it’s any less important. In fact, poor financials can rip apart anything you initially had going for you. The charts, tables, and formulas in your financial section show an investor how well you’re doing and what your odds are for continued survival.

The three most important things to include are: cash flow statement, income statement, and your balance sheet. While these three things are related, they measure quite different aspects of a company’s financial health.

We’re Here To Help

There you have it: A comprehensive guide to writing your next business plan for investors. Sound like a big undertaking? Our friends at Bizplan.com have your back. Click here for a Startups.co exclusive discount on their services. Good luck!

About the Author

The startups team.

Startups is the world's largest startup platform, helping over 1 million startup companies find customers , funding , mentors , and world-class education .

Discuss this Article

Related articles, timing isn't everything.

The Co-Founder and CEO of Care.com talks about the winding road she took — from a small coconut farm in the Philippines to becoming one of a handful women CEOs leading a publicly traded company.

Expecting Chaos

The prolific internet entrepreneur and investor shares stories about the hard-fought success at PayPal, discusses his failures and what it was like at the very peak of the dot com bubble.

Against Considerable Odds

Founder & CEO of Walker & Company on courage, patience, and building things that solve problems.

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

• Search Search Please fill out this field.

The Importance of Market Research

Creating a business plan, legal requirements, exploring funding options, crafting a marketing strategy, managing and growing your business, how do i start a small business for beginners, how do i create a business plan, what are six ways to grow and scale a business, the bottom line.

• Small Business
• How to Start a Business

Starting a Small Business: Your Complete How-to Guide

From market research to managing growth

The U.S. is home to 33.2 million small businesses, which drive over 43% of GDP.   If you are looking to start a business, there are key factors to consider—from market research and creating a business plan to scaling your business. These factors are critical to your journey and can make a big difference no matter what stage of the process you are in.

Entrepreneurs who take concrete action can differentiate themselves from competitors, innovate, and grow. For successful entrepreneurs, the execution of the business is often what means the most. 

Key Takeaways

• Starting a small business involves extensive market research of your target audience, competitors, and gaining a deep understanding of the industry.
• It is important to build a comprehensive business plan that includes the product or service description, your target customers, financial projections, and all other key details.
• Understanding the legal requirements of starting your business involves knowledge of business registration, permits, licensing, and other regulatory requirements.
• There are various types of funding channels for starting a business, including financing it yourself, securing external funding from your network, and applying for government and corporate grants and loans. 

Being clear about your business goals involves doing your research. Successful entrepreneurs often do extensive research on their field. This includes understanding their prospective customers, the technical aspects of the industry, and the challenges other businesses are facing. 

Understanding how other players operate in an industry is important. Attending conferences, joining associations, and building a network of people involved in the field can help you learn how decisions are made. Often, comprehensive market research takes six months to a year. 

Understanding Your Target Audience

Knowing your target market is critical for many reasons. These are the customers who are most likely to purchase your product, recommend it to friends, and become repeat buyers. Apart from driving your bottom line, having a strong understanding of your target audience will allow you to tailor your offering more effectively, reach your customers more efficiently, and manage customer expectations.

Compiling demographic data on age, family, wealth, and other factors can give you a clearer understanding of market demand for your product and your potential market size.

It’s important to ask, “Why would someone buy this and part with their discretionary income?” or “Will someone love this enough to tell someone about it?” At the heart of these questions is understanding whether your business solves a key problem, as well as whether it delivers the “more” that connects to your audiences’ human emotions.

Assessing Market Trends and Opportunities

To find an advantage in a given market, look at key market trends in customer behavior and the business landscape. Explore the state of business conditions and consumer spending, along with the economic environment and how interest rates may affect financing and business growth.

Several resources are available to dive into market trends across industries, such as Statistics of U.S. Businesses and the U.S. Census Business Builder . To analyze the competitive landscape, and in turn, identify key opportunities, Porter's 5 Forces is a classic model to help businesses build their competitive strategy.

A business plan is a road map for achieving your business goals. It outlines the capital that you need, the personnel to make it happen, and the description of your product and prospective customers.

There are a number of models for creating a business plan. The Small Business Administration (SBA) , for instance, provides a format that includes the following nine sections:

• Executive summary: This should be a description of your company and its potential for success. The executive summary can cover your mission statement, employees, location, and growth plan.
• Company description: This is where you detail what your business offers, its competitive advantages, and your strengths as a business.
• Market analysis: Lay out how your company is positioned to perform well in your industry. Describe market trends and themes and your knowledge of successful competitors.
• Organization and management: Who is running your company, and how is your business structured? Include an organizational chart of your management team. Discuss if your business will be incorporated as a business C or S corporation, a limited partnership, a limited liability company, or a sole proprietorship. 
• Service or product line: Here is where you describe how your business will solve a problem and why this will benefit customers. Describe how your product lifecycle would unfold.
• Marketing and sales: Detail your marketing strategy and how this will reach your customers and drive return on investment. 
• Funding request: If you're looking for financing, lay out the capital you’re requesting under a five-year horizon and where, in detail, it will be allocated, such as salaries, materials, or equipment. 
• Financial projections: This section shows the five-year financial outlook for your company and ties these to your request for capital.

Having a coherent business plan is important for businesses looking to raise cash and crystallize their business goals.

Setting Goals and Strategies

Another key aspect of a business plan is setting realistic goals and having a strategy to make these a reality. Having a clear direction will help you stay on track within specified deadlines. In many ways, it allows companies to create a strategic plan that defines measurable actions and is coupled with an honest assessment of the business, taking into account its resources and competitive environment. Strategy is a top-down look at your business to achieve these targets.

Financial Projections and Budgeting

Often, entrepreneurs underestimate the amount of funding needed to start a business. Outlining financial projections shows how money will be generated, where it will come from, and whether it can sustain growth. 

This provides the basis for budgeting the costs to run a business and get it off the ground. Budgeting covers the expenses and income generated from the business, which include salaries and marketing expenses and projected revenue from sales.

Another important aspect of starting a business are the legal requirements that enable you to operate under the law. The legal structure of a business will impact your taxes, your liability, and how you operate.

Businesses may consider the following structures in which to operate:

• Corporation
• Limited Liability Company (LLC)
• Partnership
• Sole Proprietorship

Each has different legal consequences, from regulatory burdens to tax advantages to liability being shifted to the business instead of the business owner.

Registering Your Business

Now that you have your business structure outlined, the next step is registering your business . Your location is the second key factor in how you’ll register your business. In many cases, small businesses can register their business name with local and state government authorities. 

If your business is being conducted under your legal name, registration is not required. However, such a business structure may not benefit from liability protection, along with certain legal and tax advantages. Often, registering your businesses costs $300 or less.

Before filing, a business structured as a corporation, LLC, or partnership requires a registered agent in its state. These agents handle the legal documents and official papers on your behalf.

Businesses that are looking to trademark their product, brand, or business, can file with the United States Patent and Trademark Office.

Understanding Permits and Licenses

If your business conducts certain activities that are regulated by a federal agency, you’re required to get a permit or license. A list of regulated activities can be found on the SBA website, and includes activities such as agriculture, alcoholic beverages, and transportation.

There are many different ways to fund a business. One of the key mistakes entrepreneurs make is not having enough capital to get their business running . The good news is that there are several channels to help make this happen, given the vital role entrepreneurs play in creating jobs and boosting productivity in the wider economy.

Self-Funding vs. External Funding

Bootstrapping, the term commonly used to describe self-funding your business, is where companies tap into their own cash or network of family and friends for investment. While the advantage of self-funding is having greater control, the downside is that it often involves more personal risk.

External funding involves funding from bank loans, crowdfunding, or venture capital , among other sources. These may provide additional buffers and enable you to capture growth opportunities. The drawback is less freedom and more stringent requirements for paying back these funds.

Grant and Loan Opportunities

Today, there are thousands of grants designed especially for small businesses from the government, corporations, and other organizations. The U.S. Chamber of Commerce provides a weekly update of grants and loans available to small businesses. 

For instance, Business Warrior offers loans between $5,000 and $50,000 to small business owners. As another example, Go. Be. Elevate Fund offers $4,000 to grant recipients who are women and/or people of color business owners to help them grow their businesses.

When it comes to marketing, there is a classic quote from Milan Kundera: “Business has only two functions—marketing and innovation." In order to reach customers, a business needs a marketing strategy that attracts and retains customers and expands its customer base.

To gain an edge, small businesses can utilize social media, email marketing, and other digital channels to connect and engage with customers.

Branding Your Business

Building a successful brand goes hand in hand with building a great experience for the customer. This involves meeting the expectations of your customer. What is your brand offering? Is it convenience, luxury, or rapid access to a product? Consider how your brand meets a customer's immediate need or the type of emotional response it elicits. Customer interaction, and in turn loyalty to your brand, is influenced, for example, by how your brand may align with their values, how it shifts their perception, or if it resolves customer frustration.

Digital Marketing and Social Media

We live in a digital-first world, and utilizing social media channels can help your business reach a wider audience and connect and engage in real time. Given that a strong brand is at the heart of successful companies, it often goes without saying that cultivating a digital presence is a necessity in order to reach your customers. 

According to HubSpot’s 2023 report, The State of Consumer Trends, 41% of the 600-plus consumers surveyed discovered new products on social media and 17% bought a product there in the past three months.

Managing a business has its challenges. Finding the right personnel to run operations, manage the day-to-day, and reach your business objectives takes time. Sometimes, businesses may look to hire experts in their field who can bring in specialized knowledge to help their business grow, such as data analysts, marketing specialists, or others with niche knowledge relevant to their field.

Hiring and Training Staff

Finding the right employees involves preparing job descriptions, posting on relevant job boards such as LinkedIn, and effectively screening applicants. Careful screening may involve a supplemental test, reviewing a candidate's portfolio, and asking situational and behavioral questions in the interview. These tools will help you evaluate applicants and improve the odds that you'll find the people you are looking for.

Once you have hired a new employee, training is the next essential step. On average, it takes about 62 hours to train new employees. Effectively training employees often leads to higher retention. While on-the-job training is useful, consider having an onboarding plan in place to make the transition clear while outlining expectations for the job.

Scaling Your Business

Growing your business also requires strategy. According to Gino Chirio, executive vice president at the consultancy group Maddock Douglas, there are six ways that companies can grow their business to drive real growth and expansion:

• New processes: Boost margins by cutting costs.
• New experiences: Connect with customers in powerful ways to help increase retention.
• New features: Provide advancements to your existing product or service.
• New customers: Expand into new markets, or find markets where your product addresses a different need.
• New offerings: Offer a new product.
• New models: Utilize new business models, such as subscription-based services, fee-for-service, or advertising-based models.

With these six ways to grow a business, it is important to consider the risk, investment, and time involved. Improving your margins through new processes is often the most straightforward way to grow. Offering new features is also effective since it is tailored to your existing market with products you have already delivered.

By contrast, offering new products may involve higher risk since these have not been tested in the market. However, they may offer higher reward, especially if you have a first-mover advantage and release your product in the market before the competition.

A good place to start building a business is to understand the following core steps that are involved in an entrepreneur's journey : market research, creating a business plan, knowing the legal requirements, researching funding options, developing a marketing strategy, and business management.

A business plan is made up of a number of primary components that help outline your business goals and company operations in a clear, coherent way. It includes an executive summary, company description, market analysis, organization and management description, service or product line description, marketing and sales plan, funding requests (optional), and financial projections.

Business growth can fall into the following six categories, with each having varying degrees of risk and investment: new processes, new experiences, new features, new customers, new offerings, and new models.

Knowing how to start a small business involves the key steps of market research, setting up a business plan, understanding the legal requirements, exploring funding options, crafting a marketing strategy, and managing your business. 

For aspiring small business owners, these steps can help you successfully deliver your product or service to the market, and ultimately grow. While it can take a considerable amount of work, the payoffs are manifold: independence of work, personal fulfillment, financial reward, and following your passion.

U.S. Chamber of Commerce. " The State of Small Business Now ."

U.S. Small Business Administration. " Market Research and Competitive Analysis ."

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

U.S. Small Business Administration. " Choose a Business Structure ."

U.S. Small Business Administration. " Register Your Business ."

U.S. Small Business Administration. " Apply for Licenses and Permits ."

U.S. Small Business Administration. " Fund Your Business ."

U.S. Chamber of Commerce. " 52 Grants, Loans and Programs to Benefit Your Small Business ."

Ogilvy. " Behind Every Brand Is a Great Experience, and Vice Versa—Why Today's Customer Expects Synergy ."

HubSpot. " The State of Consumer Trends in 2023 ."

Training Magazine. " 2022 Training Industry Report ."

Harvard Business Review. " The Six Ways to Grow a Company ."

• How to Start a Business: A Comprehensive Guide and Essential Steps 1 of 25
• How to Do Market Research, Types, and Example 2 of 25
• Marketing Strategy: What It Is, How It Works, and How to Create One 3 of 25
• Marketing in Business: Strategies and Types Explained 4 of 25
• What Is a Marketing Plan? Types and How to Write One 5 of 25
• Business Development: Definition, Strategies, Steps & Skills 6 of 25
• Business Plan: What It Is, What's Included, and How to Write One 7 of 25
• Small Business Development Center (SBDC): Meaning, Types, Impact 8 of 25
• How to Write a Business Plan for a Loan 9 of 25
• Business Startup Costs: It’s in the Details 10 of 25
• Startup Capital Definition, Types, and Risks 11 of 25
• Bootstrapping Definition, Strategies, and Pros/Cons 12 of 25
• Crowdfunding: What It Is, How It Works, and Popular Websites 13 of 25
• Starting a Business with No Money: How to Begin 14 of 25
• A Comprehensive Guide to Establishing Business Credit 15 of 25
• Equity Financing: What It Is, How It Works, Pros and Cons 16 of 25
• Best Startup Business Loans 17 of 25
• Sole Proprietorship: What It Is, Pros and Cons, and Differences From an LLC 18 of 25
• Partnership: Definition, How It Works, Taxation, and Types 19 of 25
• What Is an LLC? Limited Liability Company Structure and Benefits Defined 20 of 25
• Corporation: What It Is and How to Form One 21 of 25
• Starting a Small Business: Your Complete How-to Guide 22 of 25
• Starting an Online Business: A Step-by-Step Guide 23 of 25
• How to Start Your Own Bookkeeping Business: Essential Tips 24 of 25
• How to Start a Successful Dropshipping Business: A Comprehensive Guide 25 of 25

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

Financing | Tip List

15 Smart Investment Strategies for Small Business Owners

Published February 28, 2022

Published Feb 28, 2022

WRITTEN BY: Tom Thunstrom

• 1 Formal Disaster Recovery Plan
• 2 Your Company’s Talent
• 3 Online Marketing
• 4 Product Development
• 5 Search Engine Optimization
• 6 Accountant
• 7 Emergency Fund
• 8 Your Skills
• 10 Your Retirement Account
• 11 Certificate of Deposit
• 12 Savings Bonds
• 13 Diversification
• 14 Low-fee Index Funds
• 15 Financial Advisor

As a small business owner, you should understand how to invest your capital wisely and how to diversify funds to attain financial stability in your personal life. Additionally, consider strategies such as how to invest in your company’s employees, an emergency fund for your business as well as to hire an accountant. We have 15 smart investment strategies that will help your business and your finances.

Investing in Your Business

1. invest in a formal disaster recovery plan.

Small business owners should invest in a formal disaster recovery plan and consider business interruption insurance to protect their businesses in the event of an unexpected disaster. Many small business owners lack both a formal disaster recovery plan and business interruption insurance , a key insurance policy that can help pay for operating costs if they’re forced to temporarily close. According to a poll by Insureon conducted with small business resource Manta, 61% of surveyed small businesses lack a disaster recovery plan, while 60% admit that they don’t carry business interruption insurance.

2. Invest in Your Company’s Talent

Each hiring decision your business makes is a change in trajectory, for better or worse. The best investments businesses can make are those that ensure that they’re able to both attract and retain the best person for every position. This can mean investing time to interview candidates thoroughly to find the best possible hire, investing in resources to help train and develop your talent, or investing financial resources to craft an improved compensation and benefits package.

3. Invest in Online Marketing

To help your business grow, it’s important to set aside a portion of your capital for online marketing. Effective online marketing requires knowing your target market and crafting a digital presence that promotes your company. Whether that presence is heavy with digital advertising , social media, email marketing, or a combination of factors, this investment will go a long way, as it allows you a wider reach, and most of your target audience is on the internet.

4. Invest in Product Development

Investing in product improvement and enhancement will increase revenue and profit. Start by looking at the top-selling products your company offers and expand on those offerings. Know your customers’ needs, their pain points, and find a way to address those. It may require a high initial investment and perhaps require some brainstorming, but the return on this investment will be worth it.

5. Invest in Search Engine Optimization

Small businesses should invest in marketing assets that continue to produce revenue for them over the long term. While Google AdWords or Facebook Ads are effective choices for marketing, they’re limited in potential, as a decrease in advertising means a reduction in leads for your business. By contrast, investing in search engine optimization (SEO) has a return on your investment that goes beyond the dollars you pump in. The return on investment for each dollar invested in SEO is about $2.75 on average , with some sectors averaging greater returns. Your site can still rank high for your keywords and you’ll still be getting organic leads from SEO for months or years after any reduction in spending.

6. Hire an Accountant

Don’t do your own accounting. As your business grows, finances become increasingly more complex, which increases the likelihood you’ll spend way too much time trying to make sense of your earnings and expenses in preparation for tax season. Not only is this a way to dodge a guaranteed headache, but it’ll also free up time to grow your business. Invest some of your funds to hire an accountant, and you’ll save yourself from headaches in the long run. If you choose not to hire an accountant, you can still take advantage of these accounting tips to help your business.

7. Build an Emergency Fund

Half of American households lack more than three months in emergency savings. Many businesses have only weeks of reserve cash on hand. If you haven’t done so already, set up emergency fund accounts for your business and yourself. This would prevent the need to touch your longer-term savings or investment accounts whenever you have an urgent need for money. Personal emergency fund uses include medical issues or urgent home repairs; a business emergency fund covers unexpected changes in business operations, such as pandemics or natural disasters.

8. Invest in Yourself & Your Skills

Invest in yourself and in bettering your skills and abilities. You can enroll in some courses that are related to your industry or take certification programs that you may need for your business. You can make many financial investments, yet still risk losing money. When you invest in yourself, you have a better opportunity to improve your business and revenue. You’ll always end up on top investing in yourself.

9. Invest in Property

If your business isn’t planning to move any time in the next several years, consider purchasing a property for your business to operate out of. Purchasing your own property can save you on rental costs and you can use your office on your own terms. Much like residential real estate, commercial properties have appreciated in value over the past decade. When you’re looking for a property , it’s important to consider several factors, including where your employees reside and the company’s future needs.

Investing Your Finances

10. contribute the maximum allowable amount to your retirement.

Do your best to contribute the maximum allowable amount each year. With small business and solo 401(k) plans , you can contribute up to $58,000 annually including your own contributions. A SEP IRA works in much the same way but doesn’t involve creating and administering a 401(k) plan. These options all offer some level of tax deferral based on your income and contribution levels for the plan year.

11. Invest in a Certificate of Deposit for Lower Risk

Many savings or checking accounts earn little, if any, interest. If you’re risk-averse, opening a certificate of deposit (CD) is a way to save money at a higher interest rate compared to your regular account, with your CD being insured by the Federal Deposit Insurance Corporation (FDIC). Watch for special promotions from your financial institutions and set up a short- or long-term CD to save money for your business’s future.

12. Consider Series I Savings Bonds

Individuals and businesses can purchase up to $10,000 in Series I savings bonds annually. These bonds are indexed to inflation and have paid out a higher interest rate than many CDs and money market accounts since their inception. Savings bonds need to be held for at least one year and have a three-month interest penalty in years two through five should you need to redeem them. However, they offer a very low risk and solid rate of return and can complement both your corporate and personal savings strategy.

13. Diversify Your Investments Away From Your Business’s Industry

You know your industry well. A smart investment strategy is to avoid the familiarity bias and keep your investments diversified instead of focusing on your field of expertise. One way to accomplish this is to construct a broad portfolio with limited investments in your field of business. A good financial professional can assist you with this, or you can construct it on your own using broad-based index funds or exchange-traded funds (ETFs).

14. Set Up Automatic Investments Into Low-fee Index Funds

A simple and effective investment strategy for small business owners is to set up automatic investments into low-fee index funds. As a business owner, you’re largely preoccupied with your company, and it is unlikely you have time to spare for researching and evaluating specific stocks or bonds. Setting up automatic investments into low-fee index funds can help generate solid long-term returns. This strategy also allows you to stay as emotionless as possible with your investing, because there is no reason to ever look at day-to-day performance, given you aren’t making any day-to-day decisions.

15. Invest in a Financial Advisor

One of the biggest challenges small business owners face is how to manage the fact that much of their net worth can be tied up in their own business. While diversification is a critical part of normal investment strategy, small business owners need to balance both investing in their own business and investing for their retirement. Small business owners should carefully interview a financial advisor to make sure the advisor understands the need to reinvest in the business but also has the expertise to guide the business owner toward investing through the stock market when that provides a better return.

Bottom Line

Smart small business owners invest both their business and personal monies to grow their business, save for emergencies, and help them prepare for retirement. There are several approaches to take that vary in potential risks and rewards. Having an accountant to help manage your business finances and a financial planner to help you plan for the future are wise investments that will pay dividends over the long haul.

About the Author

Find Tom On LinkedIn

Tom Thunstrom

Tom Thunstrom is a staff writer at Fit Small Business, specializing in Small Business Finance. He holds a Bachelor’s degree from the University of Minnesota and has over fifteen years of experience working with small businesses through his career at three community banks on the US East Coast. In a prior life, Tom worked as a consultant with the Small Business Development Center at the University of Delaware.

Join Fit Small Business

Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Select the newsletters you’re interested in below.

Investing in small businesses in 2023

Advertiser disclosure.

We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.

Our articles, interactive tools, and hypothetical examples contain information to help you conduct research but are not intended to serve as investment advice, and we cannot guarantee that this information is applicable or accurate to your personal circumstances. Any estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional.

How We Make Money

The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.

Editorial disclosure

All reviews are prepared by our staff. Opinions expressed are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including any rates, terms and fees associated with financial products, presented in the review is accurate as of the date of publication.

• Share this article on Facebook Facebook
• Share this article on Twitter Twitter
• Share this article on LinkedIn Linkedin
• Share this article via email Email

• Connect with Giovanny Moreano on Twitter Twitter
• Connect with Giovanny Moreano on LinkedIn Linkedin
• • Investing
• Connect with Brian Beers on Twitter Twitter
• Connect with Brian Beers on LinkedIn Linkedin

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money .

Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.

Bankrate follows a strict editorial policy , so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts , who ensure everything we publish is objective, accurate and trustworthy.

Our investing reporters and editors focus on the points consumers care about most — how to get started, the best brokers, types of investment accounts, how to choose investments and more — so you can feel confident when investing your money.

The investment information provided in this table is for informational and general educational purposes only and should not be construed as investment or financial advice. Bankrate does not offer advisory or brokerage services, nor does it provide individualized recommendations or personalized investment advice. Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives. Investing involves risk including the potential loss of principal.

Editorial integrity

Bankrate follows a strict editorial policy , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.

Key Principles

We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.

Editorial Independence

Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.

How we make money

You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.

Bankrate follows a strict editorial policy , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.

We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.

Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.

Small-business owners are integral to the fabric of the U.S. economy, generating millions of jobs and providing identity to the communities they serve. Small businesses have generated 12.9 million net new jobs over the past 25 years, which accounts for two-thirds of the jobs added to the economy, according to the U.S. Small Business Administration. By fostering entrepreneurship and innovation, small businesses keep local economies healthy and vibrant.

Despite these benefits, many small businesses often lack funding to sustain and expand their operations, relying on local investors to get the capital they need to grow. Investing in small businesses offers potential returns, diversification, and an opportunity to participate in the success of the American economy.

This handy guide explores how retail investors could bolster their portfolios by investing in local businesses.

Small business investing by the numbers

• Over the past 25 years, small businesses have accounted for 66 percent of employment growth, according to the U.S. Small Business Administration.
• A study by the 3/50 project, an advocacy group, shows that for every $100 a customer spends at an independent store, $68 returns to the community through taxes, payrolls, and other expenses. In comparison, when you spend $100 at a national chain, only $43 stays in the community.
• There are 32.5 million small businesses in the U.S., accounting for 99.9 percent of all companies, according to the U.S. Chamber of Commerce.
• Small businesses employ about half of America’s private sector workforce, according to Dataman Group.
• A 2020 study by Union Bank revealed that 72 percent of Americans said supporting a small business was more important than getting the best deal elsewhere, with many respondents willing to spend $20 more for an item at an independent shop.
• Non-profit organization SCORE found that 91 percent of Americans shop at local stores at least once a week, while 47 percent frequent a local shop between two to four times weekly.

Ways to invest in a small business

Whether you are considering funding a new business venture or taking ownership of an existing one, there are typically two main options:

• Equity investments involve offering money in exchange for a share of the business. Through this approach, you become an owner of the company, sharing its profits or losses and possibly even participating in business decisions.
• Debt investments are loans given to small business owners in exchange for interest payments over a predetermined period. By agreeing to pay back the total balance plus interest, entrepreneurs maintain full ownership of the business.

While each deal is unique and may include a combination of equity and debt, these two principles are the foundation of most transactions. Like any other investment, though, each option carries pros and cons.

Equity Investments

Debt investments.

Apart from the motivation of making someone’s dreams come true, many investors choose small-business investments to generate passive income and diversify their assets outside of the stock market and real estate holdings. Owners can also allow investors to be involved in a business’s strategy while potentially adding value to the local community.

Who can invest in small businesses?

For a long time, investing in small businesses was reserved for accredited investors or individuals with a net worth of at least $1,000,000 (excluding their primary residence), an annual income of more than $200,000 for each of the past two years and the expectation it will continue, or those who hold certain investment licenses. Depending on the deal, federal regulation prohibited retail investors from accessing what officials considered to be highly risky investments.

However, the 2012 Jumpstart Our Business Startups Act, or JOBS Act, lifted some restrictions, allowing retail investors over 18 years of age to invest in crowdfunding platforms like Mainvest or Honeycomb Credit . Both startups vet small business owners and provide access to credit.

Nevertheless, because of regulations, most investors can only invest up to $2,500 or 5 percent of their annual income over 12 months if their yearly salary or net worth is less than $124,000. For those with higher incomes, the limit jumps to 10 percent of their annual salary or net worth, whichever is higher. There are no investment limitations for accredited investors.

The Securities and Exchange Commission periodically adjusts these limits based on inflation.

Funding options for small businesses

Small businesses have different options when it comes to funding their businesses. They include: crowdfunding, friends and family, small business loans, grants, bootstrapping, angel investors and venture capital.

Questions to ask before investing in a small business

Because small businesses are more susceptible to economic shifts, overhead costs, changes in supply and demand, and other conditions, investors must exercise due diligence when selecting a potential investment. One advantage of investing with crowdfunding platforms is that these companies do much of the legwork upfront, such as reviewing tax returns, credit scores, and other essential documents.

Before deciding on an investment, here are some of the questions you may want to consider:

• What is the business plan and strategy?
• What is the current state and future potential for that industry?
• What does the competitive landscape look like and what are the top barriers to entry?
• How much money does the business need to raise?
• How much equity, debt, and liabilities does the business hold ?
• When can you expect to see a return on your investment ?

Of course, there are plenty of other considerations, including non-tangible ones. For example, what is the small business owner’s story, and what value does the business bring to the community? For many investors, investing in small businesses transcends monetary factors, but be careful not to fall in love with the story and forget that you’re making a financial investment. Behaving emotionally is not a good idea when it comes to investing.

Risks of investing in small businesses

All investments carry varying levels of risk, and it’s no different when it comes to small businesses. Apart from potentially losing your entire investment, these deals are inherently risky — especially since many entrepreneurs don’t qualify for funding from traditional banks. Therefore, many financial professionals suggest only investing what you can afford to lose.

Target returns can range from 10 percent to 25 percent to compensate investors for that risk, according to the crowdfunding platform Mainvest.

About half of small businesses will fail within five years, according to the Small Business Administration, making small businesses some of the riskiest investments you can make. Many small businesses get started in industries with low barriers to entry, such as the retail or restaurant industries. This makes for an extremely competitive environment where profit margins can be low and customer preferences change frequently.

Additional small business resources

If you have more questions about investing in small businesses or are looking to develop an overall investment strategy, consider finding a financial advisor to discuss your personal financial situation with. Below are additional resources to help with small business investing.

• 5 things to know before investing in business startups
• Best investments for beginners
• Crowdfunding for business: The basics
• Putting personal money into a business

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.

Related Articles

How to invest in real estate in 2024

How to invest in commodities

How small businesses can prepare for a recession

How to invest in virtual real estate in 2023

Investment Company Business Plan Template

Written by Dave Lavinsky

Investment Company Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their investment companies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an investment company business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your investment company as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start an investment company, or grow your existing investment company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your investment company in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Investment Companies

With regards to funding, the main sources of funding for an investment company are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Investors, grants, personal investments, and bank loans are the most common funding paths for investment companies.

Finish Your Business Plan Today!

How to write a business plan for an investment company.

If you want to start an investment company or expand your current one, you need a business plan. Below we detail what you should include in each section of your own business plan:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of investment company you are operating and the status. For example, are you a startup, do you have an investment company that you would like to grow, or are you operating investment companies in multiple markets?

Next, provide an overview of each of the subsequent sections of your business plan. For example, give a brief overview of the investment company industry. Discuss the type of investment company you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of investment company you are operating.

For example, you might operate one of the following types of investment companies:

• Closed-End Funds Investment Company : this type of investment company issues a fixed number of shares through a single IPO to raise capital for its initial investments.
• Mutual Funds (Open-End Funds) Investment Company: this type of investment company is a diversified portfolio of pooled investor money that can issue an unlimited number of shares.
• Unit Investment Trusts (UITs) Investment Company: this type of investment company offers a fixed portfolio, generally of stocks and bonds, as redeemable units to investors for a specific period of time.

In addition to explaining the type of investment company you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of investments made, number of client positive reviews, reaching X amount of clients invested for, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the investment industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the investment industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your business plan:

• How big is the investment industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your investment company? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: companies or employees in specific industries, couples with double income, families with kids, small business owners, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of investment company you operate. Clearly, couples with families and double income would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Investment Company Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other investment companies.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes robo investors and advisors, company 401Ks, etc. You need to mention such competition as well.

With regards to direct competition, you want to describe the other investment companies with which you compete. Most likely, your direct competitors will be investment companies located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of clients do they serve?
• What type of investment company are they and what certifications do they have?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better investment strategies?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an investment company, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to an investment company, will you provide insurance products, website and app accessibility, quarterly or annual investment reviews, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your company. Document your location and mention how the location will impact your success. For example, is your investment company located in a busy retail district, a business district, a standalone office, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your investment company marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Commercials and billboards
• Reaching out to websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your investment company, including researching the stock market, keeping abreast of all investment industry knowledge, updating clients on any new activity, answering client phone calls and emails, networking to attract potential new clients.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to land your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your investment business to a new city.  

Management Team

To demonstrate your investment company’s ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing investment companies. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an investment company or successfully advised clients who have achieved a successful net worth.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new client at a time or multiple new clients ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your investment company, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an investment company:

• Cost of investor licensing..
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or list of clients that you have acquired.  

Putting together a business plan for your investment company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the investment industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful investment company.  

Investment Company Business Plan FAQs

What is the easiest way to complete my investment company business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Investment Company Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of investment company you are operating and the status; for example, are you a startup, do you have an investment company that you would like to grow, or are you operating a chain of investment companies?

Don’t you wish there was a faster, easier way to finish your Investment Company business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to hire someone to write a business plan for you from Growthink’s team.

Other Helpful Business Plan Articles & Templates

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.

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.

Free Business Startup kit

9 templates to help you brainstorm a business name, develop your business plan, and pitch your idea to investors.

• Business Name Brainstorming Workbook
• Business Plan Template
• Business Startup Cost Calculator

You're all set!

Click this link to access this resource at any time.

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.

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.

3. Become a content creator or influencer.

Instagrammers, YouTubers, podcasters, and TikTokkers with more than ten thousand followers can eventually turn their accounts into a small online business that generates passive income.

As a content creator or influencer on social media, you can not only earn money from sponsored partnerships, but you can monetize your audience in other ways, such as creating Subscriptions on Instagram , allowing companies to advertise on your YouTube channel, or creating a paid-only newsletter.

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.

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.

hbspt.cta._relativeUrls=true;hbspt.cta.load(53, '5ec543ea-d1bb-42de-a97d-4ab1f00cc69b', {"useNewLoader":"true","region":"na1"});

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.

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?

Don't forget to share this post!

Related articles.

A Complete Guide to Successful Brand Positioning

How to Start a Business: A Startup Guide for Entrepreneurs [Template]

Door-to-Door Sales: The Complete Guide

Amazon Affiliate Program: How to Become an Amazon Associate to Boost Income

How to Write a Business Proposal [Examples + Template]

Product Differentiation and What it Means for Your Brand

The 25 Best PayPal Alternatives of 2023

The First-Mover Advantage, Explained

Intrapreneurship vs. Entrepreneurship: What's the Difference?

Powerful and easy-to-use sales software that drives productivity, enables customer connection, and supports growing sales orgs

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai pitch deck generator

Strategic Planning

See How Upmetrics Works  →

• Sample Plans
• WHY UPMETRICS?

Customers Success Stories

Business Plan Course

Small Business Tools

Strategic Canvas Templates

E-books, Guides & More

• Sample Business Plans

Investment Company Business Plan

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write An Investment Company Business Plan?

Writing an investment company business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the investment company services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of investment company you run and the name of it. You may specialize in one of the following investment businesses:

• Mutual fund companies
• Venture capital funds
• Private equity funds
• Asset management companies
• Pension fund managers
• Describe the legal structure of your investment company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established investment company, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your investment company business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the investment company services your business will offer. This list may include services like,

• Portfolio management
• Financial planning
• Investment research and analysis
• Wealth management
• Mutual funds and exchange-traded funds

Investment advisory services:

Additional services:.

In short, this section of your investment business plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your investment company business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your investment business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & software:.

Include the list of equipment and software required for investment business, such as servers & data storage, network equipment, trading platforms, customer relationship management software, portfolio management software, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your investment business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your investment company, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your investment firm business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample investment company business plan will provide an idea for writing a successful investment company plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our investment company business plan pdf .

Related Posts

Bookkeeping Business Plan

Concierge Services Business Plan

How to make Perfect Business Outline

Simple Business Plan Template Example

What are Business Plan Components

How to Write Business Plan Appendix

Frequently asked questions, why do you need an investment company business plan.

A business plan is an essential tool for anyone looking to start or run a successful investment business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your investment company.

How to get funding for your investment company?

There are several ways to get funding for your investment company, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your investment company?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your investment company business plan and outline your vision as you have in your mind.

What is the easiest way to write your investment company business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any investment company business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

How to Invest in Small Businesses: Guide

Investors can diversify their portfolios and potentially achieve higher returns investing in small businesses. Purchasing equity stakes or lending money to the nation’s more than 30 million small enterprises provides an alternative to more conventional investments such as stocks, bonds and real estate. It can be hard to identify good opportunities. However, and federal regulations also limit the amount most investors can invest into small businesses. The practice involves significant risk of loss and lengthy commitments as well.

A  financial advisor  could help you create a financial plan to protect your investments and identify new opportunities to make money.

Small Business Investing Basics

There are more than 31.7 million U.S. businesses with fewer than 500 employees, according to the Small Business Administration . This group of enterprises, which represent more than 99.9% of all companies, has little or no ability to raise capital by selling equity on the stock market or issuing debt instruments for the bond market . Instead, they typically finance operations and growth with the help of bank loans and investments from the founders.

Just as small businesses are largely absent from the securities markets, investors are much less likely to put money into small firms than into large, publicly traded ones. However, small businesses can represent attractive opportunities to diversify out of conventional asset classes and sometimes gain outsized returns.

Small Business Investing Opportunities

To tap these opportunities, investors have to overcome sizable challenges. Those include:

• Identifying the relatively few small businesses that are suitable for investments,
• Accepting the likelihood of losing much or all their money due to the high inherent risks of the asset class,
• Waiting long periods up to several years to cash in without access to their invested funds and,
• Finally, working within federal regulations limiting the amounts they can invest.

Small business investments can take the form of equity or debt . Equity involves buying an ownership stake in the company in exchange for an infusion of capital, much like purchasing shares of a public company on the stock exchange. Debt investing is similar to giving the company a loan that will be paid back with interest. Variations include convertible debt securities that can be changed into shares of ownership, as well as equity investments that pay dividends.

Small businesses are not suitable investments for everyone, and this is not just an axiom but an official government rule. The Securities and Exchange Commission allows only accredited investors who meet certain wealth, income and knowledge guidelines unfettered use of Instead, crowdfunding portals, one of the most popular ways to invest in small business.

Non-accredited investors with annual income or network less than $107,000 can only invest up to $2,200 or 5% of their net worth in any 12-month period, according to the SEC rule. Those with over $107,000 in income and net worth can invest up to 10% of income or net worth, whichever is less.

How To Invest in Small Business

In contrast to the ease and simplicity of buying shares of mutual funds with holdings selected by financial analysts and fund managers, or even shares of individual public companies, small business investing is much more involved and unstructured. Information about small, private companies is harder to come by, and much of the job of evaluating opportunities has to be done by the individual investor.

Small business investors must first identify suitable opportunities among the millions of potential investments. Then they do their own due diligence, examining financial statements, interviewing company executives and evaluating market size and competitive challenges. Finally, they have to negotiate with the business about how to price equity shares, how much to charge for loans and other terms of the deal.

Small Business Crowdfunding

Over the last several years, in response to relaxed federal regulations, crowdfunding has become a popular way to invest in small businesses. Websites such as Mainvest and WEfunder accept applications from small businesses and vet them before offering them to investors.

Investors on crowdfunding sites can start with as little as $100. And they can receive regular financial updates much like quarterly and annual reports from public companies. The crowdfunding services also collect repayments from small businesses and distribute them to investors.

Pros and Cons of Small Business Investing

Risk is the major downside of small business investing. There is a high likelihood of losing the entire investment because most small businesses do not survive long-term.

On the upside, small businesses have much greater growth opportunities than those that are already relatively well established. Returns can reach 25% or more in some cases.

Another mark against small business investments is that they are highly illiquid . An investor who buys a stake in a small company may need to hold on to it for several years before getting an opportunity to cash out.

Investors in small businesses may find a special benefit that doesn’t come with investments in other asset classes. That is, the chance to make have an impact. Even a single investor’s backing can make the difference between a small company going out of business and surviving to become a major success.

Investors also may choose to back businesses that are owned by family and friends. Or choose products or services that they personally support.

Bottom Line

Small business investing offers the chance to get higher returns and have a bigger impact than investments in other asset classes like stocks , bonds and real estate. However, the risks of losing the entire amount invested are high. With small firms, and it can take years for a small business investment to pay off. Crowdfunding sites can give an investor a chance to look at lots of small businesses that have already been vetted. But federal regulations limit how much most investors can commit to these opportunities.

Investing Tips

• No matter how you want to invest your money, a financial advisor can help you make the right decisions. If you don’t have a financial advisor yet, finding one doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now .
• Asset allocation is an important part of your investing plan. Figure out what your portfolio should look like based on your risk tolerance with our free  asset allocation calculator .

Photo credit: ©iStock.com/pixdeluxe, ©iStock.com/svetikd, ©iStock.com/Davidovici

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

The 23 Most Profitable Businesses in 2024

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Some people venture into entrepreneurship with a clear vision: They know what industry they want to conquer and the path they’re going to take to get there. However, for many new entrepreneurs, it can be difficult to figure out how to start a business — plus, determine exactly what type of business is the best choice to invest in.

To help you launch your journey, we’ve compiled a list of the most profitable businesses, considering factors such as industry growth and competitiveness, startup costs and barriers to entry, as well as profitability potential.

ZenBusiness

Most profitable small businesses

With a solid business plan, hard work and determination, any strong business idea may become successful and profitable.

Businesses in high-growth industries with lower startup costs , however, may have greater profitability potential. With the rise of technology, for instance, you’ll probably have more success starting a virtual assistant business than opening a grocery store.

Although some of the most profitable businesses are based online, others involve in-person services, and some are a great fit if you're an entrepreneur on the go. Here’s our list of the most profitable small businesses:

1. Food trucks

The food truck movement has been experiencing consistent growth over the past five years — and it’s expected to continue — with the market projected to grow to $6.87 billion by 2029, according to a 2023 report by Mordor Intelligence [0] Mordor Intelligence . Food Truck Market Size & Share Analysis . Accessed Feb 26, 2024. View all sources . You can start a food truck business for less than a third of what it costs to open a brick-and-mortar restaurant; plus, you have geographic versatility, the potential for high revenue returns and the flexibility to create a custom menu that’s all your own.

Keep in mind that bigger, trendier cities like San Francisco, Boston and Washington, D.C., already have a pretty saturated food truck market (as well as tougher regulations to get started) — so this might be a more successful business in a smaller heartland metropolis.

Food trucks have their own special set of ordinances, business licenses and safety compliance standards. They also require food business insurance , so you’ll want to contact your local health department to find out what will be required.

2. Car wash services

The rising prices and pandemic-induced shortage of new vehicles are causing car owners to keep their cars longer. And as drivers keep their cars longer, businesses like car washes that help people maintain the value of their auto investment are expected to keep rising as well.

In fact, the car wash market is projected to increase from $15.86 billion in 2023 to $23.79 billion by 2030 [0] Grand View Research . U.S. Car Wash Services Market Size, Share & Trends Analysis Report By Type . Accessed Feb 26, 2024. View all sources . And according to a 2023 study from the International Carwash Association, 96% of U.S. car owners and lessees washed their vehicle at least once in the previous year— and 89% did so at a professional car wash [0] International Carwash Association . 6 Insights into Why Car Washing Is at an All-Time High . Accessed Feb 26, 2024. View all sources .

You might make a car wash business even more profitable by turning it into a mobile service. Customers may pay more for a car wash that comes to them, especially if they have a luxury car and prefer a more personalized service. And as a mobile car wash and auto detailing service, you’d avoid the overhead and startup costs of having a physical location.

3. Auto repair

The average age of cars and light trucks in the U.S. rose to 12.5 years in 2023, increasing from 9.7 years a decade ago, according to S&P Global Mobility [0] S&P Global Mobility . Average Age of Light Vehicles in the US Hits Record High 12.5 years, according to S&P Global Mobility . Accessed Feb 26, 2024. View all sources . People are keeping their cars longer than ever, suggesting there’s significant opportunity in the maintenance and repair business.

Additionally, car owners are more likely to visit a small business for repairs. According to the Auto Care Association, more than 70% of repair business is captured by independent repair facilities compared with dealerships or manufacturer-authorized repair facilities [0] Auto Care Association . Auto Care Association Applauds Advancement of REPAIR Act . Accessed Feb 26, 2024. View all sources .

If you’re skilled as a mechanic, you might consider an auto repair service as one of the most profitable business ideas. You can offer oil changes, fluid refills, battery swaps, headlight repair and more. And if you’re looking to save on overhead costs, you might make it a mobile service and travel to your customers, performing repairs in their driveway or office parking lot.

4. Personal trainers

Employment of fitness trainers and instructors is projected to grow 14% from 2022 to 2032, much faster than the average for all occupations, according to the U.S. Bureau of Labor Statistics [0] U.S. Bureau of Labor Statistics . Occupational Outlook Handbook, Fitness Trainers and Instructors . Accessed Feb 26, 2024. View all sources . But turning your love of fitness into a career doesn’t have to mean working for a big corporate gym — nor do you need the overhead of having your own location to train clients.

Throw a few weights, bands and yoga mats into the trunk of your car, and take your fitness show on the road.

You can become a personal trainer by offering one-on-one sessions in your clients’ homes or advertising group classes at a local park or community center. Making fitness more available to your clients might just be the ticket to helping both of you achieve your goals.

» MORE: Best mobile business ideas for on-the-go entrepreneurs

5. Newborn and post-pregnancy services

Although millennials and Generation Z are deferring parenthood for longer than previous generations, many do eventually want to have kids.

And with both generations considering parenthood, the need for child-oriented businesses is growing, starting with post-pregnancy and newborn-related services. As a result, a 2024 Market Research Future report expects the global maternity care market to reach $106.6 billion by 2032 (up from $62.5 billion in 2023) [0] Market Research Future . Maternity & Personal Care Market Research Report . Accessed Feb 26, 2024. View all sources .

Demand for doulas and lactation consultants, in particular, has risen among new mothers, and both business options have relatively low overhead requirements beyond education and certification.

6. Enrichment activities for children

Shrinking budgets for education mean that both traditional academics and enrichment subjects like music, art and athletics often take a significant hit.

A successful business to start might be one that teaches enrichment activities to children. According to the U.S. Census Bureau, kids are more involved in extracurricular activities today than they were 20 years ago [0] U.S. Census Bureau . Children Continue to be More Involved in Some Extracurricular Activities . Accessed Feb 26, 2024. View all sources . And some research indicates that approximately half of American parents spend more than $1,000 annually on their children’s activities [0] GoBankingRates . How To Afford $1,000 Worth of Kids Activities Per Year . Accessed Feb 26, 2024. View all sources .

You could launch a gymnastics center or music school, become a swimming instructor or kids’ yoga teacher, or focus on some other child-centered activity. If you have a skill that could be easily taught to young students, you might already have a profitable business in the making.

7. Mobile apps and entertainment for children

If your interests are in development and engineering, you might consider gearing your technology toward the youngest users. Research shows that demand for tablets, apps and mobile entertainment for children is on the rise — especially if those products are education-focused [0] Excellent Web World . Is The App Development Market For Kids Getting Bigger? . Accessed Feb 26, 2024. View all sources .

Do you have an idea for an educational app for children or parents? If so, now may be the time to move forward on your bright idea for the next generation and make this potentially profitable business a reality.

8. Shared accessories and attire

Sites like Rent the Runway and Gwynnie Bee have banked on the idea of the sharing economy — where we want and need to own less stuff, so instead, we share resources.

These companies offer borrowed or rented clothing and accessories at a fraction of their purchase prices, and because the same piece of inventory generates revenue multiple times, the profitability of these ventures can be significant. According to a 2023 study by the reselling platform ThredUp, the secondhand-clothing market is projected to nearly double by 2027 [0] ThredUp . thredUP’s 11th Annual Resale Report Reveals Consumers Continue to Embrace Secondhand Amid Economic Uncertainty . Accessed Feb 26, 2024. View all sources .

Do you have an eye for fashion and a sense of style not currently offered by other rental services? Maybe you’re ready to be the next big thing.

Even if you’re not prepared to launch a multimillion-dollar fashion startup, you can just as easily profit from shared fashion at the local level. Gather some favorite accessories or clothing picks and host a borrowing party — where customers can rent or purchase items from your closet — for high school students before the next formal dance.

If you’re in a college town, Greek life formals are another great opportunity to profit from shared economy fashion. And because you’re taking shipping costs out of the equation, you have the potential to be even more profitable.

9. Shared home improvement equipment

Are you the go-to person in your neighborhood for every lawn, garden and home repair tool? Why not turn those tools into a profitable business by advertising your available equipment beyond your immediate friend group?

You might even decide to invest in more specialized and higher-cost equipment that would be useful to those around you. And if a customer doesn’t know how to use a specific tool, combine equipment rental with your mobile service for even more cash in the bank.

Home improvement spending has increased since the start of the COVID-19 pandemic — and U.S. households spent an average of $13,667 on improvement projects in 2023 alone, according to a study from Angi, a home services marketplace [0] Angi . State of Home Spending . Accessed Feb 26, 2024. View all sources . As more people continue to invest in fixer-upper houses and remodel, this could be a big opportunity.

» MORE: Best small-town business ideas

10. Vacation rentals

If you live in a highly desirable tourist destination, you can make a profit renting space in your home to travelers. Sites like Airbnb or VRBO have made it easier than ever to profit from your unused vacation property — or even your extra bedroom. According to Airbnb, the typical U.S. host makes approximately $14,000 a year [0] Airbnb . Hosts in the US earned $22 billion in supplemental income last year . Accessed Feb 26, 2024. View all sources .

It's not too difficult to become an Airbnb host , and the demand for these types of rentals has only grown in recent years. In 2022, 394 million nights and experiences were booked on Airbnb — up from 301 million nights in 2021 [0] Statista . Airbnb Bookings Already Past Pre-Pandemic High in 2023 . Accessed Feb 26, 2024. View all sources . However, some cities have laws and regulations regarding Airbnb and other rental platforms, so you’ll want to make sure you check the guidelines in your area before getting started.

11. Electronics repair

According to the Pew Research Center, as of 2023, 90% of Americans own a smartphone [0] Pew Research Center . Mobile Fact Sheet . Accessed Feb 26, 2024. View all sources , and 80% of U.S. adults subscribe to high-speed internet at home [0] Pew Research Center . Americans’ Use of Mobile Technology and Home Broadband . Accessed Feb 26, 2024. View all sources . And with more employees working from home, there’s an even greater reliance on a variety of electronics.

That means that when something goes wrong, people want help fixing it as soon as possible. This makes electronics repair a potentially lucrative business idea. According to a 2024 report from the Business Research Company, the global electronics repair and maintenance market is expected to grow from about $8.69 billion in 2022 to $9.88 billion in 2028 [0] The Business Research Company . Consumer Electronics Repair and Maintenance Global Market Report 2024 . Accessed Feb 26, 2024. View all sources .

With this service, you could be the solution for every broken iPhone screen, Wi-Fi card and laptop battery. And you might be even more successful if you’re willing to travel to your customer. Apple stores and other electronics retailers have come under fire over the past few years for long customer wait times, which could work in favor of mobile providers.

Although a mobile electronics repair business involves some overhead in the form of purchasing supplies, being mobile saves you from having to pay the costs associated with a physical location.

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.

12. Academics courses

Online entrepreneurs can offer courses through educational platforms or independently on their own websites. The U.S. e-learning market has accelerated growth since the onset of the COVID-19 pandemic and is predicted to reach nearly $170 billion in 2030, according to a 2023 report by Renub Research [0] Renub Research . United States eLearning Market, Size, Forecast 2023-2030 . Accessed Feb 26, 2024. View all sources .

You might start your business by providing courses in traditional academics, offering online instruction in grade-level reading, math, science, history or standardized test preparation. You could even create a review course for parents helping teens with their algebra homework. If you’re creative, the possibilities are truly endless.

And academic courses don’t have to end at the high school or even college level. You can create an online course to share your love of political history, Buddhist theology or rocket science. If you’re interested in a particular subject, chances are someone else is, too.

13. Language courses

Currently, one-fifth of U.S. families speak one other language, apart from English — based on data from the Census Bureau [0] U.S. Census Bureau . What Languages Do We Speak in the United States? . Accessed Feb 26, 2024. View all sources . And with more languages being spoken nationwide, the demand for online language learning courses is growing. The market is projected to increase by $26.33 billion from 2023 to 2030, according to a 2023 report from Verified Market Research [0] Verified Market Research . Online Language Learning Market Size And Forecast . Accessed Feb 26, 2024. View all sources .

So whether you take to the online education space with expertise in English, or you harness your mastery of Swahili, there’s likely someone out there who wants to learn a language from you.

And if you speak one of the most in-demand languages, such as Mandarin, Spanish or Arabic, then online-based language courses could be one of your most profitable business ideas.

» MORE: Easy online business ideas you can start now

14. Business or marketing courses

Since the beginning of the COVID-19 pandemic, participation in career-focused online courses has grown significantly, especially as more employees look to change jobs or work from home. For instance, education technology platform Udemy gained 10 million new global learners from 2022 to 2023, spanning 134 million course enrollments [0] Udemy Business . 2024 Global Learning & Skills Trends Report . Accessed Feb 26, 2024. View all sources .

Companies have expanded or launched new coverage for tuition reimbursement in recent years, meaning workers have money to spend on these types of classes. According to the Society for Human Resource Management’s 2023 Employee Benefits Survey, 48% of employers offer tuition assistance, 87% cover costs for professional memberships and 78% pay for employees’ certifications or recertifications [0] Society for Human Resource Management . SHRM Releases 2023 Employee Benefits Survey Results . Accessed Feb 26, 2024. View all sources .

If you have career skills to share, you can start creating online courses with few initial costs. Popular course topics include bookkeeping, QuickBooks accounting software , WordPress web development, graphic design or even how to write a great cover letter or resume.

15. Personal wellness

Are you a therapist or counselor, a yoga instructor, a life coach or a longtime meditator? If you have a deep passion for personal wellness, you might be able to help others — while also earning a significant income.

For example, a report from the Yoga Alliance found 38.4 million Americans (11% of the population) practiced yoga in 2022; up 4.6% from 2016. These Americans spent over $21 billion on yoga in 2022 alone [0] Yoga Alliance . Yoga in the World . Accessed Feb 26, 2024. View all sources . And a Grand View Research report predicts the North American yoga market to grow at a compound annual growth rate of 8.8% by 2030 [0] Grand View Research . Yoga Market Size, Share & Trends Analysis Report . Accessed Feb 26, 2024. View all sources .

Like many of the options on our list, as long as you have the knowledge, the costs to start a personal wellness business are low.

Every person has a desire to better themselves, and that’s what online courses are all about. If you have this expertise to share, you could turn your knowledge into a profitable business.

16. Courses in hobbies or interests

While many courses are designed to further an education or career prospects or to promote major life changes, you can just as easily design an online course around any hobby or interest.

Do you have a passion for calligraphy or craft brewing ? Have you mastered a certain video game? You'd be surprised at the number of people willing to pay to learn about topics they're interested in. Some of the bestselling courses on the popular online learning platform Udemy include web development, digital marketing, ethical hacking, stock trading and WordPress — and they sell for up to $200 per class [0] Udemy . Popular and trending topics . Accessed Feb 26, 2024. View all sources .

Not sure how to start designing your own online course? Well, there are even online courses for creating your own online course. You can use one of these courses to propel your own online course business.

17. Bookkeeping and accounting

Accounting and bookkeeping are unavoidable requirements of business ownership. But for many entrepreneurs, money management is the most tedious part of owning a business; that's why some business owners choose to outsource those tasks.

Whether you’re a certified public accountant or just a QuickBooks wizard, you might be the perfect candidate to launch your own bookkeeping business . With accounting firms seeing a growth rate of 9.1% in net revenue from 2021 to 2022 (up from a 4.2% growth rate in 2020), bookkeeping, accounting, tax preparation and payroll services have long been some of the most profitable businesses for entrepreneurs [0] Association of International Certified Professional Accountants . U.S. Accounting Firms Show Strong Growth in Profit and Revenue, AICPA & CIMA Research Finds . Accessed Feb 26, 2024. View all sources .

As a bookkeeper, you can process invoices and payroll, compile expense reports and more. If you have a CPA license, you can help business owners file taxes, generate balance sheets and other accounting documents, as well as make professional recommendations about your client’s bottom line.

18. Consulting

If you’ve been in the business world for a long time, folks may be clamoring for your knowledge and expertise within your industry. Why not turn all that know-how into a new career as an independent consultant?

According to the Bureau of Labor Statistics, demand for consulting services is expected to increase, particularly among smaller companies that deal in specialized industries or business functions. Employment of management analysts, which includes consultants across different industries, is projected to grow 10% from 2022 to 2032 — faster than average for all occupations [0] U.S. Bureau of Labor Statistics . Occupational Outlook Handbook, Management Analysts . Accessed Feb 26, 2024. View all sources .

As an independent consultant, you can be paid to speak at industry conferences or events, serve on a board of advisors for a fledgling business, or lend your expertise to shape the strategy of an existing business on a contract basis.

Whatever your skill set, starting a consulting business is a great way to make the income of your dreams while working on your own terms.

» MORE: 145 new service business ideas

19. IT support

Our reliance on technology makes IT support just as profitable a business idea as electronics repair and other tech businesses — especially considering employment of IT professionals is projected to grow 5% from 2022 to 2032, according to the Bureau of Labor Statistics [0] U.S. Bureau of Labor Statistics . ccupational Outlook Handbook, Computer Support Specialists . Accessed Feb 26, 2024. View all sources . With an IT business, you can help customers when they have issues with their internet or computer software, as well as install security programs and network updates.

If technology comes easily to you — and you’re a relatively patient person — then the most profitable business for you might be hitting the road, at least in your neighborhood, with mobile IT support. You can offer a service to combat the chat or phone support typically offered by technology manufacturers, which often includes long wait times and leaves customers with unanswered questions.

All you need is time, transportation and your own know-how, so this low-overhead business model could be almost pure profit.

20. Graphic design

As the number of brands vying for consumers’ attention grows, a slick and polished image has become more important than ever for small businesses.

And although, according to the Bureau of Labor Statistics, employment for graphic designers is expected to grow only 3% from 2022 to 2032, there are opportunities out there, especially for graphic designers who are self-employed [0] U.S. Bureau of Labor Statistics . Occupational Outlook Handbook, Graphic Designers . Accessed Feb 26, 2024. View all sources . The BLS says most graphic designers are self-employed, compared to those that work for advertising services, publishing industries and similar employers.

Do you know your way around Adobe Photoshop, Illustrator and InDesign? Have you taken a few design classes, and do you have an eye for good branding? Turn your skills into a business as a freelance graphic designer. You’ll have almost no overhead and can help small-business owners create awesome marketing graphics.

21. Social media management

These days, customers expect a business to have a strong social media presence and to be responsive to customer service issues on social media.

Although many small-business owners know they need to engage in social media marketing, few have the necessary time or expertise to manage all of their social media accounts.

If you’re fluent in Twitter, live your life on Facebook and have gotten every job you’ve ever had through LinkedIn, you might consider turning your social media expertise into your own solopreneur business venture — offering support to business owners who need help managing their brands' social media platforms.

As long as you have your own laptop, smartphone and social media accounts, there are few costs to getting started, and job growth in the industry is projected to increase 6% from 2022 to 2032 — faster than average for all other occupations [0] U.S. Bureau of Labor Statistics . Occupational Outlook Handbook, Public Relations Specialists . Accessed Feb 26, 2024. View all sources .

22. Marketing copywriter

If you’re particularly adept with words, you can use your talents to write copy for various companies’ marketing efforts. According to an Industry Research report, the global digital content creation market is expected to increase at a compound annual growth rate of 9.5% from 2023 to 2030 [0] Industry Research . Digital Content Creation Market 2023-2030: Trends, Size, Share, and CAGR Status . Accessed Feb 26, 2024. View all sources .

Whether you’re coining a catchy slogan or writing an in-depth description of a company’s offerings, if you’re doing it as an independent contractor, you’ll have very few startup costs. Once you get started and build relationships with clients, you’ll quickly be able to earn a profit for your services.

23. Virtual assistant services

With more employees working from home, and with teams spread out across different locations and time zones, businesses can benefit from an assistant who is just as flexible as they are. There's no longer the need to meet with a client every day in an office — you can work as an assistant from New York when your client lives in Florida.

According to ZipRecruiter, the average remote virtual assistant in the U.S. makes $50,749 a year [0] ZipRecruiter . Remote Virtual Assistant Salary . Accessed Feb 26, 2024. View all sources . As a virtual assistant , you can choose your clients and create your own schedule, managing emails, scheduling meetings, booking travel and completing other basic tasks to make your customers’ lives and businesses run more smoothly.

Plus, all you need is a laptop and an internet connection to start this business.

How to start a profitable business

These ideas for profitable businesses span a variety of industries and involve varying time commitments and startup costs. Before you can earn any profit, however, you’ve got to get your business off the ground.

Here are three steps to help you get started:

1. Do your research

Whether you choose one of the ideas here or come up with something on your own, do your research before committing to any concept. You'll want to perform idea validation, a process that involves market and competitor research, as well as a financial feasibility analysis to help test your business idea and determine whether you want to move forward with your business proposal.

2. Get organized and make it official

Once you’ve chosen a strong business idea, you’re ready to create a thorough business plan . Your business plan will outline your company’s goals — and how you’ll achieve them — as well as provide a roadmap for you (and potential investors) to follow for the next three to five years.

After you’ve written your business plan, you can take the necessary steps to make your small business official. You’ll choose a business structure, apply for an employer identification number , register your “Doing Business As” name (if necessary) and get the business licenses and registrations you need to open your doors.

» MORE: Important legal requirements for starting a small business

3. Find the right financing

It can be difficult for startups to qualify for some traditional business loans, as they often require multiple years of business history for approval. Instead, new business owners might consider startup funding options, such as microloans, grants, crowdfunding, or asking friends or family for an investment.

Business credit cards are also an option for short-term financing, especially for everyday business purchases. With a business credit card , you can earn perks and rewards on your spending, as well as start building a business credit history.

See how to get your business started quickly

Find the money to get going: Compare the best small-business loan options right now.

Set up a bank account: Details on how to get a free business checking account .

Start accepting credit cards and other payments: Options and how to use point-of-sale systems .

Start tracking your profits: Pick out and set up simple accounting software .

A version of this article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

• Why Merrill
• Open An Account
• How We're Different
• Investing and Banking Connected
• Simple Flat Rate Pricing
• Full Range of Investments
• Active Investors
• Small Business Owners
• Preferred Rewards
• Merrill Edge Roadmap
• Social Security Retirement
• Portfolio Rebalancing
• Socially Responsible Investing
• Awards & Recognition
• Merrill Edge Guided Investing
• Investing Your Way
• Pricing & Fees
• BofA Preferred Rewards
• Investing & Banking Connected
• Mobile Investing
• Sustainable Investing
• Awards & Accolades

888.637.3343

To find the small business retirement plan that works for you, contact:

Learn more about an advisor's background on FINRA's BrokerCheck

• Merrill Edge ® Self-Directed
• Merrill Guided Investing
• Invest with an Advisor
• Compare All
• General Investing
• Education Accounts
• Mutual Funds
• Fixed Income & Bonds
• Margin Trading
• Order Execution Quality
• Idea Builder
• Merrill Edge MarketPro ®
• Personal Retirement Calculator
• College Cost Calculator
• IRA Selector
• 401(k) Rollover Calculator
• 529 Plan State Tax Calculator
• View All Tools
• New to Investing
• Plan for College
• Tax Planning
• Investing by Life Stages
• Traditional IRA
• Income in Retirement
• Plan for Retirement
• Retirement Tools

Small Business 401(k)

Individual 401(k).

• View All Plans

• Get Started Investing
• Investing Basics
• Market & Investing Insights
• Individual Investing Account
• Joint Investing Account
• Custodial Investing Account
• Traditional Inherited IRA
• Roth Inherited IRA
• 529 College Savings Plans
• Custodial UGMA/UTMA Accounts
• Business Investor Account
• lnvesting Costs & Fees
• Pricing & Fees
• Investing & Banking Connected
• Awards & Accolades
• Merrill Edge ® Self-Directed
• Investing with an Advisor
• Compare all
• Fixed Income & Bonds
• Merrill Edge MarketPro ®
• 401(k) Rollover Tool
• View all tools
• Tax Plannning
• Retirement Income Planning
• View all plans
• Market & Investing Insights
• Help When You Want It Find answers to common questions  at Merrill Schedule an appointment  with Merrill To find the small business retirement plan that works for you, contact: [email protected]

Small Business

Explore workplace retirement plans for your small business, you can contribute significantly more to a workplace retirement plan than to a traditional or roth ira, reduce taxes now and pay taxes later., workplace retirement plan benefits, potentially reduce your business taxes with tax-deductible contributions, let earnings grow tax‑deferred until they are withdrawn, attract and retain employees in a challenging labor market, diversify your retirement strategy beyond your plans for your business, find the plan that can meet your needs, simple ira features, small business 401 (k) features, sep ira features, individual 401 (k) features, managing finances for your business has never been easier.

• Simplify your account management with a single login for Merrill investing and Bank of America banking accounts
• Access competitive pricing and outstanding customer service available through Merrill
• Manage your plan and invest anytime, anywhere with our secure mobile app

Explore more benefits for your business available through Bank of America and Merrill

Explore all plans available for small business, ready to get started, frequently asked questions, what are the different types of plans for small business, which retirement plan is best for small business, do small businesses have to offer retirement plans, what's the difference between a sep ira and an individual 401(k), will i receive a tax credit by offering retirement plans to my employees, what is the between a sep ira and a simple ira.

This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary (PDF) .

I'd Like to

• Create an Emergency Fund
• Create an Investment Strategy
• Open an Account  with Merrill

Discover Merrill

• Bank of America Preferred Rewards
• Online Trading
• Awards & Recognition

Representatives are available 24/7

[email protected]

Unlimited $0 Trades

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

The performance data contained herein represents past performance which does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance information current to the most recent month end, please contact us.

Net Asset Value (NAV) returns are based on the prior-day closing NAV value at 4 p.m. ET. NAV returns assume the reinvestment of all dividend and capital gain distributions at NAV when paid.

Market price returns are based on the prior-day closing market price, which is the average of the midpoint bid-ask prices at 4 p.m. ET. Market price returns do not represent the returns an investor would receive if shares were traded at other times.

Returns include fees and applicable loads. Since Inception returns are provided for funds with less than 10 years of history and are as of the fund's inception date. 10 year returns are provided for funds with greater than 10 years of history.

Before investing consider carefully the investment objectives, risks, and charges and expenses of the fund, including management fees, other expenses and special risks. This and other information may be found in each fund's prospectus or summary prospectus, if available. Always read the prospectus or summary prospectus carefully before you invest or send money. Prospectuses can be obtained by contacting us.

Expense Ratio – Gross Expense Ratio is the total annual operating expense (before waivers or reimbursements) from the fund's most recent prospectus. You should also review the fund's detailed annual fund operating expenses which are provided in the fund's prospectus.

This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary (Form CRS) (PDF) .

Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation ("BofA Corp.").

Merrill Lynch Life Agency Inc. (MLLA) is a licensed insurance agency and wholly owned subsidiary of BofA Corp.

© 2024 Bank of America Corporation. All rights reserved.

5676695-05112024

Startup Stories: Filling the Succession Gap for Small Business Owners

A conversation with   Alyssa Strasser ’23   who, with her EMBA classmate Ali Platon ’23, has   launched an investment search fund aimed at acquiring and operating a small or mid-sized business.

In this series,   Karen Guzman   talks to student and alumni entrepreneurs about how they are making an impact with their startups.

Founders:  Ali Platon ’23, Alyssa Strasser ’23

Venture: Savannah Search Capital is a private investment fund created to acquire and operate a small or mid-sized business in the U.S. with the objective of providing a new market to small business owners looking to sell their businesses.

What was the moment when you had the idea for this startup?

The idea for our startup originated during our time at Yale SOM. Specifically, it crystallized in Professor Wasserstein’s class on small and medium business. As we explored various concepts, Ali and I realized our shared passion for business ownership, and we began to seriously consider launching a search fund together.

What’s the problem you’re trying to solve or the gap that you’re trying to fill?

At Savannah Search Capital, our primary goal is to address the succession gap faced by small business owners. Many entrepreneurs, especially in the small- and mid-sized business sector, struggle with finding suitable successors to take over their businesses. This creates a significant challenge for both the owners and the businesses themselves. Our aim is to bridge this gap by providing these entrepreneurs with attractive succession opportunities while driving long-term growth and preserving the legacies they’ve built.

What was the most important resource Yale SOM contributed to your startup?

The most important resource Yale SOM provided was the network and knowledge base we gained during our time in the EMBA program. The connections we forged with fellow alumni, professors, and industry professionals have been invaluable. And the coursework, particularly in areas such as asset management and small business entrepreneurship, equipped us with the skills and insights to navigate the complexities of launching a search fund.

What’s the biggest milestone your startup has hit since graduation?

Since graduating from Yale SOM, our biggest milestone has been securing the backing of a strong team of institutional and individual investors and partners. This support, which includes current and former CEOs, board members, and experienced SME investors, signifies a significant vote of confidence in our vision and positions us for success as we move forward.

I move money between investments, CDs, and savings accounts — I do 4 things to get ready for taxes

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate tax products to write unbiased product reviews.

• Instead of spending interest from my savings account, I save it for my tax bill.
• I like putting money in CDs, and one option that will help long-term with taxes is a SEP IRA CD.
• I pay attention to when my CDs will mature so that the tax impact is spread out between years.

For a decade, one of the biggest financial mistakes I made was keeping all of my cash in a savings account with a poor interest rate. I earned very little interest every year and missed out on the potential for that idle money to grow exponentially.

In 2022, I decided to actively optimize where my cash was sitting at all times. I started moving money between high-yield savings accounts , CDs , and other passive income-earning investments like REITs and dividend stocks.

I went from earning a few hundred dollars to a few thousand dollars a year in interest. While it felt nice to make money without having to do much or take big risks, there was a catch. Interest and earnings from savings accounts, CDs, and other investments are considered taxable income.

At first, I didn't realize that, and I spent a lot of this passive income on vacations, building my business, and paying off my credit cards . But after getting hit with a big tax bill in 2023, I decided to be more strategic about the tax implications that come from moving money between accounts to optimize interest. Here's how I planned for my 2023 tax bill .

1. I don't spend the interest as soon as I get it

When my accountant shared how much I owed in taxes for 2022, I was sure she had made a mistake. But she mentioned that a reason my bill was so high was because I earned a lot in interest from my high-yield savings account and didn't pay any taxes on that income throughout the year.

Since most of that money was spent or reinvested into my business, I decided that I wouldn't touch that money until after tax season ended. That helped me reframe my finances. Instead of thinking I have a few thousand dollars to spend throughout the year, I don't account for those earnings as part of my overall net worth. Instead, after paying my taxes, I reassess how much money of interest income I actually made and decide how to use the cash then.

2. I use the interest to pay my taxes

As a solopreneur, I pay both corporate and personal taxes every year. While my accountant and I do a good job of withholding money from each of my paychecks for taxes, paying quarterly taxes , and estimated tax payments, I still have a tax bill that's a few thousand dollars, or more, every year.

Since I don't like to tap into my personal savings to pay off this tax bill, I often consider the interest and earnings I'm making from my money movement strategy and passive income investments as means to cover my tax bill. I now wait to spend that money until after I know how much I owe in taxes and often use at least half of that money to cover the full bill.

3. I buy some SEP IRA CDs

Keeping cash in high-interest-earning CDs is a major part of my money strategy. When I have extra money coming in from a good month of work or one of my high-yield savings accounts drops the interest rate, I'll put that money in various types of CDs.

One CD that has tax benefits is a SEP IRA CD , which is considered a retirement investment account. Any interest gained from money in this CD remains tax deferred until distributions are made at retirement. However, unlike a regular CD, CDs in your retirement fund have contribution limits set by the IRS.

4. I'm strategic with short-term CDs

As a solopreneur, my income varies quite a lot throughout the year. Around November, I'll chat with my accountant, and if I'm having a higher income year than usual, I'll plan for that to lower my overall tax bill. One strategy I have used in the past is to buy a short-term CD that doesn't come due until January or February of the next year. This helps defer taxes on that money until the next year when taxable income might be lower.

Watch: 6 simple investing tips for beginners

• Main content

Plan Discounts

Segments & Industries

more from T-Mobile

For Sprint customers:

Big savings and coverage for small business.

Fastest: Based on median, overall combined 5G speeds according to analysis by Ookla® of Speedtest Intelligence® data 5G download speeds for Q2 2022. See 5G device, coverage, & access details at T-Mobile.com.

Virtually anywhere you do business, we’ve got you covered.

We’re expanding our 5G network to bring fast, reliable, and affordable business internet and wireless service to small towns and cities across the country.

See your coverage for yourself.

Use our interactive map to get detailed coverage information for where you do business.

Explore benefits just for your business.

Reinvented customer service..

Our exceptional team of highly trained experts are dedicated to your success and will be by your side every step of the way.

Premium benefits.

Our plans include more of what you need to support your business, including Microsoft 365, generous allotments of high-speed mobile hotspot data, and travel benefits including full-flight Wi-Fi.

M365: Contact us to activate; one subscription per line, up to 2 lines per account. Mobile Hotspot: High-speed data up to allotment and then unlimited at 256Kpbs speeds; see plan for details.

5G network investment.

We’ve invested billions of dollars into the nation’s largest 5G network—now covering 95% of Americans.

Great coverage, exceptional benefits, and a price you’ll love.

T-Mobile for Business supports small businesses everywhere with mobile hotspot data and 5G access added to every plan.

Grow your business with plans that provide incredible value–now with more travel benefits than ever before.

Business Unlimited Ultimate

per line for 6+ lines, $240/mo.

Business Unlimited Advanced

per line for 6+ lines, $180/mo.

Business Unlimited Select

per line for 6+ lines, $150/mo.

Let’s talk.

Germany's Amprion boosts grid investment plan by 25%

• Medium Text
• Company Amprion GmbH Follow
• Company Rwe Ag Follow

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

Reporting by Vera Eckert; editing by Madeline Chambers and Jason Neely

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

Business Chevron

Likely market reaction after Iran attacks Israel

Iran warned Israel and the United States on Sunday of a "much larger response" if there is any retaliation for its mass drone and missile attack on Israeli territory on Saturday, as Israel said "the campaign is not over yet".

Public funds to incentivise manufacturing and clean energy projects, Prime Minister Anthony Albanese says

Live Moment Public funds to incentivise manufacturing and clean energy projects, Prime Minister Anthony Albanese says

Prime Minister Anthony Albanese says Australia must stay in the "global race" for jobs, as he prepares to detail a taxpayer-funded incentive scheme for advanced manufacturing and clean energy projects.

The "Future Made in Australia Act" will seek to compete with US President Joe Biden's massive spending plans under the US Inflation Reduction Act.

Mr Albanese said it would consolidate existing efforts under one banner, including Hydrogen Headstart, Solar Sunshot and the government's $15 billion National Reconstruction Fund.

"We know during the pandemic, we learnt the risks of what happens if we're cut off from trade. We can't afford to not be able to stand on our own two feet," Mr Albanese told Channel Seven.

"And we saw manufacturing leave this country in the 70s and 80s. We want to bring it back."

The prime minister will make the case for the Future Made in Australia Act in a major speech on Thursday, setting out his agenda for the next year leading up to an election.

He will warn Australia's economy will suffer without greater government intervention, as other nations draw "an explicit link between economic security and national security".

Mr Biden's landmark Inflation Reduction Act includes hundreds of billions of dollars in tax breaks and subsidies over the next decade, aimed at boosting clean energy infrastructure and encouraging high-tech manufacturing.

"Obviously, Australia cannot go dollar for dollar with the United States' Inflation Reduction Act," speech notes provided by the prime minister's office state.

"But this is not an auction – it's a competition.

"And Australian can absolutely compete for international investment when it comes to our capacity to produce outcomes, the quality of our policies and the power of our incentives."

The federal government has been urged to do more to entice investment in renewable energy and critical industries, amid warnings the US could hoover up available international capital under its own plans.

The prime minister has frequently referred to his desire to see Australia step up in areas such as battery and solar panel manufacturing, harnessing the materials mined in Australia but currently exported overseas for processing.

Mr Albanese will reference efforts from the US, European Union, Japan, South Korea and Canada to strengthen their own critical industries.

"All these countries are investing in their industrial base, their manufacturing capability and their economic sovereignty," the prime minister is expected to say.

"This is not old-fashioned protectionism or isolationism – it is the new competition.

"These nations are not withdrawing from global trade or walking away from world markets or the rules-based order, and let me be clear, nor should Australia."

Live Moment

Look back at how ABC readers and other Australians responded to this live moment.

That concludes the PM's address

Thanks for joining us for the live moment.

We'll leave our live coverage here.

How will the new act impact the economy?

The PM has been asked:

How do you expect the plan you unveiled today to impact the economy at a time when inflation is approaching the RBA's target range?

Here's what Mr Albanese says:

"It is about encouraging private sector investment, it is about making sure as well that all of the measures that we have put in place, including all of our cost of living measures, have been aimed at areas that would not contribute to inflation."

The risk of increasing power prices

The PM has been asked whether there is a risk an energy transition would be costly and cause power prices to increase.

"That is what is driving the change," Albanese says. "In terms of where that new investment will go. So we want to create an environment whereby we provide support but we acknowledge the importance of market mechanisms and what that means is investment in renewables will lead to cheaper power because that is what every economist tells us."

Wondering what this is? Join us next time we're live and be part of the discussion.

Not the invisible hand, nor heavy-handed either, PM argues

In a pre-emptive strike against critics who would argue against taxpayer funds being spent, Mr Albanese will make the argument that Australia's partners are "moving to the beat of a new economic reality."

"None of this is merely being left to market forces or trusted to the invisible hand," he is expected to say.

"The heavy lifting of economic transition and industrial transformation is not being done by individuals, companies or communities on their own.

"It is being facilitated, enabled and empowered by national governments from every point on the political spectrum.

"Because this is not about ideology, it's about opportunity – and urgency."

The Future Made in Australia Act would focus on boosting investment in areas such as rare earths mining and processing, hydrogen and solar energy production.

"We recognise that for Australians to share fully in the rewards, government needs to be prepared to use its size and strength and strategic capacity to absorb some of the risk," the speech notes state.

"Only government has the resources to do that, only government can draw together the threads from across the economy and around our nation."

Casting forward to budget

Ahead of the federal budget on May 14, the prime minister will argue the policy complements other measures, such as revised income tax cuts, to improve productivity across the country.

"The first four years of this decade have tested the resilience of our economy and our society alike," he is expected to say.

"Alongside the devastation of floods and bushfires, Australia has endured a once-in-a-century global pandemic and the biggest international energy crisis in 50 years.

"Government needs to have this same capacity to respond and adapt, to anticipate change – and shape it – when it comes to building for the future."

• X (formerly Twitter)
• Federal Government
• Government and Politics