hbr business plan examples

How to Write a Great Business Plan

Every seasoned investor knows that detailed financial projections for a new company are an act of imagination. Nevertheless, most business plans pour far too much ink on the numbers—and far too little on the information that really matters. Why?

In an article in the Harvard Business Review , HBS Professor William Sahlman suggests that a great business plan is one that focuses on a series of questions. These questions relate to the four factors critical to the success of every new venture: the people, the opportunity, the context, and the possibilities for both risk and reward.

The questions about people revolve around three issues: What do they know? Whom do they know? and How well are they known? As for opportunity, the plan should focus on two questions: Is the market for the venture's product or service large or rapidly growing (or preferably both)? and Is the industry structurally attractive?

Then, in addition to demonstrating an understanding of the context in which their venture will operate, entrepreneurs should make clear how they will respond when that context inevitably changes. Finally, the plan should look unflinchingly at the risks the new venture faces, giving would-be backers a realistic idea of what magnitude of reward they can expect and when they can expect it.

A great business plan is not easy to compose, Sahlman acknowledges, largely because most entrepreneurs are wild-eyed optimists. But one that asks the right questions is a powerful tool. A better deal, not to mention a better shot at success, awaits entrepreneurs who use it.

• 15 Mar 2024

Let's Talk: Why It's Time to Stop Avoiding Taboo Topics at Work

• 04 Mar 2024
• What Do You Think?

Do People Want to Work Anymore?

• 24 Jan 2024

Why Boeing’s Problems with the 737 MAX Began More Than 25 Years Ago

• 05 Dec 2018
• Research & Ideas

Why Managers Should Reveal Their Failures

• 18 Mar 2024

When It Comes to Climate Regulation, Energy Companies Take a More Nuanced View

• Business Plan
• Entrepreneurship

Sign up for our weekly newsletter

Brought to you by:

How to Write a Winning Business Plan

By: Stanley R. Rich, David E. Gumpert

A well-conceived business plan is essential to the success of an enterprise. Whether you are starting up a venture, seeking additional capital for an existing product line, or proposing a new…

• Length: 7 page(s)
• Publication Date: May 1, 1985
• Discipline: Organizational Behavior
• Product #: 85314-PDF-ENG

What's included:

• Educator Copy

$4.50 per student

degree granting course

$7.95 per student

non-degree granting course

Get access to this material, plus much more with a free Educator Account:

• Access to world-famous HBS cases
• Up to 60% off materials for your students
• Resources for teaching online
• Tips and reviews from other Educators

Already registered? Sign in

• Student Registration
• Non-Academic Registration
• Included Materials

A well-conceived business plan is essential to the success of an enterprise. Whether you are starting up a venture, seeking additional capital for an existing product line, or proposing a new activity for a corporate division, you will have to write a plan detailing your project's resource requirements, marketing decisions, financial projections, production demands, and personnel needs. The plan must reflect the viewpoint of three constituencies: the customer, the investor, and the producer. Too many business plans focus excessively on the producer.

Learning Objectives

To ensure that one's business plan includes proof that a large market exists for the proposed offering and that it addresses investors' concerns, such as when they can cash out.

May 1, 1985

Discipline:

Organizational Behavior

Harvard Business Review

85314-PDF-ENG

We use cookies to understand how you use our site and to improve your experience, including personalizing content. Learn More . By continuing to use our site, you accept our use of cookies and revised Privacy Policy .

What We Do Blended Learning Solution Examples

Tailored leadership development strategies – designed for impact

The key to an effective learning solution is getting the details right. The examples on this page provide a glimpse of how our skilled learning design team brings together high-impact learning experiences to create leadership development programs that deliver on specific objectives. Remember, these are just examples—let us tailor a learning experience just for you.

Example 1: Fostering a Culture of Inclusion

This example, for a targeted set of leaders in the organization, is designed to help leaders create inclusive cultures.

Learning Experience

Moderated discussion:  Informal live discussion with senior executives on: company strategy for promoting Diversity, Inclusion, and Belonging; DIB leadership; and plans for DIB improvements.

“Why Inclusive Leaders Are Good for Organizations, and How to Become One” “To Retain Employees, focus on Inclusion – Not Just Diversity” “Diversity Doesn’t Stick Without Inclusion?”

2-3 hours over 1 week

Moderated discussion: Live conversation with Harvard thought leader

“Two Powerful Ways Managers Can Curb Implicit Bias” “Mindfulness Mitigates Biases You May Not Know You Have”

2 – 3 hours over 1 week

Moderated debrief/discussion: Analysis and discussion of real-life specific business challenge though live moderated discussion and case debrief

HBS Case Study: “Managing Diversity and Inclusion at Yelp”

3 – 4 hours over 1 – 2 weeks

Hands-on Exercise: Based on research that shows that 61% of all employees cover their identities in some way, crippling their professional performance, this exercise provides individual reflection and team-based discussion focused on how managers can create a workplace environment where all members of a team can bring their full selves to work.

“Help Your Employees be Themselves at Work” exercise

Example 2: Leading through times of uncertainty

This example, for a targeted set of leaders in the organization, is designed to address an immediate challenge.

Moderated discussion:  Informal, live discussion among senior executives exploring current company strategy, business needs and goals.

“Leading in Complex Times” “Six Simple Rules for Managing Complexity”

Moderated discussion: Live discussion with a Harvard Business School thought leader.

“The Ingredients of Great Leadership” “You Have to Lead from Everywhere”

Moderated debrief/discussion: Analyze and discuss a real-life business challenge through live, moderated case debrief and discussion.

HBS Case Study: “The 2010 Chilean Mine Rescue”

Hands-on Exercise: Develop actionable strategies to prepare teams to respond proactively, practicing adaptability and agility.

Exercise: “Leadership in a VUCA World” Harvard Business Review Video: “The Role of Tomorrow’s Leaders”

Example 3: Fostering organizational agility

This example addresses needs at multiple levels of the organization, creating a learning cascade to reinforce key messages and principles across the enterprise.

• 3-day HBS on-campus immersion
• 3 virtual modules

Content & Delivery

• Strategic Organizational Agility
• Innovation Culture
• Adaptive Leadership

Work Application

• 1 application/module
• Cascade key messages to midlevel
• Business impact project

• Senior leader led kickoff
• 4 virtual modules
• Strategic Agility
• Collaborative Networks
• Personal Adaptability
• Agile Process & Innovation
• 2 applications/modules
• Cascade key messages to frontline leaders

• Midlevel leader led kickoff
• Agile Processes & Innovation
• Cascade key messages to individual contributors

• Self-guided learning paths
• Manager-led discussions

Harvard ManageMentor®, Harvard ManageMentor® Spark™, LeadingEdge

• Project & Time Management
• Innovation and Change
• Customer Focus
• Application assignments
• Frontline leader-led discussions to cascade messaging, debrief self-guided learnings
• Specialists teach agile processes, reinforced by frontline leaders

Let’s meet your leadership challenges, together

Want to write your own success story? Let’s co-create a leadership development solution that meets your challenges and delivers real impact for your organization’s performance.

Benefit from world-class thought leadership and expertise

Support your strategy with solutions tailored to your learners’ needs

Develop a culture of continuous learning with on-demand solutions

Let’s talk

Change isn’t easy, but we can help. Together we’ll create informed and inspired leaders ready to shape the future of your business.

© 2024 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

• Privacy Policy
• Copyright Information
• Terms of Use
• About Harvard Business Publishing
• Higher Education
• Harvard Business Review
• Harvard Business School

We use cookies to understand how you use our site and to improve your experience. By continuing to use our site, you accept our use of cookies and revised Privacy Policy .

Cookie and Privacy Settings

We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

Because these cookies are strictly necessary to deliver the website, refusing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.

We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.

We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.

We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

Google Webfont Settings:

Google Map Settings:

Google reCaptcha Settings:

Vimeo and Youtube video embeds:

You can read about our cookies and privacy settings in detail on our Privacy Policy Page.

• Business Essentials
• Leadership & Management
• Credential of Leadership, Impact, and Management in Business (CLIMB)
• Entrepreneurship & Innovation
• *New* Digital Transformation
• Finance & Accounting
• Business in Society
• For Organizations
• Support Portal
• Media Coverage
• Founding Donors
• Leadership Team

• Harvard Business School →
• HBS Online →
• Business Insights →

Business Insights

Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills.

• Career Development
• Communication
• Decision-Making
• Earning Your MBA
• Negotiation
• News & Events
• Productivity
• Staff Spotlight
• Student Profiles
• Work-Life Balance
• Alternative Investments
• Business Analytics
• Business Strategy
• Business and Climate Change
• Design Thinking and Innovation
• Digital Marketing Strategy
• Disruptive Strategy
• Economics for Managers
• Entrepreneurship Essentials
• Financial Accounting
• Global Business
• Launching Tech Ventures
• Leadership Principles
• Leadership, Ethics, and Corporate Accountability
• Leading with Finance
• Management Essentials
• Negotiation Mastery
• Organizational Leadership
• Power and Influence for Positive Impact
• Strategy Execution
• Sustainable Business Strategy
• Sustainable Investing
• Winning with Digital Platforms

How to Create an Effective Value Proposition

• 28 Jul 2020

Starting a business comes with many unknowns, but the value of your brand shouldn't be one of them.

Before launching a venture, all entrepreneurs should determine what market need their product or service fulfills, and what separates their offering from other available options. Without this differentiation and definition of opportunity, a new business isn't likely to succeed.

To communicate the need your product fills and its differentiating factors, you need to create an effective value proposition.

Before diving into how to craft yours, here's a look at what a value proposition is and why it's important for your business.

Access your free e-book today.

What Is a Value Proposition?

A value proposition is a statement that conveys what a brand does and how it differs from competitors. It's typically developed as part of a broader marketing strategy and no more than a few sentences long. The initial proposition can be bolstered with statistics and facts that prove the brand's stated value.

Having a value proposition is important because it clearly and concisely communicates what customers can gain from selecting your brand over that of your competitors. This statement can be used in several ways, including:

• On your company's website to help convert potential leads into customers
• When pitching your company to investors
• As an answer to the question, "So, what exactly does your company do?"

As an entrepreneur, it's your job to be your organization's number one advocate and garner the support of others. A short, clear value proposition can stick in the minds of investors, potential customers, friends, and relatives, ensuring your brand's value isn't lost in translation.

To begin crafting your brand's value proposition, start with an understanding of the jobs to be done theory.

Related: 6 Questions to Ask Before Starting a Business

Understanding Your Customers' Jobs to Be Done

The jobs to be done theory was developed by Harvard Business School Professor Clayton Christensen. It asserts that customers "hire" products and services to get "jobs" done, rather than purchasing them based on their attributes and buying behaviors.

"A 'job to be done' is a problem or opportunity that somebody is trying to solve," Christensen says in the online course Disruptive Strategy . "We call it a 'job' because it needs to be done, and we hire people or products to get jobs done."

One example of a successful brand that's used this framework is Warby Parker , founded in 2010 by Neil Blumenthal, Dave Gilboa, Andy Hunt, and Jeff Raider.

The eyeglass company got its start when one of the founders lost his glasses on a backpacking trip. Unable to swing the steep price of a new pair, he spent the next semester " squinting and complaining " to three of his friends, who realized they had been in similar situations.

"We were amazed at how hard it was to find a pair of great frames that didn't leave our wallets bare," Warby Parker states on its website . "Every idea starts with a problem. Ours was simple: Glasses are too expensive."

This statement describes the job to be done discovered by Warby Parker's founders. They realized people had a need to purchase affordable eyewear and, after some research, found there weren't many options in the market.

"Understanding that the same company owned LensCrafters and Pearle Vision, Ray-Ban and Oakley, and the licenses for Chanel and Prada prescription frames and sunglasses—all of a sudden, it made sense to me why glasses were so expensive," Gilboa explains in an interview with Forbes .

The team decided to take things one step further by adding a social justice component to their business model. For every pair of eyeglasses purchased, Warby Parker donates a pair to someone in need.

"There's nothing complicated about it," the company states on its website . "Good eyewear, good outcome."

This satisfies another job to be done: providing customers with a convenient means of helping others. This dual-pronged jobs to be done framework proved to be a success, as the team hit its first-year sales goal in just three weeks .

Warby Parker continues to build its value around jobs to be done and can expect its customers' needs to "purchase affordable eyewear" and "help others in a convenient way" to endure.

"Because a job to be done remains stable over time, it provides a North Star in innovation," Christensen says.

When crafting your brand's value proposition, think about the job to be done it addresses. How does its value center on a persisting need you can fill in a unique way? It's this positioning that can allow your brand to provide the same value for customers as the market advances.

Related: Jobs to Be Done: 4 Real-World Examples

Creating a Value Proposition

You can use the jobs to be done framework as a starting point to craft your brand's value proposition.

Ask yourself:

• What is my brand offering?
• What job does the customer hire my brand to do?
• What companies and products compete with my brand to do this job for the customer?
• What sets my brand apart from those competitors?

For example, Warby Parker's founders could answer these questions as follows:

• Warby Parker offers affordable designer eyewear, including contacts.
• Customers hire Warby Parker to provide high-quality eyewear at affordable prices and give back to the community in a convenient way.
• All other eyewear brands compete with Warby Parker.
• Warby Parker's commitment to giving back to the community and its affordable prices set it apart from competitors.

Next, summarize your points in a clear, concise value proposition. Continuing the example above, Warby Parker's value proposition, as published on its home page , is:

“Buying eyewear should leave you happy and good-looking, with money in your pocket. Glasses, sunglasses, and contacts—we’ve got your eyes covered.”

This value proposition is reinforced throughout the company's website, along with its stated commitment to social justice :

“Warby Parker was founded with a rebellious spirit and a lofty objective: to offer designer eyewear at a revolutionary price, while leading the way for socially conscious businesses.”

To ensure your value proposition is effective, consider running it by a few people who are unfamiliar with your business. If confusion arises, edit your statement to address those points.

Once you have a value proposition you're proud of, make it known. Publish it on your website, incorporate it into your marketing materials, and memorize it for sharing during networking events, pitch opportunities, and dinner conversations.

Related: 3 Disruptive Strategy Skills For Entrepreneurs and Business Leaders

Setting Yourself Up for Success

By positioning your brand as a solution to a job to be done, you can set your company up for success. Creating a value proposition is a reflective exercise that prompts you to take stock of the need your brand fills, who your competitors are, and how you provide a different experience from other products and services.

Condensing these reflections into a succinct value proposition can enable you to convert leads into customers, effectively pitch to investors, and communicate the value of your brand at scale.

Do you want to craft winning, innovative strategies? Explore Disruptive Strategy , one of our online entrepreneurship and innovation courses . If you aren't sure which course is the right fit, download our free course flowchart to determine which best aligns with your goals.

About the Author

Please sign in

You need to log in to use the bookmarking feature.

• Baker Library
• Special Collections
• Fast Answers
• All Services
• Plan Your Visit
• Working Knowledge
• Academic Programs
• Faculty & Research
• Harvard Business Review
• Initiatives
• Map / Directions

How to Structure a Business Plan

Resources and advice to help you write a business plan.

Author/Editor (By:)

Contributor, corporate author, related organizations, citation type.

Business Plans

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

How to Fix Your Company’s Culture of Overwork

• Malissa Clark

A three-step process will make everyone less stressed and more productive.

The new age of flexible of work has encouraged a culture of overwork, which is proving to be harmful to the mental health of employees. In her new book, Never Not Working , Malissa Clark offers a three-step process for organizations to reverse this unhealthy relationship: 1) Assess your company’s baseline level of overwork and its origins; 2) Plan for incremental change by targeting places where change will be most effective soonest; and 3) Execute a trial experiment, learn, and iterate.

Associate professor and head of the Healthy Work Lab at the University of Georgia, Malissa Clark, argues that in a post-pandemic work landscape that transcends buildings – and hours — the boundaries of professionalism and personal lives have been blurred. In her new book, Never Not Working: Why the Always-On Culture Is Bad for Business and How to Fix It (Harvard Business Review Press) , Clark explains the current epidemic of overwork, what it looks like at its worst, and how a generation of employees have unknowingly let their work consume them. This excerpt, which is lightly edited, outlines clear steps that organizations can take to correct a culture of overwork for the betterment of their employees.

• MC Malissa Clark is an associate professor of industrial and organizational psychology at the University of Georgia, where she leads the Healthy Work Lab. She is one of the world’s leading scholars on workaholism, overwork, burnout, and employee well-being. In addition to serving as an expert consultant to many organizations on these issues, Clark and her work have been featured in outlets including the New York Times, the BBC, Time, Glamour, The Atlantic, Huffington Post, and others.

Partner Center